CORRECTED - CORRECTED-UPDATE 3-Convergys posts Q3 loss, sees weak Q4; shares

martes 28 de octubre de 2008 18:57 CET
 

(Corrects last paragraph to show the company is headquartered in Cincinnati, Ohio, not Cambridge, Massachusetts)

* Q4 EPS, revenue forecast miss expectations

* Shares fall 31 pct, their biggest intra-day pct drop

* CEO: Costs of outsourcing rising, clients delay projects

* Q3 EPS $0.29 beats estimates (Recasts, adds analyst comments, updates share movement)

By Sayantani Ghosh

BANGALORE, Oct 28 (Reuters) - Convergys Corp (CVG.N: Cotización) shares saw their biggest-ever percentage drop after the call-center operator posted a quarterly loss as it wrote down charges related to HR management contracts and guided fourth-quarter results below estimates.

The company's expected profitability from some large HR contracts were significantly less during the quarter, forcing it to write off a portion of implementation costs.

Convergys incurred a pretax write down of deferred charges related to contracts worth $272.9 million, a bulk of which was due to asset impairment.   Continuación...