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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

StarTek, Inc. Reports First Quarter 2011 Results

StarTek, Inc. (NYSE:SRT) today announced its financial results for the first quarter ended March 31, 2011. The Company reported first quarter 2011 revenue of $59.5 million and a net loss of $0.17 per share, both in line with the Company’s pre-release of financial results on April 18, 2011.

StarTek’s improved results in the first quarter of 2011 demonstrate that the Company’s site optimization strategy and offshore expansion efforts are effectively strengthening its financial profile. While revenue declined by $5.2 million compared to the fourth quarter of 2010, gross profit improved by $1.1 million to $7.4 million. As a percentage of revenue, gross profit grew in all three geographic segments and expanded to 12.4% compared to 9.7% in the prior quarter. At the same time, selling, general and administrative (SG&A) expense was $9.7 million, a decline of $2.1 million sequentially, and at the lowest level in eight quarters. The Company reported adjusted EBITDA of $2.1 million and ended the quarter with approximately $20.4 million in cash and cash equivalents and no debt. The Company also reported three new contract wins in the quarter worth $10.5 million in annual revenue, and in the second quarter the Company has already won an additional new deal worth approximately $8 million in annual revenue.

Financial Highlights

First quarter 2011 revenue of $59.5 million represented a decrease of 8.0% compared to the fourth quarter of 2010, and a decrease of 11.7% compared to the first quarter of 2010. The decline in revenue was attributable to the Company’s North American optimization and offshore migration strategy, which included the closure of two sites and the consolidation of two more in late 2010 and early 2011. The decline in revenue was partially offset by growth in the offshore segment of approximately $0.3 million compared to the fourth quarter of 2010 and growth of $7.4 million compared to the first quarter of 2010.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,094.62 -18.92 -0.11%
S&P 500 1,988.53 +5.00 0.25%
NASDAQ 4,476.1120 +20.0960 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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