Technology
TTEC Announces Fourth Quarter and Full Year 2023 Financial Results
Published
3 years agoon
By
Full Year 2023
Revenue was $2.463 Billion, up 0.8 Percent
Operating Income was $118.0 Million or 4.8 Percent of Revenue
($200.4 Million or 8.1 Percent of Revenue Non-GAAP)
Net Income was $18.3 Million or 0.7 Percent of Revenue
($103.2 Million or 4.2 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $271.5 Million or 11.0 Percent of Revenue
Fully Diluted EPS was $0.39, $2.18 Non-GAAP
Fourth Quarter 2023
Revenue was $626.2 Million, down 4.9 Percent
Operating Income was 16.9 Million or 2.7 Percent of Revenue
($41.8 Million or 6.7 Percent of Revenue Non-GAAP)
Net Income was ($8.2) Million or (1.3) Percent of Revenue
($17.5 Million or 2.8 Percent of Revenue Non-GAAP)
Adjusted EBITDA was $57.5 Million or 9.2 Percent of Revenue
Fully Diluted EPS was ($0.17), $0.37 Non-GAAP
Provides Outlook for Full Year 2024
DENVER, Feb. 29, 2024 /PRNewswire/ — TTEC Holdings, Inc. (NASDAQ:TTEC), a leading global CX (customer experience) technology and services innovator for AI-enabled CX with solutions from TTEC Engage and TTEC Digital, announced today financial results for the fourth quarter and full year ended December 31, 2023.
“As we have previously communicated, 2023 was a dynamic year for TTEC. The macroeconomic factors created a conservative and uncertain business environment that delayed client contracting decisions and lowered forecasts for certain clients in the second half of the year. While these factors moderated our results, we continued to make progress diversifying our business by growing our client base, completing a strategic phase of our geographic expansion, and expanding our AI-enabled solutions,” commented Ken Tuchman, chairman and chief executive officer of TTEC.
“Our 2024 outlook reflects three very specific challenges in our TTEC Engage segment. First, client budget constraints and a conservative mindset in the second half of 2023 is carrying forward into our 2024 outlook. Second, a long-tenured client eliminated one of several lines of business that we supported. While our relationship remains strong with this client and we continue to service their customers across multiple other lines of business, the discontinuation of this one line of business contributes to the impact on our top and bottom line in 2024. Third, while we are pleased by the growing demand for our new offshore locations, the timing lag between our recent wins and normalized revenue run rate and margins is weighing on our outlook,” Tuchman continued.
“In TTEC Digital, we delivered record bookings in the fourth quarter and the team is off to a strong start this year. Demand for our differentiated CX technology expertise continues to grow as cloud migrations and AI solutions drive our clients’ CX digital transformation agendas.”
Tuchman further stated, “As we move into 2024, we are laser focused on execution. We will continue to capitalize on our greatly expanded offshore footprint, deepen our relationships with new and existing clients, apply our AI-enabled solutions and accelerate our margin optimization initiatives.”
“TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions. As revised, the dividend is in line with our stock price and the dividend yield typical for our industry and the broader market. I am confident we are well positioned to emerge stronger as we exit 2024.”
FULL YEAR 2023 FINANCIAL HIGHLIGHTS
Revenue
Full year 2023 GAAP revenue increased 0.8 percent to $2.463 billion compared to $2.444 billion in the prior year. Foreign exchange had a $4.4 million positive impact on revenue for the full year 2023.
Income from Operations
Full year 2023 GAAP income from operations was $118.0 million, or 4.8 percent of revenue, compared to $168.5 million, or 6.9 percent of revenue in the prior year.Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $200.4 million, or 8.1 percent of revenue, compared to $248.5 million, or 10.2 percent in the prior year.Foreign exchange had a $2.2 million negative impact on Non-GAAP income from operations for the full year 2023.
Adjusted EBITDA
Full year 2023 Non-GAAP Adjusted EBITDA was $271.5 million, or 11.0 percent of revenue, compared to $320.1 million, or 13.1 percent of revenue in the prior year.
Earnings Per Share
Full year 2023 GAAP fully diluted earnings per share was $0.39 compared to $2.48 in the prior year.Non-GAAP fully diluted earnings per share was $2.18 compared to $3.59 in the prior year.
