Stream in the News
Press Releases
This part of our Web site contains archival information which should not be considered current and may no longer be accurate.
- 30 June 2009 Stream Global Services and OpenSpan Partner to Improve Contact Center Performance
- 29 June 2009 Stream Global Services Opens Second Solution Center in the Philippines
- 23 June 2009 Stream Global Services Enters Agreement with Information Technology Development Agency (ITIDA) for Egyptian Workforce Development
- 18 May 2009 Stream Global Services, Inc. Purchases 5.3 Million of its Publicly Held Warrants at $.20 per Warrant
- 11 May 2009 Stream Global Services Expands Operations into Cairo, Egypt
- 7 May 2009 Stream Global Services Announces March 31, 2009 First Quarter Results
- 1 Apr 2009 Stream Global Services Named in 2009 Global Services 100
- 17 Mar 2009 Stream Global Services Announces December 31, 2008 Fourth Quarter and Year End Financial Results
- 20 Feb 2009 Stream Global Services, Inc. Appoints Senior Vice President, Business Development for EMEA Region
- 8 Dec 2008 Stream Global Services Announces Opening of Worldwide Corporate Headquarters in Wellesley, MA
- 20 Nov 2008 Stream Global Services, Inc. Announces September 30, 2008 Three and Nine Month Financial Results
- 5 Nov 2008 Stream Global Services, Inc. Announces Key New Executives
- 20 Oct 2008 Stream Global Services Acquires El Salvador Contact Center, Extends Reach into Emerging Latin American Market
- 15 Oct 2008 Dell Inc. Sells El Salvador Contact Center Operations to Stream Global Services, Inc.
- 8 Oct 2008 Stream Global Services, Inc. Unveils New Brand
- 8 Sep 2008 Stream Global Services, Inc. Announces Preliminary Results of Tender Offer
- 27 Aug 2008 Stream Global Services, Inc. Announces Executive Team
- 12 Aug 2008 Stream Global Services Announces Strategic Sales and IT Positions
- 7 Aug 2008 Stream Global Services to Commence Common Stock Tender Offer
- 1 Aug 2008 Stream Global Services, Inc. (Formerly Known As Global BPO Services Corp.) Announces Clarification Regarding Its Planned Tender Offer
- 31 Jul 2008 Global BPO Services Corp. Announces Closing of the Merger with Stream Holdings Corporation
- 29 Jul 2008 Global BPO Stockholders Approve Stream Acquisition
- 23 Jul 2008 Global BPO Services Corp. Provides Further Information on Planned Tender Offer
- 18 Jul 2008 Global BPO Services Corp. Announces Increase in Potential Size of Planned Tender Offer
- 8 Jul 2008 Global BPO Services Corp. Announces Date of Annual Shareholder Meeting on July 29, 2008 to Vote on Proposed Acquisition of Stream Holdings Corporation and the Issue of $150 Million of Convertible Preferred Stock to Ares Management
- 26 Jun 2008 Global BPO Services Corp. Announces Record Date and Annual Shareholder Meeting Date
- 2 Jun 2008 Global BPO Services Announces: Ares Corporate Opportunities Fund II, LP Enters into Agreement to Invest $150 Million in Convertible Preferred Stock of Global BPO Upon Closing of Acquisition of Stream Holdings; Global BPO Agrees to Tender for Up To 20.625 Million Common Shares at $8.00 Per Share Following Close of Stream Acquisition; Stream and Global BPO Agree to Revise the Purchase Price for the Acquisition of Stream to $200 Million
- 21 Apr 2008 Dominican Call Centers Cashing in on U.S. Connection
- 28 Feb 2008 HP Calls, Beaverton Answers
- 21 Feb 2008 Global BPO Services Corp. to Present at the Robert W. Baird Business Solutions Conference
- 14 Feb 2008 Global BPO Services Corp. Enters into Commitment for $108,695,428 Credit Facility in Connection with Its Proposed Acquisition of Stream
- 13 Feb 2008 Stream Named to Third Consecutive Global Services 100
- 28 Jan 2008 Global BPO Services Corp. Enters into Agreement to Acquire Stream Holding Corporation
- 26 Nov 2007 Global BPO Services Announces Separate Trading of Common Stock and Warrants
- 23 Oct 2007 Global BPO Completes Initial Public Offering
- 18 Oct 2007 American Stock Exchange Lists Units of Global BPO Services Corp.
STREAM GLOBAL SERVICES AND OPENSPAN PARTNER TO
IMPROVE CONTACT CENTER PERFORMANCE
OpenSpan Platform Enables Stream to Differentiate Its Services by Integrating Applications and Automating Business Processes Across Agent Desktops
ATLANTA, GA and BOSTON, MA—June 30, 2009—OpenSpan, Inc., a leader in business user productivity software, together with Stream Global Services, Inc. (AMEX:OOO), a premium provider of customer care and business process outsourcing (BPO) services, today announced that Stream has joined the OpenSpan BPO Services Partner Program. Stream selected OpenSpan technology to automate business process workflows that span disparate systems within its technology infrastructure. By utilizing OpenSpan, Stream is able to optimize agent productivity, improve cross-sell and up-sell performance and thus enhance customer satisfaction and drive brand loyalty for its clients.
With more than 17,000 agents across 34 call centers in 19 countries, and supporting 33 languages, Stream is a leading provider of integrated business process outsourcing services, including technical support, customer retention, customer sales, customer care and other professional services. Stream services Fortune 1000 clients in the technology, software, computing, consumer electronics, and media and communications sectors.
“By combining Stream’s proven methodologies and best practices with OpenSpan technology, we are able to deliver a higher quality of service to our clients,” said Scott Murray, chairman and CEO, Stream Global Services. “OpenSpan improves the efficiency of agents when interacting with applications and the processes they support. This enables us to differentiate our service offerings by providing more productive agents that are better prepared and equipped to resolve customer inquiries and improve up-selling success rates.”
As an outsourced customer care services provider, Stream works with various external customer systems, each with its own set of applications and business processes, resulting in complex user interfaces and workflows. OpenSpan technology eliminates the need to toggle between applications and manually enter data—thus streamlining the process and providing a better overall consumer experience.
The recently announced OpenSpan Events offering enables Stream to rapidly identify process bottlenecks that span multiple applications. Once process optimization opportunities are identified, Stream will utilize the OpenSpan Platform to automate manually-intensive business process workflows, as well as to create a unified view of customer data. Based on initial testing, Stream will provide enhanced service to customers with reduced average handling times and improved first call resolution rates.
“Contact center agents often navigate between many different types of
applications on the desktop, resulting in inefficient business processes and
long hold times for customers,” said Eric Musser, CEO, OpenSpan. “OpenSpan
simplifies the desktop environment for agents by integrating and automating
cumbersome workflows—improving the customer’s experience and reducing
contact center costs.”
For more information contact:
|
Joe McGonnell |
Sally W. Comollo |
Keith Giannini/Chris Poisson |
|
OpenSpan, Inc. |
Stream Global Services |
Schwartz Communications |
|
678.527.5400 |
781.304.1847 |
781.684.0770 |
|
sally.comollo@stream.com |
About Stream Global Services
Stream Global Services is a premium provider of customer care and business
process outsourcing (BPO) services for the brand-driven Fortune 1000. A
global firm, with more than 17,000 employees based out of 34 service centers
in 19 countries, Stream is a trusted advisor to some of the largest
technology, retail, entertainment/media, telecommunications and related
companies in the world. Its service programs, including technical support,
customer retention and revenue generation, are delivered through a set of
standardized best practices by a highly skilled workforce. Guided by one of
the most experienced senior management teams in the industry, Stream
continues to expand its global presence and service offerings to increase
brand loyalty, revenue and business performance for organizations across the
globe. To learn more about the company and its complete service offering,
please visit www.stream.com.
About OpenSpan, Inc.
Global 2000 enterprises leverage the OpenSpan Platform to integrate
applications, service-enable legacy systems, automate business processes,
extend functionality and build new composite applications in order to
realize immediate value on their IT investments. OpenSpan is now deployed on
more than 100,000 enterprise desktops, helping customers accelerate
service-oriented architecture (SOA) projects and increase enterprise desktop
productivity. The OpenSpan Platform will support more than one billion
customer support calls in 2009, saving organizations more than $100 million.
A venture-backed company, OpenSpan is headquartered in Alpharetta, GA. More
information about OpenSpan is located online at www.openspan.com.
