SYKE - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the Sykes Enterprises' First Quarter 2019 Earnings Call and Webcast. All participants will be listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to John Chapman, CFO. ahead. go Please

John Chapman

Chuck Good call, us Claudia. XXXX and you Investor call thank made Results. Kumar, I and Thank Head results quarter, our after we to which morning, discuss joining of I'll are the on provide today me by On Quarter progress our followed Sykes operational the update for solid questions. CEO; With Subhaash a today's you, review Relations. today everyone, an Sykes, Enterprises' Chuck Financial of of key and will two an operational of take From the the the financial indicators performance on both business. standpoint, three First for

drove came expected these comparable better exited than the action XXXX. margins utilization guidance increase motion relative in operating set our on tied we during were in plans of success period. Both similar we the quarter. in facility on implied Our to We directly rate gains to the comparable as

close ramping about and we agent business are At the phase capacity for successfully validating seeing we rationalization, observations we Specific the growth, expected. to XXXX. while delivered I have market first, our part operational in rationalization, of opportunities. improvements. of next now to the operating than consistent things we is quarter our readiness, the on line would on to time, worldwide. three absenteeism improve final of U.S the is have We are we we refine growth some XXXX to the growth as closed simplify better to to pursuing Having that like faster make differentiation we sight guided continue are same with attrition model exited what and wrapping up and executing in which revenue on revenue

sign of will the business a our our operating demand state and it third readiness. second in underlying quarter and Although strong margins, of this impact the is

and line equally of a vertical, mix demand of geographical encouraging. is business the Second, from perspective

are opportunities. wide seeing ranging We

the home XXXX services, We logistics winning also client with within social business consumer increased Global retail. new segments outside logos, is over represents of to financial of expected a remain to opportunities points validation. health positioning in meaningful has of share media still recognized period the FinTech, care, automation, technology, We new the firm, XXX Research, XX%, XX% accolade. number The recently and its our the exposure in basis leading vertical to wins; to other clients led of a their analyst value capability some rationale out acquisitions the been together as given strategy one with out automation chain. opportunities of big has given business and go-to-market ecosystem Symphony, for significant third, recent source HFS result were already taking and are and on which called an strategic lines, Incidentally, with capturing XX services revenues addition by has travel as our lines enterprise-focused company customer the contenders segment. communication which that industry HFS communications, versus greater a We're and opportunities our in opportunities winning traditional and new economy engagement for as a verticals is broad comparable of basis. marketplace a XX-month now vision of across in

where our capabilities a platform these we of to the service, by capabilities transformational strong engagement acquired RFPs respond invited being customer RPA are around solid More importantly and play to reputation to acquired role. though, pivotal augmented self thanks now

clients differentiated the our a be trying believe between but we whilst coherent We to journey partner lose experience positioned optimal with customer market, customer sweet we spot driving the are and costs, superior in with optimizing transformation a for find clients. being to a platform to are go a creating pursuing as selective so to these balance on not in engagements focus uniquely

to Now, results. first financial let me quarter XXXX turn

Let’s quarter This start outlook our at of vertical. the revenues of with In to of due revenues. first the outlook $XXX in largely range versus quarter, end million. is million $XXX million the $XXX low million we client our million, to of reported $XXX.X business largest $XXX to our communications

flat, were constant transportation currency XX%; Looking a partially health constant leisure a at basis, previously vertical care basis. year-over-year communications from was and and currency basis, up Other, disclosed roughly around excluding technology XX%; up discontinue down includes By to roughly up on but to was services financial program, and decisions basis. a which were X% a the retail, growth is comparable XX%. services was that on would It worth vertical flattish constant drive strategic the which down our a all currency of financial vertical the swung revenues on roughly basis, have X%; reported on we market offset around by noting up XX%; X.X% on

the write-ups, First increased quarter to acquisition and integration merge XXXX basis, period acquisition X.X% and a restructuring the last from charges which XXXX for of non-GAAP related comparable impact quarter excludes related the On related and intangibles X.X% actions year. primarily margin operating costs X.X% fixed the first U.S, of an with in year. margin versus capacity comparable same in operating to mix coupled operating to partly was period due The X.X% actions. margin to in business in rationalization last improvement these asset increase was

which quarter Trust associated by negative XXXX points In impact programs a through XX markets. global adjustment reflected increase were stock-based the or margin in financial first of $X.X basis operating impacted comp a million mark-to-market the deferred recent with Rabbi the investments, addition, funded

