Convergys 1Q profit slides 18 percent on flat revenue

NEW YORK—Convergys Corp.'s profit slid 18 percent in the first quarter as expenses rose while revenue was flat, the human resources consultant said Tuesday.

Convergys earned $35.9 million, or 28 cents per share, in the first quarter, compared with profit of $43.6 million, or 31 cents per share, in the first quarter last year.

The per-share results reflected an 8.2 percent reduction in the number of shares outstanding year-over-year, reflecting the company's share repurchase program.

Profit topped analysts' average forecast by a penny per share, according to a Thomson Financial survey.

Revenue, which the company derives mostly from consulting contracts, slipped marginally to $716.4 million from $719.9 million.

Analysts expected revenue of $697.3 million.

Convergys said its human resources management and customer management businesses grew, offsetting a decline in information management contracts.

Expenses climbed 3 percent to $677.5 million.

The company affirmed its profit and revenue targets for 2008.

In morning trading, shares slipped 50 cents, or 3 percent, to $15.96.