StarTek (SRT) 2008年年度報告「NYSE」.pdf

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1、Corporate Headquarters:44 Cook Street,4th Floor,Denver,Colorado 80206|Telephone:1.303.262.4500The common shares of StarTek,Inc.are traded on the New York Stock Exchange(NYSE)under the ticker symbol SRT.Price and shares traded are listed in principal daily newspapers and are supplied by the NYSE.The

2、number of stockholders of record as of March 1,2009 was 59.Questions about stock ownership and dividends should be directed to Investor Relations,1.303.262.4500.The StarTek,Inc.Annual Report on Form 10-K,Quarterly Reports on Form 10-Q and other periodic reports fi led with the Securities and Ex-chan

3、ge Commission are available at our website,as soon as practicable,after the reports are fi led with the Securities and Exchange Commission.These reports are also available free of charge by written request to:Director of SEC Reporting StarTek,Inc.44 Cook Street,4th FloorDenver,Colorado 80206We have

4、fi led the certifi cations required under Section 302 of the Sarbanes-Oxley Act of 2002 as Exhibit 31.1 and 31.2 to our Annual Report on Form 10-K for the year ended December 31,2008.In 2008,we also fi led with the New York Stock Exchange our CEOs certifi cation regarding our compliance with NYSE co

5、r-porate governance listing standards within 30 days of our annual meeting of stockholders,as required by NYSE Rule 303A.12(a).M A R K E T I N F O R M A T I O NS H A R E H O L D E R S Q U E S T I O N SO F F I C E R C E R T I F I C A T I O N SA N N U A L R E P O R T2 0 0 8G R O W T HO P T I M I Z AT

6、I O NE X P A N S I O N ourOur Company mission is to provide our clients and their customers with the highest level of professionalism and service as we continue to fi nd innovative ways to grow and improve profi tability and shareholder value in a dynamic and fun environment.M I S S I O N1StarTek,In

7、c.(NYSE:SRT)is a leading provider of high-value business process outsourcing services to the communications industry,including Fortune 1000 corporations in the United States,comprising the largest telephone,cable,broadband,and wireless corporations.Through 19 state-of-the-art contact centers in the

8、U.S.,Canada,and the Philippines,StarTek provides business process outsourcing services including customer care,sales support,billing management,complex order processing,accounts receivable management,technical support,and high-value,non-voice services.For more information visit the Companys website

9、at or contact us at 1.303.262.4500.C O M P A N Y P R O F I L EEd ZschauChairman of the Board,StarTek,Inc.Visiting Lecturer at Princeton UniversityKay NortonDirector,StarTek,Inc.President,University of Northern ColoradoAlbert C.YatesDirector,StarTek,Inc.President Emeritus,Colorado State UniversityI N

10、 V E S T O R I N F O R M A T I O NB O A R D O F D I R E C T O R SC O R P O R A T EH E A D Q U A R T E R SI N D E P E N D E N TR E G I S T E R E D P U B L I CA C C O U N T I N G F I R MR E G I S T R A R O F S T O C K&T R A N S F E R A G E N THarvey A.WagnerDirector,StarTek,Inc.President and CEO,Careg

11、iver Services,Inc.Larry JonesPresident,Chief Executive Offi cer and Director,StarTek,Inc.44 Cook Street,4th FloorDenver,Colorado 80206Telephone:1.303.262.4500Internet:Ernst&Young,LLPDenver,ColoradoComputershare Trust Company,N.A.P.O.Box 43070 Providence,RI 02940-3078Telephone:1.800.962.4284e-mail:cl

12、ick on the“contact us”tabat S T A R T E K L O C A T I O N SUSA Enid,OKGrand Junction,CO(2)Greeley,CO(2)Laramie,WYCollinsville,VADecatur,ILAlexandria,LALynchburg,VAVictoria,TXMansfi eld,OHJonesboro,AKCANADA Kingston,ON(2)Sarnia,ONCornwall,ONThunder Bay,ONOFFSHORE Manila,Philippines3 letter to shareho

13、lders5 caring for our customers6 growth7 optimization8 expansion9 fi nancial snapshotC O N T E N T S2Dear Shareholders,At the beginning of 2008,we set out to accomplish three key initiatives:growth,optimization and expansion.We knew that this would mean increasing capital expenditures and depressing

14、 short-term margins,but we also knew that these programs and investments were required to support our continued growth,improve our operating margins,and deliver long-term sustainable profi tability.Our goals were to:Grow revenue at double-digit rates Optimize our North American operations and invest

15、 in new technology,human resource programs,and new service off erings Expand our delivery platform both off shore and domestically Last year,we achieved over 11%growth in revenue,reporting double-digit growth in three out of four quarters.The growth in revenue was due to the launch of two new client

16、s and a number of new programs with existing clients who value the quality of our services.During 2008,we did not sign any sizeable new customers.Accordingly,we made management changes and restructured our sales organization in late 2008.Those changes are beginning to pay off,and we hope to be able

17、to announce new client contracts in the near future.We also continued with our site optimization strategy by closing nonperforming sites in Big Spring,Texas and Petersburg,Virginia.We reduced our Canadian footprint in the face of rising wages,foreign exchange exposure,and the diffi culty to hire eno

18、ugh qualifi ed agents by closing a site in Regina,Saskatchewan.In addition,we introduced new operational processes and metrics at all sites which have already produced impressive results.In order to enhance and further automate our business,we made signifi cant investments in systems,human resources

19、,and new service off erings.Technology investments included a continued migration to VoIP and transition to a new ERP system.In the area of human resources,we implemented a new management system for training our employees.We initiated several new benefi ts programs,a leadership development program,a

20、nd other actions that have improved the cultural fi t of new recruits and increased employee retention.Our expansion plans included a decision to build our fi rst off shore site in the Philippines and build three new sites within the US.Following our decision to build a Philippine site in March 2008

21、,we identifi ed an exceptional site opportunity and built out a 1,100-seat world-class facility in less than six months.We began operations in the new facility in September 2008,and quickly ramped up to meet engagement metrics for two valuable clients.We anticipate the facility to be operating at fu

22、ll capacity by the end of 2009.L E T T E R T O S H A R E H O L D E R S3 We accomplished our North American expansion objectives with the opening of three new U.S.sites in Victoria,Texas;Mansfi eld,Ohio;and Jonesboro,Arkansas.Each site has approximately 500 seats.Collectively,the three sites ramped u

23、p to 74%utilization rate by the end of 2008 and we expect utilization to increase in 2009.In addition,we launched StarTekHome,and we anticipate growing this service off ering and others in 2009.As for the economy,these are uncertain and challenging times.Many businesses are feeling the pain of lower

24、 consumer spending and tighter credit markets.Therefore,it is prudent that we be cautious and conservative in the near term.Fortunately,demand from most of our clients is on the rise and although they are looking to cut costs,most are increasing the use of outsourcers and moving non-critical call ty

25、pes off shore.Both of these trends should bode well for StarTek.Overall,2008 was a successful year as we made signifi cant progress toward our long-term objectives.In 2009,we intend to build on our advances by pursuing three important objectives.First,we plan to increase gross margins to achieve pro

26、fi tability.Second,we expect to grow top-line revenues.Third,while leveraging our strategic investments initiated last year,we intend to make the prudent investments that will enable StarTek to continue to grow in a profi table and sustainable manner.Larry JonesPresident&CEOSincerely,In 2008,we achi

27、eved record revenue growth of 11%and recorded double-digit growth in three out of four quarters Ed ZschauChairman of the Board4for your CustomersCareBetterkeep themLongerandStarTek is a business process outsourcing(BPO)company dedicated to service.For over 21 years,we have been committed to serving

28、the needs of our clients and their customers.StarTek is consistently ranked#1 by our clients,but just as importantly,ranked#1 by our clients customers.We are a catalyst enabling our clients to earn the JD Power and other coveted industry quality awards.55In 2008,we continued the double-digit revenue

29、 growth trend that began in late 2007.Throughout 2008,we saw strong customer demand for more seats,particularly from our major clients,which was driven by growth in their customer base and their appreciation for our delivery of quality,value-added services.The result of this growth as well as new pr

30、ograms with other clients and the addition of two new clients,was quarterly revenue growth of 12%,12%,9%and 12%in the 1st,2nd,3rd,and 4th quarters of 2008,respectively,and overall revenue growth of 11%for the year.GrowthGROW REVENUE AT DOUBLE-DIGIT RATES6O P T I M I Z E O U R O P E R A T I O N S A N

31、 D R E S O U R C E SOptimizationThe Company continued the site optimization initiatives started in 2007.We continually evaluate all sites on performance metrics,and we closed two non-performing sites,Big Spring,Texas and Petersburg,Virginia due to our inability to recruit suffi cient numbers of qual

32、ifi ed agents in these saturated markets.The Company also announced the closure of a site in Regina,Saskatchewan for the same reason.In addition,we introduced new operational processes and metrics with impressive results.To support StarTeks new service off erings,the Company invested in new systems

33、and services that support fi ve infrastructure capabilities:Voice over Internet Protocol(VoIP),intelligent contact management(ICM),interactive voice response(IVR),the StarTekHome agent platform,and e-services.These investments will enhance the Companys competitive edge of providing a high return on

34、client investments through the delivery of quality service and unique customer management solutions.At the core of StarTeks services are its people,and the Company has launched a number of initiatives that ensure agents are equipped with the right tools and technology,reinforced with blended trainin

35、g,to provide high-quality service.O P T I M I Z E O U R N O R T H A M E R I C A N O P E R A T I O N SI N V E S T I N N E W T E C H N O L O G Y,H U M A N R E S O U R C E S,A N D N E W S E R V I C E S7ExpansionE X P A N D O U R D E L I V E R Y P L A T F O R M B O T H O F F S H O R E A N D D O M E S T