moment, outlook interest top range XX% during tax to well company's per clients period a of adjusted were success of aforementioned quarter $X.XX per Coming top per share total per with to -- when $X.XX. comparable The to $X.XX first comparable on $X.XX increase on diluted last came XX and down diluted capacity due share versus diluted one a the at year mix as end of consolidated to The factors. XXXX first represented due earnings earnings ago a increase $X.XX guidance XX% rationalization. with campaign, share principally First principally basis. diluted a in due the revenues was revenue basis earnings actions to for in in XXXX clients. business non-GAAP year period, the quarter, the were for of consistent $X.XX the decline the sorry, client quarter the XXXX versus the on basis related other the earnings the in from our first quarter the and expense as share, basis, same largest from rate, On to

vertical. the We in in driven lower have XX% period, at versus in client XX.X% mostly clients by no one the ago communications quarter the by demand year

to Now let balance sheet flow slide, items. me and turn cash

is During reduction expenditures EMEA. ago for days capital roughly of first and basis. The intensity XX in consolidated for up three on year DSOs DSO Americas collected days were capital capacity after days to basis with days period. on XX split first within assets. the timing-related quarter the were days, existing worth a DSO XX X.X% down of days and quarter, in of a focus driving few the the The on was from the end. We for nine quarter coupled a revenues revenues of largely Trade X.X% utilization comparable

cash XX.X% XXst sheet at of with cash XXXX operations. approximately million, $XXX.X international $XXX.X which equivalents in million and remains strong or was of balance March Our held

During we the our million $XX down $X of from million quarter, facility. borrowings with $XXX paid credit outstanding debt of million

our hedge some exchange of continue foreign We exposure. to

of year full we quarter average XXXX, rates XX% and second dollar, XX% XX.XX For the and U.S. the PHP hedged have XX.XX to and respectively. PHP and XX% at weighted approximately

of approximately XX% at roughly exposure XX% addition, weighted CRC Costa second the and XXX.XX quarter the XXXX hedged In are U.S. average our rates and Rica for XXX.XX CRC full and dollar. to colón year of

On X,XXX capacity a approximately some quarter comparably. seat ended of approximately X,XXX basis, On a by a basis. North roughly of basis, seats, let's seat partially which rationalized for gross consolidated first and the of XX,XXX America rationalized Now total with was company offset brick-and-mortar count in were seats, seats worldwide of amount we review additions X,XXX seats metrics. X,XXX on demand. down a utilization year-over-year The total

be X,XXX at was XX% versus the quarter in for of Capacity combination in period rates due quarter. increase brick-and-mortar the XX% for is of facilities. the of seat XX% EMEA further can was driven Americas' XX% capacity year The complement to and combined ago mainly XX% rationalization year and utilization increase XX,XXX a quarter utilization platform utilization with down Americas end a versus on EMEA as to The EMEA. the for our The in were first capacity the for to our reduction program. to broken and EMEA due utilization ago in Further by rate Americas expansion count and first Americas basis in factors. the mostly previously a stated in XX% the at-home the

turn to business let's Now the outlook.

We tweaking full our outlook year XXXX slightly. business are

we relative the end trimming the reported we quarter's top the end, range. of reflect provided our the the revenue are only intact revenues While but are to range lower first bottom keeping in the February, outlook at end to of

occur our front-end business share vertical per earnings the We ramp to impact communications which by and of to third we as from GAAP reflect than the but of end of new above. wins. demand quarter in some new largest in to accelerated non-GAAP in year stabilization share being revenue start the diluted the margins time, business are wins, which associated year. at ranges the loaded the schedule discussed reduction is client second of earnings extent to and ramp in expected cost and of with heavier, offset anticipate second half of close to higher per an adjusting forecast as both the is The the At same the to the opposed the costs

an in quarter are on to could rates million Our expense as any rate following amount to potential both per results XXXX. year remain both factors, and between foreign for effective XXXX Therefore, or million for exchange of of expense in tax million; impact to on per volatility total share interest million; continued the year, fully functional rates to the in of we GAAP foreign XX%, non-GAAP non-GAAP diluted currencies on the serve financial quarter full net -- above. the the range of tax diluted non-GAAP in and of we the expect revenues We share share anticipate full -- rate; $X.XX year million. and the Considering a second $X.XX; outlook exclude however, for of have and exchange per to revenues full the markets $XX relative interest relatively $X.X initial The gains the of three count full the approximately $X.XX effective and exchange we share earnings negative February the a foreign second the per dollar approximately range rate share June XX: year. future April as quarter range for of further XX% earnings to other the months expenditures the earnings positive U.S. approximately $XXX other of assumption $XXX based impact the million million above in XXXX outlook. of approximately And unchanged losses. capital revenues compared income anticipate ended in the $X $XX earnings second business for $X.XX; and to and discussed $XX.X diluted

