Sykes Enterprises, Incorporated Reports First-Quarter 2011 Financial Results

05/02/2011

May 2, 2011 (GlobeNewswire via COMTEX) --

  • First Quarter 2011 Revenues and Diluted Earnings Per Share Exceed Outlook

  • EMEA Region Posts Revenue Growth & Operating Profit

  • Raising Full-Year 2011 Revenue and Earnings Per Share Business Outlook

TAMPA, Fla., May 2, 2011 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated ("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing outsourced customer contact management solutions and services in the business process outsourcing (BPO) arena, announced today its first-quarter 2011 financial results. Given that the ICT acquisition closed on February 2nd, 2010, first quarter 2010 financial data for the combined company reflect only two-months of financial impact from the ICT acquisition versus a full-quarter (three months) for first quarter 2011.

First Quarter 2011 Financial Highlights

  • First quarter 2011 revenues of $310.2 million increased $43.6 million, or 16.3%, from $266.6 million in the comparable quarter last year; the ICT acquisition contributed $100.3 million to first quarter 2011 revenues compared to $63.7 million in the same period last year
  • Excluding the ICT acquisition and on a constant currency basis, first quarter 2011 revenues increased 2.6% comparably driven principally by growth within the financial services and technology verticals
  • First quarter 2011 operating margin was 5.0% versus a negative 1.9% in the same period last year; on an adjusted basis, a non-GAAP measure (see explanation on Page 6 and see Exhibit 3 for reconciliation), first quarter 2011 operating margin was 6.3% versus 6.8% in the same period last year
  • Excluding the ICT acquisition, first quarter 2011 operating margins declined 330 basis points (4.4% vs. 7.7%) comparably due to a weaker U.S. dollar relative to certain offshore currencies driving direct and indirect costs, anticipated end-of-life of certain customer contact management programs and an increase in personnel costsM
  • First quarter 2011 diluted earnings per share from continuing operations were $0.28 versus a loss from continuing operations of $0.18 in the comparable quarter last year and versus the Company's February 2011 business outlook diluted earnings per share range of $0.20 to $0.23; relative to the business outlook per share range, the increase in first quarter 2011 diluted earnings per share was due principally to higher-than-anticipated revenues and a lower tax rate driven largely by a $2.6 million discrete adjustment related to a favorable resolution of a tax audit
  • On an adjusted basis, first quarter 2011 diluted earnings per share were $0.35 compared to an adjusted first quarter 2010 diluted earnings per share of $0.21; relative to the Company's February 2011 business outlook range of $0.25 to $0.28, the increase in first quarter 2011 adjusted diluted earnings per share was due principally to the above mentioned factors; assuming a tax rate of 25%, which was the midpoint of the forecasted tax rate range of 24% to 26% projected in the Company's February 2011 business outlook, adjusted diluted earnings per share in the first quarter of 2011 would have been $0.29
  • First quarter 2010 loss per share from discontinued operations, net of taxes, was $0.03 due principally to a loss in the Company's Argentina operations, the disposal of which was completed in December 2010

Americas Region

Revenues generated from the Company's Americas region, including operations in North America and offshore (Latin America, South Asia and the Asia Pacific region), increased 19.2% to $246.5 million, or 79.5% of total revenues, for the first quarter of 2011. Revenues for the prior year period totaled $206.9 million, or 77.6% of total revenues. The ICT acquisition contributed $100.3 million to Americas' first quarter 2011 revenues compared to a $63.4 million contribution in the same period last year. Excluding the ICT acquisition and on a constant currency basis, first quarter 2011 Americas revenues increased 1.3% comparably due largely to growth from existing clients within the financial services and technology verticals.

During the quarter, approximately 46% of the Americas first quarter 2011 revenues was generated from services provided offshore compared to approximately 49% in the same period last year. Excluding the ICT acquisition, approximately 52% of the Americas first quarter 2011 revenues was generated from services provided offshore compared to approximately 55% in the prior year quarter, with the percentage decrease due primarily to increased revenue contribution from the U.S.

