TeleSpectrum Lowers 2001 Revenue EstimatesTeleservices provider TeleSpectrum Inc. lowered its 2001 revenue projections yesterday, blaming the economic downturn.
The company estimated that its revenues for this year will be $225 million to $235 million, down from estimates in April of $250 million to $275 million for the year. TeleSpectrum also posted a second-quarter loss of $24.6 million, which includes a $20.3 million charge as a result of the company's efforts to restructure its credit agreement.
Overall revenue for the second-quarter 2001 was $57.5 million, compared with $79.3 million during the same period last year.
As part of the restructuring of its credit agreement, the company will implement a cost-reduction program by the end of the third quarter to provide $5 million in annual savings. The cutbacks will be in addition to an ongoing effort to reduce costs by $20 million annually.
TeleSpectrum, King of Prussia, PA, operates 20 call centers and has 6,000 employees in the United States, Canada and the United Kingdom. The company provides both inbound and outbound teleservices for business-to-consumer and business-to-business marketing and customer service.
The company posted a net loss of $21.8 million for 2000, citing management turnover and reduced work volume.