Sykes Enterprises, Incorporated Announces Three New Call Centers To Keep Pace With Technical Support Growth
TAMPA, October 29, 1999 – Sykes Enterprises, Incorporated (“Sykes”) (Nasdaq:SYKE), a global leader in providing vertically integrated, technology-based solutions worldwide, today announced that it will build three new technical support centers in the United States. Of the three centers, one will be located in Morganfield, Kentucky, while the other two are in the final stages of agreement. The three additional 42,500 square feet, state-of-the-art facilities will bring the Company’s total to 20 centers in the U.S. and are expected to be fully operational during the first quarter of 2000, adding capacity of 432 seats per center on a single shift. Including this announcement, to date in 1999 Sykes has announced, opened or significantly expanded 16 technical call centers worldwide, adding more than 5,600 new seats to the Company’s seating capacity, which would then total approximately 12,600.
The new facilities are required as a result of the continued significant growth of technical support services from both e-commerce and traditional telephone support customers. During the third quarter of 1999, the Company posted a 54% year-over-year increase in technical support revenues, its sixth consecutive quarter in excess of 50%. In addition, further review of capacity requirements will continue to determine if three new centers will be sufficient to handle the larger contract awards and commitments the Company has received for the near term, excluding additional opportunities currently in the sales pipeline. “Our recent announcements are a further testament of our continued growth and success in the e-support marketplace,” stated David L. Grimes, President and Chief Operating Officer of Sykes. “Today we can offer an even stronger e-business end-to-end technical support solution from our alliance with Support.com that will allow us to provide further value add to clients. It’s development of these types of solutions that results in Sykes’ recognition not only as an industry leader in technical support, but also at the forefront in providing e-commerce and e-support services.”
Mr. Grimes continued, “Governor Patton and his professional staff are to be commended for their efforts in the continued expansion of Sykes in Kentucky. He was instrumental in bringing us back for an additional center and specifically for us to call Morganfield home in 2000.”
The Honorable Paul E. Patton, Governor of Kentucky, stated, “This is good news for Morganfield and the surrounding area. These solid, well-paying jobs will contribute to and enhance the economic vitality of the area.” Sykes, with approximately 12,000 employees, is a global leader in providing vertically integrated, technology-based solutions worldwide. By utilizing its IT support centers and e-business platform, Sykes is able to provide traditional and e-commerce services at all stages in the life cycle of its clients’ products and services, including initial development, documentation and localization, customer product services and end-user support. Sykes, headquartered in Tampa, Fla., currently operates 37 technical call centers (with five to be under construction), nine e-commerce centers and 25 offices throughout the United States, Canada, Europe, Africa, Central America and the Philippines. SHPS, Incorporated, a wholly owned subsidiary based in Louisville, Ky., provides on-line clinical managed care services, medical protocol products and employee benefit administration and support services. Visit the Sykes web site at http://www.sykes.com.
The statements contained in this press release that are not purely historical, including statements regarding Sykes’ objectives, expectations, hopes, intentions, beliefs or strategies regarding the future, are “forward-looking” statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. It is important to note that Sykes’ actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Among the important factors that could cause such actual results to differ materially are: • construction delays of new call centers; • failure to successfully implement its acquisition strategy; • difficulties in managing growth; • rapid technological change; • loss of a significant customer; • risks inherent in conducting business abroad; • changes in legislation; • fluctuations in business conditions and the economy; • Sykes’ ability to attract and retain key management personnel; • and the risk factors listed from time to time in Sykes’ registration statements and reports as filed with the Securities Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and Sykes undertakes no obligation to update any such forward-looking statements.
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