EXHIBIT 99.1
Premiere Global Services Revises
2005 Financial Outlook; Solid Growth in Core Business Practices
Dampened by Weakness in Legacy Broadcast Fax
ATLANTA--(BUSINESS WIRE)--Sept. 13, 2005--Premiere Global
Services, Inc. (NYSE: PGI), a global outsource provider of business
communications services and business process solutions, today
announced that it has lowered its financial outlook for the remainder
of the year. The Company anticipates revenues in 2005 will be in the
range of $494 to $498 million and diluted EPS from continuing
operations will be in the range of $0.66 to $0.67 in 2005, excluding a
pre-tax restructuring charge of approximately $2.0 million expected to
be incurred during the third quarter as a result of cost-saving
initiatives. The Company anticipates that cash flows from operating
activities will total approximately $94 million in 2005.
"Our revised guidance reflects challenges that arose in the third
quarter, in which we experienced unexpected fall-out from prolonged
regulatory uncertainty concerning our legacy fax business and greater
seasonal softness than expected," said Boland T. Jones, Founder,
Chairman and CEO of Premiere Global Services, Inc. "We overcame the
challenge faced earlier this year of replacing revenue from our
largest conferencing customer, IBM, and our core business is
experiencing solid growth. I am confident that we will manage through
this situation. Our Company remains strong and I am excited about our
future for a number of reasons:
First, we offer a compelling business value to our customers by
applying innovative communication technologies that automate and
simplify business processes in four core business practices:
Conferencing and Collaboration, Notification Management, Marketing
Automation and Document Management. We estimate the addressable market
size for these services is over $10 billion* and growing, and we
continue to experience double-digit annual growth in these core
practice offerings. Unfortunately, we expect this growth will be
offset in the second half of the year by a drop in legacy broadcast
fax revenue of approximately 30% in North America from the same period
in 2004, which is a significant increase in the rate of decline over
recent years. We project that by the end of the year, our legacy North
American broadcast fax business will represent less than 7% of
consolidated revenues. This decrease is in addition to the previously
announced expected decline of approximately $17 million in revenue
from IBM also in the second half of 2005.
Second, our management team is focused on specific initiatives to
increase our revenues and profitability. In the area of revenue
growth, we are focused on continuing to embed our solutions into
repetitive business processes, like service alerts, collections
automation, electronic statement distribution and daily collaboration
activities that we believe moves us up the value chain and produces
more predictable revenue. Additionally, we have re-aligned our sales
resources into four core business practices since the beginning of the
year, and plan to continue to meaningfully improve sales productivity
through more effective marketing support. In the area of
profitability, we plan to accelerate our efforts to automate our
internal service delivery and support activities to eliminate costs
and to streamline procedures. In doing so, we hope to create a richer
customer experience for our enterprise users. We believe these actions
will result in significant cost savings beginning in the second half
of next year.
Finally, our cash flow remains strong with $94 million of cash
flows from operating activities expected this year. This cash flow
gives us the flexibility to continue to invest in strategic growth
opportunities, such as the recent acquisition of Netspoke and its Web
collaboration platform, and in our Company's stock, where we have
repurchased nearly 800,000 shares in this quarter alone."
Statements contained in this press release are based on Premiere
Global Services' current expectations as of September 13, 2005. These
statements are forward-looking statements and actual results may
differ materially. The Company assumes no duty to update any
forward-looking statements made in this press release. A discussion
concerning forward-looking statements is included at the end of this
press release and in the Company's filings with the Securities and
Exchange Commission.
* Source: Wainhouse Research and Company estimates
Conference Call
The Company will hold a conference call at 5:30 p.m. Eastern this
afternoon to discuss its revised financial outlook. To participate in
the call, please dial-in to the appropriate number 5-10 minutes prior
to the scheduled start time: (800) 810-0924 (US & Canada) or (913)
981-4900 (International). The conference call will be simultaneously
broadcast over the Internet via SoundCast(R), a Premiere Global
service, and can be accessed at http://ir.premiereglobal.com. You may
also follow this link for details on the Internet replay and for the
text of the release.
A replay will be available following the call at 8:00 p.m. Eastern
today through midnight Eastern September 23, 2005, and can be accessed
by calling (888) 203-1112 (US & Canada) or (719) 457-0820
(International). The confirmation code is 9634924. The Webcast of this
call will be archived on the Company's Website at
http://ir.premiereglobal.com.
About Premiere Global Services, Inc.
Premiere Global Services, Inc. (formerly Ptek Holdings, Inc.)
provides business communications services and business process
solutions that enable enterprise customers to automate and simplify
components of their critical business processes and to communicate
more effectively with their constituents.
We offer data management and delivery solutions and conferencing
and collaboration services on an outsource-basis, hosted on our global
proprietary platforms. Customers apply our communication
technologies-based solutions to a number of business processes, such
as receivables collections, continuing education, alerts and
notifications, investor calls, statement and invoice delivery,
international collaboration, document automation, and other
applications, in order to increase efficiency, to improve productivity
and to raise customer satisfaction levels.
With over 2,230 employees in 19 countries around the world,
Premiere Global Services(SM) has an established customer base of
approximately 56,000 corporate accounts, including a majority of the
Fortune 500. Our corporate headquarters is located at 3399 Peachtree
Road NE, Suite 700, Atlanta, GA 30326. Additional information can be
found at www.premiereglobal.com.
Statements made in this press release, other than those concerning
historical information, should be considered forward-looking and
subject to various risks and uncertainties. Such forward-looking
statements are made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and are made based on
management's current expectations or beliefs as well as assumptions
made by, and information currently available to, management. A variety
of factors could cause actual results to differ materially from those
anticipated in Premiere Global Services' forward-looking statements,
including, but not limited to, the following factors: competitive
pressures, including pricing pressures; technological change; the
development of alternatives to our services; market acceptance of our
new services and enhancements; integration of acquired companies;
service interruptions; increased financial leverage; our dependence on
our subsidiaries for cash flow; continued weakness in our legacy
broadcast fax business; foreign currency exchange rates; possible
adverse results of pending or future litigation or infringement
claims; legislative or regulatory changes; general domestic and
international economic, business or political conditions; and other
factors described from time to time in our press releases, reports and
other filings with the SEC, including but not limited the "Risk
Factors Affecting Future Performance" section of our Annual Report on
Form 10-K for the year ended December 31, 2004. All forward-looking
statements attributable to us or a person acting on our behalf are
expressly qualified in their entirety by this cautionary statement.
CONTACT: Premiere Global Services, Inc., Atlanta
Investor Calls
Sean O'Brien, 404/262-8462