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Sykes organic growth slow

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  • | 8:25 p.m. May 4, 2010
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The latest earnings report from Sykes Enterprises Inc. (NASDAQ: SYKE) disappointed investors, as an acquisition-fueled revenue boost failed to compensate for an overall slowdown in business.

The overall result was a $9.51 million net loss for the quarter, which translates to a $0.21 per share decline.

The decline was caused by the expiration of some existing programs, as well as “softness” in technology activity, a release said.

Sykes reported a 35.4% year-over-year revenue increase, but $65.3 of the $275.22 million earned was attributable to the company's acquisition of ICT Group late last year. Excluding that transaction, the company's revenue dropped 3.2% for the quarter.

The Tampa-based company was founded by John Sykes, the subject of a recent Review feature, titled “Ongoing Legacy.”


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