StarTek, Inc. (NYSE:SRT) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 05:00 pm ET
Good afternoon, everyone, and thank you for participating in today's conference call to discuss Startek's financial results for the quarter ended March 31, 2019. Joining us today is Startek's President and Global CEO, Lance Rosenzweig, and the company's CFO, Ramesh Kamath. Following their remarks, we will open the call for your questions.
Before we continue, we would like to remind all participants that the discussion today may contain certain statements, which are forward-looking in nature pursuant to the safe harbor provisions of the federal security laws. These statements are subject to various risks and uncertainties and actual results may differ materially from these projections. Startek advises all those listening to this call to review the latest 10-Q and 10-K posted on their website for a summary of these risks and uncertainties. Startek does not undertake the responsibility to update these projections. Further, the discussion today may include some non-GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to the closest GAAP-based measurements. The reconciliations can be found in the earnings release on the Investors section of their website.
I would now like to remind everyone that the webcast replay of today's call will be available via the Investors section of the company's website at www.startek.com.
Now, I would like to turn the call over to Startek's President and Global CEO, Lance Rosenzweig. Sir, please proceed.
Thank you, Amanda. Good afternoon, everyone, and thank you all for joining the Startek 2019 first quarter earnings call. 2019 is off to a strong start for Startek, as the momentum from last year has carried into the first quarter. In our industry, it is common to see the first and second quarters take a step back from Q4 seasonal highs. However, we were able to grow revenue sequentially, despite this typical seasonality due to the continued ramp of client programs across multiple geographies. Our global telecom vertical has stabilized in the US and we are continuing to experience outsized growth in our non-telecom verticals, such as technology, next-gen retail, financial services, health care and travel. For perspective, our non-telecom verticals accounted for 51% of total revenue in 2018 and grew to 59% of revenue in the first quarter of 2019.
As we continue to meet client demand and optimize capacity utilization globally, we are making three important changes in Startek's global footprint. First, we are building out a new campus in Jamaica that will double our capacity in that country. We expect this site to go live in the second half of this year. Second, to optimize our capacity utilization in Argentina, in March, we made the decision to close our Bahia Blanca facility and reallocate resources to our more profitable campuses in Argentina. And third, we are adding a second location to our campus in Sri Lanka. We employ over 1,000 people in Sri Lanka and we are incredibly grateful that none of our people or their families were injured in the horrific bombings that hit this beautiful country.