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Sykes Enterprises, Incorporated Reports First-Quarter 2013 Financial Results

Sykes Enterprises, Incorporated Reports First-Quarter 2013 Financial Results

  --In-line revenues and on-going productivity improvements aid earnings per
                                    share

 --Facility transfers/rationalizations and capacity additions remain on track
               as capacity utilization increases year-over-year

 --Progress continues with integration of legacy platform with Alpine and its
                                  rebranding

                  --Raising full-year 2013 business outlook

TAMPA, Fla., May 6, 2013 (GLOBE NEWSWIRE) -- Sykes Enterprises, Incorporated
("SYKES" or the "Company") (Nasdaq:SYKE), a global leader in providing
comprehensive outsourced customer contact management solutions and services in
the business process outsourcing (BPO) arena, announced today its financial
results for the first quarter ended March 31, 2013.

First Quarter 2013 Financial Highlights

  *First quarter 2013 revenues from continuing operations of $301.2 million
    increased $23.1 million, or 8.3%, from $278.1 million in the comparable
    quarter last year; first quarter 2013 revenues include $31.0 million in
    revenue contribution from the Alpine Access acquisition
    
  *On a constant currency basis and excluding Alpine Access' revenue
    contribution of $31.0 million, first quarter 2013 revenues from continuing
    operations decreased 3.0% comparably (an improvement however from the 6.2%
    comparable revenue decline in first quarter 2012 vs. first quarter 2011)
    as expansion of new and existing client programs was more than offset by
    previously discussed end-of-life client programs and strategic actions to
    exit certain geographies in the EMEA region, the associated revenues from
    which were in the year-ago period but are not part of the revenue base in
    the first quarter of 2013
    
  *First quarter 2013 operating margin from continuing operations was 3.3%
    versus 5.3% in the same period last year; on a non-GAAP basis (see section
    titled "Non-GAAP Financial Measures" for an explanation and see Exhibit 5
    for reconciliation), first quarter 2013 operating margin from continuing
    operations decreased to 5.0% versus 6.8%% in the same period last year,
    with the decrease due to a combination of costs related to client program
    ramps and facility transfers, higher roadside assistance tow claims in
    Canada due to a colder-than-expected winter, end-of-life client programs
    and unfavorable foreign currency movements (approximately 70 basis points)
    resulting from appreciating functional currencies versus the U.S. dollar
    
  *First quarter 2013 diluted earnings per share from continuing operations
    were $0.15 versus $0.25 in the comparable quarter last year, with the
    reduction due largely to above-mentioned factors coupled with a higher
    effective tax rate
    
  *On a non-GAAP basis, first quarter 2013 diluted earnings per share from
    continuing operations were $0.23 versus $0.32 in the same period last year
    (see Exhibit 5 for reconciliation) and versus the February 2013 business
    outlook range of $0.18 to $0.20, with the comparable decrease driven
    largely by the above-mentioned factors; relative to the business outlook
    range, the increase was due largely to a combination of on-going
    productivity improvements as well as a lower than expected effective tax
    rate and other expenses
    
  *Consolidated capacity utilization rates increased to 73% in the first
    quarter 2013 from 71% in the comparable period last year due largely to
    higher utilization rates in EMEA and overall reductions in seat capacity
    
  *First quarter 2012 loss per share from discontinued operations, net of
    taxes, was ($0.27), which was driven by the sale of the Company's Spain
    operations

Americas Region

Revenues from continuing operations from the Company's Americas region,
including operations in North America and offshore (Latin America, South Asia
and the Asia Pacific region), increased 10.9% to $255.2 million, or 84.7% of
total revenues, for the first quarter of 2013 compared to $230.1 million, or
82.7% of total revenues, in the prior year's first quarter. Alpine Access'
revenues were $31.0 million, which exclude approximately $4.0 million of
revenue contribution from SYKES' legacy at-home agent program in the U.S.,
which was merged into the Alpine Access at-home agent platform. On a constant
currency basis and excluding Alpine Access' revenue contribution of $31.0
million, first quarter 2013 Americas revenues from continuing operations
decreased 2.7% comparably as expansion of new and existing client programs was
more than offset by certain previously discussed end-of-life client programs,
the associated revenues from which were in the year-ago period but are not
part of the revenue base in the first quarter of 2013.