Sequentially, revenues generated from the Americas region decreased 1.7% to $246.5 million in the first quarter of 2011. Fourth quarter 2010 revenues were $250.8 million, or 81.1% of total revenues. On a constant currency basis, first quarter 2011 Americas revenues decreased 1.7% sequentially driven mainly by seasonality and the anticipated end-of-life of certain customer contact management programs.

The Americas income from operations for the first quarter of 2011 decreased 1.0% to $27.0 million, with an operating margin of 11.0% versus 13.2% in the comparable quarter last year. On an adjusted basis (see Exhibit 3 for reconciliation), the Americas operating margin was 12.6% versus 14.6% in the comparable quarter last year. Excluding the ICT acquisition, the Americas operating margin decreased 460 basis points (14.4% vs. 19.0%) comparably due to a weaker U.S. dollar relative to certain offshore currencies driving direct and indirect costs, anticipated end-of-life of certain customer contact management programs and an increase in personnel costs.

Sequentially, the Americas income from operations for the first quarter of 2011 decreased 9.3% to $27.0 million, with an operating margin of 11.0% versus 11.9% in the fourth quarter of 2010. On an adjusted basis, (see Exhibit 4), the Americas operating margin decreased 160 basis points to 12.6% from 14.2%. The decrease was due to seasonality coupled with the above-mentioned factors.

EMEA Region

Revenues from the Company's Europe, Middle East and Africa (EMEA) region increased 6.6% to $63.6 million, representing 20.5% of SYKES' total revenues for the first quarter of 2011 compared to $59.7 million, or 22.4%, in the prior year's first quarter. Excluding the ICT acquisition and on a constant currency basis, EMEA revenues increased 5.7% due to growth from existing and new clients within the financial services and transportation verticals.

Sequentially, revenues from the Company's EMEA region increased 9.0% to $63.6 million for the first quarter of 2011 compared to $58.4 million, or 18.9% of SYKES' total revenues in the fourth quarter of 2010. On a constant currency basis, EMEA revenues increased 7.1% sequentially, driven by growth from existing and new clients within the communications, financial services and transportation verticals.

The EMEA region's income from operations was $0.5 million, or 0.8% of EMEA revenues, versus an operating loss of $0.7 million, or 1.2% of revenues, in the comparable quarter last year. On an adjusted basis (see Exhibit 3 for reconciliation), the comparable operating margin was 0.8% versus a negative 1.2% in the comparable quarter last year. Excluding the ICT acquisition, the EMEA operating margin was 0.4% versus a negative 0.6% driven largely by higher-than-anticipated revenues and the resulting expense leverage.

Sequentially, the EMEA region generated income from operations of $0.5 million, or 0.8% of EMEA revenues, versus a loss of $4.1 million, or 7.1% of revenues, in the fourth quarter of 2010. On an adjusted basis (see Exhibit 4), the EMEA operating margin was 0.8% versus a negative 4.4% due to higher-than-anticipated revenues coupled with lower labor costs.

Corporate G&A Expenses

Corporate costs decreased to $12.2 million, or 3.9% of revenues, in the first quarter of 2011, compared to $31.7 million, or 11.9% of revenues, in the comparable quarter last year. On an adjusted basis (see Exhibit 3 for reconciliation), corporate costs increased 5.4% to $12.0 million, or 3.9% of revenues, from $11.4 million, or 4.3% of revenues, in comparable period last year. Excluding the ICT acquisition, corporate costs increased to $12.0 million, or 5.7% of first quarter 2011 revenues, from $11.4 million, or 5.6% of revenues, in the same period last year due to higher compensation expenses, technology maintenance costs and professional services fees.