36、I C A L LYCompleting StarTeks delivery platform of onshore,near shore,and off shore off erings,the Company opened its fi rst site outside North America when it launched a center in Manila,Philippines in September.This site adds a capacity of 1,100 seats.StarTek began evaluating potential expansion o

37、pportunities into Latin America in 2009 to address the increasing demand for Spanish-speaking agents and additional near shore solutions.In 2008,StarTek opened three additional sites in the United States to meet client demand.Combined,the Mansfi eld,Ohio;Jonesboro,Arkansas;and Victoria,Texas sites p

38、rovide 1,500 seats.Aside from providing exceptional onsite staff,StarTek plans to expand its StarTekHome agent platform.This program off ers alternative employment options and complements multi-channel interaction with its e-services platform,VoIP,ICM,and IVR.I N T E R N A T I O N A L E X P A N S I

39、O NN O R T H A M E R I C A N E X P A N S I O N H O M E E X P A N S I O N8Manila,PhilippinesF I N A N C I A L S N A P S H O T9loss from continuing operations for 2008 totaled$9.4 million,or$0.64 per diluted share.While the Companys net loss increased in 2008,StarTek still generated$11.6 million in ca

40、sh from operations,and made$28 million in capital investments,mainly to build its new sites.The Company ended the year with$18 million in cash and investments,and$6.8 million of debt.In 2009,StarTek expects to benefi t from a well-crafted business plan that calls for cautious expansion,preservation

41、of capital,and leveraging existing corporate infrastructure,which the Company believes will translate to:continued top-line revenue growth,expanded gross margins,reduced SG&A as a percentage of revenue,and a return to healthy profi tability.In 2008,StarTek continued to rebuild its revenue base,growi

42、ng top-line revenue to$272.9 million,a double-digit increase of 11.2%.Revenue growth was attributable to new business lines with existing clients,and the addition of two new clients.The expense associated with site closures and investment in new site openings,plus an unfavorable foreign exchange rat

43、e environment,resulted in a decrease in gross profi t as a percentage of revenue to 12.6%for 2008,compared with 16.0%in 2007.Although painful in the short-term,the initiatives that contributed to the decrease in gross margin position StarTek well for profi tability in 2009.The Company did a credible

44、 job containing costs.Selling,General&Administrative expenses(SG&A)were stable throughout 2008,resulting in a decrease in SG&A as a percentage of revenue to 15.0%compared to 15.9%in 2007.Despite growth in revenue and decrease in SG&A,the Company reported an operating loss.Impairment and restructurin

45、g charges of$9.2 million associated with site closures resulted in an operating loss for the year of$15.6 million,compared with an operating loss in 2007 of$4.1 million.The net$28 million$18 million11.2%increasein revenuesin capital investmentsin cash and investments UNITED STATES SECURITIES AND EXC

46、HANGE COMMISSION Washington,D.C.20549 Form 10-K (Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31,2008 or?TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition perio

47、d from to Commission file number 1-12793 StarTek,Inc.(Exact name of registrant as specified in its charter)Delaware 84-1370538(State or other jurisdiction of (I.R.S.employer incorporation or organization)Identification No.)44 Cook Street,4th Floor 80206 Denver,Colorado (Zip code)(Address of principa

48、l executive offices)(303)262-4500(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of Each Class Name of Each Exchange on Which Registered Common Stock,$.01 par value New York Stock Exchange,Inc.Securities registered pursuant to Section

49、 12(g)of the Act:None Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes?No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes?No Indicate by check mark

50、whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the

51、 past 90 days.Yes No?Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,and will not be contained,to the best of the registrants knowledge,in definitive proxy or information statements incorporated by reference in Part III of this

52、 Form 10-K or any amendment to this Form 10-K.?Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,or a smaller reporting company.See the definitions of“large accelerated filer,”“accelerated filer,”and“smaller reporting company”in R

53、ule 12b-2 of the Exchange Act.Large accelerated filer?Accelerated filer Non-accelerated filer?Smaller reporting company?(Do not check if a smaller reporting company)Indicate by checkmark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes?No As of February 15,2009,14,8

54、13,912 shares of common stock were outstanding.The aggregate market value of common stock held by non-affiliates of the registrant on June 30,2008,was$61.5 million,based upon the closing price of the registrants common stock as quoted on the New York Stock Exchange composite tape on such date.Shares

55、 of common stock held by each executive officer and director and by each person who owned 5%or more of the outstanding common stock as of such date have been excluded,as such persons may be deemed to be affiliates.This determination of affiliate status is not necessarily a conclusive determination f

56、or other purposes.DOCUMENTS INCORPORATED BY REFERENCE Part III incorporates certain information by reference from the registrants proxy statement to be delivered in connection with its 2009 annual meeting of stockholders.With the exception of certain portions of the proxy statement specifically inco

57、rporated herein by reference,the proxy statement is not deemed to be filed as part of this Form 10-K.2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 2

58、1E of the Securities Exchange Act of 1934,as amended,including the following:certain statements,including possible or assumed future results of operations,in“Managements Discussion and Analysis of Financial Condition and Results of Operations”;any statements contained herein regarding the prospects

59、for our business or any of our services;any statements preceded by,followed by or that include the words“may,”“will,”“should,”“seeks,”“believes,”“expects,”“anticipates,”“intends,”“continue,”“estimate,”“plans,”“future,”“targets,”“predicts,”“budgeted,”“projections,”“outlooks,”“attempts,”“is scheduled,

60、”or similar expressions;and other statements contained herein regarding matters that are not historical facts.Our business and results of operations are subject to risks and uncertainties,many of which are beyond our ability to control or predict.Because of these risks and uncertainties,actual resul

61、ts may differ materially from those expressed or implied by forward-looking statements,and investors are cautioned not to place undue reliance on such statements.All forward-looking statements herein speak only as of the date hereof,and we undertake no obligation to update any such forward-looking s

62、tatements.Important factors that could cause actual results to differ materially from our expectations and may adversely affect our business and results of operations include,but are not limited to those items set forth in Item 1A.“Risk Factors”appearing in this Form 10-K.Unless otherwise noted in t

63、his report,any description of“us”or“we”refers to StarTek,Inc.and our subsidiaries.Financial information in this report is presented in U.S.dollars.Part I ITEM 1.BUSINESS BUSINESS OVERVIEW StarTek is a provider of business process outsourcing services to the communications industry.We partner with ou

64、r clients to meet their business objectives and improve customer retention,increase revenues and reduce costs through an improved customer experience.Our solutions leverage industry knowledge,best business practices,skilled agents,proven operational excellence and flexible technology.The StarTek com

65、prehensive service suite includes customer care,sales support,complex order processing,accounts receivable management,technical and product support and other industry-specific processes.We operate our business within three reportable segments,based on the geographic regions in which our services are

66、 rendered:(1)the U.S.,(2)Canada and(3)the Philippines(“Offshore”).As of December 31,2008,our U.S.segment included the operations of our thirteen facilities in the U.S.;our Canada segment included the operations of our six facilities in Canada;and our Offshore segment included the operations of our f

67、acility in Makati City,Philippines.Financial information for each of our reportable segments for the last three fiscal years is included in Note 14,“Segment Information,”to our Consolidated Financial Statements,which are included in Item 8.“Financial Statements and Supplementary Financial Data,”of t

68、his Form 10-K.Our business is providing high-end Customer Service Offerings through the effective deployment of People and Technology.Customer Service Offerings We provide our clients with an outsourced customer care service offering so that they may focus on their core business and preserve capital

69、.Our service offering includes customer care,sales support,complex order processing,accounts receivable management,technical and product support and other industry-specific processes.We are well positioned to help our clients implement the convergence of product lines,including wire-line,wireless,ca

70、ble and broadband and high technical consumer products.Under each service offering,we deliver a transparent extension of our clients brands.Customer Care.We provide customer care management throughout the life cycle of our clients customers.These programs include management of customer acquisition,s

71、ervice activation,renewals,account inquiries,complaint resolutions,product information and billing support.These services are aimed at seamlessly managing the relationships between our clients and their customers in a manner that cultivates customer retention and loyalty.3 Technical and Product Supp

72、ort.Our technical and product support service offering provides our clients customers with high-end technical support services by telephone,e-mail,facsimile and the internet,24 hours per day,seven days per week.Technical support inquiries are generally driven by a customers purchase of a product or

73、service,or by a customers need for ongoing technical assistance.Sales Support.Through our sales support service we seek to increase the revenue generation of our clients through cross-selling and up-selling our clients products to their customers.We have the ability to increase customer purchasing l

74、evels,implement product promotion programs,introduce our clients customers to new products,secure and process additional customer orders and handle inquiries related to product shipments and billing.Provisioning and Complex Order Processing.Our complex order processing services provide our clients w

75、ith large scale project management and direct relationship management for our clients large enterprise customers.This service includes order management and technical sales support for high-end communications services,such as wire-line,wireless,data and customer premise equipment.In addition,we proce

76、ss order fallout from our clients automated systems,complete billing review and revenue recovery,and perform quality assurance.Our services enable a client to provide large scale project management and customer relations services to their customers in a more efficient and cost-effective way.Receivab

77、les Management.We provide billing,credit card support and first party collections through our receivables management services.These services allow our clients to reduce the risk of non-payment by automatically transferring the calls made by delinquent customers to us,at which point our representativ

78、es encourage the customers to pay their bill in order to continue to receive service.Customers may bring their bill current through credit or debit card payments,electronic checks or money orders.This service allows us to help our clients reduce their number of days sales outstanding and bad debt wr

79、ite-offs.Other.We provide other industry-specific processes including technical support,phone number portability and directory management.We provide number portability services to facilitate the process when our clients customers wish to keep their phone number when changing service providers.Our ph

80、one number portability services,which include both automated and live agent interaction,facilitate pre-port validation,data collection,automatic processing of port-out/in requests,direct and automated interface with the service order activation platform,fallout management tool and port request track