During the quarter, revenues from continuing operations generated from
services provided offshore decreased to 43% from 49% in the same period last
year principally due to a mix-shift in revenues to North America driven by
Alpine Access, whose clients reside in and are serviced from the U.S. and
Canada.

Sequentially, revenues from continuing operations generated from the Americas
region decreased 1.2% to $255.2 million in the first quarter of 2013 compared
to $258.3 million, or 84.9% of total revenues, in the fourth quarter of 2012.
On a constant currency basis, first quarter 2013 Americas revenues decreased
0.5% over the fourth quarter due largely to demand seasonality.

The Americas income from continuing operations for the first quarter of 2013
decreased 27.6% to $19.5 million, with an operating margin of 7.6% versus
11.7% in the comparable quarter last year. On a non-GAAP basis, the Americas
operating margin from continuing operations decreased to 9.5% from 13.0% in
the comparable quarter last year due to a combination of costs related to
client program ramps and facility transfers, higher roadside assistance tow
claims in Canada due to a colder-than-expected winter, end-of-life client
programs and unfavorable foreign currency movements (approximately 80 basis
points) resulting from appreciating functional currencies versus the U.S.
dollar (see Exhibit 6 for reconciliation).

Sequentially, the Americas income from continuing operations for the first
quarter of 2013 decreased 19.3% to $19.5 million, with an operating margin of
7.6% versus 9.4% in the fourth quarter of 2012. On a non-GAAP basis, the
Americas operating margin from continuing operations decreased to 9.5% from
11.6%. The decrease was due largely to the above-mentioned factors, coupled
with demand seasonality (see Exhibit 6 for reconciliation).

EMEA Region

Revenues from continuing operations from the Company's Europe, Middle East and
Africa (EMEA) region decreased 4.1% to $46.0 million, representing 15.3% of
total revenues for the first quarter of 2013, compared to $48.0 million, or
17.3% of total revenues, in the prior year's first quarter. On a constant
currency basis, EMEA revenues from continuing operations decreased 4.6% as
expansion of new and existing clients programs was more than offset by a
combination of certain previously discussed end-of-life client programs and
the strategic actions taken in EMEA to exit from South Africa, Ireland and the
Netherlands, which began in the first quarter of 2012.

Sequentially, revenues from continuing operations from the Company's EMEA
region were essentially flat at $46.0 million, or 15.1% of SYKES' total
revenues in the fourth quarter of 2012. On a constant currency basis, EMEA
revenues from continuing operations decreased 0.4% sequentially, driven
largely by demand seasonality.

The EMEA region's income from continuing operations for the first quarter of
2013 was $1.9 million, or 4.0% of EMEA revenues, versus $0.4 million, or 0.8%
of revenues, in the comparable quarter last year. On a non-GAAP basis, the
operating margin from continuing operations was 4.0% versus 2.9% in the same
period last year, driven largely by the strategic actions in EMEA, including
better cost alignment (see Exhibit 6 for reconciliation).

Sequentially, the EMEA region's income from continuing operations for the
first quarter of 2013 was $1.9 million, or 4.0% of EMEA revenues versus $3.6
million, or 7.9% of revenues, in the fourth quarter of 2012. On a non-GAAP
basis, the EMEA operating margin from continuing operations was 4.0% versus
6.2% due largely to demand seasonality (see Exhibit 6 for reconciliation).

Corporate G&A Expenses

Corporate G&A expenses decreased to $11.5 million, or 3.8% of revenues, in the
first quarter of 2013, compared to $12.7 million, or 4.6% of revenues, in the
comparable quarter last year, with the decrease due primarily to a combination
of productivity improvements, lower professional services fees and a shift in
timing of certain expenses. On a non-GAAP basis, corporate G&A expenses
decreased to $11.0 million, or 3.7% of revenues, from $12.6 million, or 4.5%
of revenues, in the comparable period last year due largely to the
aforementioned factors (see Exhibit 6 for reconciliation).

Sequentially, corporate G&A expenses decreased to $11.5 million, or 3.8% of
revenues, in the first quarter of 2013, from $12.1 million, or 4.0% of
revenues, in the fourth quarter of 2012. On a non-GAAP basis, corporate G&A
expenses decreased by $0.4 million to $11.0 million in the first quarter of
2013, but were flat on a comparable basis at 3.7% of revenues (see Exhibit 6
for reconciliation).

