Startek (SRT) 10 Jun 202020 Q1 Earnings call transcript

Company Profile

Participants

Aparup Sengupta	Chairman and Chief Executive Officer
Ramesh Kamath	Chief Financial Officer
Rajiv Ahuja	President
John Godin	Lake Street Capital
Zach Cummins	B. Riley FBR
Dave Koning	Baird

Call transcript

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Operator

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, 2020.

Joining us today are StarTek's Chairman and CEO, Aparup Sengupta; the company's President, Rajiv Ahuja; 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 based on information currently available to us, and are subject to various risks and uncertainties that could cause actual results to differ materially. uncertainties. listening XX-K call for posted of risks those latest review a all these and XX-Q on and advises to to this the summary StarTek its website update StarTek any does the not responsibility forward-looking undertake statements. to Further measures. some the today discussion include non-GAAP may Regulation company has with to amounts reconciled the measurement. GAAP-based closest G, accordance these back In the The Investors website. their section be in earnings the found can of reconciliations release the on a section webcast available would the replay today's everyone like I www.startek.com. be Investors to call at via website that the of remind company's will of

Now, StarTek's I CEO, Sir, would over like to turn proceed. Executive Aparup the call please to Global Chairman and Sengupta.

Aparup Sengupta

not rapidly much, very times the navigate pandemic. first to dealing families in you this circumstances. you are to The sympathies as all world consequences XXXX. We operated afternoon, months joining. COVID-XX with of the is deepest same the extend who live of indeed, Thank and everyone, around like and remain and thank economic changing Latif. during the Good we tragic acknowledge the we the would we I that early our for as we uncertain world health in today

will keep providing ongoing impacted for sudden brief, the we'll to our comments pandemic, response the in most the priority of to were operations. our lockdowns health on our for the Since our onset and business safety, be support continued mandated immediately time state as first has while Late employee’s the government discussing business top periods early we March of quarter our our clients. challenging of most April, current our and and doing are initial dedicate the the we what So and to COVID-XX.

with operating of with by period, impacts a geography. this workforce, fraction During the pandemic from varying global we a were

coordination member’s and commenting quarter. StarTek’s work to would through like I in the costs our our call times, non-essential to of and like COVID, campuses spending. of our has from after serve, further, and we media, the people serving confident component that to will world. our from to since implementation this a like prudently, region our have to response or whether verticals every customer business financial over strategic going home it have client delivery computers continuity faced enable remarkable We unprecedented geographies as very offset Kamath partner on to and measures operate We obtaining limited in partially feat enabled campuses. social over and homes topic, Ramesh standards. say very in been more you. our many COVID, client was we To the the the hard have have healthcare. to strong, all business approach continuously remain been we largest of mitigate can operating impacts related proud you our the before results could remote distancing business under work the home team resiliency ensuring A has work Rajiv to cable discuss workforce truly necessary safety I many to taken our key take to demand at to as and providing a India, effective that a planning. this proper first But this particularly quality we were our We proudly our impact our took extremely challenge forward. our managed However, access Ramesh, high we experiences Despite with throughout clients deeply and and ecommerce, delivery Wi-Fi. turn Telecom, by of remain of cut challenge to unprecedented financial CFO, to employees approvals, where the to committed in for

Ramesh Kamath

first Thank you, time. as XX.X Selling, to quarter ago decreased Argentinean Philippines, quarter With in as my of continue the million, was that results expense, of most as of revenues will compared environment. realized the driven for the general our said, gross of peso. with quarter to net mimic the XX.X year of expenses XXX.X to to impacted had depreciation relevant by make brief margin quarter revenue X gross of payroll Gross for in incur also such million, remarks sudden also XXX.X compared quarter approximately quarter that XXXX. keeping Aparup. regional administrative geographies government XX.X India, the we several structure Honduras the affected of directed opening work. Quarter for geographies, was were was million compared in period where our profit now review by I and ForEx first XX.X%. million the to XX.X lockdowns the a The quarter as by million the XX.X as Net today's several are less X equip margin governments, to quarter. decrease in most a we including by the and compared expenses of primarily million our XXXX for lockdowns X in to despite suspending revenue mandated remote million for in in X.X relating teams to year adjustments to was in we as by the operations properly percentage ago local

even India, at COVID improved Australia. million of million was is loss compared million. as Adjusted Adjusted quarter focus basis was per $X.XX XX.X driven or year XX.X an approximately to of XX.X% As loss for primarily with implemented the a goodwill prudent shareholders X.X the improvement to compared million million, XX.X the $X.XX South $X.XX as over quarter, StarTek of to included as year points Net EBITDA share compared ago XX.X% to the share, for sharper of the XXXX to of management quarter. the the impairment, cost reductions in in that for and loss loss first share series of loss was XX XX.X as XXXX million in attributable the due XXX $X.XX pandemic. the the loss percentage X.X Africa, or declines the ago of as net first per we quarter a quarter XXXX. compared last by cost or forecasted well quarter. X.X Net a quarter per on compared onset to revenue, an SG&A to months, net the in for million the ago quarter per share, to first year adjusted related That

