West Ups Guidance for Receivables Management Unit

By Patrick Lunsford, CollectionIndustry.com

West Corporation (Nasdaq: WSTC) raised its original guidance for its receivables management unit in a press release on Thursday. The statement was primarily commenting on the completion of a deal with conferencing provider Raindance.

West also recently announced the acquisition of of 9-1-1 infrastructure systems and services provider Intrado.

In the April 6 release, West gave shareholders additional guidance on the two acquisitions and their effects on financial performance. Although neither deal will directly impact the receivables management unit, West increased revenue and margin guidance for it.

At the end of 2005, West predicted that the receivables management unit would see revenues between $235 and $250 million. The new guidance slightly increases that range to between $240 and $255 million.

Receivables Management was predicted to have an operating margin of between 17.5% and 18.5%. The company now says that the margin will fall somewhere between 18.0% and 20.0%.