TeleTech Provides 2001 Outlook

DENVER, Jan. 18 /PRNewswire/ -- TeleTech Holdings, Inc. (Nasdaq: TTEC), one of the fastest-growing global providers of customer management and B2B infrastructure services, today announced updated guidance for its acquisition of Newgen Results Corporation as well as guidance for fiscal year 2001.

Last year, TeleTech greatly enhanced its database management capabilities with the acquisition of Newgen, which closed on December 20, 2000. With the addition of Newgen, TeleTech expects revenue for the fourth quarter to be within the range of $240 to $245 million. TeleTech expects Newgen to be accretive to TeleTech in the fourth quarter by approximately 1 cent, based on a share count of 79 million. Including Newgen, TeleTech expects earnings per share for the fourth quarter of 2000 to be within a range of 20 to 22 cents, excluding one-time items.

"Our growth projections for Newgen remain strong," said Scott Thompson, president and CEO of TeleTech. "In addition to growing Newgen's core business, we plan to leverage our presence in Asia Pacific and Latin America to expand Newgen's existing capabilities overseas. We also plan to leverage Newgen's indirect distribution model into other verticals. We believe industries such as pharmaceuticals, office automation and financial services present great opportunities for us to introduce Newgen's capabilities."

Commenting on TeleTech's performance, Thompson continued, "Across the board, business in 2000 was strong for us. We expect 2000 revenues to increase more than 45 percent compared to 1999 and earnings per share to increase more than 60 percent. For 2001, TeleTech is still projecting solid growth, with a top-line growth rate of 30 to 35 percent and bottom-line growth of 35 to 40 percent."

Following are a number of statements based on current expectations regarding TeleTech's outlook on its future financial results.

  • For fiscal year 2001, the company expects revenue to be within the range of $1.16 billion to 1.2 billion. The company expects first quarter revenue to be within the range of $245 to $255 million; second quarter to be within the range of $275 to $285 million, third quarter to be within the range of $305 to $315 million; and fourth quarter to be within the range of $335 to $345 million.

  • The company expects 2001 net income to be within the range of 90 to 96 cents per diluted share. The company expects first quarter net income to be within the range of 17 to 18 cents per diluted share; second quarter to be within the range of 21 to 22 cents; third quarter to be within the range of 24 to 26 cents and fourth quarter to be within the range of 28 to 30 cents per diluted share.

"During 2000, we've successfully expanded the business into new regions worldwide as well as new vertical markets and industries," said Thompson. "We continue to drive market leadership in a number of areas, including revenue and earnings per share growth and have the right management team in place to execute on our plans for 2001. Delivering value for our shareholders remains one of our top goals and we are confident that we have a strong business in place to continue to maintain our market leadership and successfully grow our business."

TELETECH PROFILE

Founded in 1982, TeleTech is the leading provider of integrated customer relationship management solutions (CRM) for global organizations predominantly in the telecommunications, financial services, technology, government and transportation industries. TeleTech has operations in eleven countries which include Argentina, Australia, Brazil, Canada, China, Mexico, New Zealand, Singapore, Spain, the U.K. and the U.S. TeleTech's CRM capabilities, including B2B electronic channel management and database management, help companies inform, acquire, service, grow and retain their customers throughout the entire relationship lifecycle. TeleTech integrates a full spectrum of voice and Internet communications, including custom e-mail response, "chat" and extensive Web co-browsing capabilities. Information regarding TeleTech Holdings can be found on the Worldwide Web at http://www.teletech.com.

FORWARD LOOKING STATEMENTS

All statements not based on historical fact are forward-looking statements that involve substantial risks and uncertainties. In accordance with the Private Securities Litigation Reform Act of 1995, following are important factors that could cause TeleTech's actual results to differ materially from those expressed or implied by such forward-looking statements: lower than anticipated customer interaction center capacity utilization; the loss or delay in implementation of a customer management program; TeleTech's ability to build-out facilities in a timely and economic manner; greater than anticipated competition from new entrants into the customer care market, causing increased price competition or loss of clients; the loss of one or more significant clients; higher than anticipated start-up costs associated with new business opportunities and ventures such as enhansiv; TeleTech's ability to predict future revenues and associated costs, as well as the potential volume or profitability of any future technology or consulting sales; TeleTech's agreements with clients may be canceled on relatively short notice; and TeleTech's ability to generate a specific level of revenue is dependent upon customer interest in and use of the Company's clients' products and services. Readers are encouraged to review TeleTech's 1999 Annual Report on Form 10-K , Quarterly Reports on Form 10-Q, for first, second and third quarters 2000, and other publicly filed documents which describe other important factors that may impact TeleTech's business, results of operations and financial condition. TeleTech undertakes no obligation to update its forward looking statements after the date of this release. SOURCE TeleTech Holdings, Inc.

CONTACT: Kirsten Hamling, Investor Relations, TeleTech Holdings, Inc., 303-894-7379, kirstenhamling@teletech.com/