81、ing and archiving.We also provide 411 directory listing management services.People Our success is driven by our people,who we believe are industry trained experts in providing the communications industry with proven business practices and solutions to help our clients achieve their business goals.Ma

82、ny of the members of our management team,in addition to our trained customer service representatives,have a background in the communications industry,and bring deep experience to ensure the delivery of optimal solutions to our clients.We believe that this expertise in our human capital is what allow

83、s us to succeed in providing excellent account management and tailored solutions in serving the communications marketplace.Technology Our ability to deliver exceptional service to our clients is enhanced by our technology infrastructure,agent performance tools,analytics,self service applications and

84、 technology professional services.Our technology support services included hosted IT infrastructure and application services encompassing interactive voice response(IVR),virtual queuing,IP-PBX,eWorkforce management,quality assurance monitoring,disposition tolls,business intelligence reporting and eS

85、ervices,including our e-mail,chat and knowledge base capabilities.Through our technology,we are able to rapidly respond to ever-changing client demands in a tailored,yet cost-effective and efficient manner.We are capable of handling large call volumes at each of our contact centers through our relia

86、ble and scalable contact center solutions.We staff our IT personnel such that we can support our infrastructure and still have the capability to design programs to meet the specific needs of our clients.CUSTOMER TRENDS In collaborating with our clients,we have observed a few emerging trends in the c

87、ommunications industry.Our clients are increasingly focused on:(1)improving customer satisfaction and retention;(2)improving the customer experience through right-shoring;and(3)increasing sales per subscriber or user.We provide some of the industrys highest customer satisfaction evidenced by our cli

88、ents customer service awards and our clients ranking of StarTek relative to other outsourced partners.Many of our clients have realized the value of cultural and language familiarity available from on-shore providers as a way to improve the customer experience particularly in the case of voice-enabl

89、ed services.We have demonstrated to our clients our success in increasing revenue per subscriber by incorporating up-sell and cross-sell methodologies during customer interactions.4 KEY COMPETITIVE DIFFERENTIATORS We offer a variety of customer management solutions that provide front to back-office

90、capabilities utilizing the StarTek Choice delivery platform.StarTek Choice includes onshore,near shore,offshore,and StarTekHome sourcing alternatives.We also offer multi-channel interactions across voice,chat,email,and IVR channels.Our solution configuration is aligned with our clients unique requir

91、ements.We are flexible in designing solutions around our clients strategic goals,and we provide experienced management teams that bring together a trained,productive workforce,equipped with the right tools and technology.We believe that we are differentiated by our flexibility,people,quality,executi

92、on and results.Flexibility.We believe that we provide high quality business process outsourcing(BPO)solutions,and we leverage our expertise in working with our clients to design solutions around their goals.We offer customer management solutions that help our clients manage customer relationships ac

93、ross the customer lifecycle to improve the customer experience,retention,and sales,and reduce the total cost of customer management.We are able to achieve these results through our people,applied technology,dedication to continuous improvement,and integrated North American,offshore and home agent de

94、livery platform.People.Our people are the key to our success.We possess a unique culture where people are dedicated to serving our clients and their customers.Whether it be an at home agent or call center representative,we use a screening process to ensure people will have the right skills and attit

95、ude to thrive in our culture.We offer blended classroom and eLearning training,knowledge management systems,and other desktop tools to ensure that our representatives are fully equipped to deliver an outstanding customer experience.Quality.Quality delivery is the driving force behind our culture.We

96、are consistently ranked highly by our clients,but just as importantly,ranked highly by our clients customers.We are a catalyst enabling our clients to earn the JD Power and other coveted industry quality awards.Execution.Our clients customer strategies are the driving force behind our solutions and

97、their delivery.Our experienced management team brings together a well-trained,productive workforce,equipped with the right tools and technology.Our program managers find ways to optimize the effectiveness and efficiency of the delivery of our solutions to achieve our clients goals.Results.We manage

98、customer relationships to increase loyalty and profitability.Loyal customers purchase more frequently,provide higher revenues per purchase,acquire multiple products or services,refer our clients to others,and continue to purchase from our clients over long periods of time.Our solutions derive more b

99、enefits from customer interactions by delivering increased customer satisfaction and revenue,which in turn leads to a higher return on our clients customer investment.STRATEGY We seek to become a market leader in providing high-value services to clients in the communications industry.Our approach is

100、 to develop relationships with our clients that are partnering and collaborative in nature and create industry-based solutions to meet our clients business needs.To be a leader in the market,our strategy is to:grow our existing client base by deepening and broadening our relationships,add new client

101、s and continue to diversify our client base,improve the profitability of our business through operational improvements and securing higher margin business,expand on our delivery platform to broaden our service offerings and make prudent acquisitions to expand our business scale and service offerings

102、.During 2008,we executed on our strategy by launching three new U.S.sites and expanding our geographic presence by opening our first offshore operation in the Philippines.We positioned ourselves for improved profitability by announcing the closure of three non-performing sites.We also added two new

103、clients,launched a number of new programs with existing clients and made significant investments in new systems,home agents and employee programs.HISTORY OF THE BUSINESS StarTek was founded in 1987.At that time,our business was centered on supply chain management services,which included packaging,fu

104、lfillment,marketing support and logistics services.5 After our initial public offering on June 19,1997,we began operating contact center services,which primarily focused on customer care,and grew to include our current suite of offerings as described in the“Business Overview”section of this Form 10-

105、K.We also expanded internationally through our StarTek Europe,Ltd.operating subsidiary.Through StarTek Europe,Ltd.,we provided call center and supply chain management services from two facilities located in Hartlepool,England.We sold our StarTek Europe,Ltd.operating subsidiary on September 30,2004.O

106、n December 16,2005,we sold our supply chain management services platform.While our business is not generally seasonal,it does fluctuate quarterly based on our clients product offerings as well as their customer interaction volume.See Item 1A.“Risk Factors,”for a more complete description of the seas

107、onality of our business.INDUSTRY According to a June 2008 report published by IDC,a leading provider of industry research and market intelligence,the customer interaction segment of business process outsourcing is a$55 billion market and is expected to grow at an 11.5%compound annual growth rate thr

108、ough 2012.The communication and technology market comprises 41%of the total market and is expected to grow at a 13%compound annual growth rate through 2012.The study also shows that offshore migration is accelerating,primarily to Latin America and the Philippines,which,combined,currently accounts fo

109、r 15%of the market and is expected to account for 24%of the market by 2012.Currently,the U.S.and EMEA are the largest markets with 45%and 28%market share respectively,which is expected to decrease to 35%and 26%by 2012.Outsourcing of non-core activities,such as those we provide,offers companies the a

110、bility to focus on their core competencies,leverage economies of scale and control variable costs of the business while accessing new technology and trained expert personnel.As the business environment continues to evolve,it has become more difficult and expensive for some companies to maintain the

111、necessary personnel and product capabilities in-house to provide business process services on a cost-effective basis.Accordingly,our anticipation is that outsourced customer care services will grow significantly in the coming years.In general,we believe that industries having higher levels of custom

112、er contact and service volume,such as the communications industry,tend to be more likely to seek outsourced services as a more efficient method for managing their technical support and customer care functions.We believe that outsourced service providers,including ourselves,will continue to benefit f

113、rom these outsourcing trends.COMPETITION We believe that our competitive differentiators are our flexibility,people,quality,execution and results.We compete with a number of companies that provide similar services on an outsourced basis,including technical support and customer care companies such as

114、 APAC Customer Services,Inc.;Teleperformance;Convergys Corporation;NCO Group;Aegis PeopleSupport;Sitel Corporation;Sykes Enterprises,Incorporated;TeleTech Holdings,Inc.;ICT Group,Inc.and West Corporation.We compete with the aforementioned companies for new business,for expansion of existing business

115、,and within the companies we currently serve.Many of these competitors are significantly larger than us in revenue,income,number of contact centers and customer agents,number of product offerings,and market capitalization.We believe that while smaller than many of our competitors,we are able to comp

116、ete because of our flexibility and ability to react quickly and efficiently to integrate client technology into our contact centers.We believe our success is contingent more on our quality of service than our overall size.We also compete with in-house process outsourcing operations of our current an

117、d potential clients.Such in-house operations include customer care,technical support,internet operations and e-commerce support.As noted in our industry discussion,it is believed that many outsourced services will continue to migrate to other countries with lower wages than those prevailing in the U

118、.S.Accordingly,our strategic objectives include expanding our geographic platform so that we may compete with those companies who have devoted significant time and money to operating offshore.CLIENTS As mentioned previously,we seek to become the expert provider of outsourced customer care and relate

119、d services for the communications industry and believe that we possess expertise in servicing clients within that industry.Accordingly,more than 95%of our revenue is derived from customers within that industry.Our two largest customers,AT&T Inc.(formerly Cingular Wireless,LLC and AT&T Corporation)an

120、d T-Mobile(a subsidiary of Deutsche Telekom),account for a significant percentage of our revenue.In 2008,AT&T Inc.accounted for 54.9.%of our revenue and T-Mobile accounted for 26.7%of our revenue.In 2007,AT&T Inc.accounted for 50.4%of our revenue and T-Mobile accounted for 21.8%of our revenue.In 200

121、6,AT&T Inc.accounted for 52.7%and T-Mobile accounted for 21.2%of our revenue.While we believe that we have good relationships with these clients,a loss of one or more of these principal clients could adversely affect our business and our results of operations(see Item 1A.“Risk Factors”).6 GOVERNMENT

122、 AND ENVIRONMENTAL REGULATION We are subject to numerous federal,state,and local laws in the states and territories in which we operate,including tax,environmental and other laws that govern the way we conduct our business.There are risks inherent in conducting business internationally,including sig

123、nificant changes in domestic government programs,policies,regulatory requirements,and taxation with respect to foreign operations,potentially longer working capital cycles,unexpected changes in foreign government programs,policies,regulatory requirements and labor laws,and difficulties in staffing a

