Peoplesupport (MM) (PSPT) News

OUCH pspt drops to new year low of 7.70 from previous close of 11.40

UPDATE 1-PeopleSupport Q4 profit up, outlook disappoints
Reuters - March 06, 2008 6:11 PM ET


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March 6 (Reuters) - Business process outsourcing company PeopleSupport Inc (PSPT) posted a higher quarterly profit on gains from currency hedge, but guided 2008 results well below analysts' expectations, sending its shares down 21 percent.

"This decrease (in outlook) is primarily due to some slowdown, particularly among some technology clients, and some volume volatility in the near-term as existing clients react to an uncertain economy," Chief Financial Officer Caroline Rook said in a statement.

For the latest fourth quarter, the company said gains from the sale of its foreign currency forward contracts offset a fall in margins.

PeopleSupport, which performs a majority of its outsourcing work out of the Philippines, said its fourth-quarter operating margins fell to 0.7 percent, compared with 2.6 percent a year ago, due primarily to the appreciation of the Philippine Peso against the U.S. dollar.

It reported fourth-quarter earnings of $18.1 million, or 81 cents a share, which included a gain of $19.3 million in other income, on revenue of $35.8 million.

Analysts on average were expecting the company to earn 29 cents a share, before items, on revenue of $36.33 million, according to Reuters Estimates.

For 2008, the company expects earnings of 47 cents to 58 cents a share, on revenue of $162 million to $170 million. Analysts on average were expecting earnings of 72 cents a share, on revenue of $180.3 million.

Shares of the company were trading down 21 percent to $9.00 in trading after the bell, after closing at $11.40 on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Jarshad Kakkrakandy)

PeopleSupport 4Q Net Rises To $18.1M; Revenue Up 15% >PSPT
Dow Jones Newswires - March 06, 2008 4:28 PM ET


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DOW JONES NEWSWIRES

PeopleSupport Inc.'s (PSPT) fourth-quarter net income rose sharply to $18.1 million, or 81 cents a share, from $3.96 million, or 18 cents a share, a year earlier, due to an $18.2 million gain from foreign currency forward contracts.

The Los Angeles business process outsourcing company said revenue increased 15% to $35.8 million from $31 million.

Analysts surveyed by Thomson Financial expected, on average, earnings of 29 cents a share on revenue of $36 million.

Looking ahead, PeopleSupport expects first-quarter earnings of 11 cents to 12 cents a share on revenue between $35 million to $36 million.

For 2008, the company predicts earnings of 47 cents to 58 cents a share on revenue of $162 million to $170 million.

In addition, PeopleSupport's board approved a share repurchase program of up to $25 million of the company's stock.

-Nicholas Hatcher; Dow Jones Newswires; 201-938-5400

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