Sykes Hit With Shareholder Suits After Earnings RestatementSykes Enterprises Inc., Tampa, FL, which operates 38 customer support call centers and provides e-commerce services and technology, was hit with several shareholder lawsuits this month after the company said it would restate its earnings for the second and third quarters of 1999.
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."