STREAM GLOBAL SERVICES OPENS SECOND SOLUTION CENTER
IN THE PHILIPPINES
Quezon City Site Opening Reinforces Stream’s Commitment to Providing
Global Services to its Expanding Client Base
BOSTON, MA – June 29, 2009 — Stream Global Services, Inc. (AMEX:OOO), a premium provider of customer care and business process outsourcing (BPO) services for Fortune 1000 companies, announced today its continued global expansion with the inaugural opening of its second solution center in the Philippines. The 1,400-seat facility is located at the newly renovated SM North Edsa Annex, Quezon City, Philippines, and will support the growing demand for the firm’s global BPO services. The site will also serve as the company’s new APAC headquarters.
Stream’s Quezon City solution center builds on the success of the company’s existing center in Makati City that has been expanding since its opening in 2008 and currently employs 600 support professionals. The newest facility will provide BPO solutions for new and existing global clients looking for high-quality, cost-effective support in an offshore location.
Stream Chairman and CEO, R. Scott Murray, welcomed the guest of honor, Hon. Feliciano “Sonny” Belmonte Jr., Mayor of Quezon City, as well as local business leaders, clients and the media at the inaugural event held on June 29th.
“With the opening of our Quezon City site, we continue to reinforce our ongoing commitment to providing second-to-none services to our client partners worldwide. The Quezon City facility is perfectly suited to support our existing and future client base, with its highly technical support professionals and extensive language support,” said Stream’s Chairman and CEO, R. Scott Murray.
“Opening Stream’s newest solution center truly positions us as a global outsource provider, and we look forward to continuing to exceed our clients’ expectations with our employees’ world-class service delivery expertise,” continued Murray, “Stream knows the value of a global presence that supports a diverse blend of onshore, nearshore, and offshore locations. Ultimately, the decision rests on a proper fit for the existing need, economic viability, and the flexibility to adapt and grow with new business. So, as needs arise, Stream will continue to launch sites in or outside Manila.”
For more information contact:
Karen Falcone
Vice President, Global Marketing
Stream Global Services
781-304-1841
About Stream Global Services
Stream Global Services is a premium provider of customer care and business
process outsourcing (BPO) services for the brand-driven Fortune 1000. A
global firm, with more than 17,000 employees based out of 34 service centers
in 19 countries supporting 33 languages, Stream is a trusted advisor to some
of the largest technology, retail, entertainment/media, telecommunications
and related companies in the world. Its service programs, including
technical support, customer retention and revenue generation, are delivered
through a set of standardized best practices by a highly skilled workforce.
Guided by one of the most experienced senior management teams in the
industry, Stream continues to expand its global presence and service
offerings to increase brand loyalty, revenue and business performance for
organizations across the globe. To learn more about the company and its
complete service offering, please visit www.stream.com
STREAM GLOBAL SERVICES ENTERS AGREEMENT WITH
INFORMATION TECHNOLOGY DEVELOPMENT AGENCY (ITIDA) FOR EGYPTIAN WORKFORCE
DEVELOPMENT
Working Together with ITIDA, Stream will Train and Employ 1000
Employees in its Newly Opened Cairo Facility
BOSTON, MA – June 23, 2009 — Stream Global Services, Inc., (AMEX:OOO), a premium provider of customer care and business process outsourcing (BPO) services for Fortune 1000 companies, today announced that it has entered into an agreement with the Egyptian Information Technology Development Agency (ITIDA) to employ and train more than 1000 Egyptian employees in its Cairo facility over the next three years. ITIDA, as part of its initiative to empower, grow and develop Egypt’s information and communications technology industry, will subsidize certain employee training costs for Stream.
Stream’s Chairman and CEO, Scott Murray, signed the agreement today with Dr. Hazem Youssef Abdelazim, CEO, ITIDA, during the American Chamber of Commerce in Egypt event, taking place in Washington, DC. The agreement was witnessed by the Minister of Communications and Information Technology, His Excellency, Dr. Tarek Kamel.
“Following the recent opening of our 1000-seat Cairo solutions center, we are seeing tremendous opportunity to offer a highly skilled, technical workforce to support our growing global client base. We believe that Egypt is fast becoming the next ‘go-to’ location for off-shore services for both our North American and our European global accounts,” said Murray. “We are thrilled to be working with the ITIDA to ensure that we quickly and effectively ramp up training and support efforts in Cairo for these clients.”
Egypt is ranked sixth in the 2008 A.T. Kearney Global Services Locations Index, an improvement of seven ranks from 2007. And, according to A.T. Kearney, Egypt now ranks number one in the EMEA region as an offshoring location. Stream’s Cairo center was launched in May 2009 to address this growing global demand for skilled technical workforce in an offshore support environment. The site is already serving several clients across multiple languages.
Commenting on the agreement, ITIDA CEO, Dr. Hazem Y. Abdelazim said, “We are excited to be working alongside a company of Stream’s caliber to further develop the technology talent base of Egypt. We look forward to working together over the coming years to ensure Stream’s clients reap the benefits of Egypt’s advanced technology infrastructure and highly educated workforce.”
MEDIA CONTACT:
Sally W. Comollo
Stream Global Services
Sally.comollo@stream.com
+1 781-304-1847
About Stream Global Services
Stream Global Services is a premium provider of customer care and business
process outsourcing (BPO) services for the brand-driven Fortune 1000. A
global firm, with more than 17,000 employees based out of 34 service centers
in 19 countries, Stream is a trusted advisor to some of the largest
technology, retail, entertainment/media, telecommunications and related
companies in the world. Its service programs, including technical support,
customer retention and revenue generation, are delivered through a set of
standardized best practices by a highly skilled workforce. Guided by one of
the most experienced senior management teams in the industry, Stream
continues to expand its global presence and service offerings to increase
brand loyalty, revenue and business performance for organizations across the
globe. To learn more about the company and its complete service offering,
please visit www.stream.com.
About ITIDA
The Information Technology Industry Development Agency (ITIDA) is a
governmental entity affiliated to Egypt’s Ministry of Communications and
Information Technology. It is responsible for growing and developing Egypt’s
position as a leading global outsourcing location by attracting foreign
direct investment to the industry and maximizing the exports of IT services
and applications.
Located in the heart of the modern business environment at Smart Village, the six hundred acre technology and business park on the outskirts of Cairo, ITIDA is a self-sustainable entity that drives the IT industry in Egypt and raises awareness among the Egyptian people of the benefits and use of ICT to advance socio-economic welfare of the whole community. To learn more about ITIDA and its activities, please visit www.itida.gov.eg
STREAM GLOBAL SERVICES, INC. PURCHASES 5.3 MILLION OF ITS PUBLICLY HELD WARRANTS AT $.20 PER WARRANT
BOSTON, MA – May 18, 2009 – Stream Global Services, Inc., (AMEX:OOO), today announced that it has signed agreements with two warrant holders in privately negotiated transactions to purchase 5.3 million of its publicly traded warrants for $.20 per warrant. Stream has approximately 25,950,000 publicly held warrants that remain outstanding after this transaction and are exchangeable into its common shares at a strike price of $6.00 in cash delivered by the holder of each warrant to Stream. These public warrants are not eligible for cashless exercise treatment. The remaining publicly held warrants expire on October 17, 2011, and if not exercised before that time, will be worthless thereafter. Stream’s publicly held warrants trade under the symbol OOO.WS on AMEX.
For more information contact:
Stephen Farrell
Executive Vice President & Chief Financial Officer
Stream Global Services, Inc.
781-304-1800
stephen.farrell@stream.com
About Stream Global Services, Inc.
Stream Global Services, Inc. is a
leading provider of integrated business process outsourcing services such as
technical support, customer retention, customer sales, customer care and
other professional services for Fortune 1000 clients in the technology,
software, computing, consumer electronics, media and communications sectors.
Stream has more than 17,000 employees across 35 solution centers in 19
countries.
STREAM GLOBAL SERVICES EXPANDS OPERATIONS INTO CAIRO, EGYPT
BOSTON, MA – May 11, 2009 – Stream Global Services, Inc., (AMEX:OOO), is pleased to announce the opening of its newest solution center in Cairo, Egypt. Our newest facility, with a capacity for more than 700 seats, enables Stream to expand its multilingual support offerings to accommodate our strong business growth. As a recognized top outsourcing destination, businesses are attracted to Egypt because of its central location between EMEA and North America and its economic and political stability.