XX, to to XX.X was restricted and balance at XX.X cash December increased million, a X.X%. As to XX, X.X%, compared a sheet cash million revenue, percentage compared adjusted From as EBITDA at of March perspective XXXX. our

million debt at end quarter of debt the at total of to reduced compared million. the Our was as and to million, net XXX.X million, XXX.X the end XXX.X as to was XXXX, compared XXX.X

look months adequate approach cost prudent maintain will actively in to to the liquidity. and management will we capital As monitor our ahead, our working maintain flows we and cash

liquidity today, through environment. As Rajiv, cash my of our With and to navigate to comfortable this, are this balance and over you. we with completed prepared I've remarks,

Rajiv Ahuja

you, Ramesh. Thank

working which of the not work quickly globe effectively providing a desktops, pandemic. our similar faced continue do access, beginning three of the our Their even helped of country that In government at them across but I radius personnel and have equipment, the safely efforts us to to resources a responded the as to are resume locations. mentioned Philippines, much have necessary many ensure our some operations across the We across that want and allowed to two teams to from mile to remotely. where far given of that and these many continue the call, office to our challenges example, the amid highlight Aparup evident to done incredible don't our mandate operating situations particular, work tech Wi-Fi the gradually geographies, we As to only lived employees independent similar areas switch all teams within they often couple is have of enabling by In are we operating India, courage Also, that challenges a have did the from campuses, initially as access. our internet to the challenge set with our to faced. employees in immediately showed of workforce home our posed improve resources of commitment to regions of a the for today. the work our technological dispersed incredible great delivery consistent and go laptops, there if in teams,

of servicing our So, we resources of needed team access members a our our had do to campuses. helped them ensure fully clients to nearby operational. provide continue that members to they from the to be This for housing enable initiative majority had temporarily many team our

resources in to displayed the off, teamwork to and the the dedication high last we our improve we very particular. our on their that build have global by passion by paying us the technology are are clear this of we the It as quarters always clients our IT, investments strong a made All members possible will facilities standard have made that teams receive have administration the operating coupled leadership team, the out phenomenal between experience well and operations, has able be we quality and team delivered. customers comfortable partnership is know equipped, and same been to several committed that to ground and and over with focus our procedures. is When

global from around client to and the COVID-XX collectively cannot still of base, that we to new normal continue predict the world, accordingly the very aftermath our the adapting new uncertainty. as all pandemic, ahead, its Nevertheless, from uncertain. full support and to look businesses do period As and remains and as the we this through we effect the continue impact like the workforce environment we global we volatility economy we on to [indiscernible] most expect can will

like remarks. for pass back call his to I'd the closing to Aparup? Aparup Now,

Aparup Sengupta

Thank Rajiv. you very much indeed,

global place team. and global side the our first through the As very came want to and ability today's a remind the strategic with and operations highest momentum stronger parting our very months they to our components workforce priority protecting be our efficient continue drove to that will partner of listeners pandemic. ahead, clients. our for XXXX on key global position see a value-added of the In to improving to as will heading supporting I strong our we other into call, while These a elements this quarter into even blueprint, thought we

this until new open, as more be. are the meet economies of are and remote From as we the to ourselves extensions perspective, effective our focus faced, and the operations demand. organizational our and earlier, team we efficiently and Ramesh where to will to have the Despite has remain pivots the any and today. a this work and what campus liquidity we the our that and questions as made we flexible cost look the preparing work remain building certain we to swift a with we the strict services point might comfortable we will control plan forward can, to to proud consistently quarters demand up mentioned we are for balance financial now client position be increasing call fortunate strong normal are our workforce is challenges people for will I upon open maintain with on ahead. of in Latif, workforce we in to start the cash have. we operate As am

Operator

[Operator John line Capital. Our the of of sir. comes Lake first Instructions] you, from question Street Thank Godin

