TeleTech Announces Strong Q1 But Does Not Report Full Results

Global business process outsourcing provider TeleTech Holdings, Inc. said Wednesday that it saw revenues increase more than 10 percent in the first quarter of 2008. But the company did not report full results for the quarter as an internal review of stock-based compensation will delay the full report.

Englewood, Colo.-based TeleTech (Nasdaq: TTEC) instead released a first quarter “business highlights” update Wednesday. In it, the company said that revenues grew 10.5 percent to a record $368 million. The company did not release net income data.

TeleTech also said that it is aggressively pursuing offshore BPO models for its clients. First quarter revenue from services performed for clients in offshore locations grew 29 percent to $164 million and represented 45 percent of total revenue. TeleTech currently offers offshore services from eight countries including Argentina, Brazil, Canada, Costa Rica, Malaysia, Mexico, the Philippines and South Africa.

The company said it believes it has one of the largest and most geographically diverse offshore footprints of any global BPO provider with approximately 24,000 offshore workstations representing more than 60 percent of its total delivery capacity.

In a filing with the Securities and Exchange Commission Tuesday, TeleTech said that an internal review of its compensation practices had delayed reporting financial results for the past few quarters. The Nasdaq exchange threatened the company with delisting over the matter (“TeleTech Receives Nasdaq Delisting Threat,” March 12).

TeleTech said that the review is complete and that it will result in a restatement of results for some quarters. The company expects to restate results for years 2005 and 2006 in addition to the first two quarters of 2007. But the company noted that most of the restatements will affect periods from 2002 and earlier. The company did not indicate when the full reports would be filed.