FOURTH QUARTER 2023 FINANCIAL HIGHLIGHTS
Revenue
Fourth quarter 2023 GAAP revenue decreased 4.9 percent to $626.2 million compared to $658.3 million in the prior year. Foreign exchange had a $5.5 million positive impact on revenue in the fourth quarter of 2023.
Income from Operations
Fourth quarter 2023 GAAP income from operations was $16.9 million, or 2.7 percent of revenue, compared to $48.7 million, or 7.4 percent of revenue in the prior year.Non-GAAP income from operations, excluding restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, and other items, was $41.8 million, or 6.7 percent of revenue, compared to $69.9 million, or 10.6 percent for the prior year.Foreign exchange had a $2.4 million negative impact on Non-GAAP income from operations in the fourth quarter 2023.
Adjusted EBITDA
Fourth quarter 2023 Non-GAAP Adjusted EBITDA was $57.5 million, or 9.2 percent of revenue, compared to $86.5 million, or 13.1 percent of revenue in the prior year.
Earnings Per Share
Fourth quarter 2023 GAAP fully diluted earnings per share was ($0.17) compared to $0.54 in the prior year.Non-GAAP fully diluted earnings per share was $0.37 compared to $0.91 in the prior year.
STRONG CASH FLOW AND BALANCE SHEET FUND INVESTMENTS AND DIVIDENDS
Cash flow from operations in the fourth quarter 2023 was $31.5 million compared to $18.2 million for the fourth quarter 2022. For the full year 2023, cash flow from operations was $144.8 million compared to $137.0 million for the same period 2022.Capital expenditures in the fourth quarter 2023 were $13.1 million compared to $19.4 million for the fourth quarter 2022. For the full year 2023, capital expenditures were $67.8 million compared to $84.0 million for the same period 2022.As of December 31, 2023, TTEC had cash and cash equivalents of $172.7 million and debt of $999.3 million, resulting in a net debt position of $826.5 million. This compares to a net debt position of $810.2 million for the same period 2022.As of December 31, 2023, TTEC’s remaining borrowing capacity under its revolving credit facility was approximately $90 million compared to $335 million for the same period 2022.On February 27, 2024, the Board declared the next semi-annual dividend of $0.06 per share, or $2.9 million, payable on April 30, 2024 to shareholders of record as of April 3, 2024. TTEC’s board of directors’ decision to reduce the dividend reflects a prudent shift to prioritize our capital deployment towards continued investments in sustainable growth initiatives and debt reduction associated with strategic acquisitions.TTEC paid a $0.52 per share, or $24.7 million, semi-annual dividend on October 31, 2023.
SEGMENT REPORTING & COMMENTARY
TTEC reports financial results for the following two business segments: TTEC Digital (Digital) and TTEC Engage (Engage). Financial highlights for the two segments are provided below.
TTEC Digital – Design, build and operate tech-enabled, insight-driven CX solutions
Fourth quarter 2023 GAAP revenue for TTEC Digital decreased 2.1 percent to $119.1 million from $121.7 million for the year ago period. Income from operations was $10.0 million or 8.4 percent of revenue compared to an operating income of $9.9 million or 8.2 percent of revenue in the prior year. Non-GAAP income from operations was $17.7 million, or 14.8 percent of revenue compared to operating income of $18.0 million or 14.8 percent of revenue in the prior year.
TTEC Engage – Digitally-enabled customer care, acquisition, and fraud mitigation services
Fourth quarter 2023 GAAP revenue for TTEC Engage decreased 5.5 percent to $507.1 million from $536.6 million for the year ago period. Income from operations was $6.9 million or 1.4 percent of revenue compared to operating income of $38.8 million, or 7.2 percent of revenue in the prior year.Non-GAAP income from operations was $24.1 million, or 4.8 percent of revenue, compared to operating income of $52.0 million, or 9.7 percent of revenue in the prior year.Foreign exchange had a $5.3 million positive impact on revenue and $1.9 million negative impact on income from operations.
BUSINESS OUTLOOK
“We ended 2023 in line with expectations but the recent dynamics in the Engage segment are causing a reduction in our 2024 revenue and margin outlook compared to 2023. We are confident in the initiatives currently in motion that focus on growth and margin improvement,” commented Francois Bourret, interim chief financial officer of TTEC. “As digital transformation continues to be a top priority for our clients, we are encouraged by the growing momentum with TTEC Digital. As we move forward, we will navigate this environment to position the company to exit 2024 with a view towards longer-term profitable growth.”