Egypt’s exceptional technical workforce as well as strong telecommunications infrastructure and central service location make it a world-class destination to support Stream’s global clients. The local government’s dedication to educational programs and Cairo’s nearly 300,000 annual college graduates, contributed to Stream’s selection of the city for its newest center. In addition, Egypt’s central location provides easy access for clients in North America, Europe, the Middle East and Africa.
“Cairo’s location enables Stream to broaden the multilingual customer care, technical support and revenue generation services options we offer to our clients. It is a welcome addition to our established footprint in EMEA.” said Stream’s Chairman and CEO, R. Scott Murray, “With Egypt now established, Stream is one of the first BPO providers to have a truly global footprint, where English-language support is provided from a variety of onshore, nearshore and offshore locations in the Americas, Europe and Asia.”
As one of the first solution centers in Egypt focusing primarily on offshore contact center outsourcing for North America and Europe, Stream offers its services in English, French and Arabic languages for new and existing clients. The expansion into Egypt marks another milestone of providing our clients a comprehensive methodology for locating their outsourcing needs across multiple destinations.
For more
information contact:
Karen Falcone
Vice President, Global Marketing
Stream Global Services
781-304-1841
About Stream Global Services, Inc.
Stream Global Services, Inc. is a leading provider of integrated business
process outsourcing services such as technical support, customer retention,
customer sales, customer care, and other professional services for Fortune
1000 clients in the technology, software, computing, consumer electronics,
media and communications sectors. Stream has more than 17,000 employees
across 35 solution centers in 19 countries.
STREAM GLOBAL
SERVICES ANNOUNCES MARCH
31, 2009 FIRST QUARTER
RESULTS
Revenues of $136 million and Gross Profit of 43%
BOSTON, May 7, 2009 - Stream Global Services, Inc (Amex: OOO), a leading provider of customer relationship management and other business process outsourcing services (“Stream”), today reported consolidated financial results for its 2009 first quarter.
GAAP Consolidated Results
On July 31, 2008, Stream (formerly known as Global BPO Services Corp.), a development stage company completed its acquisition of Stream Holdings Corporation (“SHC”)(1).
On a GAAP basis, revenue for the three months ended March 31, 2009 was $135.6 million as compared to zero in the three months ended March 31, 2008.
GAAP net income was $1.7 million for the three months ended March 31, 2009 as compared $1.2 million for the three months ended March 31, 2008.
Pro Forma Combined Consolidated Results
On a pro forma combined consolidated basis, the Company posted revenue for the three months ended March 31, 2009 of $135.6 million compared to $140.4 million in the three months ended March 31, 2008. Revenue for the three months ended March 31, 2008 included approximately $15 million from customers that were lost prior to the acquisition of SHC.
Stream’s gross profit as a percentage of revenue increased to 43% in the three months ended March 31, 2009 compared to 35% in the three months ended March 31, 2008.
For the three months ended March 31, 2009, adjusted pro forma earnings before interest taxes depreciation and amortization (“EBITDA”) increased 105% to $15.9 million compared to $7.7 million in the year-earlier period. Adjusted EBITDA as a percentage of revenue in Q1 2009 was 11.7% as compared to 5.5% in Q1 2008.
2009 Accomplishments
Scott Murray, Chairman and Chief Executive Officer of Stream said; “We are very pleased with our performance during the first quarter of 2009. Our team has made a great deal of progress in building a strong and sustainable services organization. We have been successful in closing new logo business with top tier communications, computing and software clients that we expect will position the company for long-term growth. We expect much of this new business to ramp during the second quarter of 2009, which we expect will result in higher training costs and lower productivity rates during the second quarter of 2009, hence lower gross profit margins and EBITDA than the first quarter. Typically our second quarter revenues are also seasonally lower than the first quarter.”
Murray concluded, “During the remainder of the 2009 year, we expect to open new service centers in the Philippines, Egypt, Brazil and Tunisia in order to provide a comprehensive global service provider forum for our global clients where ever they need us to be for their customers and to expand our service offering into even broader BPO services to meet the needs for our global clients.”
For further information please contact: Stephen Farrell, Executive Vice President & Chief Financial Officer at 781-304-1800 or stephen.farrell@stream.com
About Stream Global Services, Inc. Stream Global Services, Inc. is a leading provider of integrated business process outsourcing services such as technical support, customer retention and recovery services, warranty support, customer care, sales services, credit and collections, subscription management and other professional services for Fortune 1,000 clients in the technology software sectors. Stream has more than 17,000 technical and customer care professionals and other employees across 35 service solution centers in 18 countries.
Safe Harbor. This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our business expectations and objectives. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation, risks relating to our ability to maintain and win additional client business, continue to maintain our operating performance and margin expansion, continue to have sufficient capital to grow and maintain our business, retain our management team and effectively operate a global franchise across multiple jurisdictions plus other risks detailed in our filings with the SEC, including those discussed in the Company’s Annual report filed with the SEC on Form 10-K for the year ended December 31, 2008.
Stream does not intend, and disclaims any obligation, to update any forward-looking information contained in this release, even if its estimates change.
The required reconciliations and other disclosures for all non-GAAP measures used by the Company are set forth in a schedule attached to this press release and in the Current Report on Form 8-K furnished to the SEC on the date hereof.
References to the financial information included in this news release reflect rounded numbers and should be considered approximate values.
Non-GAAP Financial Information. This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of Stream’s performance or liquidity, should be considered in addition to, not as a substitute for, measures of Stream’s financial performance or liquidity prepared in accordance with GAAP. Non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how SGSI defines non-GAAP financial measures in this release.
Where specified in the accompanying schedules for various periods entitled "Reconciliation of GAAP to Non-GAAP Information," certain items noted on each such specific schedule are excluded from the non-GAAP financial measures.
Stream's management uses the non-GAAP financial measures in the accompanying schedules to gain an understanding of Stream's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes certain items from its internal financial statements for purposes of its internal budgets and financial goals. These non-GAAP financial measures are used by Stream's management in their financial and operating decision-making because management believes they reflect Stream's ongoing business in a manner that allows meaningful period-to-period comparisons. Stream's management believes that these non-GAAP financial measures provide useful information to investors and others in (a) understanding and evaluating Stream's current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner Stream’s current financial results with its past financial results.
All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude certain items do not include all items of income and expense that affect Stream's operations. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on Stream. Management compensates for these limitations by also considering Stream’s financial results in accordance with GAAP.
(1) On July 31, 2008, Stream Global Services, Inc. (“(“SGSI”) (formerly known as Global BPO Services Corp.) completed its acquisition of Stream Holdings Corporation (“SHC”). These financial results also include non-GAAP pro forma combined results of operations for SGSI and SHC as if they had been combined since January 1, 2008. The pro forma combined consolidated condensed statements of operations are presented because management believes they reflect Stream's ongoing business in a manner that allows meaningful period-to-period comparisons. Prior to July 31, 2008, SGSI was a blank check company formed for the purpose of seeking to acquire an operating company. Accordingly, we had no revenues prior to July 31, 2008 because we were in the development stage.
STREAM GLOBAL SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
----------------------------
2009 2008
---- ----
Revenue $135,614 $-
Direct cost of revenue 78,613 -
------ --
Gross profit 57,001 -
------ --
Operating expenses:
Selling, general and administrative expenses 43,502 263
Depreciation expense 2,479 4
Amortization expense 4,186 -
----- --
Income (loss) from operations 6,834 (267)
Interest expense (income) and
other financial costs 2,050 (2,139)
----- -------
Income (loss) before provision
for income taxes 4,784 1,872
Provision for income taxes 3,086 670
----- ---
Net income (loss) $1,698 $1,202
Preferred stock beneficial conversion
feature, accretion and dividends 1,518 30
----- --
Net income (loss) available to common
shareholders: 180 1,172
=== =====
Basic and Diluted income (loss) per share $0.02 $0.04
===== =====
Shares used in computing per share data:
Basic and Diluted shares 9,456 29,688
Note: Prior to July 31, 2008 SGS was a development stage company and
had no operations.
