ARM Vendors Knock Out Quarterlies

Several vendors to the ARM industry knocked out quarterly results in the last 24 hours, though the results were far from a knock out.

Government services provider Maximus Inc. reported today a loss in its third fiscal quarter of $14.4 million, compared with a $17.3 million loss in the same period a year ago. Revenues rose 5 percent to $196.6 million from $186.6 million a year ago.

In July Maximus announced it had settled a Medicaid fraud case with the U.S. Justice Department for $30.5 million and that it was exploring strategic alternatives for the company, including a possible sale.

TeleTech Holdings Inc., a business process outsource firm based in Englewood, Colo., late yesterday reported second quarter net income of $9.2 million, down 25 percent from $12.2 million in the same period a year ago. TeleTech took a restructuring charge of $13.8 million related to its database marketing and consulting division and reported it would seek to divest the segment.

Second quarter revenues were $329.8 million, a 14.8 percent increase over the year-ago quarter. Revenue in TeleTech's BPO business grew 16.7 percent over the year-ago quarter to $324.1 million.

TeleTech runs offshore services in Argentina, Brazil, Canada, Costa Rica, India, Malaysia, Mexico and the Philippines and is in the process of launching operations in South Africa. Revenue from offshore services grew about 44 percent to $132 million in second quarter, representing 40 percent of total revenue.

Kenneth Tuchman, chairman and CEO said in a statement the company planned to add 5,000 workstations in six locations during the second half of the year. TeleTech’s stock was up 13.3 percent to $34.25 in midday trading today.

Call center operator APAC Customer Services Inc. yesterday reported a net loss of $5.4 million in its second fiscal quarter ending July 1 compared with a loss of $800,000 in the same period a year ago. Deerfield, Ill.-based APAC attributed the decline to lower gross profit margins, an increase in restructuring and other charges, higher interest costs and the inability to recognize normal tax benefits for accounting purposes.

Revenue for the 2007 second quarter totaled $53.8 million compared with $58.2 million in the second quarter of 2006. Revenues from off-shore operations grew 53 percent but the Medicare Part D business declined $6.0 million from the prior-year quarter. The company reduced seat capacity at its own domestic customer care centers this year by approximately 800 seats and restructured operations. APAC completed its transition into a third site in the Philippines, began managing a second United Parcel Service site, and expanded its operations with the publishing industry.