ICT GROUP INC.reported Thursday that consolidated revenues for the three months ended Sept. 30, 1997 were $21.7 million, a 26% increase compared to revenues of $17.3 million for the same period in 1996.
The company’s operating and net income grew faster to record levels as a result of effectively managing expenses and leveraging corporate and divisional infrastructure costs.
Operating income increased 141% to $1,039,000 in the third quarter of 1997 from $432,000 in the third quarter of 1996, and net income increased 83% to $681,000 in the quarter from $372,000 in the same period last year. Earnings per share increased 100% to 6 cents per share, compared to 3 cents per share in 1996.
John J. Brennan, chairman and chief executive officer, stated, “We are pleased with the gains made in the financial performance of ICT GROUP in the third quarter, as we continue to successfully execute our strategy to service the sales, marketing and customer care needs of our clients in the domestic and international markets with a full range of inbound and outbound call center operations and value-added marketing and management services.”
Revenues from teleservices operations increased 30% to $18.0 million in the third quarter of 1997 from $13.9 million in 1996. Domestic Teleservices revenues showed their strongest year-to-year gain, increasing 25% to $14.8 million in the third quarter of 1997 from $11.8 million in 1996, reflecting growth from the insurance, financial services and health care markets.
International Teleservices revenues grew to $3.2 million in 1997, up 56% from $2.1 million in 1996, fueled by demand across each of our international markets, but especially in Europe and Canada.
Revenues from the Marketing and Management Services divisions increased 10% to $3.7 million in 1997 from $3.4 million in 1996. Strong growth in market research revenues were offset by a decline in Management Services revenues due to the conclusion of a service contract in the second quarter.
Results from Financial Marketing Services operations improved, as business from bank clients continued to show renewed growth during the year.
Brennan further stated, “During the third quarter, as revenue momentum built, we continued to aggressively control operating costs and expenses by consolidating existing call centers and adding new centers in attractive labor and business-friendly market areas, renegotiating supplier contracts and minimizing additions to staff. Our goal is to continue to realize additional operating leverage in each of our business unit operations.
“In the third quarter of 1997, we announced strategic alliances with ALLTEL Corporation and Aspect Telecommunications Corporation, which are designed to broaden our call center management services capabilities. We believe that these alliances and others which we are developing will enhance our opportunities in the financial services, information technology and other industry sectors.”
ICT GROUP, an independent provider of call center teleservices for sales, marketing and customer care, employs more than 300 professionals in management, sales, systems and operations and approximately 3,750 telephone sales and service representatives and research interviewers.
The company manages 27 call centers in nine states, Europe and Canada, from which it supports outbound and inbound calling for domestic and multinational corporations and institutions.
In addition to its corporate staff, ICT GROUP’s sales and marketing divisions as well as its market research division, ICT Research Services, are headquartered in Langhorne.
ICT GROUP has sales offices in Philadelphia; Chicago; Miami; Stamford, Conn.; Amherst, N.Y.; London, England, and Dublin, Ireland. Facilities conducting international operations are located in Miami; Dublin, Ireland; London, England, and New Brunswick, Canada.
To learn more about ICT GROUP, visit its web site at . ICT GROUP is traded on Nasdaq:ICTG.Details