STREAM GLOBAL SERVICES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
(in thousands)
March 31, December 31,
2009 2008
Assets
Current assets:
Cash and cash equivalents $13,373 $10,660
Accounts receivable, net 109,736 109,385
Other current assets 29,950 26,811
------ ------
Total current assets 153,059 146,856
Equipment and fixtures, net 40,503 41,634
Goodwill, intangible assets, and
other long-term assets 142,891 141,455
------- -------
Total assets $336,453 $329,945
======== ========
Liabilities and
Stockholders’ Equity
Current liabilities $78,383 $79,392
Long-term debt 71,260 63,624
Capital lease obligations 4,968 5,484
Deferred income taxes 19,475 17,396
Other long-term liabilities 15,757 16,387
------ ------
Total liabilities 189,843 182,283
Stockholders equity and
preferred stock * 146,610 147,662
------- -------
Total liabilities and
stockholders’ equity $336,453 $329,945
======== ========
* March 31, 2009 and December 31, 2008 includes $703 and $145,911 of
redeemable convertible preferred stock, respectively.
STREAM GLOBAL SERVICES, INC.
PRO FORMA COMBINED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands)
Three Months Ended March 31,
----------------------------
2009 2008
---- ----
(Non-GAAP Proforma)
----------------------
Revenue $135,614 $140,372
Direct costs of revenue 77,423 90,687
------ ------
Gross profit 58,191 49,685
------ ------
Gross profit as a percentage of revenue 43% 35%
Operating expenses:
Selling, general and administrative expenses 42,822 41,955
Stock-based compensation expense 204 145
Depreciation expense 2,479 1,438
Amortization expense 4,186 4,095
----- -----
49,691 47,633
------ ------
Income (loss) from operations 8,500 2,052
Interest expense (income) and other
financial costs 3,716 1,847
----- -----
Income (loss) before provision for
income taxes 4,784 205
Provision for income taxes 3,086 2,933
----- -----
Net income (loss) $1,698 $(2,728)
===== ======
Adjusted EBITDA
Income (loss) from operations $8,500 $2,052
Depreciation and amortization expense 6,665 5,533
Restructuring severance expense 487 -
Stock-based compensation expense 204 145
------- ------
Adjusted EBITDA $15,856 $7,730
======= ======
EBITDA as a percentage of revenue 11.7% 5.5%
------- ------
STREAM GLOBAL SERVICES, INC.
RECONCILIATION OF GAAP TO NON-GAAP PRO FORMA INFORMATION
(unaudited)
(in thousands)
Three Months Ended March 31,
----------------------------
2009 2008
---- ----
Net Income (loss) $1,698 $1,202
Add (deduct) items to reconcile to
non-GAAP adjusted EBITDA:
Provision for income taxes 3,086 670
Pro forma depreciation and amortization 6,665 5,533
Interest expense (income) and financial
costs 2,050 (2,139)
Realized foreign exchange gains 1,666 314
Restructuring severance 487 -
Stock-based compensation expenses 204 145
Operating income (loss) from SHC for the
period prior to the acquisition of
July 31, 2008, excluding depreciation
and amortization - 2,005
-- -----
Pro Forma EBITDA $15,856 $7,730
======= ======
Direct cost of revenue $78,613 $90,911
Add (deduct) items to reconcile to
non-GAAP adjusted EBITDA:
Foreign exchange gains (1,190) (224)
----- ---
Adjusted direct cost of revenue $77,423 $90,687
======= =======
Gross profit $57,001 $49,461
Add (deduct) items to reconcile
to non-GAAP adjusted EBITDA:
Foreign exchange gains 1,190 224
----- ---
Adjusted gross profit $58,191 $49,685
======= =======
Selling, general and administrative
expenses $43,502 $42,190
Add (deduct) items to reconcile to
non-GAAP adjusted EBITDA:
Stock-based compensation (204) (145)
Foreign exchange gains (476) (90)
--- --
Selling, general and administrative
expenses $42,822 $41,955
======= =======
Income (loss) from operations $6,834 $1,738
Add (deduct) items to reconcile to
non-GAAP adjusted EBITDA:
Foreign exchange gains 1,666 314
----- ---
Income (loss) from operations $8,500 $2,052
====== ======
Interest expense (income) and
other financial costs $2,050 $1,533
Add (deduct) items to reconcile to
non-GAAP adjusted EBITDA:
Foreign exchange gains 1,666 314
----- ---
Interest expense (income) and
other financial costs $3,716 $1,847
====== ======
STREAM GLOBAL SERVICES, INC.
STATEMENT OF OUTSTANDING COMMON STOCK EQUIVALENTS AND WARRANTS
AS OF MARCH 31, 2009
(unaudited)
(in thousands)
Shares or warrants Percentage
outstanding
-------------------- ----------
Common share equivalents
outstanding:
Common shares held by founding
stockholders subject to resale
restrictions 7,813 22.41%
Common shares held by employees
subject to resale restriction 81 0.23%
Common shares held by institutional
Investor 1,250 3.59%
Common shares held by other public
investors 308 0.88%
----- -----
Common shares outstanding 9,452 27.11%
Common share equivalents from
conversion of 150,001 preferred
shares held by Ares at $6.00 per
share conversion price 25,415 72.89%
------ -----
Total common share equivalents
outstanding 34,867 100.00%
Warrants and employee stock
options outstanding:
Publicly held warrants outstanding,
exercisable at $6.00 per warrant into
common shares expiring in 2011 31,250
Ares held warrants outstanding,
exercisable at $6.00 per warrant into
common shares expiring in 2018 7,500
Employee stock options, exercisable at
$6.00 per share and not yet vested 3,368
For more information contact:
Stephen Farrell
Executive Vice President & Chief Financial Officer
Stream Global Services, Inc.
+1-781-304-1800
stephen.farrell@stream.com
STREAM GLOBAL SERVICES NAMED IN
2009 GLOBAL SERVICES 100
BOSTON, MA - April 1, 2009 - Stream Global Services, Inc.
(NYSE
AMEX:OOO), a leading integrated business process outsourcing (BPO) provider,
was named to the 2009
Global Services 100
(GS100) list and ranked as a winner in the top 10
Best
Performing Contact Center
category. Stream has made both lists for four consecutive years; this year
moving to fifth place on the category list from ninth position in 2008.
Global Services magazine and consulting firm neoIT announced the
category awards at the 2009 Global Services Conference in New York in
February.
The Global Services 100 honors global companies that demonstrate leadership,
innovation and outstanding performance in information technology outsourcing
(ITO) and business process outsourcing (BPO). The GS 100 companies are
selected on the basis of a research study conducted by Global Services
magazine and neoIT, an outsourcing advisory company. The GS 100 also
includes leaders in 11 different categories including Best Contact Centers.
The GS100 holds the distinguished position of being the only objective award
program of its kind in the Services Globalization industry.
“Making the GS100 and top 10 contact center category lists for four straight years is a testament to Stream’s dedication to service excellence and outstanding operational performance,” said Chairman and CEO Scott Murray. “Stream’s global processes and multi-shore footprint ensure optimal delivery of our service solutions across all our market segments. Our strong focus on client relationship management has enabled us to sustain and grow our business.”
Stream’s most recent growth
activities include a solution center acquired in El Salvador, its fifth site
in the emerging Latin American market, and one in the Philippines. In
addition to its global expansion and offshore capabilities, Stream continues
to grow its business by delivering consistent, high-quality service to all
its clients. “Moving up in this year’s best performing contact center
category list is an even greater accomplishment given our rapid growth in
the past year. It is an honor to be recognized in the industry while still
serving our clients and garnering their support and recognition as well,”
continued Murray.
“The Global Services 100 Study, in its fifth year, has become the industry
standard for identifying leading companies around the world who are making
an impact in the field of global services. We congratulate this year’s
field, especially the organizations that have demonstrated functional and
geographic excellence and were selected to the category specific ‘Top 10
Lists’,” said Eugene Kublavov, CEO, neoIT.
For
more information contact:
Karen Falcone
VP, Global Marketing
Stream Global Services
karen.falcone@stream.com
About Stream Global Services, Inc.
Stream Global Services, Inc. is a leading provider of integrated business process outsourcing services such as, technical support, customer retention, customer sales, cash collections, warranty support, customer care, web hosting and other professional services for Fortune 1000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical experts and other employees across 33 solution centers in 18 countries. For information about Stream, visit www.stream.com.
