Will Facilitate Achieving Profitable Operations in the United Kingdom Region
DENVER, July 13 /PRNewswire-FirstCall/ -- TeleTech Holdings, Inc.
(Nasdaq: TTEC), a global provider of customer management and business process
outsourcing (BPO) solutions, today announced it will elect an early lease
termination option to close its Customer Management Center (CMC) located in
Glasgow, Scotland during the second quarter of 2006. No decisions have yet
been made regarding alternative locations for the work performed at this
facility. The Glasgow CMC generated an operating loss, on a regional basis,
of approximately $3 million during the past twelve months.
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This announcement is a key element of TeleTech's plan to achieve
profitability in its United Kingdom operations. The other key element is
future sales generated from its recent recruitment of a new sales force in the
United Kingdom.
The early lease termination of the Glasgow, Scotland CMC will result in an
impairment charge of approximately $2.5 million that will be recorded in the
Company's second quarter 2005 financial statements. This action is expected
to result in an annualized pre-tax profit improvement of at least $2.5 million
beginning in the third quarter 2006.
Percepta, TeleTech's joint venture with Ford Motor Company, will retain
its operations in Glasgow.
ABOUT TELETECH
TeleTech is a global business services company that provides a full range
of front- to back-office outsourced solutions including customer management,
BPO, and database marketing services to measurably enhance clients' core
customer management processes. TeleTech's ability to create innovative
strategies, combined with its global technology platform and delivery
infrastructure, helps clients increase revenue, lower costs, and retain their
customers around the world. TeleTech's products and services, standardized
processes, and recognized capabilities to implement complex global projects
make the Company a valued partner for clients that include Global 1000
businesses and governments. TeleTech partners with clients to offer
150 languages, through its more than 32,000 employees, in 17 countries. For
additional information, visit www.TeleTech.com.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements relating
to future results. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. These forward-looking
statements are subject to risks and uncertainties that may cause TeleTech's
and its subsidiaries' actual results to differ materially from those expressed
or implied by such forward-looking statements, including but not limited to
the following: risks associated with achieving the Company's expected profit
improvement in its United Kingdom operations; the ability to close and ramp
new business opportunities that are currently being pursued with existing
clients and potential clients; the ability for the Company to execute its
growth plans, including sales of new products (such as OnDemand and
InCulture); to increase profitability via the globalization of its North
American best operating practices; to achieve its three-year financial goals
and targeted cost reductions; the possibility of the Company's Database
Marketing and Consulting segment not returning to historic levels of
profitability; the possibility of lower revenue or price pressure from clients
experiencing a downturn in their business; greater than anticipated
competition in the customer care market, causing adverse pricing and more
stringent contractual terms; risks associated with losing or not renewing
client relationships, particularly large client agreements, or early
termination of a client agreement; consumers' concerns or adverse publicity
regarding the products of the Company's clients; higher than anticipated
start-up costs or lead times associated with new ventures or business in new
markets; execution risks associated with performance-based pricing metrics in
certain client agreements; the Company's ability to find cost effective
locations, obtain favorable lease terms, and build or retrofit facilities in a
timely and economic manner; risks associated with business interruption due to
weather or terrorist-related events; risks associated with attracting and
retaining cost-effective labor at the Company's customer management centers;
the possibility of additional asset impairments and restructuring charges;
risks associated with changes in foreign currency exchange rates; economic or
political changes affecting the countries in which the Company operates;
changes in accounting policies and practices promulgated by standard setting
bodies; and, new legislation or government regulation that impacts the
customer care industry.
Please refer to the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for the year
ended December 31, 2004 and Quarterly Report on Form 10-Q for the three months
ended March 31, 2005, for a detailed discussion of factors discussed above and
other important factors that may impact the Company's business, results of
operations, financial condition, and cash flows. The Company assumes no
obligation to update its forward-looking statements to reflect actual results
or changes in factors affecting such forward-looking statements.
CONTACT:
Investor Relations
Karen Breen
+1-303-397-8592
Dan
Campbell
+1-303-397-8634
Media
Julie Lucas
+1-303-397-8555
All of
TeleTech Holdings, Inc.