Interest & Other Expense and Taxes

Interest and other expense for the first quarter of 2013 totaled approximately
$0.2 million compared to interest and other expense of $0.6 million for the
same period in the prior year. The decrease in interest and other expense was
due principally to lower realized and unrealized foreign currency transactions
losses. These losses result primarily from U.S. dollar denominated assets and
liabilities held by the Company's foreign subsidiaries.

The Company's effective tax rate from continuing operations was 32.9% for the
first quarter of 2013 versus 23.8% in the same period last year and below the
estimated 41% provided in the Company's February 2013 business outlook. The
increase in comparable tax rate was due principally to the previously
discussed discrete adjustment related to The American Taxpayer Relief Act of
2012 passed on January 2, 2013, which resulted in the Company incurring
withholding taxes on its offshore cash movements. Relative to the February
2013 business outlook, the decrease in effective tax rate was due mainly to a
shift in the geographic mix of earnings to lower tax rate jurisdictions.

On a non-GAAP basis, the first quarter 2013 effective tax rate was 32.9%
compared to 23.0% in the same period last year and below the estimated 37%
provided in the Company's February 2013 business outlook, both of which were
due to the above-mentioned reasons.

Liquidity and Capital Resources

The Company's balance sheet at March 31, 2013 remained strong with cash and
cash equivalents of $177.8 million. Approximately $173.9 million, or 97.8% of
the cash balance, was held in international operations and may be subject to
additional taxes if repatriated to the United States, including withholding
tax applied by the country of origin and U.S. taxes on the dividend income. At
quarter-end, the Company had approximately $111.0 million of borrowings
outstanding under its revolving senior credit facility, up from $91.0 million
at December 31, 2012.The increase in borrowings sequentially was due to a
combination of factors, including the timing of receivable collections and
other expansion-related uses of working capital. The amount available under
the Company's credit facility was $134.0 million at March 31, 2013.

Business Outlook

The assumptions driving the business outlook for the second quarter and
full-year 2013 are as follows:

  *Although the Company remains cautious about the broader macro-economic
    environment, it is somewhat encouraged by an up-tick in demand trends
    among select prospects within certain segments of the outsourced customer
    contact marketplace. In particular, this demand uptick is being driven by
    incremental opportunities within the communications vertical in the EMEA
    region. As such, the Company is increasing slightly its consolidated
    full-year 2013 revenue and earnings per share outlook ranges. However, the
    expenses associated with the program ramps accompanying the revised
    revenue outlook coupled with the previously discussed timing of capacity
    build outs and transfers in the first half of the year are expected to
    significantly impact second quarter earnings per share relative to the
    first quarter and, to a meaningful extent, third quarter 2013 earnings per
    share as well. Furthermore, given the sometimes fluid nature of capacity
    build outs and program ramps, there remains a possibility for potential
    shifts in timing of expenses and anticipated revenue generation among
    quarters through the remainder of the year;
    
  *The Company's revenues and earnings per share assumptions for the second
    quarter and full year 2013 are based on foreign exchange rates as of April
    2013.Therefore, the continued volatility in foreign exchange rates
    between the U.S. dollar and the functional currencies of the markets the
    Company serves could have a further impact, positive or negative, on
    revenues and both GAAP and non-GAAP earnings per share relative to the
    business outlook for the second quarter and full-year;
    
  *The Company remains on track to complete the operational integration of
    the Alpine Access acquisition by the second-half of 2013. The integration
    process is expected to result in long-term operating efficiencies;
    
  *The Company also remains on track to add approximately 6,000 seats on a
    gross basis in 2013.Approximately 75% of the seat count is still expected
    to be added in the first half of 2013, with the remainder in the second
    half. During the first quarter, the Company added approximately 1,500
    seats on a gross basis while net seats increased by 1,100 sequentially. A
    number of the anticipated seat additions in 2013 are related to facility
    transfers. Total seat count on a net basis for the full year is still
    expected to increase by approximately 1,000 seats;
    
  *The Company anticipates interest and other expense of approximately $1.0
    million for the second quarter and $3.2 million for the full year 2013.
    Included in the aforementioned amounts is net interest expense of $0.4
    million and $1.6 million for the second quarter and full year 2013,
    respectively, related to the debt associated with the acquisition of
    Alpine Access. The anticipated increase in other expense relative to 2012
    is being driven primarily by forecasted foreign currency transaction
    losses due to a weakening U.S. dollar relative to certain functional
    currencies. These amounts exclude the potential impact of any future
    foreign exchange gains or losses in other expense; and
    
  *The Company anticipates full-year 2013 effective tax rate to remain
    unchanged relative to its initial 2013 business outlook released in
    February 2013. For the second quarter, the Company anticipates a zero
    percent effective tax rate driven largely by a shift in the mix of
    earnings between high and low tax jurisdictions.