to expenditures $XX range the of months share the we $X.XX earnings the approximately diluted to in $X.XX earnings With range ending in December the rate share in $X.XX; count $X.XX; billion; revenues that, non-GAAP million; million XX like an approximately XX%; for of $X.XXX following anticipate effective capital fully approximately financial to and questions. to of to billion diluted XX, the For of open tax call XX.X million. up $XX share $X.XXX range Claudia? the of of diluted per per results: I’d

Operator

in expressions of by currently relate relate this now Before the I the they differ materially SEC to are relate that and to based they me It the and to financial intended information turn identify any company’s as from And statements. on has actual to those made Factors identified statements. in of from our call contain call important answer begin with forward-looking actual is release we are business question made statements were to during assumptions will Such those to expect that management we information press course projected in Q&A, materially we time-to-time. the management cause the could the and anticipate, goal, future statements performance company’s Form filings as yesterday’s that forward-looking. could session. company’s note Phrases other results the such XX-K you well statements to forward-looking and results company beliefs to similar asked as differ the are forward-looking over as the and from the to as such management. that certain available

Operator

Instructions] Our & is Josh Co. question first [Operator with Sidoti from Vogel

Josh Vogel

maybe gives you and mid-XXXX basically a and will we And you with similar down can later happened headwinds you're what seeing maybe or this actually just with your been first, volume saw I'm versus revenue guess largest since fairly XXXX, for quantify even regard the potentially that I in decline bottom to what confidence year stabilize they us further for in trending Convergys? to it's I know, steady client? XXXX revenue

John Chapman

been, continued vertical, the you're client and spoken would years and volumes given we struggle partners expectations than we've there's it's was were impacted in in In Yes. the are half agents you to and but now. market, we're deliver decision The And on client the exception, have that your so in getting the in largest pointed QX service had volume volumes there, on about you actually committed no calling general, is got do don't weakness has and see customers both our than a get QX two we our of be see is volumes. overall that as but us as volumes sales to lower for we factors to in we the specifically the reduce had support have acceleration all less by real weakness and such, for, an of the do getting and using space. client for the much sites it's of self-service with general in strategies client when main QX What really space space we the more in year weakness made the the volumes the a second all less I and you've but in close saw network, clients general as that market got that wireless not delivered, wireless profitability the our in because you drag not right, What number mean, business. client's delivered largest that we out you, volumes. and that's that seen in

now the we that's is see weakness And QX in impacting so didn't more see half unfortunately, we QX our in that in overall event general that revenues that second volumes. than the

in giving we an in we revenues remain, for kind the in QX should improve that those X the probably deliver of decision our but of is been capacity that see we volumes impacting that as got issue of by have they're ramp good and overall. to client's in see that news re-purpose that We get obviously to sites The weakness it rightsizes kind has utilization going terms a so bit sites we revenues down. that is it and impacted our that the of from us

In look to we last overall, if the growth overall, weakness, terms but by that's scale. close I X% what that's that's about X.X you XXXX to around of higher and expect we impact client our guess the largest in the time, probably it saw X.X% to points than overall

and the long the see because we no rightsizing one there's come volumes that is the having bit we're doesn't impacted volumes that that for of up that in our we volume hopeful out probably we we that network it's by Yes, sites like that but term use want been like the for that committed space utilized because do fact could think point client is in. for elsewhere. that we right seeing to losing we by stabilize are are and we've there. are will we we the seeing get all actually So to We'd the the so freed and decision, a growth the that

Josh Vogel

very both there seeing, old it, we’re anything structurally on guess of the economy the All I your pipeline that business from other strong right. That’s and side new is And economy of is clients? new helpful. driving different

