Bpo Management Announced The Results For The 3rd Quarter
Bpo Management announced the financial results for the third quarter and first nine months of 2008, the period ended September 30, 2008.
* BPOMS experienced significant acceleration of its Information Technology Outsourcing (ITO) segment, including $5 million in annualized new business wins year-to-date (a 60% increase compared to the first nine months of 2007). Typically, the Company begins to recognize revenue following the migration, which can take up to six months, and $5 million in new business is scheduled to be migrated before the end of 2008. The Company experiences higher expense levels during migration, and a ramp in profit margins is typical once the project goes live.
* BPOMS has proposals in process for an additional $6 million in ITO projects, and the pipeline for new business is accelerating due to the pressure for corporations to reduce costs in the challenging economic environment. The Company’s Pearl River ITO facility is at approximately 50% capacity, providing significant room to expand without significant capital expenditures.
* BPOMS Enterprise Content Management (ECM) business experienced a temporary slowdown. Following a restructuring of management, the division is back on-track and October was a record month for the ECM segment.
* The Company also reorganized its HRO segment to reflect demand for a “Software as a Service” (SaaS) model. This adjustment is expected to result in improved performance in the fourth quarter and beyond.
* Management continues to anticipate $30 million in revenue for the full- year (2008) and expects to be EBITDA-positive as it enters 2009. Full news