Considering the above factors, the Company anticipates the following financial
results for the three months ending June 30, 2013:

  *Revenues in the range of $301.0 million to $305.0 million
  *Effective tax rate of approximately 0%; on a non-GAAP basis, an effective
    tax rate of approximately 0%
  *Fully diluted share count of approximately 43.1 million
  *Diluted earnings per share of approximately $0.11 to $0.15
  ***Non-GAAP diluted earnings per share in the range of $0.18 to $0.22
  *Capital expenditures in the range of $28.0 million to $33.0 million 

For the twelve months ending December 31, 2013, the Company anticipates the
following financial results:

  *Revenues in the range of $1,225.0 million to $1,240.0 million
  *Effective tax rate of approximately 25%; on a non-GAAP basis, an effective
    tax rate of approximately 27%
  *Fully diluted share count of approximately 43.1 million
  *Diluted earnings per share of approximately $0.91 to $1.00
  ***Non-GAAP diluted earnings per share in the range of $1.19 to $1.28
  *Capital expenditures in the range of $55.0 million to $65.0 million 

* See "Business Outlook Reconciliation" (Exhibit 7) for Second Quarter and
Full-Year 2013 non-GAAP diluted earnings per share reconciliation.

Conference Call

The Company will conduct a conference call regarding the content of this
release tomorrow, May 7, 2013, at 10:00 a.m. Eastern Daylight Savings
Time.The conference call will be carried live on the Internet.Instructions
for listening to the call over the Internet are available on the Investors
page of SYKES' website at www.sykes.com.A replay will be available at this
location for two weeks.This press release is also posted on the SYKES website
at
http://investor.sykes.com/investor-relations/Investor-Resources/Investor-Relations-Home/default.aspx.

Non-GAAP Financial Measures

Non-GAAP income from continuing operations, non-GAAP operating margins,
non-GAAP tax rate, non-GAAP income from continuing operations, net of taxes,
per diluted share and non-GAAP income from continuing operations by segment
are important indicators of performance as these non-GAAP financial measures
assist readers in further understanding the Company's results from operations
and how management evaluates and measures such performance. These non-GAAP
indicators of performance are not measures of financial performance under U.S.
Generally Accepted Accounting Principles ("GAAP") and should not be considered
a substitute for measures determined in accordance with GAAP. Refer to the
exhibits in the release for detailed reconciliations.

About Sykes Enterprises, Incorporated

SYKES is a global leader in providing a comprehensive customer contact
management solutions and services in the business process outsourcing (BPO)
arena.SYKES provides an array of sophisticated customer contact management
solutions to Fortune 1000 companies around the world, primarily in the
communications, financial services, healthcare, technology and transportation
and leisure industries.SYKES specializes in providing flexible, high quality
customer support outsourcing solutions with an emphasis on inbound technical
support and customer service.Headquartered in Tampa, Florida, with customer
contact management centers throughout the world, SYKES provides its services
through multiple communication channels encompassing phone, e-mail, web, chat
and social media.Utilizing its integrated onshore/offshore and virtual
at-home agent delivery models, SYKES serves its clients through two geographic
operating segments: the Americas (United States, Canada, Latin America, India
and the Asia Pacific region) and EMEA (Europe, Middle East and Africa).SYKES
also provides various enterprise support services in the Americas and
fulfillment services in EMEA, which include multi-lingual sales order
processing, payment processing, inventory control, product delivery and
product returns handling.For additional information please visit
www.sykes.com.

