StarTek, Inc.

Thank you. Thank you. Thank you. Good afternoon, everyone, and thank you for participating in today's conference call to discuss StarTech's financial results for the third quarter ended September 30, 2020. Joining us today are StarTech's chairman and CEO, Aparoop Sengupta, and the company's CFO, Ramesh Kamath, and the company's president, Rajiv Ahuja. Following their remarks, we'll open the call for your questions. Before we continue, we would like to remind all participants that the discussion today may contain certain statements which are forward-looking in nature pursuant to the safe harbor provisions of the federal securities law. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. StarTAC advises all those listening to this call to review the latest 10Q and 10K posted on its website for a summary of this risk and uncertainties. StarTAC does not undertake the responsibility to update any forward-looking statements. Furthermore, the discussion today may include some non-GAAP measures. In accordance with Regulation G, the company has reconciled its amounts back to the closest GAAP-based measurement. The reconciliations can be found in the earnings released in the investor section on their website. I would like to remind everyone that the webcast of today's call will be available via the investor section of the company's website at www.startlet.com. Now I would like to turn the call over to StarTech's Executive Chairman and Global CEO, Aparoop Gupta. Sir, please proceed.

Thank you, Rose. Good afternoon, everyone, and thank you all for joining. During the third quarter, we continued to make progress in our recovery from the pandemic and further improve our operational efficiency. We have driven sequential quarterly improvements across all key financial metrics. and we generated significant year-over-year growth on the bottom line. Our team has demonstrated great agility and dedication in navigating through this difficult period across geographies. I'm extremely proud of their hard work. Around the world, our team is operating at near full strength with over 90% of our global workforce now active relative to pre-COVID levels and working either remotely or from one of our delivery campuses. This hybrid remote model is not only perceiving our team's health and safety, but also improving the already high quality and efficiency of our performance. In the months since we implemented this model, absenteeism has decreased, and our StarCloud omnichannel platform has enabled us to facilitate seamless remote work for our team and innovation-led customer experiences for our client base. Rajeev will be on later in the call and give you some more additional context on our digital optimization initiative as well as our long-term vision for our hybrid work model. These operational improvements have allowed us to expand the scope of our work within our core verticals and launch new client programs, all while carefully managing our costs. With our StartCloud technology, the digital solutions we are using have become a key competitive advantage in how we go to market, as well as for the client programs we currently have in market. Robust demand within e-commerce, healthcare, telecom, and banking and financial services, as well as ride-sharing and food delivery services have prompted our clients to more fully leverage our evolving digital offerings. We are focused on deepening our digital footprint within these and other co-verticals. and continuing to serve as an adaptive and highly technology-enabled partner to our clients and prospects. With the progress we have made this quarter, we are in strong financial and operational position to maintain our momentum. Our business has proven resilient to even the most challenging impacts of the pandemic, and we are preparing for the next stages of our long-term growth strategy. The foundation we have placed will allow us to continue evolving our services and improving our position as an innovative strategic partner to our clients. Before commenting further, I would now like to turn the call over to our CFO, Ramesh Kamath, to take you through StarTech's financial results for the third quarter. Ramesh?

Thank you, Apru. Jumping right into our results, net revenue in quarter three was $162.7 million up 14% from quarter two and slightly down from 164.6 million year over year. The sequential increase reflects our recovery from pandemic-related lockdowns in many of our geographies in quarter two. On a constant currency basis, net revenue increased 3.5% compared to the prior year period. Gross profit for the quarter was 22.9 million which is a 45% increase from quarter two and down from 28.5 million last year. Gross margin was 14.1% compared to 11.1% in quarter two and 17.3% in the year-ago quarter. Similar to our top line, the gross profit and margin increase from quarter two reflects our continued recovery from pandemic impacts. The year-over-year decline is a result of higher outsourcing, contract and communication expenses, partly offset by lower travel and recruitment costs, and technology-driven productivity improvement. Selling general and administrative expenses for the quarter were $14.9 million compared to $14.6 million last quarter and $22.9 million in the year-ago quarter. As a percentage of revenue, SG&A grew to 9.1% compared to 10.3% last quarter and 13.9% in the year-ago quarter. Reflecting the sustained benefits of cost reductions we have implemented over the last 12 months. Net income attributable to StarTech shareholders for the quarter increased to 0.4 million or one cent per share compared to a net loss of 5.2 million or a loss in cents per share last quarter and a loss of 2.8 million or 7 cents per share in the year-ago quarter. Adjusted EBITDA for the quarter was 15.6 million up nearly 80% from quarter two and 17% in the year-ago quarter. As a percentage of revenue, Adjusted EBITDA increased to 9.6% compared to 6.2% last quarter and 8.1% in the year-over-quarter. The increase was primarily driven by our aforementioned recovery from the lows of last quarter, as well as cost reduction and prudent expense management over the last year. From a balance sheet perspective, at September 30th, our cash and restricted cash increased slightly to 56.6 million compared to 56.4 million at June 30th, 2020. The increase in our cash balances was primarily driven by continued strict control over costs and in working capital improvements and deferred principal debt repayments, 4.2 million of which will now be paid in November. The total debt at the end of the quarter decreased to 136 million as compared to 149.9 million at June 30, 2020, primarily due to lower drawdowns on our revolved and working capital facilities. As a result, net debt at September 30, 2020 was reduced to 79.4 million compared to 93.5 million at June 30, 2020. We remain comfortable with our equity position as it stands today, and we will continue to carefully manage non-essential expenses and other costs to preserve the optimum efficiency of our operations. As we monitor the improving trends in our business and the evolving conditions surrounding the pandemic, we aim to begin reinvesting in both IT and non-IT capital expenditures over the coming quarters. These additional investments will support further technological enhancements and increase build-out of our sales and marketing capabilities. We will have more to share on these initiatives on future calls, and we look forward to complementing the operational growth we have already made and further positioning our business for future growth. This concludes my prepared remarks, and I will now turn the call over to Rajiv. Rajiv, over to you.