StarTek, Inc. (NYSE:SRT) today announced its second quarter 2013 financial results.
Second Quarter Highlights
- Adjusted EBITDA of $1.9 million in the second quarter of 2013 compared to $(0.4) million in the prior year period;
- Launched new Philippines provincial location;
- Significant portion of IT Platform initiative moving to implementation;
- $12.0 million of new business signed in the second quarter, including one new logo; $18.0 million signed year to date;
- Revenue growth of 66% on all clients excluding largest two, with no one client representing more than 28% of total revenue;
- Year to date SG&A reduction of 7.7% versus 2012; and
- Cash balance of $10.0 million at the end of the quarter.
Second Quarter 2013 Financial Results
Second quarter 2013 revenue increased 25.1% compared to the second quarter of 2012, the result of solid growth with existing clients and new business signed in 2012. All segments showed year over year revenue growth and, while Asia Pacific margins declined versus 2012, both the Domestic and Latin America segments improved significantly. The Company had a net loss of $1.3 million, or $0.08 per share, during the second quarter of 2013 as compared to a net loss of $4.3 million, or $0.28 per share, in the second quarter of 2012.Gross margin increased from 7.4% in the second quarter of 2012 to 10.1% in the second quarter of 2013. This improvement was due to improved Domestic margins of 12.3% in the second quarter of 2013 and the ongoing ramp of the Honduras location in Latin America. Latin America margins improved to (1.2%) in the second quarter of 2013 from (8.1%) in the second quarter of 2012.