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StarTek, Inc. Reports Third Quarter 2012 Results

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.

Stock quotes in this article: SRT 

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