Forward-Looking Statements

This press release may contain "forward-looking statements," including SYKES'
estimates of future business outlook, prospects or financial results,
statements regarding SYKES' objectives, expectations, intentions, beliefs or
strategies, or statements containing words such as "believe," "estimate,"
"project," "expect," "intend," "may," "anticipate," "plans," "seeks,"
"implies," or similar expressions.It is important to note that SYKES' actual
results could differ materially from those in such forward-looking statements,
and undue reliance should not be placed on such statements.Among the
important factors that could cause such actual results to differ materially
are (i) the impact of economic recessions in the U.S. and other parts of the
world, (ii) fluctuations in global business conditions and the global economy,
ability of maintaining margins offshore (iii) SYKES' ability to continue the
growth of its support service revenues through additional technical and
customer contact centers, (iv) currency fluctuations, (v) the timing of
significant orders for SYKES' products and services, (vi) loss or addition of
significant clients, (vii) the early termination of contracts by clients,
(viii) SYKES' ability to recognize deferred revenue through delivery of
products or satisfactory performance of services, (ix) construction delays of
new or expansion of existing customer support centers, (x) difficulties or
delays in implementing SYKES' bundled service offerings, (xi) failure to
achieve sales, marketing and other objectives, (xii) variations in the terms
and the elements of services offered under SYKES' standardized contract
including those for future bundled service offerings, (xiii) changes in
applicable accounting principles or interpretations of such principles, (xiv)
delays in the Company's ability to develop new products and services and
market acceptance of new products and services, (xv) rapid technological
change, (xvi) political and country-specific risks inherent in conducting
business abroad, (xvii) SYKES' ability to attract and retain key management
personnel, (xviii) SYKES' ability to further penetrate into vertically
integrated markets, (xix) SYKES' ability to expand its global presence through
strategic alliances and selective acquisitions, (xx) SYKES' ability to
continue to establish a competitive advantage through sophisticated
technological capabilities, (xxi) the ultimate outcome of any lawsuits or
penalties (regulatory or otherwise), (xxii) SYKES' dependence on trends toward
outsourcing, (xxiii) risk of interruption of technical and customer contact
management center operations due to such factors as fire, earthquakes,
inclement weather and other disasters, power failures, telecommunications
failures, unauthorized intrusions, computer viruses and other emergencies,
(xxiv) the existence of substantial competition, (xxv) the ability to obtain
and maintain grants and other incentives, including tax holidays or otherwise,
(xxvi) risks related to the integration of the businesses of SYKES and Alpine
Access and (xxvii) other risk factors listed from time to time in SYKES'
registration statements and reports as filed with the Securities and Exchange
Commission.All forward-looking statements included in this press release are
made as of the date hereof, and SYKES undertakes no obligation to update any
such forward-looking statements, whether as a result of new information,
future events, or otherwise.

Sykes Enterprises, Incorporated
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Exhibit 1
                                                               
                                                               
                                           Three Months Ended
                                           March 31,  March 31,  December 31,
                                           2013       2012       2012
                                                               
Revenues                                    $301,244 $278,098 $304,272
Direct salaries and related costs           (203,706)  (178,500)  (201,194)
General and administrative                  (73,733)   (72,264)   (72,803)
Depreciation, net                           (10,169)   (10,634)   (10,336)
Amortization of intangibles                 (3,759)    (1,861)    (3,835)
Net gain (loss) on disposal of property and --        --        (308)
equipment
Impairment of long-lived assets             --        (149)     (84)
Income from continuing operations           9,877      14,690     15,712
Total other income (expense), net           (159)      (553)      (784)
Income from continuing operations before    9,718      14,137     14,928
income taxes
Income taxes                                (3,200)    (3,367)    (1,638)
Income from continuing operations, net of   6,518      10,770     13,290
taxes
(Loss) from discontinued operations, net of --        (820)     --
taxes
Gain (loss) on sale of discontinued         --        (10,707)  --
operations, net of taxes
Net income (loss)                           $6,518   $(757)   $13,290
                                                               
                                                               
Net income (loss) per share:                                    
Basic:                                                          
Continuing operations                       $0.15    $0.25    $0.31
Discontinued operations                     0.00       (0.27)     0.00
Net income (loss) per share                 $0.15    $(0.02)  $0.31
                                                               
Diluted:                                                        
Continuing operations                       $0.15    $0.25    $0.31
Discontinued operations                     0.00       (0.27)     0.00
Net income (loss) per share                 $0.15    $(0.02)  $0.31
                                                               
Weighted average shares:                                        
Basic                                       43,036    43,309    43,057
Diluted                                     43,052    43,409    43,081


Sykes Enterprises, Incorporated
Segment Results
(in thousands, except per share data)
(Unaudited)
Exhibit 2
                                                               
                                                               
                                           Three Months Ended
                                           March 31,  March 31,  December 31,
                                           2013       2012       2012
                                                               
