StarTek, Inc. (NYSE:SRT) today announced preliminary financial results for the first quarter ended March 31, 2011.
Preliminary First Quarter 2011 Results
Based on preliminary financial results, the Company expects to report first quarter revenue of $59 million to $60 million, and a loss per share of between $0.16 and $0.18. Gross profit is expected to be in the range of $7.3 million to $7.5 million, and as a percentage of revenue between 12.0% and 12.5%. Selling, general and administrative costs (SG&A) are expected to total between $9.6 million and $9.8 million, in line with management’s stated goal to spend less than $10 million per quarter in 2011. In addition, the Company expects adjusted EBITDA, defined as net income before interest, taxes, depreciation, stock compensation expense and impairment and restructuring charges, to be in the range of $2.0 million to $2.3 million. The Company’s cash balance as of March 31, 2011 is expected to be approximately $20 million and the Company continues to have no debt.
First Quarter 2011 Operational Highlights
During the first quarter of 2011, the Company:
- Signed three new deals totaling nearly 500 agent seats worth approximately $10.5 million in annual revenue; added two new clients in the new media and technology sectors;
- Wound down operations at its Alexandria, Louisiana facility; and
- Announced the downsizing of its Cornwall, Ontario site.
“Our preliminary results are evidence that our site optimization strategy and offshore expansion efforts are gaining traction and delivering improved results,” said Larry Jones, StarTek President and CEO. “We continue to win new business, diversify our client base and reduce SG&A, which is expected to be at its lowest level in eight quarters. Improved gross margins in North America and Offshore, lower expenses and a sales engine that is starting to pick up steam are all indicators that 2011 is off to a positive start.”