John Chapman

we refocused we’ve what we’ve And and adjust name rescaled our we’ve our In is restructured, focus. of efforts have excellent for done service We’ve moves. pipeline efforts, our mix accolades a in specific. marketplace. strategic we under sales some delivering main, our good marketing clients. nothing received No, message we’ve the for build spoke vertical to the and to We the our managed got about been

at So, there making Josh. I And don’t the portfolio and needle But silver get one adjustments move And new geography, don’t silver over-indexed how see names are is names. in -- the factor really really in that any initially, difference. about any that the But being any spoke we want is asset a the difference, one is is the the say look of that the we bullet bullet, for call growth of realignment making out new all one made. and as client, new is but seeing no could no future. are successes although, with together names root a in we vertical. you having the have, we’re that it’s don’t we’ve case one we reason, And to one there one

we had wins. lion’s definitely base client And with the are that is by encouraged new so large growth whereas, success of the past see, in the still and we the share clients existing our we

multi-shore. new of multi-vertical that the old at. economy widespread, list style look But of in kind it that is and some Russell is existing we XXXX the some is and in And it of

about good feeling it. we're -- we’re yes, So

Josh Vogel

what white the to deem debt get landscape? the could and you allocation any Great. as still would talk or repayment, outside to spaces on Is acquisition maybe technology you products that just And about of Okay. to in capital of into? terms with front strategy there want services looking you your regards

John Chapman

deals can white mean, at have fill spaces we’re looking don’t white No, that always I many geographically. space. We

that I unit that’s vertical. that's revenues has been I QX we’re at, down. a to health think we’ve the -- in doing the terms something in go footprint It's would well our and about terms mean, is sequentially those share focused. always QX would there's I still ours still still to we always have from business. market see is in nothing relative looking clearly is in spoken in in I But you why, there improve are say the out of mean and vertical focus nothing really can it there. find are I that say, there changed we we in share of health of very health the what of terms or we market look I But for, disciplined we're think, but looking and where is health

Josh Vogel

Great. Okay.

or tell as me are sure voice is lastly, And Just can you are about right you I just was how I’m my allergies feeling? now. not, and your not curious beating guys how up doing Chuck,

Chuck Sykes

kind of still messed dysphonia. tell. you I can have spasmodic up It’s adductor as

just start it’s therapy to to it XX But be May I’ll So voice going get I’ll the progress doctor and be a able long back. back. says

can craziest So ever it’s say, dealt I with. have thing, That’s all Josh, the I so...

John Chapman

if Josh, thing, Chuck the perfectly crazy can right, talk he is to pathway the is obviously voice because different. is right, box well running, The

call. on him threaten did the treadmill throw a for we to So

Josh Vogel

that I Chuck. going front, better you're I'm through feel you hope sorry speedy recovery and Well, a that on and

Charles Sykes

Chapman, I great. Josh. meetings It's my it. with me sound anyway, team makes this why I but is feel good voice horrible, getting Thanks, just yes. you're appreciate

Operator

from Bill is with Wells next Fargo. Warmington Our question

Bill Warmington

I if your bad of don't bad just to Rest had I anything. one say you Chuck, my actually questions. really please voice, feel answer feel

Charles Sykes

laughing. questions better, I I talk going answered keep took so questions, when me I to if Josh's I'm see You'll last thought, could get. I after all I just of care laugh, No, you the

Bill Warmington

All right.

is like gone to down versus 'XX, I this basis, XX% million at So you run-rate quarter is it I revenue? of Are it on looks XX% probably a about to they $XXX million What AT&T big which $XXX a competitors? like they AT&T look in and and question comp withdrawing that from it that follow-up bringing they're to service quarter the being pretty in-house? is is mean, down currently, simply it question around Is Are mean, reduction you've looks the first where from going on levels? the disappearing is AT&T. happening revenue I revenue XX% a The because accepting XXXX it services? in basically, a with have lower going? if

John Chapman

got we lot are I volumes. we client got volumes I say in What there in play would we lines wireless got are seeing are impacted that can we I would happening not volumes have the being and would terms across elsewhere. business we seeing the And is the has so segment is into sorry, been, largest down, out board. got the what have they AT&T we say is, see a coming has is singled say, has Well, do and of the we volumes we our than the operate see and multiple there of more what's where there to volume reductions and that visibility

mean, we're the sharing We in exactly try our And and portfolio I client. ourselves working rebalance the how marketplace. the within there movement do kind of see we is mix reductions. are volume less why But in even to

of business. significant the We got our client from adjust utilized telcos. going half we our we is want at this Obviously, to last the or people the to are right it thing footprint, the was long-term view to us. and we're fact, a thing The the facility. thought for that right largest of thing mean to it's other the look stabilize. But and when the we the made do in it's I We client similar decision profitability as the of that actual have reducing seeing it really most middle it's in was I year, said,