Revenues:                                                       
Americas                                    $255,214 $230,087 $258,306
EMEA                                        46,030     48,011     45,966
Total                                       $301,244 $278,098 $304,272
                                                               
Operating Income:                                               
Americas                                    $19,522  $26,956  $24,192
EMEA                                        1,855      388        3,627
Corporate G&A expenses                      (11,500)   (12,654)   (12,107)
Income from continuing operations           9,877      14,690     15,712
                                                               
Total other income (expense), net           (159)      (553)      (784)
Income taxes                                (3,200)    (3,367)    (1,638)
                                                               
Income from continuing operations, net of   $6,518   $10,770  $13,290
taxes


Sykes Enterprises, Incorporated
Condensed Consolidated Balance Sheets
(in thousands, except seat data)
(Unaudited)
Exhibit 3
                                                                    
                                                                    
                                    March 31,         December 31,    
                                    2013              2012            
                                                                    
Assets:                                                              
Current assets                       $483,110        $467,342      
Property and equipment, net          103,040           101,295         
Goodwill & intangibles, net          291,759           296,268         
Other noncurrent assets              41,692            43,784          
Total assets                         $919,601        $908,689      
                                                                    
Liabilities & Shareholders' Equity:                                  
Current liabilities                  $152,613        $164,583      
Noncurrent liabilities               157,147           137,842         
Shareholders' equity                 609,841           606,264         
Total liabilities and shareholders'  $919,601        $908,689      
equity
                                                                    
                                                                    
                                                                    
Sykes Enterprises, Incorporated                                        
Supplementary Data                                                     
                                                                    
                                                                    
                                                                    
                                    Q1 2013           Q1 2012         
                                                                    
Geographic Mix (% of Total                                           
Revenues):
Americas ^(1)                        85%               83%             
Europe, Middle East & Africa (EMEA)  15%               17%             
Total                                100%              100%            
                                                                    
^(1)Includes the United States, Canada, Latin America, South Asia and
the Asia Pacific (APAC) Region.Latin America,South Asia and APAC are 
included in the Americas due to the nature of the business and client
profile, which is primarily made up of U.S. based clients.
                                                                    
                                                                    
                                    Q1 2013           Q1 2012         
                                                                    
Vertical Industry Mix (% of Total Revenues):                          
Communications                       32%               30%             
Financial Services                   28%               30%             
Technology / Consumer                16%               17%             
Transportation & Leisure             9%                9%              
Healthcare                           8%                9%              
Other                                7%                5%              
Total                                100%              100%            
                                                                    
                                                                    
                                    Seat Capacity ^(3)
                                    Q1 2013           Q1 2012         Q4 2012
                                                                    
Americas ^(2)                        35,100            35,200          34,000
EMEA                                 5,300             5,800           5,300
Total                                40,400            41,000          39,300
                                                                    
Offshore                             22,900            22,100          22,000
                                                                    
                                                                    
                                    Capacity Utilization
                                    Q1 2013           Q1 2012         Q4 2012
                                                                    
Americas ^(2)                        72%               71%             74%
EMEA                                 82%               72%             82%
Total                                73%               71%             75%
                                                                    
Offshore                             76%               75%             77%
                                                                    
^(2) Americas data includes offshore as some clients in the U.S. are serviced
from offshore geographies, including The Philippines, Costa Rica, etc.
                                                                    
^(3) The seat capacity and capacity utilization data are related to the
Company's brick-and-mortar call centers. At the end of first quarter 2013, the
Company had approximately 3,000 agent FTEs working virtually from home both in
the U.S. and Canada, including 2,700 from Alpine Access.


Sykes Enterprises, Incorporated
Cash Flow from Operations
(in thousands)
(Unaudited)
Exhibit 4
                                                               
                                                    
                                                    Three Months Ended
                                                    March 31,   March 31,
                                                    2013        2012
                                                               
Cash Flow From Operating Activities:                            
Net income (loss)                                    $6,518    $(757)
Depreciation, net                                    10,169      10,634
Amortization of intangibles                          3,759       1,861
Changes in assets and liabilities and other          (33,259)    (7,620)
Net cash provided by (used for) operating activities $(12,813) $4,118
                                                               
Capital expenditures                                 $13,066   $6,818
Cash interest paid                                   $481      $306
Cash taxes paid                                      $5,017    $5,374


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(in thousands, except per share data)
(Unaudited)
Exhibit 5
                                                               