TTEC First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$559M — $569M
$564M
$2,275M — $2,365M
$2,320M
Non-GAAP adjusted EBITDA
$52M — $58M
$55M
$215M — $259M
$237M
Non-GAAP adjusted EBITDA margins
9.3% — 10.2%
9.8 %
9.5% — 11.0%
10.2 %
Non-GAAP operating income
$36M — $42M
$39M
$150M — $194M
$172M
Non-GAAP operating income margins
6.4% — 7.4%
6.9 %
6.6% — 8.2%
7.4 %
Interest expense, net
($20M) — ($22M)
($21M)
($77M) — ($79M)
($78M)
Non-GAAP adjusted tax rate
23% — 25%
24 %
23% — 25%
24 %
Diluted share count
47.4M — 47.6M
47.5M
47.4M — 47.6M
47.5M
Non-GAAP earnings per a share
$0.25 — $0.34
$0.30
$1.15 — $1.86
$1.51
Engage First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$453M — $457M
$455M
$1,790M — $1,850M
$1,820M
Non-GAAP adjusted EBITDA
$41M — $45M
$43M
$149M — $179M
$164M
Non-GAAP adjusted EBITDA margins
9.2% — 9.9%
9.5 %
8.4% — 9.7%
9.0 %
Non-GAAP operating income
$28M — $32M
$30M
$95M — $125M
$110M
Non-GAAP operating income margins
6.2% — 7.0%
6.6 %
5.3% — 6.8%
6.1 %
Digital First Quarter and Full Year 2024 Outlook
First Quarter 2024
Guidance
First Quarter 2024
Mid-Point
Full Year 2024
Guidance
Full Year 2024
Mid-Point
Revenue
$106M — $112M
$109M
$485M — $515M
$500M
Non-GAAP adjusted EBITDA
$11M — $13M
$12M
$66M — $80M
$73M
Non-GAAP adjusted EBITDA margins
10.1% — 11.3%
10.7 %
13.5% — 15.5%
14.5 %
Non-GAAP operating income
$8M — $10M
$9M
$55M — $69M
$62M
Non-GAAP operating income margins
7.6% — 8.9%
8.3 %
11.2% — 13.3%
12.3 %
The Company has not quantitatively reconciled its guidance for Non-GAAP operating income, Non-GAAP operating income margins, Non-GAAP adjusted EBITDA, Non-GAAP adjusted EBITDA margins, or Non-GAAP earnings per share to their respective most comparable GAAP measures because certain of the reconciling items that impact these metrics, including restructuring and impairment charges, equity-based compensation expense, changes in acquisition contingent consideration, depreciation and amortization expense, and provision for income taxes are dependent on the timing of future events outside of the Company’s control or cannot be reliably predicted. Accordingly, the Company is unable to provide reconciliations to GAAP operating income, operating income margins, EBITDA margins, and diluted earnings per share without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the Company’s 2024 financial results as reported under GAAP.
NON-GAAP FINANCIAL MEASURES
This press release contains a discussion of certain Non-GAAP financial measures that the Company includes to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of these Non-GAAP financial measures can be found in the tables accompanying this press release.
GAAP metrics are presented in accordance with Generally Accepted Accounting Principles.Non-GAAP – As reflected in the attached reconciliation table, the definition of Non-GAAP may exclude from operating income, EBITDA, net income and earnings per share restructuring and impairment charges, equity-based compensation expenses, amortization of purchased intangibles, among other items.
ABOUT TTEC
TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC’s outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company’s TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The Company’s TTEC Engage business delivers AI-enabled customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the company’s singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The Company’s over 60,000 employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.
FORWARD-LOOKING STATEMENTS
This Earnings Press Release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995., Forward-looking statements include, but are not limited to, statements relating to our operations, expected financial position, results of operation, effective tax rate, cash flow, leverage, liquidity, business strategy, competitive position, demand for our services in international operations, acquisition opportunities and impact of acquisitions, capital allocation and dividends, growth opportunities, spending, capital expenditures and investments, competition and market forecasts, industry trends, our human capital resources, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance.
