APAC Turns Around, CompuCredit Turns Down in Quarterlies

Quarterly results continued apace in the last week with losses reported by creditors and contact center operators.

Today, APAC Customer Services announced revenue for its 2007 fourth quarter rose 10 percent to $61.7 million from $56.1 million in the 2006 fourth quarter due to increased domestic volume and growth in its off-shore healthcare business. The company reported a net loss of $1.9 million, or $0.04 per diluted share, in the fourth quarter compared to a net loss of $24.0 million, or $0.49 per diluted share a year ago.

Revenue for APAC’s fiscal 2007 was flat at $224.7 million. For the full year, the company reported net income of $5.1 million, or $0.10 per diluted share, compared with a full year 2006 net loss of $30.5 million, or $0.62 per diluted share.

Profits this year were impacted by costs associated with the opening of a third contact center in the Philippines, higher labor costs resulting from unfavorable changes in foreign exchange rates, and increased competition for talent in the Philippines.

Deerfield, Ill.-based APAC also announced the appointment of Michael P. Marrow as its president and CEO, effective March 3. Marrow will also serve on APAC’s board. Marrow was most recently managing director, emerging markets, for Affiliated Computer Services. He succeeds Robert Keller.

Last week, card issuer CompuCredit (Nasdaq:CCRT) reported fourth quarter 2007 GAAP earnings of $15.8 million, or $0.33 per fully diluted common share, versus fourth quarter 2006 GAAP earnings of $9.7 million, or $0.19 per fully diluted common share.

On a managed basis, CompuCredit reported a fourth quarter 2007 net loss of $28.1 million, or $0.59 of managed loss per fully diluted common share, versus fourth quarter 2006 managed earnings of $19.9 million or $0.40 per fully diluted common share.

Atlanta-based CompuCredit discontinued in the fourth quarter of 2007 “105 of its retail micro-loan branches in six states, its stored value card operations, its Internet-based installment loan operations and operations under which it purchased and serviced motorcycle, all-terrain vehicle and personal watercraft loans through and for pre-qualified networks of dealers.”

CompuCredit’s adjusted charge-off rate was 13.4 percent in the fourth quarter of 2007, up from 10.9 percent for the fourth quarter of 2006 and 10.1 percent in the previous quarter. As of December 31, 2007, the 60-plus day delinquency rate was 18.4 percent, up from 14.1 percent last year and 14.6 percent as of September 30, 2007. Total managed receivables at the end of the 2007 were $4.1 billion, up from $2.8 billion a year ago.