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Big Mover; StarTek Inc. (SRT)

StarTek Inc. (NYSE: SRT) shares are surging today after the Denver, Colorado-based provider of business process outsourcing services today reported its first-quarter financial results.

SRT shares rose to an intra-day high of $3.02 before paring some of the gains. At last check, the stock was trading 47.25% higher at $2.68 on above average volume of 334,086.

SRT, which provides services such as customer care, sales support, and complex order processing, today, reported first-quarter revenue of $50.9 million, down 0.6% on a sequential basis. The company’s revenue offshore rose 18% on a sequential basis in the quarter primarily due to growth in Asia Pacific and Latin America. Domestic revenue fell by approximately $3.8 million in the quarter.

SRT’s gross margin improved to 10.5% in the first quarter from 7.7% in the fourth quarter of 2011. The improvement was mainly due to continued growth in Asia Pacific and Latin America.

Adjusted EBITDA for the quarter was $1.2 million. The company reported an operating loss of $3 million for the first quarter. Net loss for the quarter was $6.1 million, or $0.40 per share. In the fourth quarter of 2011, SRT had posted a net loss of $7.5 million, or $0.49 per share.


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