In this Release when we use words such as “may,” “believe,” “plan,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “project,” “would,” “could,” “target,” or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements. Unless otherwise indicated or except where the context otherwise requires, the terms “TTEC,” “the Company,” “we,” “us” and “our”and other similar terms in this report refer to TTEC Holdings, Inc. and its subsidiaries. We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from those expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties, and other factors that affect our business and may cause such differences as outlined in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 and any subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”) which are available on TTEC’s website www.ttec.com, and on the SEC’s public website at www.sec.gov
Our forward-looking statements speak only as of the date that this release is issued. We undertake no obligation to update them, except as may be required by applicable law. Although we believe that our forward-looking statements are reasonable, they depend on many factors outside of our control and we can provide no assurance that they will prove to be correct.
Corporate Comms
Investor Relations
Marji Chimes
Paul Miller
marji.chimes@ttec.com
paul.miller@ttec.com
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$ 626,181
$ 658,278
$2,462,817
$2,443,707
Operating Expenses:
Cost of services
505,814
495,339
1,932,877
1,856,518
Selling, general and administrative
74,744
80,602
290,873
287,433
Depreciation and amortization
24,904
31,730
101,272
111,791
Restructuring charges, net
3,145
1,412
8,041
5,673
Impairment losses
650
450
11,733
13,749
Total operating expenses
609,257
609,533
2,344,796
2,275,164
Income From Operations
16,924
48,745
118,021
168,543
Other income (expense), net
(21,988)
(15,877)
(77,297)
(24,095)
(Loss) / Income Before Income Taxes
(5,064)
32,868
40,724
144,448
Provision for income taxes
(3,142)
(7,318)
(22,460)
(27,115)
Net (Loss) / Income
(8,206)
25,550
18,264
117,333
Net income attributable to noncontrolling interest
(1,694)
(3,197)
(9,836)
(14,093)
Net (Loss) / Income Attributable to TTEC Stockholders
$ (9,900)
$ 22,353
$ 8,428
$ 103,240
Net (Loss) / Income Per Share
Basic
$ (0.17)
$ 0.54
$ 0.39
$ 2.49
Diluted
$ (0.17)
$ 0.54
$ 0.39
$ 2.48
Net (Loss) / Income Per Share Attributable to TTEC Stockholders
Basic
$ (0.21)
$ 0.47
$ 0.18
$ 2.19
Diluted
$ (0.21)
$ 0.47
$ 0.18
$ 2.18
Income From Operations Margin
2.7 %
7.4 %
4.8 %
6.9 %
Net (Loss) / Income Margin
(1.3) %
3.9 %
0.7 %
4.8 %
Net (Loss) / Income Attributable to TTEC Stockholders Margin
(1.6) %
3.4 %
0.3 %
4.2 %
Effective Tax Rate
(62.0) %
22.3 %
55.2 %
18.8 %
Weighted Average Shares Outstanding
Basic
47,425
47,220
47,335
47,121
Diluted
47,503
47,299
47,419
47,335
TTEC HOLDINGS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue:
TTEC Digital
$ 119,118
$ 121,650
$ 486,882
$ 463,670
TTEC Engage
507,063
536,628
1,975,935
1,980,037
Total
$ 626,181
$ 658,278
$ 2,462,817
$ 2,443,707
Income From Operations:
TTEC Digital
$ 9,982
$ 9,924
$ 29,846
$ 34,895
TTEC Engage
6,942
38,821
88,175
133,648
Total
$ 16,924
$ 48,745
$ 118,021
$ 168,543
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$ 172,747
$ 153,435
Accounts receivable, net
394,868
417,637
Prepaids and other current assets
95,064
133,365
Income and other tax receivables
18,524
45,533
Total current assets
681,203
749,970
Property and equipment, net
191,003
183,360
Operating lease assets
121,574
92,431
Goodwill
808,988
807,845
Other intangibles assets, net
198,433
233,909
Income and other tax receivables, long-term
44,673
–
Other assets
139,724
86,447
Total assets
$ 2,185,598
$ 2,153,962
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$ 96,577
$ 93,937
Accrued employee compensation and benefits
146,184
145,096
Deferred revenue
81,171
87,846
Current operating lease liabilities
38,271
35,271
Other current liabilities
40,824
49,214
