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
TheStreet Open House

StarTek, Inc. Reports Fourth Quarter And Full Year 2011 Results

StarTek, Inc. (NYSE:SRT) today announced its financial results for the fourth quarter and full year ended December 31, 2011. The Company reported fourth quarter 2011 revenue of $51.1 million and annual revenue of $219.5 million. Net loss was $0.49 per share in the fourth quarter of 2011 and $1.75 per share for the year ended December 31, 2011.

Fourth Quarter 2011 Financial Results

Fourth quarter 2011 revenue decreased 1.1% compared to the third quarter of 2011. Revenue was down slightly from third quarter due to lower volumes in North America and the closure of the Company’s Kingston, Ontario facility in September 2011. The North American decline was partially offset by Offshore revenue growth, which increased by $3.4 million, or 20.5%, compared to the third quarter of 2011 as the Company continued to ramp new business in these locations.

Gross margin grew to 10.8% in the fourth quarter of 2011 from 7.3% in the third quarter of 2011. The improvement was due to continued growth in Offshore gross margin, which improved from 10.6% in the third quarter to 16.9% in the fourth quarter driven by better utilization as the Company added nearly 900 full-time equivalent agents in this segment compared to the third quarter of 2011. In the fourth quarter of 2011, Offshore gross profit represented 61% of the Company’s total gross profit compared to 47% in the third quarter and 11% in the fourth quarter of 2010.

SG&A expense for the quarter totaled $11.0 million, compared to $10.0 million in the third quarter of 2011. The increase was due mostly to $0.7 million of severance costs in the fourth quarter primarily for the Company’s former Chief Financial Officer.

The Company reported a fourth quarter 2011 operating loss before impairment and restructuring charges of $5.4 million and adjusted EBITDA of negative $1.2 million, compared to a third quarter 2011 operating loss before impairment and restructuring of $6.5 million and adjusted EBITDA of negative $2.3 million. The Company had a net loss of $7.5 million, or $0.49 per share, during the fourth quarter of 2011. The fourth quarter 2011 net loss compares to a net loss of $6.8 million, or $0.45 per share, in the third quarter of 2011.

1 of 5

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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • 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