Sykes Hit With Shareholder Suits After Earnings Restatement
The company said the restatement was related to delaying the recognition of revenues from certain software and service contracts. Sykes' revised second-quarter results included profits of $4 million on revenues of $134.1 million, compared with previously reported results of $11.5 million on revenues of $146.1 million. The new third-quarter results included profits of $4.3 million on revenues of $141 million, compared with previously reported results of profits of $14.1 million on revenues of $161 million.
"The lawsuits are completely without merit," the company said in a prepared statement, and both Sykes and the members of the management team that were named in the suits would "defend the lawsuits vigorously."