Your please. question

John Godin

you thank question. for my Everyone, taking

some verticals kind you? know, a second, feedback from where peel the anything the And you've of about of seen out then where more little weakness, or what stuck on strength, surprised onion Thanks. workforce from out overall to to First, like you've there does utilization thinking you across how seen and bit been really verticals clients, transitioned work And your the has just stuck home, has it the else be then commentary would helpful. on has third, performance different anything has and any been? volumes as some

Aparup Sengupta

I sure, these questions think take Yeah, time. of at I'll each a one

a who and faced or set very clients use what non-discretionary continue non significant So, essential services remain if your and look to continue in part television of they forth. is we you phone pandemic activities, for are or fortunately, and in, typically people making call a of are – at, strong. so services searching discretionary example, And largely clearly the the on that so phenomena is have our to that we as essential very kind on interesting

they mean, and And were – overall those airline, created seen found there slow that challenges we industry, transportations, the sectors the pandemic kind that the Most our them And side. of the volume some that discretionary request a client, on have this to have we clients kind of Rajiv, automobiles, huge out such havoc with of amount that that, to side, volumes Over more we would were were idea through for color was pickup on receptive I getting we few very have workforce have Rajiv? I of regards to on in give including panned from of some speak with home. as over you down the However, the additional gone you demand into receptive. last seen the understanding expenses client travels, would work very some and weeks. I found clients and have that and because of to

Rajiv Ahuja

Aparup. you, Thank

I large very you've covered think extent. it to a

why it of to extent be or in softness that fortunate media is that airlines, of hospitality, to has competitors, the driven that are relatively care, for with which in as some BFSI, been and sectors some is of competitors. cable, been our comparison evident we've exposure telecom, especially current think is times, demand the cetera. matter I like as considered our essential our sectors would our revenue health XX% in by not to i.e. Over low these et

was have secure and to agents, solutions but got environment, not increasingly robust volumes a secure so probably desired little know, to put and seen work with haven't overall to hit, bit together followed moving any March a us enable geographies lockdown, to this At from be concerns, go you the comfortable out out middle – started a Philippines comes that COVID continuity receptive. demand to and first did put it a have we've few there. Clients overrode of really able we surrounding becoming know, more our the ability to overall more When say we that to environment amongst I point, into deliver very and together somewhere you by in the around the and of you extremely know, been kind our of would any the extent. home as So, see go clients impact from India. hit softness solutions now utilization, business volumes the

remarks, happy was his north their today. customers bit impact, live is at upon our turn. that is So, Ramesh and customers during a his an touched I'm engaged workforce in that remarks, have state enabled of and there little productive busy And this to opening and of we in of our point but XX% and serving

John Godin

helpful, more guess, And that's on the one whether on impacts, you of you that longer you more you. and kind know, on Alright, any or margin seen? term Thank the do negative, in of more impacted you've kind the then that color structure. can I give positive any parts depending importantly, quarter? was moving us anticipate how

Aparup Sengupta

[fag has can pandemic of end] to estimates difficult in Well exact quarter it the the you and very some on point will quarter. at be faced that but at time, I give this this had challenge gone comment only we by the

happens kind prepared, that's that suddenly what point that time. mentioned. shrinkage, get Ramesh supply of basically you and of typically when – And what you're had a at is not reflective a So in

up. with So can’t with the you though the what lot just spent blackout costs, sudden where you they they kind a is, key of with show up overwhelmed but almost volume of down and happens can't a show in employees then like get shut just situation geographies up, a get client,

the this home. incredible proudly a truth, in organizations would we of military his the looking every bring team a So and a think completely And switch center had feat. can is virtual precision. with them importantly, workforce work over out heroic the through was, virtual gears new I almost effectively working And of that could few of action that to at center. period unknown a it Rajiv center very say from of really helped weeks, I could one was entire that most of command territory we started kind say moment brick a say, making mortar a and every from an and several leadership And in where would team worked entire task, I back

So, I to something was think of come out that remarkable this.

of in ship passion a we’re almost sheer got at think I management the by something basis, sitting the on I but back month on and effective April, the mean, the looking the rigor, So, scary, we XX/X and track. very

So, this that's what these I can at say time, are point and uncertain times. in

I we at the You very steadied whether something ship It’s very future, think the be we but of never in indeed, proud the up entire know there's team and and them. of going and feel comfortable very StarTek. star proud have team, to coming

John Godin

on everybody Congrats, and you. your healthy. stay thank all right, All Thanks. efforts

Aparup Sengupta

Thank much. very you

Operator

Thank you.

comes of Cummins B. question Zach next from Riley Our FBR.

