TeleTech Holdings Inc. (TTEC), a provider of business process outsourcing services, Wednesday said it filed all of its delayed periodic reports with the Securities and Exchange Commission, including the restated financial results for periods beginning fiscal 2006 through 2007, necessitated upon an independent review of the company's historical equity-based compensation practices. Pursuant to the restatement, TeleTech incurred total non-cash, pre-tax expenses of $59.7 million.
The Englewood, Colorado-based TeleTech, which is currently not in compliance with Nasdaq's continued listing requirements, expects to regain compliance following the filing.
The voluntary review identified certain errors in the accounting for equity-based compensation from TeleTech's initial public offering in 1996 until August 2007, resulting in the restatement of historic financial reports.
The review also indicated that there were additional lease and other accounting adjustments for the years 1996 until June 2007, amounting to pre-tax adjustments of $5.6 million. Pursuant to the review, the company incurred incremental selling, general and administrative expenses of $16.5 million, with $11.5 million of which incurring in the third and fourth quarters of 2007 and $5.0 million incurring the first quarter of 2008.
For the first quarter of 2008, the company recorded GAAP net income of $19.1 million or $0.27 per share, while net income on a non-GAAP basis totaled $24 million or $0.34 per share. First-quarter revenue increased 10.5% to of $367.6 million from of $332.7 million in the prior-year quarter.
For fiscal 2007, TeleTech recorded revenues of $1.4 billion, up 13.1% from 2006. GAAP net income for 2007 was $53.1 million or $0.73 per share, higher than $51.0 million or $0.73 per share last year. Net income on a non-GAAP basis for the year was $76 million or $1.05 per share. GAAP income from operations for the year grew 10.9% to $81.8 million from $73.8 million in 2006.
Looking ahead, TeleTech currently expects it annualized revenue to be $302 million. The company expects its 2008 revenue to increase a minimum of 6% to 8%. On a long-term basis, the company expects to return to double-digit revenue growth rates under more favorable economic conditions. Operating margin for 2008 is currently expected to be between 9% and 10%, excluding unusual charges.
TeleTech's board also approved an increase in the funds available for share repurchases up to a total of $100 million from $53 million in last November.
TTEC closed Wednesday's trading at $17.90, up $0.04 or 0.22%, on a volume of about 1.22 million shares. In after-hours, the stock lost $0.04 or 0.22% and is trading at $17.86.
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