By Mike Boyer and James Pilcher
The Cincinnati Enquirer

Convergys Corp. reported lower profits and revenues for the second quarter as its billing business continues to struggle in the face of cutbacks in the telecommunications industry.

For the three months ended June 30, the billing and customer care provider said net income slipped to $42.8 million, or 29 cents a share, compared with $59.1 million, or 35 cents a share, a year ago. Revenues declined 2 percent to $563.2 million from $572.7 million a year ago.

Operating earnings for Convergys' billing business declined 42 percent to $29.1 million from $50.4 million a year ago. Operating earnings in its customer management group declined 4 percent to $43.8 million from $45.7 million a year ago.

Convergys, which is attempting to secure a tax incentive package from the city of Cincinnati to keep its headquarters downtown, said third-quarter earnings will be in the range of 28 to 31 cents a share.

In comments to analysts, Chairman James Orr said the quest to consolidate operations in downtown Cincinnati wasn't driven by expected cost savings but as a way to improve communication and efficiency.

The company's Cincinnati operations are now split among four sites. Consolidating, he said, "will create a more effective work environment and an opportunity for growth."

While Convergys' billing business is suffering because communications companies are investing in new systems, Orr said the customer care business is expanding, particularly overseas.

In another report:

• LCA-Vision Inc.: The Sycamore Township-based laser eye surgery provider reported net income in the second quarter of almost $1.8 million, or 17 cents a share, compared with a $2.2 million, or 21 cents a share, loss in the same quarter last year.

The results beat Wall Street's expectations of 5 cents a share.

The company, which operates 35 LasikPlus centers in North America, also reported a 24 percent gain in revenue, saying it generated $20.2 million in the second quarter compared with $16.2 million during the same period last year.

LCA-Vision officials credited the gains with an 11 percent jump in the number of procedures done this year as compared with last year.

The company's stock closed at $12.34, up $2.32.

E-mail mboyer@enquirer.com or jpilcher@enquirer.com