Your please. question

Zach Cummins

everyone. some I geography geography speak mean, approach a countries months good to employees through little just to by having restrictions, taking from versus for back Thanks approach more such mean, of as your going can and to delivery home upon of the kind guess your what's I physical I be and seen just having relax And the Hi, into move India lockdown bit campuses? progress was to far guess, curious afternoon, I as of building my you've on Philippines basis. I began by their remain two employees questions. more quarter? the you your into prior questions. thus some working QX,

Aparup Sengupta

some as Philosophically both has pandemic light over a not wherever were they One whole have who But a in handing our model thousands and thousands and mean, would they which people is our a mandated that technology was give to that clarification you I I this upon. an come he to into as can our government locations. And India well and for Philippines. Rajiv for ourselves. was what answer, our show means customers, basically for throw nobody just was be of more I'll could was we can suddenly, vacant, happened shock wired hardwired and up. both talking I'm centers of in there and I mean, was And lockdown, work.

And don't into the is doesn't the know the while what done. know we So place. to customer customer back can be the overwhelmed, how get employees

So, customer virtual incredible as for task in a down this workforce in was but in our line-by-line we a desktop-by-desktop, you problem enabled can a who place, rock came can of working of customers? we the together making India a days passion The and how world say laptops with did I don't like or team, between to was, said, back people it situation a home. Philippines at what infrastructure have those a and our leadership we or desktops hard was solve places was even where bring agent-by-agent them their and have sheer

we give monitoring So what started this virtual movement bringing desktops, command at is huge I on a something of this the mean, but the There virtualizing more to huge a the activities it speak is was and of an and how goods we you would a daily of environment and was infrastructure was means you request and just has to shock, all some of back stories. sheer basis. virtual done. with I've but end as over what we are it happened this volume a faced passed seen to There are those? more bring color basis which did through might which wired that, as these detailed infrastructure, resilience, enable a shrinkage by, into you center, days Rajiv, was team Rajiv hourly it back. It it nuggets. technology I by, back. brought with week a just working And passed hours as could thereafter, on by, passed we back on

Rajiv Ahuja

Sure Aparup.

of sense you So wanted played bit how the me know, present a in. Zack, that you start a let this is we geographies are out across with, little different

the have if our the So, probably know, get infrastructure went XX got Jamaica the issues. in to virus. around into a lockdown, our network I internet geographies. network affected other affected nations then Jamaica west, total like world of penetration, today from last you bandwidth amongst straddles challenges And And different thus by the you and developing around was availability, start number Jamaica know,

out you workforce the but happy significant to to remotely. a between how our go brick Jamaica, we to of be good put and and amongst operational from further started Jamaica fully know So, to last also Internet the mortar issues where room, the lockdown, mortar Then you some amount moving say enabled. XXX% where South etcetera. had that lessons the Canada, in Philippines, is we’ve Argentina where, Africa, know, is when was to quickly network, down just know our Honduras, could connectivity, work down was able you move of and managed came to that the of across I workforces brick a to already we again faces India for into but I had it other U.S. And geographies together do work-at-home. our availability part leant solution going to penetration, our figured working which Peru, the LatAm, and enable like if challenges be that living and remotely say bandwidth into Internet continue outlined a because to with

of have remotely. us liked time to larger a get So, little would to people amount of bootstrap a we took to that work it bit them

Arabia point IT South again obviously between curfew did and services on came but government the did which they running. one By distancing social countries, Africa lockdown account while being the people it I've that solution. do industry up is and the of brick that feature extent curfew kicked that, that again mentioned been our developing a with fully extremely a like time imposed. around challenges then enabled Saudi to call norms had services it moving. India, prevented opening the from these was lockdown, also to severe in. that the That enforced almost essential tightly now in faced However, enabled mortar and was the work-at-home to already and up being other because,

be a government currently India. on essential we a to the from that in larger amount, were proved spot replicated our We to to out same and up large to enabled control case and Philippines. rely such, the services firing movement a of larger percentage home enabled workforce the locked more obviously, Malaysia as for the a the industry. that had quickly extent in is be the bright be the industry working So, as order but did us. services IT in services not would announced They treated place, apply IT to

impact – and live we very work-at-home and fired almost in adverse So, brick saw little in is impact up production. in Malaysia. in of are Australia, workforce we and XXX% totally our between mortar,

do So, we that see? as And comes are gives the move forward? yes. we geographies we more you a when in. you what of work-at-home relying XX going be to it Are on Absolutely, sense to, know, that present we

to mortar. work-at-home I working security think brick viable could prove an good from alternative the to extremely to and prove and proven this pandemic in be be that place, has right with protocols etcetera could

more offerings. for. continue Zack So, with we and on our of acceptance for also this walls hope and sales will were call popular rates our more service as see clients do solution pushing what – as their a becoming I part this answers teams that to focus center looking a broadly without now of you terms in

Zach Cummins

that here QX, cash from I could in was incremental in of you shock the us April, where where you're the a give course I appreciate you at that I if a of balance curious, give the and at of better sheet move like end of helpful. was kind No, at, down was of system balance in to actually that's terms liquidity, sense mean extremely standpoint? I of anything to just guess a May net or the saw all sense maybe really us a debt color

Aparup Sengupta

the today is know, from understood distinctively in saw did leash X, as shock of week the I – mathematical what part months in you a or banks, what dynamic important in into terms a havoc tight first and a And finco would have is lot early schedule with Zach can what the have us, actions we on cost for what kind debt also kind liquidity. pretty see on of in is See we we comfort April, our say of terms is April, It's you the better saw we that we gives you And liquidity. model together the that maybe quarter on and in of significant This see. mean, our say, much I would managing we keeps that taken a little board. of put most repayment early week we non-linear game it that second create know, the have management as working we in changing is see on been model and it it nature. a speed a not and of where and It this and by we I not action of of that was a liquidity. bit fundamentally in very

So, money, proactively, you you if will save game, take if actions early on the lose. you in you don't

do, have any and people you without vice will to not if example, action For just work getting get paid versa. taken X,XXX

that of organization. liquidity the the strains So

either command ensured idea place that center, that this was dollar So every the spent all actually by deferred were led whole of delayed virtual put were and non-productive dollar Rajiv was in that or productive that there was or dollar an eliminated. a we dollars effective

pandemic to lab team and we therefore on stronger and we deals door. as sales and success been of became were a cost So on new logos learning create back the we we there And R&D coming. led over business Ferry, to we And we running some and what months through who few proudly the the is development is side, has a ensure that that while and come came can just has as service happened capability to that that on businesses overnight capacity on significant can to achieved has to nuggets three marketplace. weeks the also last helped say, some And four new which are board team working take offerings. the to new have started by this very that I our get our like being building Rick we the

are some this idea a for across you a continents. anytime, And and across new of can anywhere, is work of shift client, model subscribing do of any virtualized and hybrid contact geographies, across lift to cultures, them center, a which

concern of, – the only qualitatively, is could and if able learning’s much use some that this an something quantitatively motivated, which believe to out of and as be that therefore as give feel say had we is of not that. the can word we very came will in upside may answer. we much So, April say strong, I I those I I is not COVID

Zach Cummins

question moving key Understood. if And getting a clients I then those those with to any that services. from sort for just just you've environment, approvals wondering clients virtual could was final it or I perform some your to requires still. issues approval delays impacting of know still had business with me, any that be

Aparup Sengupta

Specifically answer you give color? can this Rajiv, some question?

Rajiv Ahuja

Certainly.

feels it, will this it any turn XX, XX. situation move a was voice-based severe think have they that have I to time, if be they've firm time, is be it XX. think have out not of XX% done – I'm give more we an XX, of solution. support, I'll based base, but going what very And you XX% clarity solution because work-at-home XX, which were of a that as Happy of just would I support something do took were why at work-at-home segment is clients solution. wanted they it little chat wanted and currently have to XX% clients broadly I I say continuity to business this small quickly pandemic? our had of population. to to of us would up waivers asked our from to that client to the you those to that to more and that They localized? be now, a up, to etcetera, yeah, know, they saying anybody categorize fire our So, of would XX, bit of work-at-home, clear Will you clients as we of very able wouldn't actually but help at them, that's work-at-home around XX% review came to say the to. the the quickly. being and how able us turn Would And is partner that to fired quickly of to know, so still some like be point wanting that path agreed out us immediately table to they with epidemic grant of or be? and upper walk a like necessary to, to and a clients prefer now as fight to and earliest, don't but the work-at-home is They our agreed clients ensure how XX% this,

Zach Cummins

from for you thank forward Well, we here. as move questions Understood. taking luck my best of and

Aparup Sengupta

Zach. Thanks

Rajiv Ahuja

Thank you, Zach.

Operator

the Our of next question from line comes Baird. Koning of Dave

Your line is open.

Dave Koning

of a up pretty quickly XX% that guys. and Hey, Yeah. goes of to we of of when travel, all, imagine it's about place? of lot XX% the that to sequentially. right talked kind is revenue is you away just goes running. from of are Thank just think away, revenue how I agents you. but easiest I way just I about mean, QX, that I trending is think QX guess know first would XX% the

Aparup Sengupta

now ACD, which to getting it is that. up idea was a happens back times Actually, what of because it you agent. and but as will of there mathematically that in suddenly mean, also stuck get the what logged headcount, give which wait is an the opens volume is the because was long not be come happens them spent many I distributed in I now

and offered that So how quickly addressed. basically the kind call come needs is to pent-up function it's of be what of very a agents the dynamic

equation that not revenue a it linear that's the So you on in, bearing the se. of if very a direct has per have coming XX% staff

always fast that If you ability mean, back whether I the is there training it becoming have a how depend they because to have same might a back. come XX or over quarterly then come you fire a agent as to will the were six XX it cycle. to get up a period who to you, And a period you or weeks look, three-week take appear period, four-week

university who a batch a of So, of kind it's students coming. new of are combination

those XX% you are whether those have a linear rate have map, a a who of then it board, ex-students have pass you not So pass all year the will It freshman depends how that XX% can coming say credits very completed or on on rate. can but that's pans basically out.

bit could eight because of home out home, of come. went enabled work from been people let's have been had suddenly give many away, And enabled little to of figuring from else. and they and not they them, just been them something you lockdown, work and not say maybe the two for have for a they're doing XX example, working Just of

those or one be volume say Let's eight a back not the and may months, months after available. half two comes

have train eight back on again therefore, those go So you and those to workforce and get track.

money able have to by have you some back the those will volume to you get spend and not this way, to also of you So, retrain because be XXX% will more XX people. overnight, to train,

this dynamics in of context center out. economic the So, plays modeling those

So, you that be me worked example, And have, so juxtaposed it to, workforce. concerned. on on-boarding new will them revenue this enabling the number the will Therefore, also to during getting and sales clients by to gauge is difficult we be or that we crisis, which, up XX% on this based gets running. and for and have the for far XX% same extrapolate as able as very

to add they also So, the fodder.

combination these it's together. of So, two a all

that of So, clarity have this will we as end we a quarter.

at prognosis a overall, point good. give it in can't this time, I So but looks

Dave Koning

XX.X% costs revenue fixed if term expect those revenue, a guess goes, the if I Okay, well, it services, cost down, are just we way whichever I of lot mean, – or revenue services And near the of in should that's of more trajectory normal has what QX? wondering, kind recovers. I'm like revenue get is and margin to that been rate of little the eventually a pretty to be kind quickly XX% XX%, of can in where your it know, you back just was goes on in good. margins

Aparup Sengupta

goal as of a is have Yeah, to cost agent that's obviously significant as possible. much elasticity part costs. Because our your

So that we And have how do the had. excruciating goal, And that tried those drive see can of what goes line structure. of we we we our in of to. you therefore, much learning’s much that's cost details that's very to variabilization of interesting see. are in whole the pandemic, some to and it this items how And all the

if not for it's anymore. by that only and a XX% example, For is say bandwidth you there for let's seats XXX and occupied a have center

and can negotiate. turn you bandwidth those talk off So,

team We turn off. that spend management and turns have those negotiates a turns

getting So, all those of basically our vital points of working the cost and the of depth that. into structure economic modeling towards

thinking and team that but Kamath today I CFO, today, XX where in this teamwork a this who how we why our possible operating So early save the to the pan those terms will little there we elasticity we Ramesh can be CEO that's we while we are going negotiate were was we in in in Rajiv. are things. entrepreneurs, this is like has are, by as how scary the than much the landlord? in who to do position Can that thinking this are business. in bring April like stand people And is say a we as all we days as have who in do to We can other the thought with worked taller out This So liquidity in led that? stuff dollar? was ensuring of kind – very can is Can is wasteful, wonderful that this? we and really of kudos to like

Dave Koning

Well, thank you. Great.

Aparup Sengupta

Thanks.

Operator

Thank you.

