2011 Financial ResultsIn 2011, revenue decreased 17.3% from $265 million in 2010 to $219 million. Gross margin grew slightly to 10.5% in 2011, compared to 10.4% in 2010. SG&A expense totaled $44.1 million in 2011, compared to $43.3 million in 2010. Excluding severance expense and legal fees related to the settlement of an employee labor relations lawsuit, SG&A expense would have been $39.9 million in 2011, compared to $42.1 million in 2010. Operating loss before impairment and restructuring charges was $21.1 million in 2011 and adjusted EBITDA was negative $3.8 million, compared to 2010 operating loss before impairment and restructuring of $15.6 million and 2010 adjusted EBITDA of $3.9 million. Net loss for the full year 2011 was $1.75 per share compared to a net loss of $1.30 per share in 2010.
- Continued its sales momentum, signing eight new agreements with an expected annual contract value of nearly $29 million;
- Experienced revenue growth of 17% in its client base, exclusive of its two largest customers, compared to 2010;
- Expanded its international presence by opening a second Latin American facility with commitments from an existing client;
- Continued growth in the Philippines, increasing the annual number of full-time equivalent agents to nearly 2,500, representing an increase of 86% over last year;
- Reduced its North American footprint by closing its Alexandria, Louisiana site and one of its Kingston, Ontario sites as well as downsizing its Cornwall, Ontario and Collinsville, Virginia sites;
- Reduced its revenue concentration from its largest customer from 66% in 2010 to 58% in 2011;
- Made performance improvements among several clients and strengthened its operating and IT leadership teams to position the Company for future growth; and
- Assembled a strong leadership team including the appointment of a new Chief Executive Officer, SVP of Sales & Marketing, Chief Technology Officer and Chief Financial Officer.