Total current liabilities
403,027
411,364
Long-term liabilities:
Line of credit
995,000
960,000
Non-current operating lease liabilities
96,809
69,575
Other long-term liabilities
75,220
79,273
Total long-term liabilities
1,167,029
1,108,848
Redeemable noncontrolling interest
–
55,645
Equity:
Common stock
474
472
Additional paid in capital
407,415
367,673
Treasury stock
(589,807)
(593,164)
Accumulated other comprehensive income (loss)
(89,876)
(126,301)
Retained earnings
870,429
911,233
Noncontrolling interest
16,907
18,192
Total equity
615,542
578,105
Total liabilities and equity
$ 2,185,598
$ 2,153,962
TTEC HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Twelve months ended
Twelve months ended
December 31,
December 31,
2023
2022
Cash flows from operating activities:
Net income
$ 18,264
$ 117,333
Adjustments to reconcile net income to net cash provided by operating activities :
Depreciation and amortization
101,272
111,791
Amortization of contract acquisition costs
2,288
2,065
Amortization of debt issuance costs
1,067
1,018
Imputed interest expense and fair value adjustments to contingent consideration
7,579
1,746
Provision for credit losses
2,009
9,391
Loss on disposal of assets
2,219
1,916
Loss on dissolution of subsidiary
301
–
Impairment losses
11,733
13,749
Deferred income taxes
(7,528)
(11,001)
Excess tax benefit from equity-based awards
1,705
(1,122)
Equity-based compensation expense
22,071
17,571
Gain on foreign currency derivatives
(3)
(7)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
22,359
(74,564)
Prepaids and other assets
8,570
43,699
Accounts payable and accrued expenses
9,518
(12,695)
Deferred revenue and other liabilities
(58,659)
(83,842)
Net cash provided by operating activities
144,765
137,048
Cash flows from investing activities:
Proceeds from sale of property and equipment
261
229
Purchases of property, plant and equipment
(67,839)
(84,012)
Acquisitions
–
(142,420)
Net cash used in investing activities
(67,578)
(226,203)
Cash flows from financing activities:
Net proceeds from / (repayments of) line of credit
35,000
169,000
Payments on other debt
(2,317)
(3,245)
Payments of contingent consideration and hold back payments to acquisitions
(37,676)
(9,600)
Dividends paid to shareholders
(49,232)
(48,072)
Payments to noncontrolling interest
(10,972)
(11,883)
Tax payments related to the issuance of restricted stock units
(3,037)
(7,164)
Net cash (used in) / provided by financing activities
(68,234)
89,036
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(2,112)
(13,499)
Increase / (decrease) in cash, cash equivalents and restricted cash
6,841
(13,618)
Cash, cash equivalents and restricted cash, beginning of period
167,064
180,682
Cash, cash equivalents and restricted cash, end of period
$ 173,905
$ 167,064
TTEC HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$ 626,181
$ 658,278
$ 2,462,817
$ 2,443,707
Reconciliation of Non-GAAP Income from Operations and EBITDA:
Income from Operations
$ 16,924
$ 48,745
$ 118,021
$ 168,543
Restructuring charges, net
3,145
1,412
8,041
5,673
Impairment losses
650
450
11,733
13,749
Cybersecurity incident related impact, net of insurance recovery
–
(446)
(3,210)
(3,610)
Software accelerated amortization
–
6,382
–
8,509
Write-off of acquisition related receivable
–
–
–
900
Property costs not related to operations
757
–
1,501
–
Liability related to notifications triggered by labor scheme (1)
6,000
–
6,000
–
Grant income for pandemic relief
–
–
40
–
Change in acquisition related obligation
–
–
483
–
Equity-based compensation expenses
5,661
4,331
22,071
17,571
Amortization of purchased intangibles
8,676
9,038
35,759
37,169
Non-GAAP Income from Operations
$ 41,813
$ 69,912
$ 200,439
$ 248,504
Non-GAAP Income from Operations Margin
6.7 %
10.6 %
8.1 %
10.2 %
Depreciation and amortization
15,894
16,310
64,840
66,113
Changes in acquisition contingent consideration
616
(272)
7,480
1,798
Change in escrow balance related to acquisition
–
–
625
–
Loss on dissolution of subsidiary
–
–
301
–
