This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

StarTek, Inc. Q1 2010 Earnings Call Transcript

Let me now jump into details starting on Page 4 which highlights our financial results for the first quarter. Revenues of $67 million represented nearly a 5% decline from the prior year and a 7% decline from last quarter. This sequential decline was driven primarily from site closures and lower demand in our telco clients. Margins declined dramatically during the quarter as a result of startup costs associated with the new offshore program launches, lower utilization in a number of our North American sites, and an unfavorable Canadian exchange rates.

In the fourth quarter, we initiated a number of cost reduction programs, both in the corporate and in the field level, reducing SG&A by approximately $600,000 for the quarter. Lower revenues and margins offset by favorable SG&A variance resulted in a quarterly loss of $3.1 million or $0.21. Cash at the end of the period was up to $27 million primarily due to a $5 million one-time tax refund.

On Page 5, we list some of the client highlights of the quarter. As mentioned earlier, the wireline sector continues to struggle as clients disconnect landlines. As a result, a number of our clients are reducing headcount, lowering future forecasts, and in some instances requesting price concessions. Revenue from our largest client AT&T for the quarter was relatively flat, with slight decreases in both the wireline and the wireless programs. Total AT&T revenues across three big business segments represented 67% of our revenue. In T-Mobile, our second largest client, revenue declined 20% sequentially due to a site closure in the first quarter and overall lower call volumes. We expect future demand in North America to be down offset by an increase in offshore.

Across-the-board, the migration from onshore to near-shore to offshore is accelerating, lowering North America demands and heightening demand for our Philippines and Costa Rica facilities, which by the year-end will represent over 3500 seats, or approximately 35% of our capacity.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SRT $7.60 0.00%
AAPL $128.48 0.02%
FB $79.38 0.52%
GOOG $568.21 1.80%
TSLA $197.31 -3.00%


DOW 18,248.00 +115.30 0.64%
S&P 500 2,111.29 +6.79 0.32%
NASDAQ 4,990.89 +27.3630 0.55%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs