StarTek, Inc. (NYSE:SRT) Q2 2019 Earnings Conference Call - Final Transcript
Aug 07, 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 June 30, 2019. Joining us today is StarTek's President and Global CEO, Lance Rosenzweig; and the Company's CFO, Ramesh Kamath. Following their remarks, we'll 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 securities laws. These statements are subject to various risks and uncertainties, and actual results may vary materially from those projections. StarTek's advise all the listeners 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, and the Company have reconciled these amounts back to the closest GAAP-based measurement. These reconciliations can be found in the earnings release on the Investors section of their website.
I would like to remind everyone that the webcast replay of today's call can 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 Zweig. Please go ahead, sir.
Thank you, Jonathan. Good afternoon, everyone, and thank you of all for joining the StarTek 2019 second quarter earnings call. Last month marked the one-year anniversary since our business combination with Aegis, and I can proudly say that our business has considerably transformed over these last 12 months.
We have appointed a new global leadership team, added global scale and operational synergies to enhance margins and profitability, implemented a new client-centric management model that has led to improved client satisfaction and re-positioned StarTek as a premium provider of tech-enabled customer experience management for high-growth companies. And through some key new client wins, we have set the stage for future growth.
In summary, we have taken what was once a very volatile and declining business and have established stability and predictability of results. This stability has been further aided by the diversification of our clients and revenue. For perspective, our non-telco verticals accounted for 59% of revenue during the second quarter compared to 51% in all of 2018. We have been keenly focused on targeting new clients that we can grow with, both organically by nature of their own growth, but also by cross-selling services and geographies. This execution has enabled us to consistently expand gross margins every quarter since the business combination last year, which also reflects our commitment to being a premium provider in the industry and no longer focusing on the mass market.
While consistently and significantly improving our financial performance, we are also reminded every day that our people drive our success. In that regard, we are thrilled to have been recognized by Aon as a best employer