Sykes Enterprises Inc
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SYKES ENTERPRISES INC FORM 10-K/A (Amended Annual Report) Filed 11/20/00 for the Period Ending 12/31/99 Address 400 NORTH ASHLEY DRIVE TAMPA, FL 33602 Telephone 8132741000 CIK 0001010612 Symbol SYKE SIC Code 7373 - Computer Integrated Systems Design Industry Computer Networks Sector Technology Fiscal Year 12/31 http://www.edgar-online.com © Copyright 2014, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. SYKES ENTERPRISES INC FORM 10-K/A (Amended Annual Report) Filed 11/20/2000 For Period Ending 12/31/1999 Address 100 NORTH TAMPA ST STE 3900 TAMPA, Florida 33602 Telephone 813-274-1000 CIK 0001010612 Industry Computer Networks Sector Technology Fiscal Year 12/31 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K/A [x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1999 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _________ to _________ Commission File Number 0-28274 SYKES ENTERPRISES, INCORPORATED (Exact name of registrant as specified in its charter) Florida 56-1383460 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 100 N. Tampa Street, Suite 3900, Tampa, Florida 33602 (Address of principal executive offices) (Zip Code) (813) 274-1000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Title of Each Class Voting Common Stock $.01 Par Value Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K/A or any amendment to this Form 10-K/A. [x] As of March 21, 2000, there were 42,074,008 shares of Common Stock outstanding. The aggregate market value of the voting stock held by non-affiliates of the registrant based on the last sale price reported on the Nasdaq National Market as of March 21, 2000 was $410,939,912. DOCUMENTS INCORPORATED BY REFERENCE: Documents Portions of the Proxy Statement dated April 1, 2000............................ Part III Items 10-13 Page 1 of 44 Pages Exhibit Index is on Page 61. EXPLANATORY NOTE On October 30, 2000, Sykes Enterprises, Incorporated ("Sykes") announced the completion of a comprehensive review of its software revenue recognition accounting practices for all significant software licensing arrangements and service contracts with respect to the years ended December 31, 1998 and 1999, and for the nine months ended September 30, 2000. As a result of that review, Sykes determined that the accounting for eight clients' contracts required revision. Sykes determined that revenue that had been recognized should have been recognized either as payments came due, upon completion of all services required under the arrangements or upon the satisfaction of any contingency. These revisions to revenue reduced recorded revenues by $9.4 million in 1998 and $2.3 million in 1999. Sykes also revised 1999 operating expenses by reducing $2.1 million in related contract costs that it had previously expensed. Accordingly, Sykes has restated its financial statements for the years ended December 31, 1998 and 1999 as follows (in thousands expect for per share amounts): 1998 1999 ---------------------------- ---------------------------- As Reported As Restated As Reported As Restated ----------- ----------- ----------- ----------- Total assets $ 365,134 $ 361,798 $ 427,586 $ 419,396 Deferred revenue, less current portion $ 14,708 $ 17,207 $ 24,862 $ 26,593 Retained earnings $ 29,731 $ 23,895 $ 51,762 $ 45,797 Shareholders' equity $ 164,937 $ 159,101 $ 201,352 $ 195,387 Revenues $ 469,462 $ 460,102 $ 575,040 $ 572,742 Operating income $ 42,031 $ 32,672 $ 39,484 $ 39,270 Net income $ 8,278 $ 2,442 $ 22,031 $ 21,902 Net income per share - basic $ 0.20 $ 0.06 $ 0.52 $ 0.52 Net income per share - diluted $ 0.20 $ 0.06 $ 0.51 $ 0.51 This Form 10-K/A includes such restated financial statements and related notes thereto for the years ended December 31, 1998 and 1999, and other information related to such restated financial statements, including revisions to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. Except for items 6, 7 and 8 of Part II, Item 14 of Part IV, and Exhibit 27.1, no other information included in the original report on Form 10 -K is amended by this Form 10 -K/A. Sykes Enterprises, Incorporated Form 10-K/A Annual Report TABLE OF CONTENTS Page No. Cautionary Statements of Forward Looking Information PART I Item 1 Business............................................................ 1 Item 2 Properties.......................................................... 20 Item 3 Legal Proceedings................................................... 22 Item 4 Submission of Matters to a Vote of Security Holders................. 22 PART II Item 5 Market for Registrant's Common Equity and Related Stockholder Matters........................................ 23 Item 6 Selected Financial Data............................................. 23 Item 7 Management's Discussion and Analysis of Financial Conditions and Results of Operations.............................................. 25 Item 7a Qualitative and Quantitative Disclosures About Market Risk.......... 31 Item 8 Financial Statements and Supplementary Data......................... 31 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure........................................... 54 PART III Item 10 Directors and Executive Officers of the Registrant.................. 54 Item 11 Executive Compensation.............................................. 54 Item 12 Security Ownership of Certain Beneficial Owners and Management.............................................. 54 Item 13 Certain Relationships and Related Transactions...................... 54 PART IV Item 14 Exhibits, Financial Statement Schedules, and Reports on Form 8-K............................................ 54 Certain matters discussed or incorporated by reference in this report are forward-looking statements within the meaning of the federal securities laws. Words such as "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's future plans, objectives, or goals also are forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including those discussed below and elsewhere in this report. The Company's actual results may differ materially from what is expressed or forecasted in such forward-looking statements. Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to, the marketplace's continued receptivity to the Company's bundled service offering; the Company's ability to continue the growth of its support service revenues through additional technical support centers; the Company's ability to further penetrate into vertically integrated markets; the Company's ability to expand its e-commerce service platform revenues; the Company's ability to continue to establish a competitive advantage through sophisticated technological capabilities; the outcome of pending litigation against the Company; the Company's ability to continue growth through acquisitions or expansion of its existing operations; the Company's ability to manage growth; the Company's ability to complete any recommended alternatives with respect to SHPS; the loss of a significant customer; technological change; the Company's ability to integrate the operations of acquisitions; risks associated with the Company's international operations and expansion; the Company's ability to attract and retain experienced personnel; the continuance of the industry trend toward outsourcing of information technology services; the emergency interruption of technical support center operations; the loss of any senior management or key personnel; risks associated with of SHPS' care management contracts; potential legal liability for SHPS' care management services; potential legal liability of SHPS as a benefits administrator under ERISA and COBRA; risks on SHPS relating to laws governing the corporate practice of medicine; risks on SHPS relating to telemedicine; possible adverse effect on SHPS of national and state healthcare reform proposals, and other risks discussed elsewhere in this report and in other filings of the Company with the Securities Exchange Commission. PART I Item 1 Business GENERAL Sykes Enterprises, Incorporated ("Sykes" or the "Company") is a global leader in providing vertically integrated