ICT Awarded VTech Contract

CRM solutions provider ICT Group Inc. has been awarded a three-year-contract from VTech Communications Inc.

Using a dedicated group of customer service reps in two contact centers, ITC will provide VTech with customer care services and sales support.

For the first quarter ended March 31, ICT’s revenue increased 6% to $76.6 million compared to $72.3 million in the prior-year period.

Including a pre-tax charge of $11.7 million related to an ongoing class action lawsuit filed by West Virginia call center employees, operating loss was $8.1 million in the 2003 first quarter and net loss for the period was $5.2 million. Net income in the prior-year period was $3.1 million.

In the lawsuit, the call center employees said they were not paid the wages to which they were entitled. The Circuit Court of Berkeley County, West Virginia ruled on April 16 that if the firm is held liable in the case, it must compensate employees who were not paid for transition time, short breaks or other wages. These class members would receive a day’s pay for every day the amounts remained unpaid up to 30 days. ICT said it would continue to fight the suit, and that it would appeal that order. (Direct Newsline, April 24, 2003)