Sequentially, corporate costs increased to $12.2 million, or 3.9% of revenues, in the first quarter of 2011, from $11.5 million, or 3.7% of revenues, in the fourth quarter of 2010. On an adjusted basis (see Exhibit 4), corporate costs increased to $12.0 million, or 3.9% of revenues, from $10.2 million, or 3.3% of revenues, in the fourth quarter of 2010 due largely to the above-mentioned factors.

Interest & Other Expense and Taxes

Interest and other expense for the first quarter of 2011 totaled approximately $1.6 million compared to interest and other expense of $3.5 million for the same period in the prior year. The decrease in interest and other expense was due principally to lower interest expense related to the now paid-off Bermuda and term loan associated with the ICT acquisition in the prior year's first quarter.

The Company's effective tax rate from continuing operations was 4.2% in first quarter 2011 versus a tax benefit of 5.4% in the same period last year and lower than the estimated 24% to 26% tax rate range provided in the Company's February 2011 business outlook. The decline in the tax rate relative to the business outlook was driven principally by the $2.6 million discrete adjustment related to a favorable resolution of a tax audit.

On an adjusted basis, first quarter 2011 tax rate was 8.9% compared to 36.6% in the same period last year and versus the estimated 24% to 26% range provided in the Company's February 2011 business outlook. The decrease in the tax rate on a comparable basis was due to a discrete adjustment and a shift in the geographic mix of earnings to higher tax rate jurisdictions last year, while relative to the business outlook, the decline was due mainly to a discrete adjustment.

Liquidity and Capital Resources

The Company's balance sheet at March 31, 2011 remained strong with cash and cash equivalents of $199.9 million, excluding restricted cash of $0.5 million. Approximately 76.0% or $152.0 million was held in international operations, of which $127.0 million may be subject to additional taxes if repatriated to the United States, including withholding tax applied by the country of origin and repatriation tax on the foreign-source income. The Company expects to repatriate $25.0 million in cash and cash equivalents held in international operations in the future. At March 31, 2011, the Company had $75 million of undrawn borrowing capacity available under its revolving credit facility. During the three months ended March 31, 2011, the Company repurchased 0.3 million common shares for a total cost of $5.5 million.

Business Outlook

The assumptions driving the business outlook are as follows:

  • The Company is increasing its full-year revenue and diluted earnings per share outlook to reflect the better-than-expected performance in the first quarter of 2011 and sustained improvement in demand trends, more-than-offsetting the anticipated impact of end-of-life of certain customer contact management programs within both the Americas and EMEA regions and the associated severance expenses which are expected to disproportionately impact the second quarter. The Company expects little change in the overall drivers of demand -- among them the financial services, technology and healthcare verticals -- as discussed in its February 2011 business outlook;
  • The Company's revenues and adjusted earnings per share assumptions are based on foreign exchange rates as of April 2011. Therefore, the continued volatility in foreign exchange rates between the U.S. dollar and the functional currencies of the markets the Company serves could have a significant impact, positive or negative, on revenues and adjusted earnings per share relative to the business outlook for the second quarter and full-year;
  • The Company remains on track to add the previously announced 1,800 seats on a gross basis for the full-year, split roughly evenly over the first and second half of the year. Similarly, the ramp costs associated with the seats additions are expected to be split roughly evenly between the first and second half of the year. The Company expects to add approximately 550 seats on a gross basis in the second quarter, in addition to the 350 seats that were added in the first quarter;
  • The Company received a GST (Goods and Services Tax) refund from the Canadian government for $1.2 million in April, which is expected to favorably impact diluted earnings per share by approximately $0.02 on a tax-adjusted basis for the second quarter and full year 2011;
  • The Company anticipates interest and other expense of approximately $0.2 million for the second quarter and $2.4 million for the full year 2011, which reflects the $1.6 million in interest and other expense incurred in the first quarter and the $0.2 million per quarter of net interest expense related to commitment fees and deferred financing costs associated with its credit facility, which are partially offset by lower interest income resulting from lower interest rates on cash balances. The aforementioned amounts exclude the potential impact of any future foreign exchange gains or losses in other expense; and
  • Relative to its February 2011 business outlook, the Company anticipates a lower effective tax rate for the second-quarter and full-year 2011 due to a combination of the first quarter discrete adjustment and a shift in the geographic mix of earnings to lower tax rate jurisdictions.