124、nd effectively managing foreign operations.EMPLOYEES AND TRAINING Our success in recruiting,hiring,training,and retaining large numbers of full and part-time skilled employees,and obtaining large numbers of hourly employees during peak periods is critical to our ability to provide high quality outso

125、urced services.Competition for labor is with firms offering similar paying jobs in the communities in which we are located,which includes other contact centers.During 2008,we experienced difficulties hiring and retaining agents as we faced economic pressures in and around certain of our site locatio

126、ns.Refer to Item 1A.“Risk Factors”for further discussion of risks surrounding our ability to recruit and retain personnel.As of December 31,2008,we employed approximately 9,500 employees.We believe the demographics surrounding our facilities,and our reputation,stability,and compensation plans should

127、 allow us to continue to attract and retain qualified employees.None of our employees were members of a labor union or were covered by a collective bargaining agreement during 2008.CORPORATE INFORMATION We were founded in 1987 and on June 19,1997,we completed an initial public offering of our common

128、 stock.We conduct our business through our wholly owned operating subsidiaries,StarTek USA,Inc.,StarTek Canada Services,Ltd and StarTek International,Limited.We are a Delaware corporation headquartered in Denver,Colorado.Our principal executive offices are located at 44 Cook Street,4th Floor,Denver,

129、Colorado 80206.Our telephone number is(303)262-4500.Our website address is .Our stock currently trades on the New York Stock Exchange under the symbol SRT.WEB SITE AVAILABILITY OF REPORTS Copies of our Annual Report on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K,and amendmen

130、ts to those reports filed or furnished pursuant to Section 13(a)and 15(d)of the Securities Exchange Act of 1934(the“Exchange Act”)are available free of charge through our web site()as soon as practicable after we furnish it to the Securities and Exchange Commission(“SEC”).We also make available on t

131、he“Investor Relations”page of our corporate website,the charters for the Compensation Committee,Audit Committee and Governance and Nominating Committee of our Board of Directors,as well as our Corporate Governance Guidelines and our Code of Ethics and Business Conduct.None of the information on our

132、website or any other website identified herein is part of this report.All website addresses in this report are intended to be inactive textual references only.ITEM 1A.RISK FACTORS Continuing unfavorable economic conditions could have a material adverse effect on our results of operations and financi

133、al condition.The current economic downturn and disruptions in the capital and credit markets in the U.S.and world economies have reduced consumer spending and reduced spending by businesses.Since our revenue is largely concentrated in the telecommunications industry,and the majority of our business

134、involves technical support and customer care services initiated by our clients customers,our revenue is dependent on the amount of telecommunications products and services demanded by our clients customers.Consequently,a general reduction in consumer demand for such products and services due to the

135、recession in the domestic and international economies could reduce the demand for our services and have a material adverse effect on our results of operations.In addition,our existing clients and a number of clients we are currently targeting have been decreasing the number of firms they rely on to

136、outsource their business process outsourced services.Due to financial uncertainties and the potential reduction in demand for our clients products and services,our clients and prospective clients may decide to further consolidate the number of firms on which they rely for their business process outs

137、ourced services to reduce costs.Under these circumstances,our clients may cancel current contracts with us,or we may fail to attract new clients,which will adversely affect our financial condition.If global economic and market conditions remain uncertain or persist,spread,or deteriorate further,we m

138、ay experience material impacts on our business,operating results,and financial condition.7 If we are unable to renew or replace sources of capital funding on satisfactory terms,potential growth and results of operations may suffer.We currently have three debt facilities in place,with approximately$6

139、.8 million in debt outstanding as of December 31,2008.One of these facilities,a$10.0 million line of credit,is scheduled to expire in June 2009(See Item 7.“Managements Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Contractual Obligations”).T

140、he other debt facilities mature over differing periods through 2010.If we are unable to renew the$10.0 million line of credit or other facilities or are unable to secure alternative sources of capital funding under satisfactory terms,or at all,we may be unable to meet short-term cash needs required

141、for operations or growth opportunities.This may adversely impact our financial results.In addition,if we do not meet the debt covenant requirements under the line of credit,we could face adverse effects on our financial statements,including payments for waivers or higher interest rate obligations.We

142、 believe we will obtain financing to replace or extend this line of credit that will allow us to meet our short-term cash needs.However,the current poor conditions of the U.S.credit markets may adversely impact our ability to obtain financing.If the value of our portfolio of investment securities de

143、clines,our results of operations will suffer.Approximately 5.7%,10.5%,and 3.8%of our total assets as of December 31,2008,2007 and 2006,respectively,consisted of investment securities.During 2008,we made investments in corporate debt.We periodically review investments available for sale for other-tha

144、n-temporary declines in fair value and write down investments to their fair value when such a decline occurs.During the year ended December 31,2008,we recognized a loss totaling$0.5 million(representing the entire basis amount)on a Lehman Brothers corporate debt security that was determined to be ot

145、her-than-temporarily impaired due to their bankruptcy announcement.We do not consider the remainder of our investments to be other-than-temporarily impaired because we have the ability and intent to hold these investments until a market price recovery or maturity.We did not record any other-than-tem

146、porary impairments for the years ended December 31,2007 or 2006.Future adverse changes in market conditions,or poor operating results of companies in which we have invested,could result in losses.Moreover,we implemented a more conservative investment policy in late 2006,and the resulting lower retur

147、ns may adversely impact our financial results.Over 70%of our revenue in the past several years(over 80%in 2008)has been received from our two largest clients.The loss or reduction in business from any of these clients would adversely affect our business and results of operations.The following table

148、represents revenue concentration of our principal clients:Year Ended December 31,2008 2007 2006 AT&T Inc.(formerly Cingular Wireless,LLC and AT&T Corp.).54.9%50.4%52.7%T-Mobile,a subsidiary of Deutsche Telekom.26.7%21.8%21.2%The loss of a principal client,a material reduction in the amount of busine

149、ss we receive from a principal client,or the loss,delay or termination of a principal clients product launch or service offering would adversely affect our business,revenue and operating results.We may not be able to retain our principal clients or,if we were to lose any of our principal clients,we

150、may not be able to timely replace the revenue generated by the lost clients.Loss of a principal client could result from many factors,including consolidation or economic downturns in our clients industries,as discussed further below.Our work for AT&T Inc.(AT&T)is covered by several contracts for a v

151、ariety of different lines of AT&T business,some of these contracts expire in 2009 and others in 2010.For example,we entered into a contract covering certain customer care services with AT&T Mobility LLC,a wholly-owned subsidiary of AT&T,in May 2008 that expires in April 2010.Previously,in December 2

152、006,we entered into another contract covering certain business care services that has been extended through March 31,2009 while the parties negotiate a new agreement for such services.We entered into a services agreement and statement of work with T-Mobile(the“T-Mobile Contract”)for the provision of

153、 certain call center services,each having an initial term expiring September 30,2009,that automatically renews from year-to-year,subject to non-renewal by either party.We are working diligently to complete negotiation of the new agreements for business care services and other lines of business for w

154、hich individual statements of work expire in 2009,and we expect to renew each of them in due course.However,if we fail to do so or if any are not renewed,it would have a material adverse effect on our business,results of operations,and financial condition.The future revenue we generate from our prin

155、cipal clients may decline or grow at a slower rate than expected or than it has in the past.In the event we lose any of our principal clients or do not receive call volumes anticipated from these clients,we may suffer from the costs of underutilized capacity because of our inability to eliminate all

156、 of the costs associated with conducting business with that client,which could exacerbate the effect that the loss of a principal client would have on our operating results and financial condition.8 For example,there are no guarantees of volume under the current contract with AT&T.In addition,that c

157、ontract with AT&T provides for a tiered incentive pricing structure that provides for lower pricing at higher volumes.Additional productivity gains will be necessary to offset the negative impact that lower per-minute revenue at higher volume levels will have on our margins in future periods.We are

158、currently carrying a significant amount of net operating loss carry forwards for tax purposes.If we are not able to generate sufficient future taxable income to offset these losses,our financial results may be adversely affected.As of December 31,2008,we had gross federal net operating loss carry fo

159、rwards of approximately$10.0 million.These carry forwards can be used to offset future taxable income and expire in 2028.We have not recorded a valuation allowance related to the net operating loss carry forwards and other temporary items as management believes it is more likely than not that we wil

160、l be able to use the benefit to reduce future tax liabilities.We believe it is“more likely than not”based upon our current estimates of future taxable income that the deferred tax assets will be realized.A valuation allowance may be required if we are unable to generate future taxable income.A tax v

161、aluation allowance could have a significant negative impact on future earnings.Our client base is concentrated in the communications industry,which has recently experienced consolidation trends.As our clients businesses change as a result of merger and acquisition activity,there is no guarantee that

162、 the newly formed companies will continue to use our services.Consolidation in the communications industry may decrease the potential number of buyers for our services.Likewise,there is no guarantee that the acquirer of one of our clients will continue to use our services after the consolidation is

163、completed.We are particularly vulnerable on this issue given the relatively few significant clients we currently serve and the concentration of these clients in the telecommunications industry.For example,in late 2006,our client,AT&T.acquired another of our clients,Cingular Wireless,LLC(now,AT&T Mob

164、ility,LLC),thereby further concentrating our revenue base.There can be no assurance that AT&T Mobility,LLC,AT&T.,or other subsidiaries of AT&T.will continue to use our services in the future.If we lose principal clients or our service volumes decrease as a result of principal clients being acquired,

165、our business,financial condition and results of operations would be adversely affected.We expect to negotiate renewals of our contracts in due course;however,if any of such contracts or any order under such a contract is not ultimately renewed,it would have a material adverse effect on our results o

