Company Updates Fourth Quarter Revenue Outlook and Announces $9 Million of Cost Reductions
LAKE FOREST, IL--(Marketwire - December 18, 2007) - eLoyalty Corporation (NASDAQ: ELOY), a
leading enterprise CRM services and solutions company, today provided an
update on its fourth quarter revenue outlook and cost reduction actions.
Fourth Quarter Services Revenue
eLoyalty's fourth quarter Services revenues are currently expected to be in
the range of $20 to $21 million. Services revenues will be lower than
previously forecast based on delays at numerous pending Integrated
Contact Solutions ("ICS") projects, lower than forecast Consulting revenues
associated with a greater than expected impact of holidays in the fourth
quarter of 2007, and potential delays in completing contracts before year
end. The majority of the delays are expected to be at Financial Services
customers and prospects.
Notwithstanding the weakness in fourth quarter Consulting revenues,
eLoyalty expects its Managed Services revenues will grow to a record $10.2
million in the fourth quarter of 2007.
Restructuring and Cost Reductions
eLoyalty has completed a significant restructuring of its operations. This
restructuring will tighten the company's focus on its two primary service
lines: Behavioral Analytics™ and ICS.
As a result of this restructuring, eLoyalty reduced its workforce by
approximately 40 employees. These employee reductions are primarily in the
areas of Consulting account management, G&A and selective Delivery
functions. No reductions were made in Behavioral Analytics™ Development
These employee reductions, as well as other expense control actions, will
reduce eLoyalty's cash expenses by approximately $9 million on an annual
eLoyalty helps its customers achieve breakthrough results with
revolutionary analytics and advanced technologies that drive continuous
business improvement. With a long track record of delivering proven
solutions for many of the Fortune 1000, eLoyalty's offerings include
Behavioral Analytics™, Integrated Contact Solutions and Consulting
Services, aligned to enable focused business transformation. For more
information about eLoyalty, visit www.eloyalty.com or call 877-2ELOYAL.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Act of 1995: Statements
in this news release that are forward-looking statements are subject to
various risks and uncertainties concerning specific factors described in
eLoyalty's Form 10-K and other filings with the U.S. Securities and
Exchange Commission. Such information contained herein represents
management's best judgment as of the date hereof based on information
currently available. eLoyalty does not intend to update this information
and disclaims any legal obligation to the contrary. Historical information
is not necessarily indicative of future performance.
Contact Information: Contact:
Vice President and Chief Financial Officer