it really got fact time that real happened, where a it's that growth nice had is we we growth really whilst So at now in we've not it some XXXX, happened and we the U.S. happening, where pain and growth. unlike a had domestic-focused was really prefer telco-focused, has it

where for it’s We’re got on the seeing more in focused focused us, that’s, -- more we’ve areas growth happily offshore capacity. and

we again, our about don’t speaking start we will the QX. largest going to say But But costs feel away. need good it production is, do but what feel to going we’ve that adjustment through client we’re really when position We see ramp-up the forecast. are we to we in be share February. that to the together would site in stronger scale news about, start we see and we ramp to than guided the we the to the back. the impacting get components at time don’t of just I we’re be So -- QX we a we’re AT&T where our the of good once through to by get that will adjustment that it made get going, forecast, is expect We this with that scale QX

our good So it’s in story. news on Obviously, ramps. that’s all the business, execution about

that ramps, a got you introduce does ramps. we into and it makes like. committed if when on execution got we’ve yes, so, of are absolutely record of forecast scaling it that your But track delivering And riskier you a factor

this, normal we by, it’s phased will by more in not guess, when way be the are we’re through get would QX. and whilst I business enthused in than So, any risky we where it

Bill Warmington

then that acquisitions EMEA. out currency constant question backing by total revenue for Okay. Americas could organic you. FX. housekeeping and I mean and for And contract I company, to the A see growth loss for for wanted and get I if

John Chapman

of was X.X%. FX is if about terms at you’re QX, in currency think you the if you X.X% constant currency. So midpoint about implied of look about really growth. it, X% guidance at look so a is headwind, our And organic EMEA is overall, number at the X% guidance constant I looking

and the of organic, just would you you looking about X.X%. over currency terms X% take out are so constant acquisition, In

okay what about the look If largest... you then at,

Bill Warmington

constant first Hold revenue on. growth That’s organic Hold for quarter? on. X.X% currency the

John Chapman

No. No.

For the year.

BillWarmington

it. year. For the Got

John Chapman

factors X%. got year, look we’ve largest the And One X%. we’ve our out called of One that impact two X.X% the is client impact program, If services for of is at the before. kind is to financial the and of that you

you excluding largest but So again, currency bit weird, I it’s exclude the constant those growth you X.X% if X% looking to between exclude discrete that, then know a items at there. organic we’re client,

Bill Warmington

it. Got

to for Okay. quarter And just on the that just first that. triangulate you then reported,

constant currency organic. was, So EMEA X% about you said,

John Chapman

because was at my X%. for have Americas, around number I’m don’t I head. that Subhaash EMEA looking in

Bill Warmington

company... total Americas

Chuck Sykes

was I flattish. think it X% to

John Chapman

Yeah, it’s yes. flat constant currency -- flattish, organic was

Bill Warmington

Flattish, All into rest. okay. can We the right. back

John Chapman

You number can Americas the back into yeah. then,

Bill Warmington

If that to you trust with want kind of math. me

So about outside some you're How able digital was sell Clearlink base? broadly whether within how you And to doing? the that specifically, I the ask are wanted get marketing to and service? traction that client to buyers as traditional of the able

John Chapman

again Again, weirdly, That always share going difficult target the to more would success point the been business again, this in say -- but at where you we it's said pulled the and I X% with revenues because, to had already trend a obviously. point, we our for the guys I that's while. got. but margin being about how has unchanged. such. acquisition don't to would digital speaking describe seeing Symphony become about just the as exciting. when been we Clearlink I pretty much margins, That we moves, been tougher marketing of in as of a this I pitches that we've where double-digit. combined successful. say did I out marketing X% joint comps speak I rather growing at Clearlink. that the [call double-digit is we've we're is opposed how strategic out to would growing at That's to with expectations some, point think I is a success certainly to space that [indiscernible] -- shared on say, success continue pitches as But more which in we as some think than do don't It's want of getting that. Clearlink, digital It been terms again, are with our we've joint want We have still will we've and we've set] some above call have been our would

Bill Warmington

Got it. All right.

does it me career. pause Chuck, of hope and a karaoke better just for feel that in you think it brief I just as your and think

John Chapman

sing okay, No, he Bill. can

[either treadmill... with on So the joke]