Considering the above factors, the Company anticipates the following financial results for the three months ended June 30, 2011:

  • Revenues in the range of $305.0 million to $310.0 million
  • Tax rate of approximately 18%; on an adjusted basis, a tax rate of approximately 19%
  • Fully diluted share count of approximately 46.4 million
  • *Diluted earnings per share of approximately $0.26 to $0.29
  • Adjusted diluted earnings per share in the range of $0.31 to $0.34
  • Capital expenditures in the range of $12.0 million to $14.0 million

For the twelve months ended December 31, 2011, the Company anticipates the following financial results:

  • Revenues in the range of $1,225.0 million to $1,240.0 million
  • Tax rate of approximately 19%; on an adjusted basis, a tax rate of approximately 20%
  • Fully diluted share count of approximately 46.5 million
  • *Diluted earnings per share of approximately $1.21 to $1.31
  • Adjusted diluted earnings per share in the range of $1.43 to $1.53
  • Capital expenditures in the range of $38.0 million to $42.0 million

*See "Business Outlook Reconciliation" for Second Quarter and Full-Year 2011 earnings per share.

Conference Call

The Company will conduct a conference call regarding the content of this release tomorrow, May 3rd, 2011 at 10:00 a.m. Eastern Time. The conference call will be carried live on the Internet. Instructions for listening to the call over the Internet are available on the Investors page of SYKES' website at www.sykes.com. A replay will be available at this location for two weeks. This press release is also posted on the SYKES website at http://investor.sykes.com/phoenix.zhtml?c=119541&p=irol-news&nyo=0.

Non-GAAP Financial Measure

Adjusted earnings per diluted share and adjusted operating margins are important indicators of performance as these non-GAAP financial measures assist readers in further understanding the Company's results of operations and trends from period-to-period exclusive of certain acquisition-related items. The term "adjusted basis", as referenced throughout the press release, includes the ICT acquisition but excludes ICT acquisition-related costs (see Exhibit 3 for reconciliation) such as those associated with capacity rationalization and facilities consolidation, coupled with items one-time in nature. Adjusted earnings per diluted share and adjusted operating margins, however, are supplemental measures of performance that are not required by, or presented in accordance with, U.S. Generally Accepted Accounting Principles (GAAP). Refer to the tables in the release for a detailed reconciliation.

About Sykes Enterprises, Incorporated

SYKES is a global leader in providing customer contact management solutions and services in the business process outsourcing (BPO) arena. SYKES provides an array of sophisticated customer contact management solutions to Fortune 1000 companies around the world, primarily in the communications, financial services, healthcare, technology and transportation and leisure industries. SYKES specializes in providing flexible, high quality customer support outsourcing solutions with an emphasis on inbound technical support and customer service. Headquartered in Tampa, Florida, with customer contact management centers throughout the world, SYKES provides its services through multiple communication channels encompassing phone, e-mail, web and chat. Utilizing its integrated onshore/offshore global delivery model, SYKES serves its clients through two geographic operating segments: the Americas (United States, Canada, Latin America, India and the Asia Pacific region) and EMEA (Europe, Middle East and Africa). SYKES also provides various enterprise support services in the Americas and fulfillment services in EMEA, which include multi-lingual sales order processing, payment processing, inventory control, product delivery and product returns handling. For additional information please visit www.sykes.com.