166、f operations and financial condition.Our client base is concentrated in the communications industry and our strategy partially depends on a trend of communications companies continuing to outsource non-core services.If the communications industry suffers a downturn or the trend toward outsourcing re

167、verses,our business will suffer.Our current clients are almost exclusively communications companies,which include companies in the wire-line,wireless,cable and broadband lines of business.Over 95%of our revenue in 2008 was concentrated in the telecommunications industry.Our business and growth is la

168、rgely dependent on continued demand for our services from clients in this industry,and other industries that we may target in the future,and on trends in those industries to purchase outsourced services.A general and continuing economic downturn in the telecommunications industry or in other industr

169、ies that we target,or a slowdown or reversal of the trend in these industries to outsource services we provide,could adversely affect our business,results of operations,growth prospects,and financial condition.A general and continuing economic downturn in other industries may result in excess capaci

170、ty of contact center services in those industries attracting clients in the telecommunications industry or in other industries that we target.If this happens,it could adversely affect our business,results of operations,growth prospects,and financial condition.We have experienced significant manageme

171、nt turnover and need to retain key management personnel.On January 5,2007,A.Laurence Jones was appointed President,Chief Executive Officer and Interim Chief Financial Officer as a successor to our former Chief Executive Officer,Steven D.Butler.On September 10,2007,we hired David G.Durham as our Exec

172、utive Vice President,Treasurer and Chief Financial Officer.We filled several other key management positions during 2007 and eliminated the position of Chief Information Officer(“CIO”)by integrating the functions managed by the CIO with finance and operations.During 2008,we eliminated the position of

173、 Chief Operating Officer(“COO”)and lost the services of the incumbent Senior Vice President,Sales,a position we are actively seeking to fill.High turnover of senior management can adversely impact our stock price,our results of operations and our client relationships,and may make recruiting for futu

174、re management positions more difficult.In some cases,we may be required to pay significant amounts of severance to terminated management employees.In addition,we must successfully integrate any new management personnel that we hire within our organization in order to achieve our operating objectives

175、.Changes in other key management positions may temporarily affect our financial performance and results of operations as new management becomes familiar with our business.Accordingly,our future financial performance will depend to a significant extent on our ability to motivate and retain key manage

176、ment personnel.9 If we are not able to hire and retain qualified employees,our ability to service our existing customers and retain new customers will be adversely affected.Our success is largely dependent on our ability to recruit,hire,train,and retain qualified employees.Our business is labor inte

177、nsive and,as is typical for our industry,continues to experience high personnel turnover.Our operations,especially our technical support and customer care services,generally require specially trained employees.During 2008,we continued to experience a high rate of employee turnover,which,in turn,requ

178、ires significant recruiting and training costs.Such turnover adversely affects our operating efficiency,productivity and ability to fully respond to client demand,thereby adversely impacting our results of operations.Some of this turnover can be attributed to the fact that we compete for labor not o

179、nly with other call centers,but also with other similar-paying jobs,including retail,oil and gas industry labor,food service,etc.As such,improvements in the local economies in which we operate can adversely affect our ability to recruit agents in those locations.Further increases in employee turnove

180、r or failure to effectively address and remedy these high attrition rates would have an adverse effect on our results of operations and financial condition.The addition of new clients or implementation of new projects for existing clients may require us to recruit,hire,and train personnel at acceler

181、ated rates.We may not be able to successfully recruit,hire,train,and retain sufficient qualified personnel to adequately staff for existing business or future growth,particularly if we undertake new client relationships in industries in which we have not previously provided services.Because a substa

182、ntial portion of our operating expenses consists of labor-related costs,labor shortages or increases in wages(including minimum wages as mandated by the U.S.and Canadian federal governments,employee benefit costs,employment tax rates,and other labor related expenses)could cause our business,operatin

183、g profits,and financial condition to suffer.In the past,some of our Canadian employees have attempted to organize a labor union and economic and legislative changes in the U.S.may encourage organizing efforts in the future which,if successful,could further increase our recruiting and training costs

184、and could decrease our operating efficiency and productivity.Our operating costs may increase as a result of higher labor costs.During the past economic downturns,we,like a number of companies in our industry,sought to limit our labor costs by limiting salary increases and payment of cash bonuses to

185、 our employees.During 2008,the local economies in some of the locations in which we operate experienced growth,which caused us to increase labor rates to remain competitive within the local economies.If these growth trends continue,we may need to further increase salaries or otherwise compensate our

186、 employees at higher levels in order to remain competitive.Effective July 2008,the U.S.federal minimum wage was increased,with additional increases expected in July 2009.The minimum wage applicable to most of our operations in Canada is rising even more dramatically than in the U.S.Higher salaries o

187、r other forms of compensation are likely to increase our cost of operations.If such increases are not offset by increased revenue,they will negatively impact our financial results.Conversely,if labor rates decrease due to higher unemployment in the current economic downturn,our cost of operations ma

188、y decrease.In the past,some of our Canadian employees have attempted to organize a labor union and economic and legislative changes in the U.S.may encourage organizing efforts in the future,which if successful could further increase our recruiting and training costs and could decrease our operating

189、efficiency and productivity.We may need to add specialized sales personnel in order to grow our business.We may have difficulty recruiting candidates for these positions.Our future growth depends on our ability to initiate,develop and maintain new client relationships,as well as our ability to maint

190、ain relationships with our existing principal clients.To generate opportunities for new business from existing clients,as well as obtain new clients,we may need to hire specialized sales and marketing staff to introduce new products and services.If we are unable to hire sales people with the special

191、ized skills and knowledge needed to attract new business,or if we are not able to develop new products and services,we will not be able to diversify our revenue base and thereby reduce our reliance on our significant customers.We face considerable pricing pressure in our business,and if we are not a

192、ble to continually increase productivity,our gross margins and results of operations may be adversely affected.Our strategy depends in part on our ability to increase productivity.We face significant price pressure arising from our clients desire to decrease their operating costs,and from other comp

193、etitors operating in our targeted markets.Price pressure may be more pronounced during periods of economic uncertainty.In addition,our contract with our largest customer currently contains a tiered pricing structure,under which pricing declines as service volumes increase,creating increased pricing

194、pressures in future years.Accordingly,our ability to maintain our operating margins depends on our ability to improve productivity and reduce operating costs.If we are not able to achieve sufficient improvements in productivity to adequately compensate for potential price decreases,our results of op

195、erations may be adversely affected.10 Our operating results may be adversely affected if we are unable to maximize our facilities capacity utilization.Our profitability is influenced by our facility capacity utilization.The majority of our business involves technical support and customer care servic

196、es initiated by our clients customers,and as a result,our capacity utilization varies and demands on our capacity are,to some degree,beyond our control.We have experienced,and in the future may experience,periods of idle capacity from opening new facilities where forecasted volume levels do not mate

197、rialize.In addition,we have experienced,and in the future may experience,idle peak period capacity when we open a new facility or terminate or complete a large client program.These periods of idle capacity may be exacerbated if we expand our facilities or open new facilities in anticipation of new c

198、lient business because we generally do not have the ability to require a client to enter into a long-term contract,or to require clients to reimburse us for capacity expansion costs if they terminate their relationship with us or do not provide us with anticipated service volumes.From time to time,w

199、e assess the expected long-term capacity utilization of our facilities.Accordingly,we may,if deemed necessary,consolidate or close under-performing facilities in order to maintain or improve targeted utilization and margins.Any such closures may result in lease termination costs,severance costs or i

200、mpairment charges.There can be no assurance that we will be able to achieve or maintain optimal facility capacity utilization.We and some of our former management employees are the subject of a class action lawsuit.The defense and ultimate outcome of these allegations could negatively affect our fut

201、ure operating results.We and six of our former directors and officers have been named as defendants in West Palm Beach Firefighters Pension Fund v.StarTek,Inc.,et al.(U.S.District Court,District of Colorado)filed on July 8,2005,and John Alden v.StarTek,Inc.,et al.(U.S.District Court,District of Colo

202、rado)filed on July 20,2005.Those actions have been consolidated by the federal court.The consolidated action is a purported class action brought on behalf of all persons(except defendants)who purchased shares of our common stock in a secondary offering by certain of our stockholders in June 2004,and

203、 in the open market between February 26,2003 and May 5,2005(the“Class Period”).The consolidated complaint alleges that the defendants made false and misleading public statements about us and our business and prospects in the prospectus for the secondary offering,as well as in filings with the SEC an

204、d in press releases issued during the Class Period,and that as a result,the market price of our common stock was artificially inflated.The complaints allege claims under Sections 11 and 15 of the Securities Act of 1933 and under Sections 10(b)and 20(a)of the Securities Exchange Act of 1934.The plain

205、tiffs in both cases seek compensatory damages on behalf of the alleged class and award of attorneys fees and costs of litigation.On May 23,2006,we and the individual defendants moved the court to dismiss the action in its entirety.On March 28,2008,the motion was denied with respect to the claims und

206、er Sections 10(b)and 20(a)of the Securities Exchange Act of 1934,except the claim under Section 20(a)of the Securities Exchange Act of 1934 was dismissed against two of the individual defendants.On the same date,the motion was granted with respect to the claims under Sections 11 and 15 of the Securi

207、ties Act of 1933 without prejudice to plaintiffs filing an amended complaint with respect to such claims.On May 19,2008,the plaintiffs filed an amended complaint.On June 5,2008,we and the individual defendants moved the court to dismiss the amended complaint in its entirety.On November 6,2008,the mo

208、tion was granted with respect to certain claims relating to representations regarding the Companys supply-chain management business,but was denied as to all other claims.We believe we have valid defenses to the claims and intend to defend the litigation vigorously.It is not possible at this time to

209、estimate the possibility of a loss or the range of potential losses arising from these claims.We may,however,incur material legal fees with respect to our defense of these claims.The claims have been submitted to the carriers of our executive and organization liability insurance policies.We expect t

210、he carriers to provide for certain defense costs and,if needed,indemnification with a reservation of rights.The policies have primary and excess coverage that we believe will be adequate to defend this case and are subject to a retention for securities claims.These policies provide that we are respo

211、nsible for the first$1.025 million in defense costs.We have incurred defense costs related to these lawsuits in excess of our$1.025 million deductible.We have been involved from time to time in other litigation arising in the normal course of business,none of which is expected by management to have

212、a material adverse effect on our business,financial condition or results of operations.We generate revenue based on the demand for,and inquiries generated by,our clients products and services.If our clients products and services are not successful or do not generate the anticipated call volumes,our

213、revenue and results of operations will be adversely affected.In substantially all of our client relationships,we generate revenue based on the amount of products and services demanded by our clients customers.The amount of our revenue also depends on the number and duration of customer inquiries.Con

214、sequently,the amount of revenue generated from any particular client is dependent upon consumers interest in and use of that clients products or services.In addition,if the reliability of our customers products or services increases as a result of technological improvements,the volume of calls that

215、we service may be reduced.If customer interest in or increased reliability of any products or services offered by our clients and for which we provide outsourced services result in reduced service volumes,our revenue would be diminished.We 11 utilize forecasts made by our clients based on demand fro

216、m their customers.If the actual call volumes are materially different than the forecasted volumes,our financial results could be adversely affected.In 2008,we expanded our capacity to include four new facilities,in each of Victoria,Texas,Mansfield,Ohio,Jonesboro,Arkansas,and Makati City,Philippines.