STREAM GLOBAL SERVICES ANNOUNCES DECEMBER 31, 2008 FOURTH QUARTER AND YEAR END FINANCIAL RESULTS
Fourth Quarter Gross Margins increased to 40% in Q4 2008 as compared to 33% in Q4 2007 for Predecessor Company
BOSTON, MA March 17, 2009 -- Stream Global Services, Inc. (Amex: OOO), a leading provider of customer relationship management and other business process outsourcing services (“Stream”), today reported consolidated financial results for its 2008 fourth quarter and year end.(1)
GAAP Consolidated Results
On July 31, 2008, Stream (formerly known as Global BPO Services Corp.), a development stage company completed its acquisition of Stream Holdings Corporation (“SHC”).
On a GAAP basis revenue for the three and twelve-month periods ended December 31, 2008 was $129.8 million and $211.4 million, respectively, as compared to zero in the prior year for both periods.
GAAP net loss was $0.1 million for the three months ended December 31, 2008 as compared to net income of $1.1 million for the three months ended December 31, 2007. For the year ended December 31, 2008, GAAP net income was $0.8 million compared to net income of $1.1 million for the year ended December 31, 2007.
Pro Forma Combined Consolidated Results
On a pro forma combined consolidated basis, the Company posted record revenue for the year ended December 31, 2008 of $523.5 million compared to $483.6 million for the prior year ended December 31, 2007. For the fourth quarter ended December 31, 2008, revenue was $129.8 million compared to $137.9 million for the fourth quarter ended December 31, 2007.
Stream’s gross profit as a percentage of revenue increased to 37% in the year ended December 31, 2008 compared to 34% in the year ended December 31, 2007. For the three month period ended December 31, 2008, gross profit as a percentage of revenue improved to 40% compared to 33% for the three months ended December 31, 2007.
For the three months ended December 31, 2008, adjusted earnings before interest taxes depreciation and amortization (“Adjusted EBITDA”) increased 80% to $11.5 million compared to $6.4 million in the year-earlier period. Adjusted EBITDA increased 44% to $31.7 million in the year ended December 31, 2008 as compared to $22.0 million in the year earlier period (see attached Reconciliation of GAAP to non-GAAP Information).
2008 Accomplishments
Scott Murray, Chairman and Chief Executive Officer of Stream said; “Since our purchase of SHC on July 31, 2008, we have made tremendous progress in building our client relationships and strengthening our performance with our global clients by improving operating metrics that they consider key to the success of their businesses. We have substantially improved the financial performance of Stream by focusing on operations, growing our existing accounts and adding new logos, opening new global centers for service and attracting many industry veterans back to Stream to join our management team. ”
Our 2008 accomplishments included the following:
- We consummated the acquisition of SHC on July 31, 2008. The purchase was valued at $128.8 million for accounting purposes (which reflected the $200 million purchase price less assumed indebtedness and other transaction related costs). In connection with the acquisition we completed a $108 million asset backed revolving credit facility.
- We issued 150,000 shares of our Series A Convertible Preferred Stock, for an aggregate purchase price of $150 million to Ares Corporate Opportunities Fund II, L.P. (“Ares”). Ares then became our largest stockholder with approximately 73% effective ownership.
- We completed a self-tender offer and a share redemption pursuant to which we purchased a total of 29.6 million shares of our common stock for approximately $236 million.
- We expanded operations into new geographies such as El Salvador, the Philippines and Egypt. We also increased our presence in India to over 1500 seats.
- We have sold a number of new logo clients representing over $70 million of annualized revenues on a full year basis once fully implemented.
- Over 35 industry veterans have returned to SGS in various senior management positions in areas such as client management and sales, operations and other areas of administration.
Murray concluded, “During 2009, we expect to build on the operating improvements made in the fourth quarter to streamline our business. At the same time, we have upgraded both the quality and the quantity of our sales force, and are committed to increasing our market penetration.”
For further information please contact: Stephen Farrell, Executive Vice President & Chief Financial Officer at 781-304-1800 or stephen.farrell@stream.com
_______________________________
(1) On July 31, 2008, Stream Global Services, Inc. (“SGSI”) (formerly known as Global BPO Services Corp.) completed its acquisition of Stream Holdings Corporation (“SHC”). As a result, the preliminary consolidated condensed statements of operations include the results of operations of SGSI for all periods presented, and of SHC for only the period from July 31, 2008 through December 31, 2008. The balance sheet at December 31, 2008 includes the balances of SGSI, including its wholly owned subsidiary SHC. These financial results also include non-GAAP pro forma combined results of operations for SGSI and SHC as if they had been combined since January 1, 2007. The pro forma combined consolidated condensed statements of operations are presented because management believes they reflect Stream's ongoing business in a manner that allows meaningful period-to-period comparisons. Prior to July 31, 2008, SGSI was a blank check company formed for the purpose of seeking to acquire an operating company. Accordingly, we had no revenues prior to July 31, 2008 because we were in the development stage.
About Stream Global Services, Inc. Stream Global Services, Inc. is a leading provider of integrated business process outsourcing services such as technical support, customer retention and recovery services, warranty support, customer care, sales services, credit and collections, subscription management and other professional services for Fortune 1,000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical and customer care professionals and other employees across 33 service solution centers in 18 countries.
Safe Harbor. This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our business objectives and our belief about a reversal in a deferred tax liability provision. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation, risks relating to: our ability to maintain and win additional client business, continue to maintain our operating performance and margin expansion, continue to have sufficient capital to grow and maintain our business, retain our management team and effectively operate a global franchise across multiple jurisdictions plus other risks detailed in our filings with the SEC, including those discussed in the Company’s annual report filed with the SEC on Form 10-K for the year ended December 31, 2008.
Stream does not intend, and disclaims any obligation, to update any forward-looking information contained in this release or with respect to the announcements described herein, even if its estimates change.
The required reconciliations and other disclosures for all non-GAAP measures used by the Company are set forth in a schedule in this press release, in the Current Report on Form 8-K furnished to the SEC on the date hereof.
References to the financial information included in this news release reflect rounded numbers and should be considered approximate values.
Non-GAAP Financial Information. This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of Stream’s performance or liquidity, should be considered in addition to, not as a substitute for, measures of Stream’s financial performance or liquidity prepared in accordance with GAAP. Non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how Stream defines non-GAAP financial measures in this release.
Where specified in the accompanying schedules for various periods entitled "Reconciliation of GAAP to Non-GAAP Information," certain items noted on each such specific schedule are excluded from the non-GAAP financial measures.
Stream's management uses the non-GAAP financial measures in the accompanying schedules to gain an understanding of Stream's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes the items described above from its internal financial statements for purposes of its internal budgets and each reporting segment's financial goals. These non-GAAP financial measures are used by Stream's management in their financial and operating decision-making because management believes they reflect Stream's ongoing business in a manner that allows meaningful period-to-period comparisons. Stream's management believes that these non-GAAP financial measures provide useful information to investors and others in (a) understanding and evaluating Stream's current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner the Company's current financial results with the Company's past financial results.
All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude the items noted above do not include all items of income and expense that affect Stream's operations. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on Stream. Management compensates for these limitations by also considering Stream’s financial results in accordance with GAAP.
For more
information contact:
Stephen Farrell, EVP and Chief Financial Officer,
781-304-1815,
stephen.farrell@stream.com
STREAM GLOBAL SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Period Ended
Three Months Year June 26, 2007
Ended December Ended to December
31 December 31 31
-------------- ----------- -------------
2008 2007 2008 2007
---- ---- ---- ----
Revenue $129,836 $- $211,373 $-
-------- --- -------- ---
Gross profit 52,087 - 83,095 -
------ --- ------ ---
Operating expenses:
Selling, general and
administrative expenses 40,689 224 66,884 242
Depreciation and
amortization expense 6,986 - 10,982 -
----- --- ------ ---
Income (loss) from
operations 4,412 (224) 5,229 (242)
Interest expense (income)
and other financial costs 2,028 (2,119) (926) (2,119)
----- ------- ----- -------
Income (loss)
before provision for
income taxes 2,384 1,895 6,155 1,877
Provision for
Income taxes 2,530 760 5,359 760
----- --- ----- ---
Net income (loss) $(146) $1,135 $796 $1,117
Preferred stock
beneficial conversion
feature, accretion and
dividends 1,359 - 51,958 -
----- --- ------ ---
Net income (loss)
available to common
shareholders: (1,505) 1,135 (51,162) 1,117
======= ===== ======== =====
Basic and Diluted
income (loss) per share $(0.16) $0.05 $(2.20) $0.07
======= ===== ======= =====
Shares used in computing
per share data:
Basic and Diluted shares 9,462 25,093 23,258 16,189
STREAM GLOBAL SERVICES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands)
(Predecessor
SHC)
December 31, December 31, December 31,
(in thousands) 2008 2007 2007
Assets
Current assets:
Cash and cash
equivalents $10,660 $247,461 $12,581
Accounts receivable, net 109,385 - 115,794
Other current assets 26,811 1,065 10,539
------ ----- ------
Total current assets 146,856 248,526 138,914
Equipment and fixtures,
net 41,634 27 36,656
Goodwill, intangible
assets, and other long-
term assets 141,455 165 17,846
------- --- ------
Total assets $329,945 $248,718 $193,416
======== ======== ========
Liabilities and
Stockholders’ Equity
Current liabilities $79,392 $8,563 $148,685
Long-term debt 63,624 - 22,294
Other long-term
liabilities 39,267 - 15,085
------ --- ------
Total liabilities 182,283 8,563 186,064
Common stock subject to
conversion - 73,875 -
Stockholders equity and
preferred stock * 147,662 166,280 7,352
------- ------- -----
Total liabilities and
stockholders’ equity $329,945 $248,718 $193,416
======== ======== ========
* December 31, 2008 includes $145,911
of redeemable convertible preferred stock
Note: Prior to July 31, 2008 SGS was a development stage company and had
no operations
STREAM GLOBAL SERVICES, INC.
