Convergys Q1 2014 revenue up 23%, net income dips 55% due to Stream acquisition

Convergys today said its revenue for the first quarter of 2014 (Q1 2014) rose 23 percent to $606 million.

Its Q1 2014 income includes $86 million revenue from the acquired Stream operations for the month of March.

Convergys said its net income decreased 54.8 percent to $14 million from $31 million. This is primarily because of Stream acquisition-related impacts.

Operating income increased 39 percent to $52 million.

EBITDA from operations grew 23 percent to $75 million.

Andrea Ayers, president and CEO of Convergys, said: “We are making good progress integrating the Stream business. Our expanded Convergys team is energized and moving forward as one organization to become the premier provider of customer management services in the world. 2014 will again be a year of leadership and profitable growth for Convergys.”

Stream Acquisition Impacts 

First-quarter 2014 results include Stream acquisition-related impacts consisting of $15 million transaction-related expenses, $10 million integration expenses, $3 million amortization expense for acquired intangible assets, and $2 million depreciation expense related to the fair value write-up of acquired property and equipment.

2014 Outlook

Convergys said it expects revenue will grow 40 percent to $2.9 billion in 2014, while EBITDA will surge to $350-$360 million from $251 million.

The company expects seasonal impacts in the second quarter of 2014 with sequential increase in second-half 2014 results compared with first-half 2014 results.

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