217、As business associated with these additional facilities ramped,we experienced excess capacity and incurred additional costs as we worked towards bringing these facilities to normal operational levels.In 2008,we announced that we would be closing our sites in Petersburg,Virginia and Regina,Saskatchew

218、an,as part of our efforts to achieve site optimization at all of our locations,and in Big Spring,Texas,due primarily to recruiting challenges in these locations.If client demand declines due to economic conditions,or otherwise,we would not leverage our fixed costs as effectively,which would have a m

219、aterial adverse effect on our results of operations and financial condition.Our contracts generally do not contain minimum purchase requirements and can generally be terminated by our customers on short notice without penalty.We enter into written agreements with each client for our services.We seek

220、 to sign multi-year contracts with our clients;however these contracts generally permit termination upon 30 to 90 days notice by our clients;do not designate us as our clients exclusive outsourced services provider;do not penalize our clients for early termination;hold us responsible for work perfor

221、med that does not meet pre-defined specifications;and do not contain minimum purchase requirements or volume commitments.Accordingly,we face the risk that our clients may cancel contracts we have with them,which may adversely affect our results.In addition,some contracts with our two largest clients

222、 either expire in 2009 or are currently under negotiation for renewal,and we cannot guarantee that they will be extended or renewed.If a principal client cancelled or did not renew their contract with us,our results would suffer.In addition,because the amount of revenue generated from any particular

223、 client is generally dependent on the volume and activity of our clients customers,as described above,our business depends in part on the success of our clients products.The number of customers who are attracted to the products of our clients may not be sufficient,or our clients may not continue to

224、develop new products that will require our services,in which case it may be more likely for our clients to terminate their contracts with us.Moreover,clients who may not terminate their contacts with us without cause could generally reduce the volume of services they outsource to us,which would have

225、 an adverse effect on our revenue,results of operations,and overall financial condition.Our existing and potential clients are currently decreasing the number of vendors they are using to outsource their business process services.If we lose more business than we gain as a result of this vendor conso

226、lidation,our business and results of operations will be adversely affected.Our existing clients and a number of clients we are currently targeting have been decreasing the number of firms they rely on to outsource their business process outsourced services.We believe these clients are taking this ac

227、tion in order to increase accountability and decrease their costs,and under current economic conditions,there is an increased risk that our clients will outsource their business process outsourced services to even fewer firms to further reduce costs.If this consolidation results in us losing one or

228、more of our clients,our business and results of operations will be adversely affected.In addition,this consolidation could make it more difficult for us to secure new clients,which could limit our growth opportunities.If we do not effectively manage our growth or control costs related to growth,our

229、results of operations will suffer.We intend to grow our business by increasing the number of services we provide to existing clients,by expanding our overall client base and,in the future,through merger and acquisition activity.Growth could place significant strain on our management,employees,operat

230、ions,operating and financial systems,and other resources.To accommodate significant growth we would be required to open additional facilities,expand and improve our information systems and procedures,and hire,train,motivate,and manage a growing workforce,all of which would increase our costs.Our sys

231、tems,facilities,procedures,and personnel may not be adequate to support our future operations.Further,we may not be able to maintain or accelerate our current growth,effectively manage our expanding operations,or achieve planned growth on a timely and profitable basis.During recent years,we incurred

232、 costs related to excess capacity as we opened new facilities in anticipation of volume levels that did not materialize.As a result,our operating profits declined,and our stock price was adversely impacted.If we are unable to manage our growth efficiently,or if growth does not occur,our business,res

233、ults of operations,and financial condition could suffer.Failure to implement technological advancements could make our services less competitive.Technologies that our clients or competitors already possess,or may in the future develop or acquire,may decrease the cost or increase the efficiency of co

234、mpeting services.We believe that to remain competitive,we must continue to invest in technology to be able to compete for new business and maintain service levels for clients.We may not be able to develop and market any new services that use,or effectively compete with,existing or future technologie

235、s,and such services may not be commercially successful.Furthermore,our competitors may have greater resources to devote to research and development than we do,and accordingly may have the ability to develop and market new technologies,with which we are unable to successfully compete.12 Our markets a

236、re highly competitive.If we do not compete effectively,we may lose our existing business or fail to gain new business.The markets in which we operate are highly competitive,and we expect competition to persist and intensify in the future.We view in-house operations of our existing and potential clie

237、nts to be a significant competitive threat.Many of our clients or potential clients have in-house capabilities,enabling them to perform some or all of the services that we provide.Our performance and growth could be impeded if clients,or potential clients,decide to shift in-house,operations services

238、 currently outsourced,or if potential clients retain or increase their in-house capabilities.We anticipate that competition from low-cost,offshore providers of outsourced services will continue to increase in the future and that such providers will remain an important competitive threat.A number of

239、our competitors have,or may develop,greater name recognition or financial and other resources than we have.In addition,new competitors with greater name recognition and resources may decide to enter the markets in which we operate.Some competitors may offer a broader range of services than we do,whi

240、ch may result in clients and potential clients consolidating their use of outsourced services with larger competitors,rather than using our services.Competitive pressure from current or future competitors could also result in substantial price erosion,as discussed below,which could adversely affect

241、our revenue,margins,and financial condition.Our operations in Canada and the Philippines subject us to the risk of currency exchange fluctuations.Because we conduct a material portion of our business in Canada,we are exposed to market risk from changes in the value of the Canadian dollar.For the sma

242、ller portion of our business that we conduct in the Philippines,we are exposed to market risk from changes in the value of the Philippine peso.Material fluctuations in exchange rates impact our results through translation and consolidation of the financial results of our foreign operations,and there

243、fore may negatively impact our results of operations and financial condition.We have contracts wherein the revenue we earn is denominated in U.S.dollars,yet the costs we incur to fulfill our obligations under those contracts are denominated in Canadian dollars or Philippine pesos,as applicable.There

244、fore,the fluctuations in the U.S.dollar to the Canadian dollar or Philippine peso exchange rates can cause significant fluctuations in our results of operations.During 2008,2007 and 2006,we engaged in hedging activities relating to our exposure to such fluctuations in the value of the Canadian dolla

245、r versus the U.S.dollar.During 2008,we did not enter into hedging agreements for the Philippine peso.We intend to participate in hedging activities in 2009 as it relates to the Canadian dollar and the Philippine peso.However,currency hedges do not,and will not,eliminate our exposure to fluctuations

246、in the currencies.Increases in the value of the Canadian dollar or the Philippine peso,or currencies in other foreign markets in which we may operate,in relation to the value of the U.S.dollar,would further increase our costs and adversely affect our results of operations.We face risks inherent in c

247、onducting business outside of North America.Our operations in Canada accounted for 33.4%,39.1%,and 41.6%,of our revenue in 2008,2007,and 2006,respectively.We have also opened a new facility in the Philippines.There are risks inherent in conducting business internationally,including competition from

248、local businesses or established multinational companies,who may have firmly established operations in particular foreign markets.This may give these firms an advantage regarding labor and material costs.Other risks inherent in conducting business internationally include significant changes in domest

249、ic government programs,policies,regulatory requirements,and taxation with respect to foreign operations,potentially longer working capital cycles,unexpected changes in foreign government programs,policies,regulatory requirements and labor laws,and difficulties in staffing and effectively managing fo

250、reign operations.Our current or potential new clients may be reluctant to have us provide services to them from a location outside of North America.One or more of these factors may have an impact on our international operations.Our lack of significant international operating experience may result in

251、 any of these factors impacting us to a greater degree than they impact our competitors.To the extent one or more of these factors impact our international operations,it could adversely affect our business,results of operations,growth prospects,and financial condition as a whole.Various other risk f

252、actors described in this Annual Report on Form 10-K may be exacerbated with regard to international operations,especially in countries where we do not have well-established operations.Such risks include those related to the need to retain key management personnel,the inability to hire and retain qua

253、lified employees,increases in operating costs,facility capacity utilization,management of growth and costs related to growth,geopolitical military conditions,interruptions to our business,and the quality and cost of telephone and data services infrastructure.Our lack of a significant international p

254、resence outside of North America may adversely affect our ability to serve existing customers or limit our ability to obtain new customers.Although we currently conduct operations in Canada and have begun operations in the Philippines,we do not have a significant international presence.Our lack of s

255、ignificant international operations outside of North America could adversely affect our business if one or more of our customers decide to move their existing business process outsourcing services offshore.Our lack of a significant 13 international presence outside of North America may also limit ou

