StarTek Reports Second Quarter Loss

Receivables management services provider StarTek Inc. late yesterday reported a net loss in the second quarter of $3.4 million, compared with a $825,000 profit in the second quarter of 2006. The net loss per diluted share was $0.23, compared with a profit of $0.06 per diluted share a year ago.

The company blamed the loss on a decline in foreign currency exchange rates. Revenues declined to $58.8 million in the second quarter from $59.5 million a year ago. StarTek stock was down nearly 10 percent in midday trading today to $9.99.

Denver-based StarTek said it achieved several positives during the quarter that will help it return to profitability. It announced plans to open a center in Victoria, Texas; re-open a center in Petersburg, Va.; and, close a facility in Hawkesbury, Ontario. StarTek also reported it signed a new account, expanded programs with several existing clients, and modified pricing terms with two of its larger clients.

StarTek operates 19 facilities in the U.S. and Canada that provide customer care, sales support, order processing and accounts receivables management.