Startek, Inc. (NYSE:SRT), a provider of customer experience management solutions, has reported financial results for the second quarter ended June 30, 2020, the company said.
Net revenue for the quarter was USD 142.2 million compared to USD 160.6 million in the second quarter of 2019. Net revenue in the second quarter was impacted by the COVID-19 lockdowns and lower active workforce in most geographies.
Gross profit in the second quarter was USD 15.8 million compared to USD 27.6 million in the year ago quarter. Gross margin was 11.1% compared to 17.2% in the year ago quarter. The lower gross margin was primarily driven by higher costs relative to revenues as a result of the COVID-19 lockdowns in geographies such as India, Philippines and Honduras.
Selling, general and administrative (SG&A) expenses decreased to USD 14.6 million compared to USD 24.9 million in the year-ago quarter. As a percentage of revenue, SG&A improved 520 basis points to 10.3% compared to 15.5% in the year-ago quarter as the company has implemented a series of cost reductions over the last 12 months and in response to COVID-19. This marks the 4th consecutive quarter of SG&A reductions.
Net loss attributable to Startek shareholders for the quarter was USD 5.2 million or USD (0.14) per share, compared to a net loss of USD 3.6 million or USD (0.10) per share in the year-ago quarter. The decline was driven by the aforementioned impacts from COVID-19 lockdowns.
Adjusted net loss in the second quarter of 2020 was USD 2.6 million, or USD (0.07) per share, compared to an adjusted net loss* of USD 0.1 million or USD (0.00) per share in the second quarter of 2019.
Startek is a provider of technology-enabled business process outsourcing solutions. The company provides omni-channel customer experience management, back office and technology services to corporations around the world across a range of industries. To learn more about Startek´s global solutions, visit www.startek.com.