Foreign exchange loss / (gain), net
1,112
1,710
1,950
(6,514)
Other income (expense), net
(1,894)
(1,156)
(4,126)
10,161
Adjusted EBITDA
$ 57,541
$ 86,504
$ 271,509
$ 320,062
Adjusted EBITDA Margin
9.2 %
13.1 %
11.0 %
13.1 %
Reconciliation of Non-GAAP EPS:
Net (Loss) / Income
$ (8,206)
$ 25,550
$ 18,264
$ 117,333
Add: Asset impairment and restructuring charges
3,795
1,862
19,774
19,422
Add: Equity-based compensation expenses
5,661
4,331
22,071
17,571
Add: Amortization of purchased intangibles
8,676
9,038
35,759
37,169
Add: Cybersecurity incident related impact, net of insurance recovery
–
(446)
(3,210)
(3,610)
Add: Software accelerated amortization
–
6,382
–
8,509
Add: Write-off of acquisition related receivable
–
–
–
900
Add: Property costs not related to operations
757
–
1,501
–
Add: Liability related to notifications triggered by labor scheme
6,000
–
6,000
–
Add: Grant income for pandemic relief
–
–
40
–
Add: Change in acquisition related obligation
–
–
483
–
Add: Changes in acquisition contingent consideration
616
(272)
7,480
1,798
Add: Changes in escrow balance related to acquisition
–
–
625
–
Add: Loss on dissolution of subsidiary
–
–
301
–
Add: Foreign exchange loss / (gain), net
1,112
1,710
1,950
(6,514)
Less: Changes in valuation allowance, return to provision adjustments and
other, and tax effects of items separately disclosed above
(885)
(4,909)
(7,859)
(22,872)
Non-GAAP Net Income
$ 17,526
$ 43,246
$ 103,179
$ 169,706
Diluted shares outstanding
47,503
47,299
47,419
47,335
Non-GAAP EPS
$0.37
$0.91
$2.18
$3.59
Reconciliation of Free Cash Flow:
Cash Flow From Operating Activities:
Net (Loss) / Income
$ (8,206)
$ 25,550
$ 18,264
$ 117,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
24,904
31,730
101,272
111,791
Other
14,836
(39,045)
25,229
(92,076)
Net cash provided by operating activities
31,534
18,235
144,765
137,048
Less – Total Cash Capital Expenditures
13,117
19,448
67,839
84,012
Free Cash Flow
$ 18,417
$ (1,213)
$ 76,926
$ 53,036
(1) – For further information, please see discussion in the Risk Factors section of the 2023 Form 10-K filed on February 29, 2024.
Reconciliation of Non-GAAP Income from Operations and Adjusted EBITDA by Segment :
TTEC Engage
TTEC Digital
TTEC Engage
TTEC Digital
Q4 23
Q4 22
Q4 23
Q4 22
YTD 23
YTD 22
YTD 23
YTD 22
Income from Operations
$ 6,942
$ 38,821
$ 9,982
$ 9,924
$ 88,175
$ 133,648
$ 29,846
$ 34,895
Restructuring charges, net
1,823
1,130
1,322
282
4,250
5,251
3,791
422
Impairment losses
700
24
(50)
426
8,929
13,112
2,804
637
Cybersecurity incident related impact, net of insurance recovery
–
(446)
–
–
(3,210)
(3,610)
–
–
Software accelerated amortization
–
5,106
–
1,276
–
6,808
–
1,701
Write-off of acquisition related receivable
–
–
–
–
–
–
–
900
Property costs not related to operations
757
–
–
–
1,501
–
–
–
Grant income for pandemic relief
–
–
–
–
40
–
–
–
Change in acquisition related obligation
–
–
–
–
–
–
483
–
Liability related to notifications triggered by labor scheme
6,000
–
–
–
6,000
–
–
–
Equity-based compensation expenses
3,658
2,659
2,003
1,672
14,257
11,476
7,814
6,095
Amortization of purchased intangibles
4,264
4,658
4,412
4,380
18,215
17,272
17,544
19,897
Non-GAAP Income from Operations
$ 24,144
$ 51,952
$ 17,669
$ 17,960
$ 138,157
$ 183,957
$ 62,282
$ 64,547
Depreciation and amortization
13,458
13,667
2,436
2,643
55,153
54,561
9,687
11,552
Changes in acquisition contingent consideration
616
(272)
–
–
7,480
1,798
–
–
Change in escrow balance related to acquisition
–
–
–
–
625
–
–
–
Loss on dissolution of subsidiary
–
–
–
–
301
–
–
–
Foreign exchange loss / (gain), net
1,271
1,606
(159)
104
2,085
(5,540)
(135)
(974)
Other income (expense), net
(1,728)
(1,063)
(166)
(93)
(4,060)
9,352
(66)
809
Adjusted EBITDA
$ 37,761
$ 65,890
$ 19,780
$ 20,614
$ 199,741
$ 244,128
$ 71,768
$ 75,934
View original content to download multimedia:https://www.prnewswire.com/news-releases/ttec-announces-fourth-quarter-and-full-year-2023-financial-results-302076311.html
SOURCE TTEC Holdings, Inc.
