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

StarTek, Inc. Reports Third Quarter 2011 Results

Stocks in this article: SRT

StarTek, Inc. (NYSE:SRT) today announced its financial results for the third quarter ended September 30, 2011. The Company reported third quarter 2011 revenue of $52.0 million, which represents a decrease of 9.0% and 20.7% compared to the second quarter of 2011 and the third quarter of 2010, respectively. The Company reported a net loss of $0.41 per share, compared to a net loss of $0.64 per share and $0.30 per share in the second quarter of 2011 and the third quarter of 2010, respectively.

During the third quarter, the Company continued to experience weakness in its North American operations with lower revenue and gross profit, however, the Company’s offshore segment continued to show strong growth. Offshore revenue increased 20.2% compared to the second quarter of 2011 to $16.8 million and now represents approximately 32.4% of total revenue. The growth in offshore revenue was driven primarily by the ramp-up of new business wins in the Company’s Philippine and Costa Rica locations. These ramps also resulted in improved offshore gross margins which increased from approximately 7.3% in the second quarter of 2011 to 12.2% in the third quarter of 2011. During the quarter, the Company further expanded its international footprint by opening a new Honduras facility. The growth offshore was more than offset by North American declines in both revenue and gross margin. The North American decline was due primarily to the downsizing of two sites (one in the U.S. and one in Canada) and the closure of another Canadian site. The Company’s third quarter 2011 net loss was $6.2 million, or $0.41 per share. Adjusted EBITDA for the quarter was negative $1.5 million compared to $0.5 million in the second quarter 2011. The Company ended the quarter with approximately $11.5 million in cash and cash equivalents and no bank debt. Capital expenditures totaled $3.2 million.

1 of 5

Select the service that is right for you!

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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