The fourth quarter of 2011 proved to be a solid one financially for Convergys Corp., the Cincinnati, Ohio-based relationship-management solutions provider.
Revenue was $589 million, up 3 percent compared to Q4 2010 and up 2 percent from the previous quarter (Q3 2011). Net income was $34 million, compared to $32 million during the same period in 2010, but down from $42 million in the third quarter of 2011. (That number excludes the sale of the company's cellular partnerships, which ballooned income to more than $200 million in Q3 2011.)
Convergys had free cash flow of $30 million with $422 million in cash on its balance sheet at the end of last quarter.
“We performed well operationally in the fourth quarter with year-over-year improvement in revenue, operating income and earnings," said Jeff Fox, president and CEO of Convergys. “Customer management continued on a profitable growth trajectory as we invested in agent training and global delivery capacity. The information-management business delivered sequential revenue growth and strong profitability. Based on our confidence in the business, we repurchased $58 million of our stock in the quarter."
By sector, customer management revenue, was $500 million in Q4 2011, A 7 percent increase over the year before. Information management revenue was $88 million, down slightly from $98 million a year ago.
Convergys expects more growth and earnings improvement in 2012, with total customer-management revenue to approach $2 billion and information-management revenue to grow to between $330 million and $340 million for the year.
