FLORHAM PARK, N.J., April 14, 2020 (GLOBE NEWSWIRE) — Conduent Incorporated, a services and solutions provider to businesses and governments, today announced business updates in light of macroeconomic uncertainty resulting from the COVID-19 pandemic. Given the continuously changing and unpredictable environment related to COVID-19, Conduent is withdrawing its previously issued financial guidance for fiscal year 2020. Conduent plans to hold its first-quarter conference call in May.
“We are fortunate to have a large and diverse base of clients where we have strong relationships. We have worked closely with our clients which has enabled us to act quickly in this fluid environment. We remain focused on providing best-in-class delivery for our clients and their end-users, while focusing on the health and safety of our 67,000 associates. I am proud of the fact that, under exceptionally challenging circumstances, our team has been able to meet the needs of our clients and help them navigate these uncertain times. We took immediate actions to enable working-from-home where possible and put in place increased safety precautions at other locations,” said Cliff Skelton, CEO of Conduent.
“Like many other companies, we are seeing an impact to our clients’ volumes and thereby, our global operations as a result of COVID-19. We expect that 2020 could be impacted by lower volumes in several of our businesses resulting in lower revenue and profit,” continued Skelton. “However, with market and economic uncertainty, we could see increased activity in the support that we provide for certain government and healthcare clients. We are proud to be a key provider of these important services, which could potentially be a partial offset to the lower volumes that we expect to see in other parts of our business.”
Over the past several weeks, in response to COVID-19, Conduent has implemented measures as recommended by the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO) to protect the health and safety of its employees globally. These actions include:
- Implementing social distancing practices, extra cleaning and hand sanitizers at locations where essential services on site are required.
- Shifting a large percentage of our associates to working from home and continuing to deploy technology to enable approximately 70% of our workforce to work remotely.
- Complying with all orders and directives regarding business operations issued by federal, state and local authorities.
Cash and Liquidity Update
The Company has also announced that, as a precautionary measure, it borrowed $150 million from its $750 million revolving credit line in late March. The Company continues to maintain a strong cash and liquidity position and the funds were immediately deposited into interest bearing accounts. Conduent ended Q1 2020 with a cash balance of approximately $400 million. The Company has no significant debt maturities due until December 2022 and will consider options for an opportunistic refinancing within the next 18 months.
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