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BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:
David Ferguson:
This is the Yudu River. One dusk in October, 1934, more than 86,000 soldiers of the Red Army crossed this river and embarked on the Long March, a two-year saga that has left its mark in history.
Yet, lingering here by the river, I am struck by a simple question: If you have faith in a bright future, and reality seems to thwart you at every turn, where do you find the moral strength to keep believing?
Wang Xiaohui:
At dusk on Oct. 17, 1934, an army of more than 86,000 troops gathered along the banks of the Yudu River. Over 800 boats of all sizes floated on the water, bound together with planks collected from villagers’ home gates, timber beams, and even coffin boards reserved for elderly locals. The people of Yudu built this pontoon bridge, determined to help the army led by the Communist Party of China (CPC) cross the river.
At that time, no one knew that the great expedition embarked upon by the banks of the Yudu River would go on to transform China and exert far-reaching influence across the world.
China in the 1920s and 1930s was plagued by chaos and despair.
The Kuomintang (KMT), the ruling party back then, was not capable of unifying the nation, leaving warlords locked in endless fighting. In 1931, Japanese invaders launched an assault on northeastern China, beginning their invasion. Crushed under domestic turbulence and foreign aggression, countless civilians were displaced, with many even starving to death on the streets; in certain regions, severe drought resulted in zero harvests, yet the farmers were forced to pay land taxes assessed for more than a decade into the future.
Amid this turmoil, the only glimmer of hope for the Chinese nation was kindled by the revolution ignited by the Communist Party of China.
The CPC, dedicated to winning liberation for the people and national independence, built contingents of workers’ and peasants’ Red Army troops and revolutionary base areas across the countryside. Impoverished farmers were granted land ownership, as well as unprecedented political dignity. On Nov. 7, 1931, the Chinese Soviet Republic was officially proclaimed in Ruijin, then a small village in southeastern China’s Jiangxi Province, establishing a Soviet system under which workers, peasants and soldiers elected representatives to run regional affairs and make policies.
The communist ideal of a fair society free from exploitation and equality for all blazed like a spark in the darkness; it kindled hopes among impoverished Chinese and became the wellspring of faith that enabled the Red Army — a force made up of poor workers and peasants — to overcome all hardships in the days to come.
Yet, bright as the spark was, it burned thin and fragile at times. Could this flame still endure when the ideals it carried were repeatedly battered by harsh reality?
In September 1933, flocks of warplanes clouded the skies over the Red Army’s revolutionary base areas. By then, Japanese invaders were steadily advancing towards North China, but Chiang Kai-shek’s KMT turned a blind eye to the looming national crisis. They mobilized over a million troops and more than 200 aircraft to launch a massive offensive at the Red Army’s base areas. Over the previous three years, Chiang Kai-shek had mounted four major military “encirclement” campaigns aimed at exterminating the Red Army, but all ended in failure. He was desperate for a pivotal victory to restore his prestige and to wipe out the CPC and the Red Army.
At the time, the commander of the Red Army abandoned mobile warfare tactics pioneered by Mao Zedong and other commanders, opting instead for rigid positional warfare involving conventional head-on clashes. But the reality was, some Red Army units didn’t even possess a single light machine gun; how could they confront the heavily-armed KMT army head-on?
Zhong Ming, a Red Army medic, could never erase the memories of gravely wounded soldiers being carried to his aid station. He remembered how a soldier whose chest was blown open begged his comrades to end his life. At the frontline, a whole battalion of Red Army soldiers religiously followed orders to defend crude earth-and-wood bunkers, but under the constant barrage of KMT artillery and airstrikes, every soldier in the battalion laid down their lives; not a single man survived.