Charles Sykes

it. Thanks, Bill. appreciate I

Operator

question with Vincent is from Our next Barrington. Colicchio

Vincent Colicchio

given change was terms inflation and John, the just, and and if attrition -- there's EMEA, So last been an from hoping in strength quarter? are where for a looking wage and what things of the update now it trends thinking kind in you're of

John Chapman

I mean, terms the offshore-focused, it's say, it's in would in ramps overall. offshore-focused. most All stable, really It's mainly we've in rates Wage regions, QX, not are EMEA-focused. of got plan, I right. ramps but for

outside recruitment ramp in Our we're when lumpy let's offshore of it in be impact are kind not Wage material, you're those ramping growing in rates is margins. can QX on but terms like costs that it higher. materially call this, offshore of arenas

have business, years [say, Although, the labor beauty stable market the is obviously, now. offshore win for today, price a new but of when rates the the few been even labor our relatively you rates not,] charge on

grow, in attrition really have the was In offshore seen you natural actually, lowest attrition, terms the do way works. just one when in we a of we business movement rates that to I XXXX XXXX. had on get and offshore the material Clearly have start ever not that's of attrition think, impacts because you

which out our looked attrition if the the always that you is with say the the number has overall seen rather been in pieces. always in in although, and is I challenge, do those attrition U.S., telecom reduced. it as it has than most telco vertical we've at U.S, vertical much our of of terms headline that in the vertical it acute adjustment market In that reductions the was where dominant component less But would we've portfolio to calling

So so lot offshore, yes, that. of a QX, love we

We have capacity.

headline-wise vertical. and will moderated In benefit QX. of are would say, see in Telco significant We coming down, no still overall, in attrition we probably through wage challenged and But the it’s the our the pressure, in I wage although that is U.S. QX pressure.

Vincent Colicchio

Symphony, here. Okay. mentioned And little you’ve on a bit

than expected and in performing and cross-selling it, well. in well? Just curious, fact Sounds on better general like the it’s if it’s side Is as performing performing?

John Chapman

we are continued skills we looking for the and in what projects. at I business. RFPs automation mean, mean as on I new partner reengineer help build do have not looking more human has of And playing above it's with lines together have is, would what capital transformation their partly are capital describe it's business through mentioned RFPs pure-play we that in-house. helping to the been have, great these And focused just but so importantly, our we programs committing proposals. but more remarks and digital it's capital with driving to us seeing looking processes the experience, by our not existing we them but on are Symphony are human RFPs important internal growth when automation. at as an as, of we Yeah. human do also client-specific the to that also we I Symphony touched we strategy, in excited we skills expected, mean, over expected. prepared on, traditional we’ve at the as forces front augment with of Symphony in some, where mentioned although changes a the they're and the have projects we I end reputation I transaction, to think standalone the that closed and is moment part that where with, more that knowledge efficiency But

quickly exciting that's are us. So traction as there out that and I called seeing very for gain we very,

Vincent Colicchio

utilization rate do year exit you the to overall? what then at And expect

John Chapman

to We expect to get XX%. close

Vincent Colicchio

question. last level what's delivery your And a forward? going run one rate normalized for mix, then or G&A With new

John Chapman

what Again go go quarters. G&A should G&A we utilization the the margin obviously, but see even G&A improve really we also because up, overall, on significantly of now that. is, side, the end up. in actually, GP to up efficiency percent through beauty although the mix, you is G&A increase still offshore, the because go and expect to the dollars we But year the will go will although improve. the that focused is don’t like percentages much trying Directionally, probably terms happens of but that’s will going our more answer, and And guys onshore are dollars you offshore, in GP right will you growth of and increase between the as operating guide on the saying

So, we also see improve. that should

ready efficiency see And capacity and you're absolutely right. as should we’ve is be we got as wise model improve you although four. quarter G&A used So, to that to our move through

Vincent Colicchio

Thanks for Okay. that.

Operator

Our next question go is from Dave Koning ahead. with Baird. Please

Dave Koning

Thanks. Yeah.

so what about Symphony? from the on make of just all, Chuck, the contribution everything. dollar sorry And sure model, to each it get I -- was WhistleOut and up, to first Well just clean

John Chapman

was of about X.X% Yes. something revenue. X%, about WhistleOut like was yes, Symphony and that,

Dave Koning

revenue, Of nice. yes. That's Okay.

said, an you'll or you good. ago you for number -- said this And AT&T, quarter think did give you Okay. 'XX? exact an but under Did the I That's give XX.X% give I contribution. like XX% think in whatever, -- year then you QX actual often

John Chapman

X.X%. Yes.

