Revenue during the quarter went down marginally by 0.05 percent to $741.20 million from $741.60 million in the previous year period. Gross margin for the quarter contracted 130 basis points over the previous year period to 35.17 percent. Total expenses were 93.34 percent of quarterly revenues, down from 93.55 percent for the same period last year. This has led to an improvement of 22 basis points in operating margin to 6.66 percent.

Operating income for the quarter was $49.40 million, compared with $47.80 million in the previous year period.

However, the adjusted operating income for the quarter stood at $61.20 million compared to $62.20 million in the prior year period. At the same time, adjusted operating margin contracted 13 basis points in the quarter to 8.26 percent from 8.39 percent in the last year period.

"We generated solid EPS and strong free cash flow, and experienced another quarter of strong new business signings," said Andrea Ayers, President and CEO. "While revenue and profitability came in below our expectations due to slower than anticipated seasonal ramps and continued volatility in the communications industry, we are encouraged by several contract wins with existing and new clients across the vertical markets we serve. Our record of operational excellence and progress penetrating high-growth industries give us confidence in our ability to grow, diversify our client base, and expand margins over time. Ayers added, "We continued to invest in the business for strategic growth and value creation, acquiring buw for approximately $139 million, repurchasing $16 million of stock and paying a $9 million dividend in the quarter, and will remain disciplined with our capital deployment strategy."

The company has spent $194.30 million cash to meet investing activities during the nine month period as against cash outgo of $88.40 million in the last year period.

The company has spent $118.10 million cash to carry out financing activities during the nine month period as against cash outgo of $117.40 million in the last year period.

Cash and cash equivalents stood at $129.10 million as on Sep. 30, 2016, down 26.56 percent or $46.70 million from $175.80 million on Sep. 30, 2015.

Working capital declines
Convergys Corp has witnessed a decline in the working capital over the last year. It stood at $427.40 million as at Sep. 30, 2016, down 18.85 percent or $99.30 million from $526.70 million on Sep. 30, 2015. Current ratio was at 2.24 as on Sep. 30, 2016, down from 2.28 on Sep. 30, 2015.

Days sales outstanding were almost stable at 66 days for the quarter, when compared with the last year period.

Debt moves up 
Convergys Corp has witnessed an increase in total debt over the last one year. It stood at $361.50 million as on Sep. 30, 2016, up 8.98 percent or $29.80 million from $331.70 million on Sep. 30, 2015. Total debt was 15.12 percent of total assets as on Sep. 30, 2016, compared with 13.25 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.27 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio improved to 10.74 for the quarter from 10.39 for the same period last year.