Forward-Looking Statements

This press release may contain "forward-looking statements," including SYKES' estimates of future business outlook, prospects or financial results, statements regarding SYKES' objectives, expectations, intentions, beliefs or strategies, or statements containing words such as "believe," "estimate," "project," "expect," "intend," "may," "anticipate," "plans," "seeks," "implies," or similar expressions. 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 (i) the impact of economic recessions in the U.S. and other parts of the world, (ii) fluctuations in global business conditions and the global economy, (iii) SYKES' ability to continue the growth of its support service revenues through additional technical and customer contact centers, (iv) currency fluctuations, (v) the timing of significant orders for SYKES' products and services, (vi) loss or addition of significant clients, (vii) the early termination of contracts by clients, (viii) SYKES' ability to recognize deferred revenue through delivery of products or satisfactory performance of services, (ix) construction delays of new or expansion of existing customer support centers, (x) difficulties or delays in implementing SYKES' bundled service offerings, (xi) failure to achieve sales, marketing and other objectives, (xii) variations in the terms and the elements of services offered under SYKES' standardized contract including those for future bundled service offerings, (xiii) changes in applicable accounting principles or interpretations of such principles, (xiv) delays in the Company's ability to develop new products and services and market acceptance of new products and services, (xv) rapid technological change, (xvi) political and country-specific risks inherent in conducting business abroad, (xvii) SYKES' ability to attract and retain key management personnel, (xviii) SYKES' ability to further penetrate into vertically integrated markets, (xix) SYKES' ability to expand its global presence through strategic alliances and selective acquisitions, (xx) SYKES' ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xxi) the ultimate outcome of any lawsuits or penalties (regulatory or otherwise), (xxii) SYKES' dependence on trends toward outsourcing, (xxiii) risk of interruption of technical and customer contact management center operations due to such factors as fire, earthquakes, inclement weather and other disasters, power failures, telecommunications failures, unauthorized intrusions, computer viruses and other emergencies, (xxiv) the existence of substantial competition, (xxv) the ability to obtain and maintain grants and other incentives, including tax holidays or otherwise, (xxvi) the potential of cost savings/synergies associated with the ICTG acquisition not being realized, or not being realized within the anticipated time period, (xxvii) risks related to the integration of the businesses of SYKES and ICTG and (xxviii) other risk factors listed from time to time in SYKES' registration statements and reports as filed with the Securities and 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, whether as a result of new information, future events, or otherwise.

               Sykes Enterprises, Incorporated
       Condensed Consolidated Statements of Operations
           (in thousands, except per share data)
                         (Unaudited)
                         Exhibit 1
                                         Three Months
                                     SYKES +     SYKES +
                                       ICT         ICT*
                                     March 31,   March 31,
                                       2011        2010
                                    ----------  ----------
  Revenues                           $ 310,156   $ 266,582
  Direct salaries and related
   costs                             (203,689)   (171,650)
  General and administrative          (90,375)   (100,023)
  Impairment of long-lived assets        (726)          --
                                    ----------  ----------
  Income (loss) from continuing
   operations                           15,366     (5,091)
  Other income (expense), net          (1,615)     (3,543)
                                    ----------  ----------
  Income (loss) from continuing
   operations before taxes              13,751     (8,634)
  Income taxes                           (573)         467
                                    ----------  ----------
  Income (loss) from continuing
   operations, net of taxes             13,178     (8,167)
  Loss from discontinued
   operations                               --     (1,346)
                                    ----------  ----------
  Net Income (loss)                   $ 13,178   $ (9,513)
                                    ==========  ==========
  Net Income (loss) per share:
  Basic:
    Continuing operations               $ 0.28    $ (0.18)
    Discontinued operations               0.00      (0.03)
                                    ----------  ----------
    Net Income (loss) per share         $ 0.28    $ (0.21)
                                    ==========  ==========
  Diluted:
    Continuing operations               $ 0.28    $ (0.18)
    Discontinued operations               0.00      (0.03)
                                    ----------  ----------
    Net Income (loss) per share         $ 0.28    $ (0.21)
                                    ==========  ==========
  Weighted average shares:
    Basic                               46,409      44,590
                                    ==========  ==========
    Diluted                             46,577      44,766
                                    ==========  ==========
  *Three months of SYKES financial data and only
   two-months of ICT financial data in first quarter 2010
  due to the February 2nd, 2010 closing of the ICT
   acquisition.
            Sykes Enterprises, Incorporated
                    Segment Results
                     (in thousands)
                      (Unaudited)
                       Exhibit 2
                                    Three Months
                                SYKES +     SYKES +
                                  ICT         ICT*
                                March 31,   March 31,
                                  2011        2010
                               ----------  ----------
  Revenues:
    Americas                    $ 246,535   $ 206,902
    EMEA                           63,621      59,680
                               ----------  ----------
      Total                     $ 310,156   $ 266,582
                               ==========  ==========
  Operating Income (loss):
    Americas                     $ 27,753    $ 27,311
    EMEA                              519       (705)
    Corporate G&A expenses       (12,180)    (31,697)
    Impairment of long-lived
     assets                         (726)          --
                               ----------  ----------
    Income (loss) from
     continuing operations         15,366     (5,091)

