UPDATE 2-Convergys Q4 earnings top analyst estimates; shares up

martes 27 de enero de 2009 18:16 CET

* Q4 adj EPS $0.30 beats estimate by 11 cents

* 2009 EPS view $0.90-$1.10, vs estimate of $1.03

* Cash balance $240 mln at Q4 end

* Shares rise 25 percent; top gainer on NYSE (Recasts, adds details, analyst comments, share movement)

BANGALORE, Jan 27 (Reuters) - Convergys Corp (CVG.N: Cotización) reported a fourth-quarter profit, excluding certain charges, that trumped market estimates, as revenue from its call center business rose, sending its shares up 25 percent.

The company, which also forecast a 2009 profit range broadly in line with market estimates, posted a loss of 24 cents a share for the quarter, including a charge of 54 cents due to goodwill impairment and restructuring costs.

The company, which also handles billing and HR management, pushed towards its goal of $200 million in free cash flow by 2009, ending the quarter with $240 million in cash balance. Free cash flow in the quarter was $99.1 million.

This assuaged investor concerns over the company's ability to generate the targeted free cash flow, with senior notes worth $250 million due for maturity towards the end of the year.

"Our strengthened cash balance combined with expected 2009 free cash flow is sufficient to invest in the business and pay off the $250 million bond due in December," Chief Executive David Dougherty said in a statement.   Continuación...