Note 14 - Segment and Geographical Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. SEGMENT AND GEOGRAPHICAL INFORMATION

The Company provides business process outsourcing services (“BPO”) to clients in a variety of industries and geographical locations. Our approach is focused on providing our clients with the best possible combination of services and delivery locations to meet our clients' needs in the best and most efficient manner. Our Chief Executive Officer (CEO), who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis.

Prior to the fourth quarter of 2019, we reported our results as a single operating and reportable segment (BPO), and two reporting units (Aegis and Startek).

In the fourth quarter of 2019, we reorganized our operating business model. Our new operating business model is focussed on geographies in which we operate. Our CODM reviews the performance and makes resource allocation geography wise, hence the geographical level represents the operating segments of Startek, Inc.

Prior period results have been revised for segment disclosure to conform to current period presentation.

We now report our results of operations as follows in Six reportable segments:-

1. Americas

2. Middle East

3. Malaysia

4.	India and Sri Lanka
5.	Argentina and Peru

6. Rest of World

	Year ended December 31, 2019		Nine months ended December 31, 2018
Revenue:
Americas		258,040		106,186
India & Sri Lanka		111,714		64,713
Malaysia		58,921		43,425
Middle East		132,785		92,204
Argentina & Peru		46,490		43,642
Rest of World		49,960		70,147
Total		657,910		420,317
Operating income (loss):
Americas		6,880		(9,798	)
India & Sri Lanka		2,213		(1,448	)
Malaysia		7,858		4,417
Middle East		6,783		7,530
Argentina & Peru		2,248		2,108
Rest of World		1,410		(2,070	)
Segment operating income (loss)		27,392		739
Startek consolidation adjustments
Less: Goodwill impairment		7,146		-
Less: Intangible amortisation		10,529		7,031
Total operating income (loss)		9,717		(6,292	)

A single client accounted for 17% and 20% of the consolidated total net revenue during the year ended December 31, 2019 and nine month ended December 31, 2018 respectively.

Property, plant and equipment, net by geography based on the location of the assets is presented below:

	As on December 31, 2019		As on December 31, 2018
Property, plant and equipment, net:
Americas		14,156		12,704
India & Sri Lanka		10,772		13,654
Malaysia		4,375		5,058
Middle East		4,722		6,507
Argentina & Peru		1,701		1,881
Rest of World		1,781		2,438
Total		37,507		42,242