News Column

StarTek, Inc. Reports First Quarter 2014 Results

May 24, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- StarTek, Inc. ("STARTEK") (NYSE:SRT) announced its first quarter 2014 financial results. First Quarter Highlights Won $10.0 million of new business, including four new logos;

Launched 'industry first' partnership with AT&T cloud services;

Commenced operations in three new locations; and

Re-aligned senior leadership structure to increase focus on core and emerging services. First Quarter 2014 Financial Results First quarter 2014 revenue increased 17.5% compared to the first quarter of 2013. All geographic segments experienced year over year revenue and gross margin improvement during the first quarter. The Company had a net loss of $0.5 million, or $0.03 per share, during the first quarter of 2014 as compared to a net loss of $2.3 million, or $0.15 per share, in first quarter of 2013.

Gross margin increased from 8.8% in the first quarter of 2013 to 13.0% in the first quarter of 2014, despite being negatively impacted by investments in growth across all three market segments. The improvements were the result of operational efficiency gains and higher capacity utilization across all segments.

SG&A expenses increased by $1.0 million compared to the first quarter of 2013, but decreased as a percentage of revenue from 13.5% in the first quarter of 2013 to 13.1% in the first quarter of 2014. The $1.0 million increase versus first quarter of 2013 is the anticipated result of investments in growth. Liquidity and Capital Resources As of March 31, 2014, the Company's cash position was approximately $6.8 million compared to $11.0 million as of December 31, 2013. The Company had approximately $2.4 million and $1.1 million in capital expenditures during the quarters ended March 31, 2014 and December 31, 2013, respectively.

"We made progress on all key strategic initiatives during the quarter," said Chad Carlson, President and Chief Executive Officer. "We strengthened the focus of the leadership team with the addition of industry veteran Pete Martino to focus on our core operations, allowing Rod Leach to focus on our STARTEK Health initiative and other emerging services. Furthermore, our core business is healthy and we are pleased with the performance of our new facilities. Additionally, our healthcare vertical is off to a good start."

Keywords for this news article include: StarTek Inc, Investment and Finance.

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Source: Investment Weekly News


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