What’s more heart-wrenching is that no matter how fearlessly the Red Army fought, the steep imbalance in military strength, paired with erroneous military command led to irreversible losses. By October 1934, the KMT’s iron-clad encirclement closed menacingly around Ruijin.
Faced with this dead-end, what decision would you make?
This stood as the most agonizing decision for the Red Army. The biggest challenge lay not in sacrificing one’s life for an ideal, but in finding a way to keep the revolutionary cause alive.
To stay meant defeat — the Red Army had no room to maneuver within the Central Revolutionary Base Area. To break through the encirclement, however slim the odds, offered a fighting chance. Preserving the Red Army as a living force mattered much more than clinging to isolated strongholds. Where the spark survives, the path ahead remains lit.
The air already turned chilly in October. Units of the Central Red Army assembled in Yudu to prepare for a strategic shift. The plan was kept strictly classified; none of the soldiers knew they were evacuating the base areas, only sensing an unusual vibe.
At dusk on Oct. 17, crowds lined up at the Yudu riverbank. Tens of thousands of villagers flocked from every corner to see the Red Army off. They walked alongside the marching columns, slipping food like eggs and glutinous rice balls into the soldiers’ pockets, praying for their swift homecoming.
The main force of the Central Red Army set off. Within days, they left behind revolutionary base areas where they had survived, grown and taken root. No one anticipated that the journey they embarked on would become the Long March, a trek spanning over 10 provinces. Still less could anyone imagine that this journey would ultimately pave the way for a brand-new China.
Looking back on this chapter of history, many claim that the Red Army only set out on this expedition because the enemies left them no other choice. To a degree, yes, the Long March was indeed a forced strategic shift, yet this fact does nothing to diminish its greatness and glory.
The ordinary Red Army soldiers had no idea how far they would march, or where they were heading. But they clung firmly to their founding mission: to deliver liberation for the people and independence to the nation. This unswerving conviction kept them from disintegrating through countless perils, sustaining them as they marched into the unknown with resolve.
David Ferguson:
I now realize that faith and ideals untested by harsh reality may have no true substance.
Since its founding, the Communist Party of China has always upheld the realization of communism as its fundamental goal. Despite devastating losses and extreme adversity, the Red Army continued to press forward resolutely and never faltered. Its inner strength came from an unshakable belief in the cause, an unwavering commitment to the founding aspiration, and a profound sense of mission. The Red Army was never fleeing pursuers in search of safety; it was marching forward to a future in which it had a steadfast belief.
Wang Xiaohui:
The Long March went on for two years. The Red Army trekked 25,000 li across some of China’s harshest terrain, but they kept their heads high, seeking hope amid despair and marching towards light through unending darkness. The lofty ideals and sense of mission they upheld have also become the torch that guides generations of CPC members in the following centennial, tempering them into steel as they press forward unswervingly toward national rejuvenation.
That spark lit along the Yudu River has never dimmed since.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/16/content_118736835.shtml
View original content to download multimedia:https://www.prnewswire.com/news-releases/faith-the-spark-born-by-the-yudu-riverside-302911977.html
SOURCE China.org.cn
Technology
Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026
Published
9 hours agoon
October 18, 2026By
SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.
Spotlight: 1.6T LPO Performance & High Customer Traction
AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:
Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.
Surging Market Interest
Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.
Overview of Other Innovations at OCP 2026
In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:
12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.
About Linktel Technologies
Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.
For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.
View original content:https://www.prnewswire.com/news-releases/linktel-technologies-highlights-breakthrough-1-6t-lpo-performance–strong-market-pull-at-ocp-2026–302911973.html
SOURCE Linktel Technologies
Technology
Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair
Published
10 hours agoon
October 18, 2026By
GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.
Smart Life Solutions Address an Aging and Globalized Market
A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.
For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.
Service Robots Demonstrate Expanding Real-World Applications
The Service Robot Zone remains one of the fair’s most popular attractions in this edition.
Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.
More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.
The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.
As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
View original content to download multimedia:https://www.prnewswire.com/news-releases/advanced-manufacturing-in-focus-smart-life-and-robotics-take-the-spotlight-at-140th-canton-fair-302911955.html
SOURCE Canton Fair
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