StarTek, Inc. (SRT) has reported 5,683.87 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $1.79 million in the quarter, compared with $0.03 million for the same period last year.
Revenue during the quarter went down marginally by 0.49 percent to $77.65 million from $78.04 million in the previous year period. Gross margin for the quarter expanded 215 basis points over the previous year period to 12.90 percent. Total expenses were 97.25 percent of quarterly revenues, down from 99.24 percent for the same period last year. This has led to an improvement of 198 basis points in operating margin to 2.75 percent.
Operating income for the quarter was $2.13 million, compared with $0.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.37 million compared with $4.25 million in the prior year period. At the same time, adjusted EBITDA margin improved 148 basis points in the quarter to 6.92 percent from 5.44 percent in the last year period.
"Q1 marked our sixth consecutive quarter of year-over-year gross margin expansion," said Chad Carlson, chief executive officer of STARTEK. "Our persistent focus on winning new business, high-grading revenues and improving operating efficiencies continues to generate meaningful improvements to our bottom line, enabling even greater profitability."
Operating cash flow improves significantly
StarTek, Inc. has generated cash of $7.18 million from operating activities during the quarter, up 47.68 percent or $2.32 million, when compared with the last year period. The company has spent $0.77 million cash to meet investing activities during the quarter as against cash outgo of $0.63 million in the last year period.
The company has spent $6.08 million cash to carry out financing activities during the quarter as against cash outgo of $6.02 million in the last year period.
Cash and cash equivalents stood at $1.36 million as on Mar. 31, 2017, up 64.34 percent or $0.53 million from $0.83 million on Mar. 31, 2016.
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