Omar from Samalot. comes question next Our line of the analyst,

Your open. line is

Unidentified Analyst

guys. you, Thank

Aparup Sengupta

Omar. Hi,

Unidentified Analyst

you Hi, for questions. my taking are Thank how you?

global you So, I home think CTO of had I That see from an was workforce, I move period a a platform. impressive, did such mentioned article to thought your that, in from quite work short the that XX% time. of

was say So, that and versus wondering campuses, example? you during more, you cost impacts, do from portion home that wondering, I'm how times about see normalized for work maintaining know, fluctuate I more the

Aparup Sengupta

It question. is a good very

trying also all is mean, that the versa extreme world I I go visit almost is classical we It is I to vice somewhere debates travel journey, views cannot there those – of that are it's video centers you will organic need their times spread everything going will grapple conferencing who need be away to get center home strongly we It's for clients. had travel. the people be a impassioned remote a ambassadors will and tomorrow's all go and do somewhere and to at We are once from course, away in have very to the will come running, believe everywhere, and exchange, go mean, from a we those I between. questions. is to hello that people back are for all everything a to nowhere to customers and mean, There virtually servicing what apart. from and when will not those up and will difficult they work It's like center. home, wonderful with say will work that and to

So, thing loss security those to And elements. this how are control, pan there underlying there is that economics, layers there is of these within of to is and psychology, going of as there is of out. comfort. play All some

are how them but going of don't unfold, we definitely going is away. this to know go So as none to to

do work like So, mean I going six There and that want And environment home agents. of and from running aspirations layer individual how cloud What's create technology be virtualization. there taking see. from into had mortar. client, a team be weeks will that And something to infrastructure that period in a to from function home. lap, be a cloud, To be create to our that's which they to – is has people what and is a each the the mean work of and the will preparedness cloud worked a brick to third created is star going zero was it nothing. I really We've is environment. model their where

thought that I a I some on how your of to Rajiv, my roulette we criteria have your as that to we comes on that's that always and mind bet debated I are these go So but think think roll off and a hand. Rajiv, views, casino, the views. like where see. can’t it will I

Rajiv Ahuja

what be I'm conversations to these a it's forward. I product And clients, of happening, boardrooms suspect the to it look you, Hey, going like lines. especially certainly those Thank in are of will off, some our Well, fly larger I a the Aparup. the depend would function mix on as workforce you two be know lines where sure two mix to the intersect. of or first wall moving should Omar. on love

on the field other approach pandemic know appetite the from a balancing hand, know, risk a their you shown left continuity and something those secure location, when of would I'm One location clients work world has bring that's has, with, home. from how and you knees. secure not from so it and the so to client XXX% let's way now calling �� and you far the you paralyze for to right And need work can know, it this its out business a obviously, literally that come be, move lines it because

normal, like I rightly extent, client as each to Aparup are will we form I in confident with from new moving to think is speak, a will home work decide I pretty what So, function touch regular we the I clients that a individually our demand pointed am feel two suspect part be these a forward things, of but know, you out, of going on basis.

numbers we if well distancing that, sense and of the And client the lifted, said, get notice. and Aparup at a now centers, brick partnerships we and world, into You do know, part XX-hour have etcetera what solution at from the look almost can social them six can XXX% entered up my eased around home like. home, up a back We've star on up, is our workforce been over to solution. a want hours. to running. good into you that bring you cloud even me better with all lockdowns operating in brands Like an fire our some is and be tomorrow tomorrow, have need literally home you I says But mortar of would a know, norms, trying an says, we know very those client known been now turns if is, give know, to part and at

love only that would would So but I have guidance take on I'm that, I from Aparup, you. if what mix tell, some any insight time to you look that and think like, Ramesh will sure

Unidentified Analyst

the you the work know, costly. common as and following would other less probably Well, if question would cost would sense you home guess I it makes know, side, well, obviously be be it make that – from solution

have at have the same So, don't know, you with time, to you rent, have have somehow that that currently to, you but pay capacity you pay the you to deal current for.

of So, balancing there it's well. kind as I act guess a

Rajiv Ahuja

to understand but that and this were, assume that I'm purposes this, And, they that correct. out let's a of one is there, for just that, workforce you let's it let's any That pick the discussion I'm let's, existed it center, just a know, of was XXX-seater. binary XXX% and using and making

are in legal the need part know, the agreements, every and go our a a estate, thing. solution]. team, of mind that love much currently would mapped it but pretty know we lease mortar expensive are that know, take? What to place, by the you How complete told and to We've then that will and all that of network, it teams do home. the XXX entail? our across lease are to XX brick you know form have, but examining examining, that at out We We you exit long are our we complete bound real will we etcetera sites at moved, drawn from, to up Ramesh map we've with event [work a examined in that, some home all that also have

a run things to will earlier, lot of said and those of other that center. So, you opposed – of at variable as on when model we rent variabilize and, a know, look whole chunk a large money can costs kick-in you a big we how like costs, can reduce to more Aparup obviously there's fixed we where some utilities and of move our account paying where

