STARTEK reports quarterly financial results

Startek, Inc. (NYSE: SRT), a global provider of customer experience management, is reporting financial results for the three months ended September 30, 2018, the company said.

As a result of the reverse acquisition accounting for the Startek and Aegis business combination on July 20, 2018, the results presented for the quarter ended September 30, 2018 include Startek results from July 20, 2018 to September 30, 2018, combined with Aegis results from July 1, 2018 to September 30, 2018.

The results presented for the calendar quarter ended September 30, 2017 include only Aegis results from July 1, 2017 to September 30, 2017.

The business combination also resulted in a change in fiscal year-end from December 31 to March 31, which is the fiscal year-end of Aegis. However, on October 5, 2018, the Startek board of directors voted to change the fiscal year-end back to December 31. As a result, the company will be filing a transitional report on Form 10-KT for the nine months ended December 31, 2018.

Total revenue for the quarter increased 26.4% to USD 151.5 million compared to USD 119.8 million in the quarter ended September 30, 2017.

Gross profit for the quarter increased 13.6% to USD 22.8 million compared to USD 20.1 million in the quarter ended September 30, 2017, with gross margin of 15.0% compared to 16.7%.

Selling, general and administrative (SG&A) expenses were USD 22.8 million compared to USD 14.2 million in the year-ago quarter. As a percentage of revenue, SG&A was 15.1% compared to 11.9%.

Net loss attributable to Startek shareholders for the quarter was USD 10.9 million or USD (0.32) per share, compared to net income of USD 2.4 million or USD 0.11 per share in the year-ago quarter.

At September 30, 2018, the company´s cash position was USD 20.5 million compared to USD 22.9 million at March 31, 2018. Startek closed the quarter with total debt of USD 178.3 million compared to USD 151.0 million outstanding at March 31, 2018.

Startek is a global provider of customer experience management solutions. The company provides business process outsourcing 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.