256、r ability to gain new clients who may require business process service providers to have this flexibility.The movement of business process outsourcing services to other countries has been extensively reported in the press.Most analysts continue to believe that many outsourced services will continue

257、to migrate to other countries with lower wages than those prevailing in the U.S.Accordingly,unless and until we develop significant international operations outside of North America,we may be competitively disadvantaged compared to a number of our competitors who have already devoted significant tim

258、e and money to operating offshore.If we decide to open facilities in,or otherwise expand into,additional countries,we may not be able to successfully establish operations in the markets that we target.There are certain risks inherent in conducting business in other countries including,but not limite

259、d to,exposure to currency fluctuations,difficulties in complying with foreign laws,unexpected changes in government programs,policies,regulatory requirements and labor laws,difficulties in staffing and managing foreign operations,political instability,and potentially adverse tax consequences.There c

260、an be no assurance that one or more of such factors will not have a material adverse effect on our business,growth prospects,results of operations,and financial condition.Our largest stockholder has the ability to significantly influence corporate actions.A.Emmet Stephenson,Jr.,one of our co-founder

261、s,owned approximately 19.7%of our outstanding common stock as of February 15,2009.Mr.Stephensons spouse also owns shares of our common stock.Under an agreement we have entered into with Mr.Stephenson,so long as Mr.Stephenson,together with members of his family,beneficially owns 10%or more but less t

262、han 30%of our outstanding common stock,Mr.Stephenson will be entitled to designate one of our nominees for election to the board.In addition,our bylaws allow that any holder of 10%or more of our outstanding common stock may call a special meeting of our stockholders.The concentration of voting power

263、 in Mr.Stephensons hands,and the control Mr.Stephenson may exercise over us as described above,may discourage,delay or prevent a change in control that might otherwise benefit our stockholders.Our stock price has been volatile and may decline significantly and unexpectedly.The market price of our co

264、mmon stock has been volatile,and could be subject to wide fluctuations,in response to quarterly variations in our operating results,changes in management,the degree of success in implementing our business and growth strategies,announcements of new contracts or contract cancellations,announcements of

265、 technological innovations or new products and services by us or our competitors,changes in financial estimates by securities analysts,the perception that significant stockholders may sell or intend to sell their shares,or other events or factors we cannot currently foresee.We are also subject to br

266、oad market fluctuations,given the overall volatility of the current U.S.and global economies,where the market prices of equity securities of many companies experience substantial price and volume fluctuations that have often been unrelated to the operating performance of such companies.These broad m

267、arket fluctuations may adversely affect the market price of our common stock.Additionally,because our common stock trades at relatively low volume levels,any change in demand for our stock can be expected to substantially influence market prices thereof.The trading price of our stock varied from a l

268、ow of$2.05 to a high of$9.68 during 2008.Geopolitical military conditions,including terrorist attacks and other acts of war,may materially and adversely affect the markets in which we operate,and our results of operations.Terrorist attacks and other acts of war,and any response to them,may lead to a

269、rmed hostilities and such developments could cause substantial business uncertainty.Such uncertainty could result in potential clients being reluctant to enter into new business relationships,which would adversely affect our ability to win new business.Armed hostilities and terrorism may also direct

270、ly impact our facilities,personnel and operations,as well as those of our suppliers and customers.Furthermore,severe terrorist attacks or acts of war may result in temporary halts of commercial activity in the affected regions,possibly resulting in reduced demand for our services.These developments

271、could impair our business and depress the trading price of our common stock.If we experience an interruption to our business,our results of operations may suffer.Our operations depend on our ability to protect our facilities,computer equipment,telecommunications equipment,software systems and client

272、s products and confidential client information against damage from internet interruption,fire,power loss,telecommunications interruption,e-commerce interruption,natural disaster,theft,unauthorized intrusion,computer viruses,bomb threats and other emergencies.We maintain procedures and contingency pl

273、ans to minimize the detrimental impact of adverse events,but if such an event occurs,our procedures and plans may not be successful in protecting us from losses or interruptions.In the event we experience temporary or permanent interruptions or other emergencies at one or more of our facilities,our

274、business could suffer and we may be required to pay contractual damages to our clients,or allow our clients to renegotiate their arrangements with us.Although we maintain property and business interruption insurance,such insurance may not adequately or timely compensate us for 14 all losses we may i

275、ncur.Further,our telecommunication systems and networks,and our ability to timely and consistently access and use telephone,internet,e-commerce,e-mail,facsimile connections,and other forms of communication,are substantially dependent upon telephone companies,internet service providers,and various te

276、lecommunication infrastructures.If such communications are interrupted on a short-or long-term basis,our services would be similarly interrupted and delayed.Increases in the cost of telephone and data services or significant interruptions in such services could adversely affect our business.We depen

277、d on telephone and data service provided by various local and long distance telephone companies.Because of this dependence,any change to the telecommunications market that would disrupt these services or limit our ability to obtain services at favorable rates could affect our business.We have taken

278、steps to mitigate our exposure to the risks associated with rate fluctuations and service disruption by entering into long-term contracts with various providers for telephone and data services.There is no obligation,however,for these vendors to renew their contracts with us,or to offer the same or l

279、ower rates in the future,and such contracts are subject to termination or modification for various reasons outside of our control.A significant increase in the cost of telephone services that is not recoverable through an increase in the price of our services,or any significant interruption in telep

280、hone services,could seriously affect our business.Compliance with SEC rules requiring that we and our independent auditors assess the effectiveness of our internal controls over financial reporting may have adverse consequences.Section 404 of the Sarbanes-Oxley Act of 2002(“Section 404”)requires our

281、 management,on an annual basis,to assess the effectiveness of our internal control over financial reporting.We have completed the process of documenting and testing our internal control over financial reporting in order to satisfy the requirements of Section 404,and the reports of our management and

282、 our independent auditors relating to our internal control over financial reporting are included elsewhere in this Form 10-K.We constantly test and improve our controls as we identify certain deficiencies that we believe require remediation,and this requires additional management time and other reso

283、urces.If we incur significant expense relating to future compliance with Section 404,our operating results will be adversely impacted.In addition,as our business develops and grows,we will be required to adapt our internal control systems and procedures to conform to our current business,and we will

284、 continue to work to improve our controls and procedures and to educate our employees in an effort to maintain an effective internal control environment.However,if internal control deficiencies arise in the future,we may not be able to remediate such deficiencies in a timely manner.As a consequence,

285、we may have to disclose in future filings with the SEC any material weaknesses in internal controls over our financial reporting system.Disclosures of this type could cause investors to lose confidence in our financial reporting,and may negatively affect our stock price.Moreover,effective internal c

286、ontrols are necessary to produce reliable financial reports and to prevent fraud.If we have deficiencies in our internal controls over financial reporting,it may negatively impact our business and operations.Our quarterly operating results have historically varied,and may not be a good indicator of

287、future performance.We have experienced,and expect to continue to experience,quarterly variations in revenue and operating results,as a result of a variety of factors,many of which are outside our control.These factors include,changes in the amount and growth rate of revenue generated from our princi

288、pal clients;the timing of receipt of payments from our clients;the timing of existing and future client product launches or service offerings;unanticipated volume fluctuations;expiration or termination of client projects;timing and amount of costs incurred to expand capacity in order to provide for

289、further revenue growth from existing and future clients;and the seasonal nature of some clients businesses.ITEM 1B.UNRESOLVED STAFF COMMENTS None.15 ITEM 2.PROPERTIES As of December 31,2008,we owned or leased the following facilities,containing in aggregate approximately 1.1 million square feet:Prop

290、erties Year Opened Approximate Square Feet Leased or Owned U.S.Facilities Greeley,Colorado.1998 35,000 Company Owned Laramie,Wyoming.1998 22,000 Company Owned Grand Junction,Colorado.1999 46,350 Leased Greeley,Colorado.1999 88,000 Company Owned Big Spring,Texas.1999 30,000 Leased(b)Enid,Oklahoma.200

291、0 47,500 Company Owned Grand Junction,Colorado.2000 54,500 Leased Decatur,Illinois.2003 37,500 Leased Alexandria,Louisiana.2003 40,000 Leased Lynchburg,Virginia.2004 38,600 Leased Collinsville,Virginia.2004 49,250 Leased Denver,Colorado.2004 23,000 Leased(a)Petersburg,Virginia.2005 39,600 Leased(c)V

292、ictoria,Texas.2008 54,100 Leased Mansfield,Ohio.2008 31,000 Leased Jonesboro,Arkansas.2008 65,400 Leased Canadian Facilities Kingston,Ontario.2001 49,000 Company Owned Kingston,Ontario.2001 20,000 Leased Cornwall,Ontario.2001 73,800 Leased Regina,Saskatchewan.2003 62,000 Leased Sarnia,Ontario.2003 3

293、7,200 Leased Thunder Bay,Ontario.2006 33,000 Leased Hawkesbury,Ontario.2006 41,000 Leased(d)Philippine Facility Makati City,Philippines.2008 78,000 Leased (a)Company headquarters,which houses executive and administrative employees.(b)Our Big Spring facility ceased operations in August 2008.We bought

294、-out the remainder of this lease in February 2009.(c)Our Petersburg facility ceased operations in December 2008.(d)Our Hawkesbury,Ontario facility ceased operations in August 2007.Substantially all of our facility space can be used to support any of our business process outsourced services.We believ

295、e our existing facilities are adequate for our current operations.We intend to maintain efficient levels of excess capacity to enable us to readily provide for needs of new clients and increasing needs of existing clients.We hold unencumbered,fee simple title to our company-owned facilities.ITEM 3.L

296、EGAL PROCEEDINGS We and six of our former directors and officers have been named as defendants in West Palm Beach Firefighters Pension Fund v.StarTek,Inc.,et al.(U.S.District Court,District of Colorado)filed on July 8,2005,and John Alden v.StarTek,Inc.,et al.(U.S.District Court,District of Colorado)

