Here is the news, it appears another company has gotten the Sprint PCS contract, meanwhile CVG is attempting a lame spin control strategy.
CVG drops over 16 percent
--1:30 pm - By Michael Baron
Convergys (CVG: news, msgs) is plunging $7.44, or 16.1 percent, to $38.63, on heavy volume of 3.39 million shares. Average daily volume is 680,500. Steven Rolls, the company's chief financial officer, attributed the drop to investor apprehension about a deal that competitor Amdocs announced Monday to provide and support billing systems for Sprint PCS (PCS: news, msgs), a customer of Convergys. Rolls said the concerns are unfounded. "We have anticipated this deal for almost a year," said Rolls said in a telephone interview. "The financial impact of this contract on Convergys is very, very small." Rolls also backed current Wall Street performance expectations. "We remain very comfortable with analyst profit estimates for the third quarter and full year," he said. Analysts polled by First Call have forecast a profit of 32 cents a share for the third quarter and $1.23 a share for fiscal 2000, respectively. On July 29, Convergys, a Cincinnati provider of billing and customer care services, reported second-quarter earnings of $45.5 million, or 29 cents a share. |