PRO FORMA COMBINED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands)
Three Months Years Ended
Ended December 31, December 31,
------------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
(Non-GAAP)
Revenue $129,836 $137,924 $523,458 $483,569
Direct costs of revenue 77,749 91,918 330,955 320,935
------ ------ ------- -------
Gross profit 52,087 46,006 192,503 162,634
------ ------ ------- -------
Gross profit as a
percentage of revenue 40% 33% 37% 34%
Operating expenses:
Selling, general
and administrative
expenses 40,593 39,609 160,824 143,117
Stock based
compensation expense 96 701 1,330 1,013
Depreciation and
amortization expense 6,986 5,426 24,359 19,550
----- ----- ------ ------
47,675 45,736 186,513 163,680
Income (loss) from
operations 4,412 270 5,990 (1,046)
Interest expense
(income) and other
financial costs 2,028 2,026 7,952 7,695
----- ----- ----- -----
Income (loss) before
provision for
income taxes 2,384 (1,756) (1,962) (8,741)
Provision for
income taxes 2,530 2,598 9,697 5,938
----- ----- ----- -----
Net income (loss) $(146) $(4,354) $(11,659) $(14,679)
====== ======= ========= =========
Pro Forma Adjusted
EBITDA
Income (loss) from
operations $4,412 $270 $5,990 $(1,046)
Depreciation and
Amortization 6,986 5,426 24,359 19,550
Stock-based
compensation expenses 96 701 1,330 1,013
Facility closure costs - - - 2,467
--- --- --- -----
Pro Forma Adjusted
EBITDA $11,494 $6,397 $31,679 $21,984
======= ====== ======= =======
STREAM GLOBAL SERVICES, INC.
RECONCILIATION OF GAAP TO NON-GAAP PRO FORMA INFORMATION
(Unaudited)
(in thousands)
Three Months Ended Years Ended
December 31, December 31,
--------------- -------------
2008 2007 2008 2007
---- ---- ---- ----
Net Income (loss) $(146) $1,135 $796 $1,117
Add (deduct) items to reconcile
to non-GAAP adjusted EBITDA:
Provision for income taxes 2,530 760 5,359 760
Pro forma depreciation and
amortization 6,986 5,426 24,359 19,550
Interest expense (income) and
financial costs 2,028 (2,119) (926) (2,119)
Stock-based compensation
expenses 96 701 1,330 1,013
Operating income (loss) from SHC
for the period prior to the
acquisition of July 31, 2008,
excluding depreciation and
amortization - 494 761 1,663
--- --- --- -----
Pro Forma Adjusted EBITDA $11,494 $6,397 $31,679 $21,984
========================= ======= ====== ======= =======
STREAM GLOBAL SERVICES, INC.
STATEMENT OF OUTSTANDING COMMON STOCK EQUIVALENTS AND WARRANTS
AS OF DECEMBER 31, 2008
(Unaudited)
(in thousands)
Shares or
warrants
outstanding Percentage
------------ ----------
Common share equivalents outstanding:
Common shares held by founding stockholders
subject to resale restrictions 7,813 22.48%
Common shares held by employees subject to
resale restriction 93 0.27%
Common shares held by institutional
investor 1,250 3.60%
Common shares held by other public
investors 302 0.87%
----- -----
Common shares outstanding 9,458 27.21%
Common share equivalents from conversion of
150,000 preferred shares held by Ares at
$6.00 per share conversion price 25,298 72.79%
------ -----
Total common share equivalents
outstanding 34,756 100.00%
====== =======
Warrants and employee stock options
outstanding:
Publicly held warrants outstanding,
exercisable at $6.00 per warrant into
common shares 31,250
Ares held warrants outstanding,
exercisable at $6.00 per warrant into
common shares 7,500
Employee stock options, exercisable at
$6.00 per share and not yet vested 3,210
STREAM GLOBAL SERVICES, INC. APPOINTS SENIOR VICE
PRESIDENT, BUSINESS DEVELOPMENT FOR EMEA REGION
BOSTON, MA - February 20, 2009 - Stream Global Services, Inc., (AMEX:OOO)
today announced the appointment of Arno Millenaar as Senior Vice President
of Business Development for its EMEA (Europe, Middle East and Africa)
region.
As part of the global executive team, Millenaar will play a key role in Stream’s aggressive business growth strategy and will be responsible for driving revenue and expanding service solution offerings for clients in the EMEA region through relationship building. He will lead the company’s efforts to identify new and existing business opportunities and provide clients with customized service solutions, while leveraging Stream’s position as a leading business processing outsource provider.
Millenaar joins Stream with more than 28 years of experience in the outsourcing services industry. Over the course of his professional career he has led sales, marketing and services organizations throughout Europe, North America and the Pacific Rim. He held various senior sales and business development positions with various technology companies including i2 Technologies, Modus Media, Solectron and most recently Flextronics. His experience spans a variety of markets including high-tech supply chain, consumer electronic, telecom and information technology.
“Arno’s outsourcing background and outstanding track record in delivering strong and sustainable revenue growth in competitive markets will play a pivotal role in helping us drive business growth in the EMEA region,” said Bob Dechant, Executive Vice President, Global Sales and Marketing for Stream Global Services. “His entrepreneurial, targeted-driven approach to business will be invaluable in helping us provide world-class, innovative business processing outsourcing solutions to our clients.”
For more
information contact:
Karen Falcone
Senior Director, Marketing
Stream Global Services, Inc.
About
Stream Global Services, Inc. (Stream)
Stream Global Services, Inc. ("Stream") is a leading provider of integrated
business process outsourcing services such as, technical support, customer
retention, customer sales, cash collections, warranty support, customer
care, web hosting and other professional services for Fortune 1000 clients
in the technology, software, computing, consumer electronics, media and
communications sectors. Stream has more than 17,000 technical experts and
other employees across 32 service centers in 18 countries.
STREAM GLOBAL SERVICES ANNOUNCES OPENING OF WORLDWIDE CORPORATE HEADQUARTERS IN WELLESLEY, MA BOSTON, MA - December 8, 2008 - Stream Global Services, Inc. (AMEX: OOO) today announced the relocation of its worldwide headquarters to Wellesley, MA at the Wellesley Office Park, 20 William Street, 3rd floor.
Stream provides high-end technical support and customer care for many of the leading technology, computer, software, telecommunications and consumer product companies in the world. Stream has 32 service centers located in over 18 different countries across the world. Stream has over 15,000 employees providing services on a global basis.
Stream will locate many of its senior executives at the new location, including the Chief Executive Officer, the Executive Vice President of Global Sales & Marketing, the Chief Financial Officer, Senior Vice President of Operations, Americas; the Chief Legal & Administrative Officer, as well as several key administrative functions.
Stream was purchased by Global BPO Services, Corp. in July 2008. Prior to this Stream was headquartered in Richardson, Texas, where it was moved in 2004 after it was purchased by H.I.G. Capital. Prior to 2004, Stream was located in Canton, MA. In July 2008, Global BPO Services, Corp. changed its name to Stream Global Services, Inc and Scott Murray became its Chairman and Chief Executive Officer. Global BPO was formed as a blank check company in the summer of 2007 by a number of investors and former CEOs from the Boston area. Mr. Murray was the President of Stream from 1999 to 2002 when the business was majority owned by Bain Capital LLC.
