Tsys to cut jobs as Q4 profit slides
21 January 2010 | 8921 views | 0
Tsys says it will cut more jobs this year after reporting a 9.2% fall in net income for the fourth quarter as revenue from electronic payment processing services fell.
The Columbus-based processor also forecast income from continuing operations of $187 million to $191 million for 2010 on revenue of $1.62 billion to $1.65 billion, below market estimates.
This prompted the firm's shares to slide around 14% to $14.71 in trading after the bell.
For the fourth quarter, total revenues rose 0.5% to $434.8 million but e-payment processing services fell 3.2% to $239.8 million. Net income attributable to the company fell over nine per cent, from $66.3 million in Q4 2008 to $60.2 million.
For the year, total revenue was down two per cent to $1.69 billion, with e-payment processing services seeing a fall of nearly five per cent. Net income for the year fell 13.9%, from $250.1 million in 2008 to $215.2 million.
According to Reuters, on a conference call with analysts, Tsys said it will freeze bonuses, salaries and new hiring immediately. In addition around five per cent of its workforce of over 7000 will be cut.
Philip Tomlinson, CEO, Tsys, says: "While 2010 is going to be a challenging year, we will continue to work aggressively to reduce our costs, including reducing staff, while expanding internationally and maintaining our technological advantage in the market place."