APAC Customer Services, Inc. Revises Outlook

Apr 16, 2001, 01:00 ET from APAC Customer Services, Inc.

    DEERFIELD, Ill., April 16 /PRNewswire/ -- APAC Customer Services, Inc.
 (Nasdaq:   APAC), a leading provider of integrated customer relationship
 management (CRM) solutions, today announced that it expects earnings per share
 for the first half of 2001 to be lower than the Company's previously issued
 guidance in light of the slowing economy.  The Company expects to report first
 quarter earnings of $0.02 per share, and expects to report second quarter
 earnings of $0.01 per share, before non-recurring charges of $0.02 per share
 in the first quarter and $0.01 per share in the second quarter.  Revenues are
 expected to be approximately $112 million and $105 million in the first and
 second quarters respectively.  This compares to the Company's previous
 guidance of an aggregate of $0.15 per share on $236 million in revenues for
 the first half of 2001.
     The Company's revised guidance is due in part to certain of its clients'
 business activities being adversely impacted by the general weakness in the
 U.S. economy and the concomitant effect on the demand for the Company's
 services.  The result has been lower than expected revenues from existing
 clients and delays in new client programs.  In addition, the Company is
 experiencing longer than anticipated selling cycles for its integrated CRM
 solutions but it has seen a significant increase in its sales pipeline from a
 year ago.
     "We remain confident in our business strategies and growth opportunities
 which focus on providing value added industry specific solutions to the
 communications, banking/brokerage, insurance and healthcare, and business
 services sectors, as well as travel and entertainment, automotive and retail
 sectors.  In addition, our goal is to align our expenses with anticipated
 business levels, taking into account current and new business opportunities
 and the state of the economy, while maintaining critical investments in the
 Company.  This will entail a complete review of our existing operational
 capacity as well as focusing on major initiatives to reduce costs," said Peter
 M. Leger, President and Chief Executive Officer of the Company.
     In addition, the Company announced that it and certain individual
 defendants have entered into a settlement agreement with respect to three
 class action lawsuits which alleged violations of the federal securities laws
 during the period from September 19, 1996, through April 21, 1997.  This
 settlement, which is subject to court approval, resulted in a non-recurring
 expense of approximately $0.01 per share in the first quarter.  "While
 confident that the Company complied fully with the law, we felt that the
 settlement was in the best interest of the Company and its shareholders,
 enabling the management team to focus its efforts on growing the business,"
 said Peter M. Leger, President and Chief Executive Officer.
     The Company also indicated that it is not providing earnings guidance for
 the third or fourth quarter at this time.  The Company had previously
 estimated that its full year revenues would be in the range of $500 to $510
 million and diluted earnings per share would be in the range of $0.38 to
 $0.40.
     The company expects to issue its first quarter earnings release on May 2,
 2001, with a conference call to be held on May 3, 2001.
 
     About APAC Customer Services
     APAC Customer Services, Inc., is a leading provider of comprehensive
 customer relationship management (CRM) solutions for growing companies in the
 financial services, communications, healthcare, insurance, retail, automotive,
 utility and travel and entertainment sectors.  The Company also delivers a
 full suite of electronic CRM (e-CRM) products and services, including
 e.PAC(SM), a multi-channel platform that supports a broad range of integrated,
 e-commerce-based customer interaction capabilities.  Founded in 1973 and
 headquartered in Deerfield, Illinois, the Company employs approximately 17,000
 and has 52 customer interaction centers in 13 states.  For additional
 information on the Company, call 1-800-OUT

SOURCE. Forward Looking Statements This release contains certain statements that describe the Company's assessments of future business conditions and the outlook for the Company based on available information. Whenever possible, the Company has identified these "forward-looking" statements by words such as "anticipates," "believes," "expects," "estimates," and similar phrases. These forward-looking statements are based upon assumptions the Company believes are reasonable. However, such statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those expressed in, or implied by these statements. Readers are encouraged to review the section captioned "Information Regarding Forward-Looking Statements" in the Form 10-K for the year ended December 31, 2000 filed with the Securities and Exchange Commission, which describes other important factors that may impact the Company's business, results of operations and financial condition. This filing is available on a web site maintained by the SEC at http://www.sec.gov .