Scott Murray, Chairman and CEO of Stream Global Services, said; "We are very excited to locate our headquarters in Wellesley, MA. This is a terrific location with a great supply of high tech talent to help us build our business. Our executive team that has re-joined is now positioned to create a large business process outsourcing company."
Stream will host an open house for local and state government officials, clients, the press and other partners on December 11, 2008 at its new headquarters at 20 William Street, 3rd floor, Wellesley, MA from 5:30PM to 8:00PM to meet its executives and learn more about Stream's strategy for growth in the Boston area.
About Stream Global Services, Inc. (Stream)
Stream Global Services, Inc. ("Stream") is a leading provider of integrated business process outsourcing services such as, technical support, customer retention, customer sales, cash collections, warranty support, customer care, web hosting and other professional services for Fortune 1000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical experts and other employees across 32 service centers in 18 countries.
STREAM GLOBAL SERVICES, INC. ANNOUNCES SEPTEMBER
30, 2008 THREE AND NINE MONTH FINANCIAL RESULTS
BOSTON, MA – November 19, 2008 – Stream Global Services, Inc (AMEX:OOO)
today reported financial results for its fiscal 2008 third quarter, which
ended September 30, 2008. On July 31, 2008, Stream Global Services, Inc. (“SGSI”)
(formerly known as Global BPO Services Corp.) completed its acquisition of
Stream Holdings Corporation (“SHC”). As a result, the consolidated condensed
statements of operations include the results of operations of SGSI for all
periods presented, and of SHC for only the period from July 31, 2008 through
September 30, 2008. The balance sheet at September 30, 2008 includes the
balances of SGSI, including its wholly owned subsidiary SHC. These financial
results also include non-GAAP pro forma combined results of operations for
SGSI and SHC as if they had been combined since January 1, 2007. These
financial results also include certain pro forma non-GAAP information that
management believes will make it easier for the reader to better understand
our results. Prior to July 31, 2008, SGSI was a blank check company formed
for the purpose of seeking to acquire an operating company. Accordingly, we
had no revenues prior to July 31, 2008 because we were in the development
stage. The following describes the significant transactions we have recently
completed.
- On October 23, 2007, we consummated our initial public offering (“IPO”) from which net proceeds of $246.3 million, which were deposited into a trust account. On July 31, 2008, we consummated the acquisition of SHC. The transaction was valued at $130.3 million for accounting purposes (which reflected the $200 million purchase price less assumed indebtedness, transaction fees, employee transaction related bonuses, professional fees, stock option payments and payments for working capital).
- On July 31, 2008, holders of 8.9 million shares of our common stock exercised their conversion rights and we paid an aggregate of $70.6 million to such holders.
- On August 7, 2008, we issued 150,000 shares of our Series A Convertible Preferred Stock, $0.001 par value per share for an aggregate purchase price of $150 million to Ares Corporate Opportunities Fund II, L.P., (“Ares”). The Series A Convertible Preferred Stock is convertible at the option of Ares into 25 million shares of our common stock at an initial conversion price of $6.00 per share.
- On September 5, 2008, we completed a self-tender offer pursuant to which we purchased 20.7 million shares of our common stock at a price of $8.00 per share, for a total consideration of $166 million.
Revenue for both the three and nine month periods ended September 30,
2008 was $81.5 million as compared to zero in the prior year on a GAAP
basis. On a pro forma combined non-GAAP basis, revenue for the three-month
periods ended September 30, 2008 and 2007 would have been $124.5 million and
$113.8 million, respectively, an increase of
9.4%. On a pro forma combined
non-GAAP basis, revenue for the nine-months ended September 30, 2008 and
2007 would have been $393.6 million and $345.6 million, respectively, an
increase of 13.9%.
GAAP net loss for the three months ended September 30, 2008 and 2007 was $919,000 and $11,000, respectively. GAAP net income for the nine months ended September 30, 2008 was $942,000 compared to a net loss for the nine months ended September 30, 2007 of $18,000. On a pro forma non-GAAP basis, adjusted earnings before interest taxes depreciation and amortization (“Adjusted EBITDA”) for the three months ended September 30, 2008 and 2007 would have been $7.2 million and $2.8 million, respectively or a 157% increase. On a pro forma non-GAAP basis, Adjusted EBITDA for the nine-months ended September 30, 2008 and 2007 would have been $20.0 million and $12.6 million, respectively (see attached Reconciliation of GAAP to non-GAAP Information) or a 59% increase.
Scott Murray, Chairman and Chief Executive Officer of SGSI said; “We
are pleased with the progress we have made since the acquisition of SHC on
July 31, 2008. We have recently sold a number of new logo clients in the
computing, telecommunications and software industry segments. We are also
expanding our global solution center footprint. We have acquired an El
Salvador based Spanish-speaking service center and are in process of opening
a Philippines based operation. Combined, these two service centers will
expand our service capacity by over 3,000 technicians. We have made a good
start improving the operating performance of the business and have added a
number of experienced industry executives in the areas of sales, client
management, marketing, operations and finance since the acquisition.”
For more information contact:
Stephen Farrell, EVP and Chief Financial Officer
(508) 517-3248
stephen.farrell@stream.com
Safe Harbor
This news release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including forward-looking statements regarding our business objectives
and our belief about a reversal in a deferred tax liability provision. These
statements are neither promises nor guarantees, but involve risks and
uncertainties that could cause actual results to differ materially from
those set forth in the forward-looking statements, including, without
limitation, risks relating to: our ability to grow profitably and receive
approval for lower tax rates under PRC law and other risks detailed in the
Company’s filings with the SEC, including those discussed in the Company’s
quarterly report filed with the SEC on Form 10-Q for the quarter ended
September 30, 2008.
SGSI does not intend, and disclaims any obligation, to update any forward-looking information contained in this release or with respect to the announcements described herein.
The required reconciliations and other disclosures for all non-GAAP measures used by the Company are set forth in a schedule attached to in this press release, in the Current Report on Form 8-K furnished to the SEC on the date hereof.
References to the financial information included in this news release reflect rounded numbers and should be considered approximate values.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures. These non-GAAP financial
measures, which are used as measures of SGSI’s performance or liquidity,
should be considered in addition to, not as a substitute for, measures of
SGSI’s financial performance or liquidity prepared in accordance with GAAP.
Non-GAAP financial measures may be defined differently from time to time and
may be defined differently than similar terms used by other companies, and
accordingly, care should be exercised in understanding how SGSI defines non-GAAP
financial measures in this release.
Where specified in the accompanying schedules for various periods entitled "Reconciliation of GAAP to Non-GAAP Information," certain items noted on each such specific schedule are excluded from the non-GAAP financial measures.
SGSI's management uses the non-GAAP financial measures in the accompanying schedules to gain an understanding of SGSI's comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes the above-listed items from its internal financial statements for purposes of its internal budgets and each reporting segment's financial goals. These non-GAAP financial measures are used by SGSI's management in their financial and operating decision-making because management believes they reflect SGSI's ongoing business in a manner that allows meaningful period-to-period comparisons. SGSI's management believes that these non-GAAP financial measures provide useful information to investors and others in (a) understanding and evaluating SGSI's current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner the Company's current financial results with the Company's past financial results.
All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude the items noted above do not include all items of income and expense that affect SGSI's operations. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on SGSI. Management compensates for these limitations by also considering SGSI’s financial results in accordance with GAAP.
About Stream Global Services, Inc. (SGSI)
Stream Global Services, Inc. (“SGSI”) is a leading provider of integrated
business process outsourcing services such as web and data hosting,
technical support, customer retention and recovery services, warranty
support, customer care and other professional services for Fortune 1,000
clients in the technology, software, computing, consumer electronics, media
and communications sectors. SGSI has more than 14,000 technical experts and
other employees across 32 service solution centers in 18 countries.
BOSTON, November 5, 2008—Stream Global Services, Inc. (AMEX: OOO), today announced two additions to its executive team. Stephen Farrell joins the company as executive vice president and chief financial officer; while Bruce Dawson comes aboard as senior vice president of business development.
