StarTek, Inc. 1Q Operating Income Up 78%; Revenue Growth Accelerates 8th Consecutive Quarter
DENVER, April 27 /PRNewswire/ -- StarTek, Inc. (NYSE: SRT - news) is pleased to report that all financial growth rates are at new record highs for StarTek as a public company. Earnings per share jumped 64% to $0.18 for the first quarter ending March 31, 1999 from $0.11 for last year. Revenue soared to $40.9 million from $24.3 million, an increase of 68% and operating income climbed 78% to $3.3 million from $1.8 million. Net income rose to $2.4 million from $1.5 million, a jump of 61%.
Chairman of the Board, A. Emmet Stephenson, Jr., said, ''StarTek's dramatic growth is a first derivative of the growth of our clients, who are the leaders in the Internet, software, telecommunications and high technology industries. We are growing even faster as we add new customers and gain share of customer. Our 9th facility will become operational in the next few weeks and is sold out before it opens. Our search for a 10th facility is well underway, and we want to have it opened before the seasonal increase in our business which occurs during the latter part of the year.''
According to Stephenson, ''StarTek is uniquely positioned to take advantage of what is today probably the most important secular trend in American industry -- outsourcing. Our integrated outsourced services include E-commerce support services, provisioning for complex telecommunications systems, selection and management of suppliers, process management, management of product assembly and packaging, product order processing, inventory management, product distribution, order fulfillment, and high-end inbound technical support teleservices.''
Company Profile
As one of the world's leading providers of a broad range of outsourced services, Denver-based StarTek has five facilities in Colorado, and one each in Wyoming and Tennessee. The company's pan-European services are performed from its facility in the United Kingdom, while Asian operations are based in Singapore. The company's clients are in the Internet, software, E-commerce, technology and communications industries; however, it is now also targeting financial services, transportation, consumer products and health care companies. For more information about StarTek visit our web site at startek.com.
Forward Looking Statements
The matters regarding the future discussed in this news release include certain forward-looking statements that involve specific risks and uncertainties. In accordance with the Private Securities Litigation Reform Act of 1995, the following are important factors that could cause StarTek's actual results to differ materially from those expressed or implied by such forward-looking statements: these include, but are not limited to, general economic conditions in the company's markets, the loss of one or more of its significant clients, or the loss or delay in implementation of a large project which could cause quarterly variations in StarTek's revenues and earnings. Readers are encouraged to review Management's Discussion and Analysis of Financial Condition and Results of Operations -- Factors That May Affect Future Results appearing in the company's Form 10-K filed March 31, 1999.
STARTEK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31
1999 1998
(unaudited) (unaudited)
(dollars in thousands, except per share data)
Historical Presentation:
Revenue $40,850 $24,321
Income before income taxes 3,859 2,374
Income tax expense 1,432 862
Net income $2,427 $1,512
Basic and diluted net income
per share $0.18 $0.11
Weighted average shares
outstanding 13,828,571 13,828,571
STARTEK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
March 31 December 31
1999 1998
(unaudited) (audited)
(in thousands)
ASSETS
Current assets
Cash, cash equivalents, and
investments available for
sale $41,171 $36,422
Accounts receivable, net 12,582 20,476
Inventories 1,152 2,772
Other current assets 1,437 1,300
Total current assets 56,342 60,970
Property, plant, and
equipment, net 19,708 19,171
Other assets 60 60
Total assets $76,110 $80,201
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $16,191 $22,634
Total non-current
liabilities 3,388 3,434
Total stockholders' equity 56,531 54,133
Total liabilities and
stockholders' equity $76,110 $80,201
Cash and investments per share $2.98 $2.63
Book value per share $4.09 $3.91 |
