StarTek, Inc. (NYSE:SRT) Q4 2018 Earnings Conference Call - Final Transcript

next question comes from analyst Omar Samalot. Your line is now open.

Thank you. Hello, guys.

Hey, Omar.

Hey, Omar.

I was pleased to see an improvement quarter-over-quarter and EBITDA improvement despite the lighter revenue. I guess it must mean that the market business continues to increase. How do you see the revenue picture evolving?

As we mentioned in our remarks, we're continuing to see good growth from our client mix outside of telecom and moderating headwinds on the client mix within telecom. And that varies globally depending on the region of the world in which we are operating. So, we feel good about that. We're very happy with both the existing client performance and growth as well as the building pipeline by our sales team. So, we're feeling good.

Okay. Are you guys in a position yet to disclose utilization rates by segment for example or you're touting business wins, but we have no real idea in terms of concrete numbers. I was wondering if you are at a point where you can disclose some of that?

We at this stage have not disclosed utilization rates in any kind of segmented way, but we are highly focused on it. And we see opportunities in certain parts of the world to better grow into our capacity and in other parts of the world, like Honduras, we needed new capacity and we launched it. And so, new capacity is clearly only a function of growth and outside of that better capacity utilization does drive better margins in a particular region.

Okay. And what in terms of new business wins?

So, we are not commenting on specific new business wins, but I would say that the global sales reorganization that we've done, which enables us to focus on global clients as opposed to just in-region clients, is generating a strengthening pipeline by a very strong and active sales team. So, I'm actually quite excited about the opportunities ahead in sales and client development.

Okay. And I'm assuming that given Ramesh's last answer, you are not providing a CapEx budget at this point yet for -- ?

Correct. We are not providing forward-looking guidance, that's both in operating performance as well as CapEx.

Okay. I see a pretty nice drop in the accounts receivable, the trade account receivable quarter-over-quarter. I was wondering, Ramesh, if you can comment on your DSOs for the quarter?

Okay. My DSOs for the quarter should be in the range of about, let me give you a number, close to between 66 and 68 on bill receivables. And the last time, Omar, we spoke I must correct something. When I told you the DSO, I included unbilled also which -- it looked higher but was not giving a good picture. So, if you were to do that comparison then you could say knock off about 13 to 15 days from what I told last time. And that will give you a proper comparative.

While DSOs have come down, I