    Other income (expense),
     net                          (1,615)     (3,543)
    (Provision) benefit for
     income taxes                   (573)         467
                               ----------  ----------
  Income (loss) from
   continuing operations, net
   of taxes                      $ 13,178   $ (8,167)
                               ==========  ==========
  *Three months of SYKES financial data and only
   two-months of ICT financial data in first quarter
   2010
  due to the February 2nd, 2010 closing of the ICT
   acquisition.
                                       Sykes Enterprises, Incorporated
                               Condensed Consolidated Statements of Operations
                                    (in thousands, except per share data)
                                                  Exhibit 3
                                                               Three Months Ended
                                                                 March 31, 2011

                                                       Acquisition related Costs
                                                --------------------------------------
                                                                  ICT
                                                             Depreciation
                                                                  and
                                                             Amortization
                                                                  of
                                                    ICT       Property &       ICT
                                                 Severance    Equipment       Merger
                                     SYKES +         &            and           &                 SYKES +
                                       ICT       Consulting   Intangibles  Integration              ICT
                                     Reported    Engagement   Write-Ups       Costs      Other    Adjusted
                                    ----------  -----------  ------------  -----------  -------  ----------
  Revenues                           $ 310,156                                                    $ 310,156
  Direct salaries and related
   costs                             (203,689)                                                    (203,689)
  General and administrative          (90,375)          346         3,058           13             (86,958)
  Impairment of long-lived assets        (726)                                     726                   --
                                    ----------  -----------  ------------  -----------  -------  ----------
  Income from operations                15,366          346         3,058          739               19,509
  Other (expense), net                 (1,615)                                                      (1,615)
                                    ----------  -----------  ------------  -----------  -------  ----------
  Income from continuing
   operations before taxes              13,751          346         3,058          739               17,894
  (Provision) for income taxes           (573)         (85)         (752)        (182)              (1,592)
                                    ----------  -----------  ------------  -----------  -------  ----------
  Income from continuing
   operations, net of taxes             13,178          261         2,306          557       --    $ 16,302
                                    ==========  ===========  ============  ===========  =======  ==========
  Income from continuing
   operations, net of taxes per
   basic share                          $ 0.28       $ 0.01        $ 0.05       $ 0.01     $ --      $ 0.35
    Shares outstanding, basic           46,409       46,409        46,409       46,409   46,409      46,409
  Income from continuing
   operations, net of taxes per
   diluted share                        $ 0.28       $ 0.01        $ 0.05       $ 0.01     $ --      $ 0.35
    Shares outstanding, diluted         46,577       46,577        46,577       46,577   46,577      46,577