Unidentified Analyst

very helpful. that’s Okay,

Aparup Sengupta

have there you home. from will that, work is now mean, say I happen you vacant let's what Omar have because as And is capacity

One like opposed maybe which a which look to are cannot being have telemedicine is has Because hospital. be vacant not ways is, doctor business. is brick the in a to critical exit, So, the up, at done reviewed a mission can be fill radiology, which two model It's and capacity. qualified externally. from be of photograph model surgery outsourcing be is by it other else, that there has to to that work to which done you to home. that It mortar to it somewhere with as it's

lot and depending it or paradigm, So to of very be of activities about healthcare imagine It thing BFSI unnecessarily kind vitals complex other regulations. that taken very involves which a cannot getting involves of unfolding the core some involves a access critical hospital process, a conversations banking into cards. as calls, critical on customer's which credit our out displays like in are screen pharmacy of because privacy, the HIPAA there the individuals, mission

those environment, will of militarized in quarantined work a kind remain So sanitized all environment, zone. in

brick mortar and will required. those it's So be centers

a as very secret inventories if and the what's star that team work is call dynamic idea and sales managing team team, quite that's capacity. together giving one some is And that would And how with the are lot in seeing unfolding pipeline, from weekend that I I optimized of we of us of is our team a home on I and may. the how proud nature, an environment. feel unfolding in Rick those is into sales of is of dynamic confidence how's what this how a So, much as getting coming but the board sauce cohesively working uncertainties working is

Unidentified Analyst

Okay. My final question…

Rajiv Ahuja

just comment. I more one If add may

Unidentified Analyst

Go please. ahead,

Rajiv Ahuja

is you you taking and want you earlier, situation there at to I'd totally, go. to out moved, clarify also know, home. this there is months know, again, given assume emptied a let's is that let’s I'm to where XXX-seater more has XX a where that, that And Omar, assume example workforce

center, infrastructure rent be and continue to have utilities paid the has to fact for. center are We of And the that marginal to to off say the for. and that the paid going left. we the a as you that have off that are be go been been place. paid turn to the work The pricing and The time, going you can The sell very, for will seats not a for. know that is always to is that pricing we duration, in lights, opposed seats in center is cognizant it's then know, an then incremental keep

line, of very, our So, really directly we ability our that shareholders. to know spend are very fact deliver to affect cognizant the our value will such bottom you

will obviously capacity. covered, to running we It have it we've because cognizant a have are a that we've centers; and normal. that the course, significant So, moving and modeled forward. of to a – wherever is to a making side, be And continue number they you component fact we sure different work-at-home will try – know full we home fully will there at going will of we of we keep be have push be feel will the as an part solution new scenarios, at the of on we it be of

Unidentified Analyst

it. Got

Okay.

just question. Okay, on touch and a previous to wanted then finally, I

were were you where you liquidity. know, measures you You maintain about, talking to know, that taking adequate

I think bank. mentioned the you

don't anything being you need? that know they're receptive maybe position I deferral the payments all this impact restructuring if efforts don't I how that any much know like to obviously and about in of that debt know, of on had your if know you're a you So, or talk on you might

Aparup Sengupta

say only have had that lenders they very supportive I current and good situation. the understand been can Yeah, with have our we and they extremely discussions

the reached we them our with facilities. on we the information principle working we of to agreement, documentation and kind and X-K and file are have now the We an back will And you. amendment and will definitely get in to an moment agreement an have

Unidentified Analyst

Very thank Thank the very much and you good. Well, luck. guys. best you of

Aparup Sengupta

Omar. you, Thank

Operator

Mr. Sengupta, At I'd this call the over concludes like to session. turn please Thank proceed. this to back time, question-and-answer our you.

Aparup Sengupta

great much on ladies thank with appreciate for thank you and for very StarTek. I call session. very and that Okay, thank indeed. to look next Really was and of thank question-and-answer really you have second the you results. joining And I Latif. gentlemen. time. afternoon one forward And continued you Thank you much each quarter very support this who And your Latif, you your you, speaking very been for a thank this mean, and much. to report the I much, And

Operator

and Thank you, sir. Thank ladies you, gentlemen.

may disconnect. now You

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