Sykes Enterprises Reports Settlement in Claim Related to Damage Center

Sykes Enterprises Inc. has reported a settlement of an insurance claim related to its damaged Marianna, Florida customer contact management center.

Under the terms of the company’s insurance policy for the Marianna center, SYKES received a cash settlement, net of deductibles, of approximately $7.0 million. The net carrying value of the assets written-off approximated $1.2 million. Including other related expenses, the total amount written-off approximated $1.7 million.

The gain from the company’s insurance settlement will therefore approximate $5.3 million, or $0.13 per diluted share on a before- and after- tax basis. The company’s business outlook previously provided in November of 2004 did not include the impact of this insurance settlement.

SYKES is a global provider in customer contact management solutions and services in the business process outsourcing (BPO) arena.