                                                       Acquisition related Costs
                                                --------------------------------------
                                                                  ICT
                                                             Depreciation
                                                                  and
                                                             Amortization
                                                                  of
                                                    ICT       Property &       ICT
                                                 Severance    Equipment       Merger
                                     SYKES +         &            and           &                 SYKES +
                                       ICT       Consulting   Intangibles  Integration              ICT
                                     Reported    Engagement   Write-Ups       Costs      Other    Adjusted
                                    ----------  -----------  ------------  -----------  -------  ----------
  Revenues:
    Americas                         $ 246,535                                                    $ 246,535
    EMEA                                63,621                                                       63,621
                                    ----------  -----------  ------------  -----------  -------  ----------
      Total                          $ 310,156         $ --          $ --         $ --            $ 310,156
                                    ==========  ===========  ============  ===========  =======  ==========
  Operating Income:
    Americas                          $ 27,027          220         3,058          726             $ 31,031
    EMEA                                   519                                                          519
    Corporate G&A expenses            (12,180)          126                         13             (12,041)
                                    ----------  -----------  ------------  -----------  -------  ----------
  Income from continuing
   operations                           15,366          346         3,058          739               19,509
    Other (expense), net               (1,615)                                                      (1,615)
    (Provision) for income taxes         (573)         (85)         (752)        (182)       --     (1,592)
                                    ----------  -----------  ------------  -----------  -------  ----------
  Income from continuing
   operations, net of taxes           $ 13,178        $ 261       $ 2,306        $ 557     $ --    $ 16,302
                                    ==========  ===========  ============  ===========  =======  ==========
             Sykes Enterprises, Incorporated
                     Segment Results
                      (in thousands)
                       (Unaudited)
                         Exhibit 4
                                    Three Months Ended
                                               SYKES +
                                   SYKES +       ICT
                                     ICT       Adjusted
                                   Adjusted    December
                                   March 31,     31,
                                     2011        2010
                                  ----------  ----------
  Revenues                         $ 310,156   $ 309,146
  Direct salaries and related
   costs                           (203,689)   (200,149)
  General and administrative        (86,958)    (86,193)
                                  ----------  ----------
  Income from continuing
   operations                         19,509      22,804
  Other (expense), net               (1,615)       (355)
                                  ----------  ----------
  Income from continuing
   operations before taxes            17,894      22,449
  (Provision) for income taxes       (1,592)     (8,078)
                                  ----------  ----------
  Income from continuing
   operations, net of taxes         $ 16,302    $ 14,371
                                  ==========  ==========
  Income from continuing
   operations, net of taxes per
   basic share                        $ 0.35      $ 0.31
    Shares outstanding, basic         46,409      46,451
  Income from continuing
   operations, net of taxes per
   diluted share                      $ 0.35      $ 0.31
    Shares outstanding, diluted       46,577      46,563

                                    Three Months Ended
                                               SYKES +
                                   SYKES +       ICT
                                     ICT       Adjusted
                                   Adjusted    December
                                   March 31,     31,
                                     2011        2010
                                  ----------  ----------
  Revenues:
    Americas                       $ 246,535   $ 250,759
    EMEA                              63,621      58,387
                                  ----------  ----------
      Total                        $ 310,156   $ 309,146
                                  ==========  ==========
  Operating Income:
    Americas                        $ 31,031    $ 35,589
    EMEA                                 519     (2,567)
    Corporate G&A expenses          (12,041)    (10,218)
                                  ----------  ----------
    Income from continuing
     operations                       19,509      22,804
    Other (expense), net             (1,615)       (355)
    (Provision) for income taxes     (1,592)     (8,078)
                                  ----------  ----------
    Income from continuing
     operations, net of taxes       $ 16,302    $ 14,371
                                  ==========  ==========
             Sykes Enterprises, Incorporated
         Condensed Consolidated Balance Sheets
                     (in thousands)
                       Exhibit 5