                                                               
                                             Three Months Ended
                                             March 31, March 31, December 31,
                                             2013      2012      2012
                                                               
GAAP income from continuing operations        $9,877    $14,690   $15,712
Adjustments:                                                    
Acquisition-related severance & consulting    366      --       271
engagement costs
Acquisition-related depreciation &
amortization of property & equipment and      4,435    3,014    5,004
intangible write-ups
Merger & integration costs                    320      100      697
EMEA restructuring                            7        999      (757)
Other                                                  --       436
Non-GAAP income from continuing operations    $15,005   $18,803   $21,363
                                                               
                                                               
                                             Three Months Ended
                                             March 31, March 31, December 31,
                                             2013      2012      2012
                                                               
GAAP income from continuing operations, net   $0.15     $0.25     $0.31
of taxes, per diluted share
Adjustments:                                                    
Acquisition-related severance & consulting    0.01      --       --
engagement costs
Acquisition-related depreciation &
amortization of property & equipment and      0.07      0.05      0.08
intangible write-ups
Merger & integration costs                    --       --       0.01
EMEA restructuring                            --       0.02      (0.02)
Other                                         --       --       0.01
Non-GAAP income from continuing operations,   $0.23     $0.32     $0.39
net of taxes, per diluted share


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information By Segment
(in thousands)
(Unaudited)
Exhibit 6
                                                               
                      Americas            EMEA            Other ^(1)
                      Three Months Ended  Three Months    Three Months Ended
                                           Ended
                      March 31, March 31, March  March    March 31, March 31,
                                           31,    31,
                      2013      2012      2013   2012     2013      2012
                                                               
GAAP income from       $19,522 $26,956 $1,855 $388     ($11,500) ($12,654)
continuing operations
Adjustments:                                                    
Acquisition-related
severance & consulting 207      --       --    --      159      --
engagement costs
Acquisition-related
depreciation &
amortization of        4,435     3,014     --    --      --       --
property & equipment
and intangible
write-ups
Merger & integration   --       --       --    --      320      100
costs
EMEA restructuring     --       --       7     999     --       --
Other                  --       --       --    --      --       --
Non-GAAP income from   $24,164   $29,970   $1,862 $1,387   ($11,021) ($12,554)
continuing operations
                                                               
                      Americas            EMEA            Other ^(1)
                      Three Months Ended  Three Months    Three Months Ended
                                           Ended
                      March 31, December  March  December March 31, December
                                 31,       31,    31,                31,
                      2013      2012      2013   2012     2013      2012
                                                               
GAAP income from       $19,522   $24,192 $1,855 $3,627   ($11,500) ($12,107)
continuing operations
Adjustments:                                                    
Acquisition-related
severance & consulting 207      271      --    --      159      --
engagement costs
Acquisition-related
depreciation &
amortization of        4,435    5,004     --    --      --       --
property & equipment
and intangible
write-ups
Merger & integration   --       --       --    --      320      697
costs
EMEA restructuring     --       --       7     (757)   --       --
Other                  --       436      --    --      --       --
Non-GAAP income from   $24,164   $29,903   $1,862 $2,870   ($11,021) ($11,410)
continuing operations
                                                               
(1) Other includes corporate and other costs.


Sykes Enterprises, Incorporated
Reconciliation of Non-GAAP Financial Information
(Unaudited)
Exhibit 7
                                                             
                                                             Business Outlook
                                                             Second Quarter
                                                             2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.11 - $0.15
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   --
Acquisition-related depreciation & amortization of property & 0.07
equipment and intangible write-ups
Merger & integration costs                                    --
EMEA restructuring                                            --
Other                                                         --
Non-GAAP income from continuing operations, net of taxes, per $0.18 - $0.22
diluted share
                                                             
                                                             Business Outlook
                                                             Full Year
                                                             2013
                                                             
GAAP income from continuing operations, net of taxes, per     $0.91 - $1.00
diluted share
Adjustments:                                                  
Acquisition-related severance & consulting engagement costs   0.01
Acquisition-related depreciation & amortization of property & 0.27
equipment and intangible write-ups
Merger & integration costs                                    --
EMEA restructuring                                            --
Other                                                         --
Non-GAAP income from continuing operations, net of taxes, per $1.19 - $1.28
diluted share

CONTACT: Subhaash Kumar
         Sykes Enterprises, Incorporated
         (813) 233-7143