30 beats estimate by 11 cents Stocks 2009 EPS view 0

This company report provides a breadth of information on the company and itsrelevant industry in the US - Search, Detection, Navigation, Guidance,Aeronautical, and Nautical System and Instrument Manufacturing industry,represented by the 6-digit NAICS code 334511. The report first presents thecompany data, and then presents industry data in a similar, logical flow for thereader to draw relevant comparisons. The complete understanding of the companyand its industry allow for better forecasting of specific and industry-widetrends in times of economic uncertainty. and international economic indicators.All data have been verified to ensure the highest quality. Q4 adj EPS $0.30 beats estimate by 11 cents Stocks 2009 EPS view $0.90-$1.10, vs estimate of $1.03 Cash balance $240 mln at Q4 end Shares rise 25 percent; top gainer on NYSE (Recasts, adds details, analyst comments, share movement) BANGALORE, Jan 27 (Reuters) - Convergys Corp (CVG.N)reported a fourth-quarter profit, excluding certain charges,that trumped market estimates, as revenue from its call centerbusiness rose, sending its shares up 25 percent. The company, which also forecast a 2009 profit rangebroadly in line with market estimates, posted a loss of 24cents a share for the quarter, including a charge of 54 centsdue to goodwill impairment and restructuring costs.

The company, which also handles billing and HR management,pushed towards its goal of $200 million in free cash flow by2009, ending the quarter with $240 million in cash balance.Free cash flow in the quarter was $99.1 million. This assuaged investor concerns over the company's abilityto generate the targeted free cash flow, with senior notesworth $250 million due for maturity towards the end of theyear. "Our strengthened cash balance combined with expected 2009free cash flow is sufficient to invest in the business and payoff the $250 million bond due in December," Chief ExecutiveDavid Dougherty said in a statement. Also, a major contract that Convergys signed in 2007 wasimplemented in early January, making it the second big contractto go live in six months "Reaching this 'go live' milestone is... one of thevariables that will determine if Convergys can reach its goalof approximately $200 million of free cash flow in 2009," saidCredit Suisse analyst Kevin McVeigh, in a note dated Jan 22. Shares of the Cincinnati, Ohio-based company were tradingup 24.96 percent at $8.83 in midday trade, making them thebiggest gainer on the New York Stock Exchange. UNIT SPIN-OFF POSTPONED The company, which has been looking to spin off its billingsoftware unit since last September, said it was not likely toseparate the business in the near term, given the turmoil incapital markets.

In its last quarterly report, the company had said revenuefrom its biggest client in the segment AT&T Inc (T.N) would be down by about $40 million in 2009 and by about $65million in 2010 from 2007. Revenue from Sprint Nextel Corp (S.N) would be down byabout $50 million in 2009 from 2008, the report had said. For alerts, please double-click ID:nWNAB4037 (Reporting by Sayantani Ghosh in Bangalore; Editing bySaumyadeb Chakrabarty) Stocks. Innovative E-Procurement Solutions Company Continues to Grow Sales, Enter NewVertical Markets, Add PartnersSHELTON, Conn., Jan.