SOURCE APAC Customer Services, Inc.
    DEERFIELD, Ill., April 16 /PRNewswire/ -- APAC Customer Services, Inc.
 (Nasdaq:   APAC), a leading provider of integrated customer relationship
 management (CRM) solutions, today announced that it expects earnings per share
 for the first half of 2001 to be lower than the Company's previously issued
 guidance in light of the slowing economy.  The Company expects to report first
 quarter earnings of $0.02 per share, and expects to report second quarter
 earnings of $0.01 per share, before non-recurring charges of $0.02 per share
 in the first quarter and $0.01 per share in the second quarter.  Revenues are
 expected to be approximately $112 million and $105 million in the first and
 second quarters respectively.  This compares to the Company's previous
 guidance of an aggregate of $0.15 per share on $236 million in revenues for
 the first half of 2001.
     The Company's revised guidance is due in part to certain of its clients'
 business activities being adversely impacted by the general weakness in the
 U.S. economy and the concomitant effect on the demand for the Company's
 services.  The result has been lower than expected revenues from existing
 clients and delays in new client programs.  In addition, the Company is
 experiencing longer than anticipated selling cycles for its integrated CRM
 solutions but it has seen a significant increase in its sales pipeline from a
 year ago.
     "We remain confident in our business strategies and growth opportunities
 which focus on providing value added industry specific solutions to the
 communications, banking/brokerage, insurance and healthcare, and business
 services sectors, as well as travel and entertainment, automotive and retail
 sectors.  In addition, our goal is to align our expenses with anticipated
 business levels, taking into account current and new business opportunities
 and the state of the economy, while maintaining critical investments in the
 Company.  This will entail a complete review of our existing operational
 capacity as well as focusing on major initiatives to reduce costs," said Peter
 M. Leger, President and Chief Executive Officer of the Company.
     In addition, the Company announced that it and certain individual
 defendants have entered into a settlement agreement with respect to three
 class action lawsuits which alleged violations of the federal securities laws
 during the period from September 19, 1996, through April 21, 1997.  This
 settlement, which is subject to court approval, resulted in a non-recurring
 expense of approximately $0.01 per share in the first quarter.  "While
 confident that the Company complied fully with the law, we felt that the
 settlement was in the best interest of the Company and its shareholders,
 enabling the management team to focus its efforts on growing the business,"
 said Peter M. Leger, President and Chief Executive Officer.
     The Company also indicated that it is not providing earnings guidance for
 the third or fourth quarter at this time.  The Company had previously
 estimated that its full year revenues would be in the range of $500 to $510
 million and diluted earnings per share would be in the range of $0.38 to
 $0.40.
     The company expects to issue its first quarter earnings release on May 2,
 2001, with a conference call to be held on May 3, 2001.
 
     About APAC Customer Services
     APAC Customer Services, Inc., is a leading provider of comprehensive
 customer relationship management (CRM) solutions for growing companies in the
 financial services, communications, healthcare, insurance, retail, automotive,
 utility and travel and entertainment sectors.  The Company also delivers a
 full suite of electronic CRM (e-CRM) products and services, including
 e.PAC(SM), a multi-channel platform that supports a broad range of integrated,
 e-commerce-based customer interaction capabilities.  Founded in 1973 and
 headquartered in Deerfield, Illinois, the Company employs approximately 17,000
 and has 52 customer interaction centers in 13 states.  For additional
 information on the Company, call 1-800-OUTSOURCE.
 
     Forward Looking Statements
     This release contains certain statements that describe the Company's
 assessments of future business conditions and the outlook for the Company
 based on available information.  Whenever possible, the Company has identified
 these "forward-looking" statements by words such as "anticipates," "believes,"
 "expects," "estimates," and similar phrases.  These forward-looking statements
 are based upon assumptions the Company believes are reasonable.  However, such
 statements are subject to risks and uncertainties that could cause the
 Company's actual results to differ materially from those expressed in, or
 implied by these statements.  Readers are encouraged to review the section
 captioned "Information Regarding Forward-Looking Statements" in the Form 10-K
 for the year ended December 31, 2000 filed with the Securities and Exchange
 Commission, which describes other important factors that may impact the
 Company's business, results of operations and financial condition.  This
 filing is available on a web site maintained by the SEC at
 http://www.sec.gov .
 
 SOURCE  APAC Customer Services, Inc.