297、filed on July 20,2005.Those actions have been consolidated by the federal court.The consolidated action is a purported class action brought on behalf of all persons(except defendants)who purchased shares of our common stock in a secondary offering by certain of our stockholders in June 2004,and in t

298、he open market between February 26,2003 and May 5,2005(the“Class Period”).The consolidated complaint alleges that the defendants made false and misleading public statements about us and our business and prospects in the prospectus for the secondary offering,as well as in filings with the SEC and in

299、press releases issued during the Class Period,and that as a result,the market price of our common stock was artificially inflated.The complaints allege claims under Sections 11 and 15 of the Securities Act of 1933 and under Sections 10(b)and 20(a)of the Securities Exchange Act of 1934.The plaintiffs

300、 in both cases seek compensatory damages on behalf of the alleged class and award of attorneys fees and costs of litigation.On May 23,2006,we and the individual defendants moved the court to dismiss the action in its entirety.16 On March 28,2008,the motion was denied with respect to the claims under

301、 Sections 10(b)and 20(a)of the Securities Exchange Act of 1934,except the claim under Section 20(a)of the Securities Exchange Act of 1934 was dismissed against two of the individual defendants.On the same date,the motion was granted with respect to the claims under Sections 11 and 15 of the Securiti

302、es Act of 1933 without prejudice to plaintiffs filing an amended complaint with respect to such claims.On May 19,2008,the plaintiffs filed an amended complaint.On June 5,2008,we and the individual defendants moved the court to dismiss the amended complaint in its entirety.On November 6,2008,the moti

303、on was granted with respect to certain claims relating to representations regarding the Companys supply-chain management business,but was denied as to all other claims.We believe we have valid defenses to the claims and intend to defend the litigation vigorously.It is not possible at this time to es

304、timate the possibility of a loss or the range of potential losses arising from these claims.We may,however,incur material legal fees with respect to our defense of these claims.The claims have been submitted to the carriers of our executive and organization liability insurance policies.We expect the

305、 carriers to provide for certain defense costs and,if needed,indemnification with a reservation of rights.The policies have primary and excess coverage that we believe will be adequate to defend this case and are subject to a retention for securities claims.These policies provide that we are respons

306、ible for the first$1.025 million in defense costs.We have incurred defense costs related to these lawsuits in excess of our$1.025 million deductible.We have been involved from time to time in other litigation arising in the normal course of business,none of which is expected by management to have a

307、material adverse effect on our business,financial condition or results of operations.ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matters were submitted to a vote of security holders during the fourth quarter of 2008.Part II ITEM 5.MARKET FOR THE REGISTRANTS COMMON STOCK,RELATED STO

308、CKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET FOR COMMON STOCK Our common stock has been listed on the New York Stock Exchange under the symbol“SRT”since the effective date of our initial public offering on June 19,1997.The following table shows the high and low closing sales pri

309、ces for our common stock on the New York Stock Exchange for the periods shown:High Low 2008 First Quarter.$9.43$8.03 Second Quarter.$9.68$8.10 Third Quarter.$9.47$6.23 Fourth Quarter.$6.90$2.05 2007 First Quarter.$14.05$9.46 Second Quarter.$10.93$9.41 Third Quarter.$11.60$10.01 Fourth Quarter.$10.94

310、$8.73 HOLDERS OF COMMON STOCK As of February 15,2009,there were 59 stockholders of record and 14,813,912 shares of common stock outstanding.See Item 1A.“Risk Factors,”set forth in this Form 10-K for a discussion of risks related to control that may be exercised over us by our principal stockholders.

311、DIVIDEND POLICY On January 22,2007,our board of directors announced it would not declare a quarterly dividend on our common stock in the first quarter of 2007,and did not expect to declare dividends in the near future,making the dividend paid in November 2006 the last quarterly dividend that will be

312、 paid in the foreseeable future.We plan to invest in growth initiatives in lieu of paying dividends.We had been paying quarterly dividends since August of 2003.17 STOCK REPURCHASE PROGRAM Effective November 4,2004,our board of directors authorized repurchases of up to$25 million of our common stock.

313、The repurchase program will remain in effect until terminated by the board of directors,and will allow us to repurchase shares of our common stock from time to time on the open market,in block trades and in privately-negotiated transactions.Repurchases will be implemented by the Chief Financial Offi

314、cer consistent with the guidelines adopted by the board of directors,and will depend on market conditions and other factors.Any repurchased shares will be held as treasury stock,and will be available for general corporate purposes.Any repurchases will be made in accordance with SEC rules.As of the d

315、ate of this filing,no shares have been repurchased under this program.STOCK PERFORMANCE GRAPH The graph below compares the cumulative total stockholder return on our common stock over the past five years with the cumulative total return of the New York Stock Exchange Composite Index(“NYSE Composite”

316、)and of the Russell 2000 Index(“Russell 2000”)over the same period.We do not believe stock price performance shown on the graph is necessarily indicative of future price performance.TOTAL RETURN TO STOCKHOLDERS(assumes$100 investment on 12/31/03)02040608010012014016012/31/0312/31/0412/31/0512/31/061

317、2/31/0712/31/08DollarsStarTek,Inc.Russell 2000NYSE Composite The information set forth under the heading“Stock Performance Graph”is not deemed to be“soliciting material”or to be“filed”with the SEC or subject to the SECs proxy rules or to the liabilities of Section 18 of the Exchange Act,and the grap

318、h shall not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act or the Exchange Act.18 ITEM 6.SELECTED FINANCIAL DATA The following selected financial data should be read in conjunction with the Consolidated Financial Statements and Notes th

319、ereto which are included in Item 8.“Financial Statements and Supplementary Financial Data,”of this Form 10-K.Additionally,the following selected financial data should be read in conjunction with“Managements Discussion and Analysis of Financial Condition and Results of Operations,”which is included i

320、n Item 7 of this Form 10-K.Year Ended December 31,2008 2007 2006 2005 2004 (In thousands,except per share data)Consolidated Statement of Operations Data:Revenue.$272,890$245,304$237,612$216,371$221,906 Cost of services.238,496 206,087 201,424 167,223 164,363 Gross profit.34,394 39,217 36,188 49,148

321、57,543 Selling,general and administrative expenses.40,814 38,991 30,247 28,435 27,451 Impairment losses and restructuring charges.9,225 4,325 Operating(loss)income.(15,645)(4,099)5,941 20,713 30,092 Net interest and other income.55 745 2,126 1,479 3,532(Loss)income from continuing operations before

322、income taxes.(15,590)(3,354)8,067 22,192 33,624 Income tax(benefit)expense.(6,150)(523)2,303 8,177 12,747(Loss)income from continuing operations.(9,440)(2,831)5,764 14,015 20,877(Loss)gain from discontinued operations,net of tax.(461)(1,155)99 Net(loss)income.$(9,901)$(2,831)$5,764$12,860$20,976 Net

323、(loss)income per share from continuing operations:Basic.$(0.64)$(0.19)$0.39$0.96$1.44 Diluted.$(0.64)$(0.19)$0.39$0.95$1.41 Net(loss)income per share including discontinued operations:Basic.$(0.67)$(0.19)$0.39$0.88$1.45 Diluted.$(0.67)$(0.19)$0.39$0.88$1.42 Weighted average shares outstanding:Basic.

324、14,713 14,696 14,680 14,629 14,455 Diluted.14,713 14,696 14,714 14,681 14,780 Balance Sheet Data:Total assets.$146,864$155,458$155,735$153,914$166,872 Total debt.$6,821$11,355$15,968$5,650$9,363 Total stockholders equity.$107,019$118,214$118,382$128,164$136,883 Other Selected Financial Data:Capital

325、expenditures,net of proceeds.$27,979$15,207$19,767$9,379$17,839 Depreciation.$17,803$17,092$16,758$13,364$12,546 Cash dividends declared per common share.$1.11$1.50$1.58 ITEM 7.MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis

326、of the results of operations and financial condition should be read in conjunction with the accompanying consolidated financial statements included elsewhere in this annual report.OVERVIEW StarTek is a provider of business process outsourcing services to the communications industry.We partner with o

327、ur clients to meet their business objectives and improve customer retention,increase revenues and reduce costs through an improved customer experience.Our solutions leverage industry knowledge,best business practices,skilled agents,proven operational excellence and flexible technology.The StarTek co

328、mprehensive service suite includes customer care,sales support,complex order processing,19 accounts receivable management,technical support and other industry-specific processes.We operate our business within three reportable segments,based on the geographic regions in which our services are rendere

329、d:(1)the U.S.,(2)Canada and(3)the Philippines(“Offshore”).As of December 31,2008,our U.S.segment included the operations of our thirteen facilities in the U.S.;our Canada segment included the operations of our six facilities in Canada;and our Offshore segment included the operations of our facility

330、in Makati City,Philippines.As of December 31,2007,there were eleven,seven and zero operating centers in the U.S.,Canada and Offshore,respectively.We use gross profit as our measure of profit and loss for each business segment and do not allocate selling,general and administrative expenses to our bus

331、iness segments.We endeavor to achieve site optimization at all of our operating facilities by routinely evaluating site performance.If local economic conditions,prevailing wage rates,or other factors negatively impact the long-term financial viability of a facility,management will from time to time

332、make the decision to close a facility.As a result,we may incur impairment losses or restructuring charges in connection with the closure.Likewise,management is continually in pursuit of opportunities to open new facilities in economically viable geographic markets in order to improve profitability a

333、nd grow the business.We invoice our clients monthly in arrears and recognize revenues for such services when completed.Substantially all of our contractual arrangements are based either on a production rate,meaning that we recognize revenue based on the billable hours or minutes of each call center agent,or on a rate per transaction basis.These rates could be based on the number of paid hours the