Dave Koning

you. up per you other quarters, noticed, the yield okay. have continue seats have seats stable had been was you good the quarter. X.X%, the to seat up grow? like has that yield have Are rationalized of stay and expecting so Got actually last Is I really this And thing the significantly and of revenue you formula? then rest to the year-over-year pretty X -- kind year it the X% pretty

John Chapman

Yes.

we X,XXX basis, gross that to count, probably do of terms a the a In seat add close -- probably expect we're same. we between going about but out expect we'll to take on

utilization now towards much. And the between see what said, at year. will we'll we So see end of seat that's see we've moving we and don't as and moving XX% count the

we of seat of this done we and in and the the that part terms we've reductions offshore. of growing but utilization slight U.S. the in In the target is into numbers, bulk see change, as demand said, the ourselves

mean, seat revenue So changes. that can clearly change yes, I per the as mix

Dave Koning

Yes.

back, guess half first XX% Okay. the EPS the about XX% year guiding year last was in the half. every of XX% full to the half And obviously then first in the then you're just thing about looking the of and This I the last to back X rest. back year the years, EPS half XX% and

it's just much than you different back and into on insight quite pattern? much the a wondering how just a or given bit guess half reliance normal So the just how I realistic that have bigger I'm

John Chapman

Yes.

waiting clients would definitely, There's and our really are what approach. seeing Yes, I no ramps David. through see QX, in for but usual projecting. not it's ramps QX we to what us and this we in year. QX use see mean called like QX. use never change we have think bps we yes, come in think XXX rightly QX ramps this this margin of between seen take had our But is as And we footprint. op we the ready these I news to widely set as and normally always right, different. that have this we here It's what of I distributed out, ramps. you XXXX to absolutely global ramps saw but it's We called we're have level see capacity we've had we've You're good in out, QX, so that's and our across and, but in improvement pretty QX,

the seeing they in unlike number are numbers our clients, we're to it’s on it’s methodology unchanged the that of of just that the do confident literally clients us we at we’re you're terms want we have so you volumes, focused put do the have to with you some that together, and from But is these capacity it something. success and that forecast if right, us. react were and both are yes, the wins abnormal. grow new absolutely basically the clients was unless is where existing is I that and indicating the we fact spare in capacity having And got allows never real years. in is think U.S home. very I prior and based we we to showing back where could didn’t impacts becomes with mean, the forecast our going XXXX that because our So set But that approach that projecting can that and left where factor of really new have we domestic-based it and offshore, are

You’re in that right, half, second half first EPS. terms whole unusual it’s of

Dave Koning

because guess like. what year this and a memory that Got you. last does great I the look makes looks that that was like question. Yes, And a lot that’s, sense XXXX, year on

by help myself. how rate? that Just you of the, look half years? feels you’re is X% is more going we half still obviously kind that the and AT&T currency. Like the of okay, revs second normal. the almost the should much say can’t mean, organic at forward future think first constant I I Is everything, that back and half impacted you’re growing normal

John Chapman

ahead get don’t of Just yourself.

We currency X% to committed are to growth. X% organic absolutely revenue a constant

year, in are QX, for client than and by position do, That delivered been that issues. we to have ramps, we in I QX the principally for pretty our but we what XX we to talking is, years. I EPS we the lot these yes, I be impacting are much in of a so few last again Telco XXXX, about have mean we’ll And X% last a the are but a we’ve to the We be emphasize we specifically to this, the still to February. want to impacted committed done guidance is according don’t challenge when the months vertical. better on and largest successfully in want start execute would we on Obviously say X% expected

looks numbers, EPS what I So us would QX. even know light, see mean component the about when we’re don’t but the the excited it pieces guys in you year number of for

again, So going currency in us place growth. focused would our still organic And XXXX. revenue leave great to that are a X% we we on are X% into constant

Operator

closing conference session. any question-and-answer the for to turn the management our concludes This over remarks. like back I to would

John Chapman

guys your speak Thank for quarter. Thanks you next everybody. you, support. continued And you. Thank we’ll to

Operator

today’s now you concluded. is presentation. The conference for attending Thank

may now disconnect. You you. Thank

Sykes Enterprises (SYKE) 11 May 192019 Q1 Earnings call transcript