TeleTech Holdings, Inc (TTEC) has reported a marginal increase of 0.33 percent in profit for the quarter ended Sep. 30, 2016. The company has earned $11.23 million, or $0.24 a share, compared with $11.20 million or $0.23 a share, a year ago. On the other hand, adjusted net income for the quarter stood at $18.26 million, or $0.39 a share compared with $14.08 million or $0.29 a share, a year ago. Revenue during the quarter went up marginally by 1.16 percent to $312.80 million from $309.20 million in the previous year period. Gross margin for the quarter contracted 158 basis points over the previous year period to 25.34 percent. Total expenses were 96.08 percent of quarterly revenues, up from 94.95 percent for the same period last year. That has resulted in a contraction of 113 basis points in operating margin to 3.92 percent.
Operating income for the quarter was $12.27 million, compared with $15.62 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.82 million compared to $19.31 million in the prior year period. At the same time, adjusted operating margin improved 73 basis points in the quarter to 6.97 percent from 6.25 percent in the last year period.
"As outlined in our last earnings call, we moved aggressively in the third quarter to execute initiatives to improve our top line growth and provide higher and more consistent levels of profitability, "commented Ken Tuchman, chairman and chief executive officer of TeleTech. "We implemented several go-to-market changes to be able to advance our top line growth and we completed a number of restructuring activities that are already contributing to higher profit margins in our Customer Management Services and Customer Technology Services segments. The demand for transformative customer experience solutions continues to grow and, with our holistic platform of technology-enabled customer experience assets, we are confident that our go-forward strategy will yield improved financial results in the near term."
Teletech Holdings projects revenue to be in the range of $1.26 million to $1.27 million for financial year 2016.
Working capital declines
TeleTech Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $201.33 million as at Sep. 30, 2016, down 11.05 percent or $25.02 million from $226.35 million on Sep. 30, 2015. Current ratio was at 2.02 as on Sep. 30, 2016, up from 2.01 on Sep. 30, 2015. Days sales outstanding went down to 76 days for the quarter compared with 78 days for the same period last year.
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