Sitel Earnings Slide in 3Q
Sitel's net income for the quarter was $1.1 million, or 2 cents per share, down from $3.7 million, or 5 cents per share, during the same period last year. Overall, when restructuring charges were factored in, Sitel lost $5.9 million, or 8 cents per share, in third-quarter 2001.
Revenue for the quarter was $173.8 million, down from $185.3 million last year. In a statement issued two weeks after the Sept. 11 attacks, Sitel said it had expected to report third-quarter 2001 earnings of up to 2 cents per share before restructuring charges and revenue of $170 million to $175 million.
Sitel chairman/CEO Jim Lynch said the company met its third-quarter revenue and earnings outlook despite having its U.S. business reduced during the two days after Sept. 11 and continued effects on its customer-acquisition business for several days afterward.
However, the company continues to grow and recently announced new contracts, including a partnership to operate a 400-workstation call center in Panama for Cable & Wireless and an expanded contract with General Motors Credit Corp. for teleservices in Europe.
Sitel projected fourth-quarter 2001 revenue of $175 million to $180 million and earnings ranging from break-even to 2 cents per share.