TeleTech Falls on Warning, Executive Departures

TeleTech Holdings (Nasdaq: TTEC) wasdown US$4.94 at $9.19 in morning trading Thursday after the company said itexpects a quarterly loss and announced the resignations of its chiefexecutive and chief operating officer.

The Denver, Colorado-based maker of customer relationship management (CRM)software said revenue for the first quarter ending in March is likely to be$230 million to $235 million, below expectations, due to delays in client programs caused by an economic downturn and “lower than anticipated revenues from Verizon.”

Earnings before non-recurring items will be 11 to 12 cents per share,against analysts’ expectations of 17 cents, the company said.

“TeleTech has historically been focused on high-end, multi-year CRMoutsourcing opportunities for the Global 1000,” said chairman and founderKenneth Tuchman. “As companies are facing challenges because of theuncertainty in the economy, we are seeing delays in decisions on these typesof long-term commitments.”

Tuchman is also taking over as interim chief executive, as Scott Thompsonresigned along with chief operating officer Larry Kessler, the company said,without giving a reason for the departures. A search is underway for a newCEO, TeleTech said.

TeleTech, with operations in 11 countries, sells its products to thecommunications, financial services, government and transportationindustries.

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