Aug. 3: SVR, SYKE

By Business Observer Staff
| 2:58 p.m. August 3, 2010
| 1 Free Article Remaining!

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Syniverse Holdings Inc.
The continued popularity of mobile technology helped drive revenue growth for Syniverse Holdings Inc. The firm generated $158.8 million in revenue in the second quarter of 2010, a 39.9% increase from last year.

Another factor in Syniverse's year-over-year growth was the recent impact of its 2009 acquisition of VeriSign, a Mountain View, Calif.-based company. Roughly $43.1 million of this quarter's revenues are attributable to that transaction.

Excluding VeriSign's impact, Syniverse revenues showed year-over-year growth of roughly 1.9%.

Regardless of their origin, however, profits surged in the recently concluded quarter. Syniverse posted a net income of $22.3 million, good for $0.32 a share. Those numbers are up 35.6% and 34.4% respectively.

“Execution remains strong, and Syniverse continues to generate solid earnings and cash flow,” said David Hitchcock, the company's CFO, in a release.

Syniverse Holdings Inc. (symbol: SVR) provides mobile technology services in more than 160 countries. The company is headquartered in Tampa.

Sykes Enterprises Inc.
Like Syniverse, Sykes Enterprises Inc. also enjoyed a revenue boost in the second quarter of 2010 as the result of an acquisition from late 2009. However, operations excluding that acquisition did not grow.

Overall revenues were up 43.3%, at $299.2 million for the quarter, representing a $90.3 million increase. But last year's purchase of ICT Group contributed $98.5 million to this quarter's revenues.

That $8.2 million drop would have translated to a 5.9% decrease.

While last year's purchase helped lift revenues, profits fell for Sykes. The company earned a net income of roughly $2.5 million, down 83% from last year's $14.3 million total.

Lower demand for outsourcing services was the main culprit in lowering revenues, the company said in a release.

Sykes Enterprises Inc. (symbol: SYKE) specializes in business process outsourcing. The company is headquartered in Tampa, and was featured in an April issue of the Business Review.