UPDATE 1-Sykes Enterprises to close some centers, take charge

Fri Oct 22, 2010 5:26pm EDT

* To incur $7.2 mln in costs

* No jobs affected

Oct 22 (Reuters) - Business process outsourcing company Sykes Enterprises Inc (SYKE.O) said it will close four centers in the Philippines and consolidate leased space in its Delaware and Pennsylvania locations to cut overlap from its acquisition of rival ICT Group.

Tampa, Florida-based Sykes bought ICT Group earlier this year for $263 million to expand into financial services and insurance verticals.

The company will incur restructuring costs of $7.2 million, mainly related to long-lived asset impairment and real estate leases. [ID:nWNAB6428]

No jobs will be affected by the restructuring plan, which will see the elimination of about 2,000 seats at these facilities.

The plan, which is expected to complete by Jan. 31, 2011, is expected to save about $5.8 million annually, the company said.

In early August, the company slashed its fiscal 2010 outlook to an adjusted profit of 81-83 cents a share and revenue of $1.17-$1.18 billion.

The company's shares, which closed at $15.01 Friday on Nasdaq, have lost 44 percent of their value since their 52-week high of $26.91 on Dec. 15. (Reporting by Sayantani Ghosh in Bangalore; Editing by Don Sebastian)

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