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StarTek, Inc. (NYSE:SRT) today announced its financial results for the third quarter ended September 30, 2012. The Company reported revenue of $47.7 million and Adjusted EBITDA of $2.5 million. As of September 30, 2012, the Company had approximately $9.2 million in cash and no debt.
Third Quarter 2012 Financial Results
Third quarter 2012 revenue increased 7.3% compared to the second quarter of 2012. All geographic segments experienced sequential revenue growth during the third quarter.
Gross margin increased from 7.4% in the second quarter of 2012 to 12.8% in the third quarter of 2012. Gross margin in Asia Pacific increased from 17% to 21.4% due primarily to improved operational efficiencies. Domestic gross margin improved to 8.2% from 2.7% in the second quarter of 2012 due to solid performance across several locations. Gross profit in Latin America improved to nearly breakeven due to improved capacity utilization.
SG&A expense for the quarter totaled $6.9 million, compared to $7.3 million in the second quarter. The decrease was driven primarily by lower support staff costs and other corporate cost reductions.
Third quarter 2012 Adjusted EBITDA of $2.5 million compares to a second quarter 2012 Adjusted EBITDA loss of $0.4 million. The Company reported an operating loss before impairment and restructuring charges of $0.8 million, compared to a second quarter operating loss before impairment and restructuring charges of $4.1 million. The Company had a net loss of $1.2 million, or $0.08 per share, during the third quarter of 2012. The third quarter 2012 net loss compares to a net loss of $4.3 million, or $0.28 per share, in the second quarter of 2012.
Liquidity and Capital Resources
As of September 30, 2012, the Company had approximately $9.2 million in cash and cash equivalents and no debt, compared to $11.4 million and no debt at June 30, 2012. The Company had approximately $2.4 million and $0.5 million in capital expenditures during the quarters ending September 30, 2012 and June 30, 2012, respectively. Third quarter capital expenditures were driven by new program ramps and existing program expansions.