“For a growing, innovative company like ours, the business knowledge and leadership qualities of its executives are critical to success,” said Chairman and CEO R. Scott Murray. “I believe we have in place one of the most dynamic executive teams in the industry. I am confident Stephen and Bruce will add to its strength, further driving organizational goals in finance, operations and client relationships.”
As chief financial officer, Farrell will be primarily responsible for the financial leadership of Stream, and will oversee the company’s finance, accounting, treasury, taxation and corporate services functions. Farrell, who will work out of the company’s Boston headquarters and report to Murray, will also play an important role in shaping corporate strategy, driving alignment across the organization and achieving success in the company’s strategic growth initiatives.
Prior to joining Stream, Farrell served as president of PolyMedica Corporation. During his eight-year tenure with PolyMedica, Farrell held various executive positions including chief operating officer, CFO and chief compliance officer. He has also worked in senior management for PricewaterhouseCoopers.
An active member of Questcor Pharmaceuticals’ board of directors, Farrell holds an undergraduate degree from Harvard University, MBA from the University of Virginia, and is a certified public accountant.
“Stephen’s financial acumen and diverse background make him the ideal candidate for this role. His expertise should serve to further enhance Stream’s ability to deliver financial results to our shareholders and within the organization while also reinforcing the results-driven relationship between finance and operations,” added Murray.
Dawson, as senior vice president of business development, will oversee strategic activities related to organic business growth, client diversification and client relationship management. Along with the global business development organization, which will report directly to him, Dawson will be actively involved in identifying new opportunities and additional service solution offerings for Stream’s existing client base.
“Bruce comes to Stream Global Services with a phenomenal background in client relationship management and business revenue growth,” said Executive Vice President, Global Sales and Marketing Robert Dechant. “With his experience and outstanding leadership skills, Bruce’s arrival strengthens an already talented business development team; and I expect he will greatly enhance the breadth and depth of our current client relationships.”
Dawson joins the company with more than 20 years senior business development and sales leadership experience. He spent much of this time in the global outsourcing space, with companies such as TeleTech Holdings, MATRIXX Marketing (now part of Convergys) and Stream International. He has also served in various senior sales roles with AT&T/Avaya. Based in Denver, Dawson will report to Dechant.
For more information contact:
Kieran Brennan
Vice President, Marketing
469-624-5030
kieran.brennan@stream.com
About Stream Global Services, Inc. (Stream)
Stream Global Services, Inc. (“Stream”) is a leading provider of integrated business process outsourcing services such as Web and data hosting, technical support, customer retention and recovery services, warranty support, customer care and other professional services for Fortune 1000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical experts and other employees across 32 service solution centers in 18 countries.
BOSTON, October 20, 2008 — Stream Global Services, Inc. (AMEX:OOO) today announced its purchase of a Dell Inc. (NASDAQ:DELL) contact center in San Salvador, El Salvador.
“Growing our service offerings in emerging markets like Central and South America is a top priority for Stream,” said R. Scott Murray, Chairman and CEO of Stream Global Services, Inc. “The availability of a live center in this market presented a great opportunity to take an important step toward achieving our targets for global expansion and entrance into newly emerging economies.”
Encompassing more than 1,500 workstations across 129,000 square feet, the El Salvador center signals Stream’s continued global expansion, and the growth of its core customer support offerings. Stream Global Services plans to utilize the El Salvador center for integrated BPO solutions such as sales services, order entry, customer inquiries, billing, collections, technical support, and other services integral to the customer experience, for new and existing Stream clients.
The center currently provides consumer sales, care and technical support services for a variety of Dell products. Stream will also take over these services as part of a concurrent outsourcing agreement with Dell.
“This acquisition is a great win on many fronts. It allows Dell to increase competitiveness and deliver even greater value to customers. Stream can expand and grow in Latin America with a talented team from Dell. The employees get to grow careers in new ways with Stream’s multi-customer portfolio. And, jobs stay in El Salvador as it continues growing its contact center industry.” said, Ray Roman, VP Dell global consumer operations and services.
“Stream and Dell have a long-standing relationship based on top-quality support for Dell’s suite of products around the world,” added Murray. “We are very excited to extend this important relationship in our company and continue providing a high level of service to Dell’s customers.”
Using its world-class technology platform and processes, Stream intends to use this center to provide Spanish- and English-language services to the emerging South American market. As such, Stream’s San Salvador site should also become a key component of Stream’s Smart Shore strategy, which provides a combination of onshore and offshore options to clients based in Europe and North America.
For more information about Stream Global Services’ business or current employment opportunities, visit the company Web site at www.stream.com.
For more information contact:
Bob Dechant, Executive Vice President, Sales & Marketing
Stream Global Services
781-929-6084
robert.dechant@stream.com
About Stream Global Services, Inc. (Stream)
Stream Global Services, Inc. (“Stream”) is a leading provider of integrated business process outsourcing services such as Web and data hosting, technical support, customer retention and recovery services, warranty support, customer care and other professional services for Fortune 1000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical experts and other employees across 32 service solution centers in 18 countries.
About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell is a leading global systems and services company and No. 34 on the Fortune 500. For more information, visit www.dell.com, or to communicate directly with Dell via a variety of online channels, go to www.dell.com/dellshares. To get Dell news direct, visit www.dell.com/RSS.
Jobs remain in El Salvador through Stream
SAN SALVADOR, EL SALVADOR, October 15, 2008—Dell Inc. announced that Stream Global Services has acquired 100 percent of its El Salvador contact center as part of company-wide efforts to increase the efficiency of its business and provide better value for customers. Stream is a global outsourcing company headquartered in Boston, Massachusetts, with more than 17,000 employees in 32 locations around the world. Dell will become a customer of Stream, continuing to utilize the El Salvador site for outsourced consumer sales and technical support services.
“We are pleased with our experience in El Salvador and its people and government. This allows us to leverage our long-standing relationship with Stream to continue providing the best possible U.S. Spanish-speaking and Latin American consumer sales and technical support from El Salvador. We appreciate the contributions of our El Salvador team in this effort.”” said Ray Roman, VP Dell global consumer operations & services. “We will do all we can to help our employees and our community partners through this transition.”
Dell continues to broaden the portfolio of technology products and services it offers in the country to both consumers and commercial customers. As of today, Dell is growing retail presence with local partners like Wal-Mart de Centro America. On the commercial business front, Dell continues to work with major local airlines, telecommunication carriers, banks, corporate groups and the government.
Stream is recognized as a leading provider of complex technical support and other business process outsourcing services to companies across a variety of industries. The company provides services to some of the world’s most respected Fortune 1000 clients in the technology, software, computing, consumer electronics, communications and media sectors.
Stream’s acquisition of the El Salvador site follows several international acquisitions by the company, including contact centers in Dominican Republic, Costa Rica and Ireland. The site will provide English and Spanish-language support for Stream's North American and Latin American clients. Terms of the transaction were not disclosed.
El Salvador’s English and Spanish-speaking workforce will allow Stream to provide flexible customer service and technical support solutions for both North America and Latin America.
"We are extremely excited to enhance our relationship with Dell. This site's management and support professionals are extremely talented and experienced and they will clearly enhance our strength in our core support models of customer service, technical support and revenue generation. We also see El Salvador as a great market for us to be in as we continue to expand our commitment to the CALA region." said Chairman & CEO Scott Murray.
About Stream Global Services, Inc. (Stream)
Stream Global Services, Inc. (“Stream”) is a leading provider of integrated business process outsourcing services such as Web and data hosting, technical support, customer retention and recovery services, warranty support, customer care and other professional services for Fortune 1000 clients in the technology, software, computing, consumer electronics, media and communications sectors. Stream has more than 17,000 technical experts and other employees across 32 service solution centers in 18 countries.
About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell is a leading global systems and services company and No. 34 on the Fortune 500. For more information, visit www.dell.com, or to communicate directly with Dell via a variety of online channels, go to www.dell.com/conversations. To get Dell news direct, visit www.dell.com/RSS.
Media Contacts
Jess Blackburn, Dell
(512) 728-8295
jess_blackburn@dell.com
Mercedes Morris, Dell
(507) 6676 3152
mercedes_morris@dell.com
Robert Dechant, Stream Global Services
(781) 929-6084
robert.dechant@stream.com
Investor Relations Contacts
Lynn Tyson, Dell
(512) 723-1130
lynn_tyson@dell.com
Robert Williams, Dell
(512) 728-7570
robert_williams@dell.com
Sheila Flaherty, Stream Globa