Convergys Reaffirms Guidance

Sprint Nextel plans to end the Convergys billing relationship over time by migrating subscribers off the legacy Precedent 2000 system

January 18, 2006

1 Min Read

CINCINNATI -- Convergys Corporation (NYSE:CVG - News), a global leader in customer care, human resources and billing services, has been informed that Sprint Nextel plans to end the Convergys billing relationship over time by migrating subscribers off the legacy Precedent 2000® system.

Based upon discussions with Sprint Nextel, Convergys understands that Sprint Nextel's current plan is to migrate subscribers off the Precedent 2000 platform during 2006 and 2007. In 2005 Convergys' Information Management Group (IMG) generated approximately $100 million in revenue from Sprint Nextel at profitability levels comparable to the average of the IMG business. Despite Sprint Nextel's decision, Convergys remains comfortable with 2006 earnings guidance of at least $1.07 per share. "We have served Sprint Nextel well in a variety of programs over a number of years and stand ready to support them in this transition," said Dave Dougherty, president and chief operating officer of Convergys. "Though disappointed with this decision by Sprint Nextel, we continue to have confidence in IMG and the prospects for continued revenue and earnings growth across Convergys."

Convergys Corp. (NYSE: CVG)

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