TeleTech Will Restate Certain Financials Back to 2005

Call center operator TeleTech Holdings Inc. reported in a regulatory filing this week it would restate its financial statements for the fiscal years 2005 and 2006 and the first two quarters of 2007. TeleTech announced in the filing with the U.S. Securities and Exchange Commission that it would also file its quarterly reports for its three most recent quarters.

TeleTech’s problems began with the improper awarding of stock options to executives in 2005. An internal audit found in February that it had backdated certain options, giving the executives the opportunity to buy stock at a low price. TeleTech delayed filing its recent quarterly reports as the audit was conducted.

The Denver-based firm also has amended for the fourth time the terms of a $180 million line of credit, according to the filing. TeleTech pledged to deliver its updated financial statements to its lenders by August 15, 2008. Key Bank and Wells Fargo are listed as participating in the credit agreement.

The lenders agreed to accept the delay in the filings, in a restatement of TeleTech’s previously filed financial statements, and a letter from the staff of the Nasdaq stock market on the possibly delisting of TeleTech’s shares due to the delayed filings.

TeleTech reports its worldwide operations include 51,000 employees utilizing 38,000 workstations across 88 delivery centers in 18 countries.