NYSE-listed Startek, which had merged its businesses with Indian BPO firm Aegis, has pared its net loss to $12.2 million in the first quarter ended March 31, compared with $26.6 million recorded during the same year-ago period.

During the quarter under review, the company’s adjusted net income rose to $1.7 million, compared with $1 million recorded during the same quarter of last year.

‘One-time charge’

“The company’s net revenue rose to $163.1 million from $160.9 million posted during the first quarter of 2020,” the company said in a statement.

The net loss during the quarter reflects a one-time charge related to expenses associated with the debt refinancing that Startek completed in February this year. The rise in net revenue was driven by continued client demand strength, particularly within the company’s e-commerce, healthcare, cable and media verticals.

“Our first quarter results demonstrate the continued benefits of the operational improvements and efficiencies we implemented throughout last year,” said Aparup Sengupta, Executive Chairman and Global CEO of Startek.

“Even though Q1 typically represents a seasonally soft period for our business, we generated year-over-year growth across all financial metrics. In addition to an increase in net revenue, we generated strong expansion across gross profit, gross margin and adjusted EBITDA, which also benefitted from continued grants from some governments during the quarter. We expect our commitment to prudent cost management and flexibly supporting our global client base to propel our progress through the remainder of the year,” he added.

As of March 31, cash and restricted cash increased to $64.6 million compared to $50.6 million as on December 31, 2020. The company’s total debt was at $172.8 million as on March 31, 2021 and net debt was $108.1 million as of March 31, 2021.

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