                                             December
                                 March 31,     31,
                                   2011        2010
                                ----------  ----------
  Assets:
  Current assets                 $ 494,441   $ 472,288
  Property and equipment, net      106,386     113,703
  Goodwill & Intangibles, net      175,351     175,055
  Other noncurrent assets           35,506      33,554
                                ----------  ----------
    Total assets                 $ 811,684   $ 794,600
                                ==========  ==========
  Liabilities & Shareholders'
   Equity:
  Current liabilities            $ 163,523   $ 158,730
  Noncurrent liabilities            50,698      52,675
  Shareholders' equity             597,463     583,195
                                ----------  ----------
    Total liabilities and
     shareholders' equity        $ 811,684   $ 794,600
                                ==========  ==========

             Sykes Enterprises, Incorporated
                   Supplementary Data

                                 Q1 2011     Q1 2010*
                                ----------  ----------
  Geographic Mix (% of Total
   Revenues):
    Americas (1)                     79.5%       77.6%
    Europe, Middle East &
     Africa (EMEA)                   20.5%       22.4%
                                ----------  ----------
      Total:                        100.0%      100.0%
  (1) Includes the United States, Canada, Latin
   America, South Asia and the Asia Pacific (APAC)
   Region. Latin America,
  South Asia and APAC are included in the Americas due
   to the nature of the business and client profile,
   which is primarily
  made up of U.S. based clients.

                                 Q1 2011     Q1 2010*
                                ----------  ----------
  Vertical Industry Mix (% of Total
   Revenues):
    Communications                     32%         35%
    Financial Services                 27%         21%
    Technology / Consumer              20%         23%
    Transportation & Leisure            6%          8%
    Healthcare                          6%          7%
    Other                               9%          6%
                                ----------  ----------
      Total:                          100%        100%
  *Three months of SYKES financial data and only
   two-months of ICT financial data in first quarter
   2010
  due to the February 2nd, 2010 closing of the ICT
   acquisition.
               Sykes Enterprises, Incorporated
                   Cash Flow from Operations
                        (in thousands)
                         (Unaudited)
                           Exhibit 6
                                        Three Months Ended
                                      March 31,   March 31,*
                                         2011       2010
                                      ---------  -----------
  Cash Flow From Operating
   Activities:
    Net income (loss)                  $ 13,178    $ (9,513)
    Depreciation and amortization      $ 14,232     $ 12,763
    Changes in assets and
     liabilities and other              (7,381)     (20,050)
                                      ---------  -----------
    Net cash provided by (used for)
     operating activities              $ 20,029   $ (16,800)
                                      =========  ===========
  Capital expenditures                  $ 6,175      $ 6,128
  Cash interest paid                      $ 261      $ 1,092
  Cash taxes paid                       $ 6,821      $ 6,745
  *Three months of SYKES financial data and only two-months
   of ICT financial data in first quarter 2010
  due to the February 2nd, 2010 closing of the ICT
   acquisition.
               Sykes Enterprises, Incorporated
              Business Outlook Reconciliation*
                         Exhibit 7
                                               Business
                                               Outlook

                                            Second Quarter
                                                 2011
                                            --------------
  Adjusted Diluted Earnings Per Share       $0.31 -- $0.34
    Severance & Consulting Engagement
     Costs                                              --
    Merger and Integration Costs,
     including Impairment                               --
    Depreciation & Amortization of
     Property & Equipment and Intangibles
     Write-Ups                                     ($0.05)
                                            --------------
  Earnings (loss) Per Share                 $0.26 -- $0.29

                                               Business
                                               Outlook

                                               Full Year
                                                 2011
                                            --------------
  Adjusted Diluted Earnings Per Share       $1.43 -- $1.53
    Severance & Consulting Engagement
     Costs                                         ($0.01)
    Merger and Integration Costs                   ($0.01)
    Depreciation & Amortization of
     Property & Equipment and Intangibles
     Write-Ups                                     ($0.20)
                                            --------------
  Diluted Earnings Per Share                $1.21 -- $1.31

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SOURCE: Sykes Enterprises, Inc.

CONTACT: Subhaash Kumarc Sykes Enterprises, Incorporated
(813) 233-7143