Note 12 - Segment Reporting

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

The Company provides business process outsourcing services (“BPO”) to clients in various 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 Global Chief Executive Officer (CEO), who has been identified as the Chief Operating Decision Maker ("CODM"), reviews financial information mainly on a geographical basis.

Our operating business model is focused on the 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.

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

a) Americas
b) India and Sri Lanka
c) Malaysia 
d) Middle East 
e) Argentina & Peru
f) Rest of World

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Revenue:
Americas		84,680		58,479		148,605		126,647
India & Sri Lanka		24,079		16,698		45,561		40,950
Malaysia		13,816		12,017		28,781		23,902
Middle East		45,714		36,243		88,954		70,760
Argentina & Peru		9,143		8,997		17,302		19,205
Rest of World		11,599		9,733		22,898		21,602
Total	$	189,031	$	142,167	$	352,101	$	303,066

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Operating income (loss):
Americas		5,369			(255	)		7,264			671
India & Sri Lanka		2,594			(210	)		1,366			(905	)
Malaysia		3,414			3,305			7,828			4,940
Middle East		3,009			598			8,750			2,215
Argentina & Peru		(393	)		(376	)		(436	)		(360	)
Rest of World		865			453			1,264			725
Segment operating income		14,858			3,515			26,036			7,286
Startek consolidation adjustments
Goodwill impairment		-			-			-			(22,708	)
Intangible amortization		(2,583	)		(2,581	)		(5,143	)		(5,163	)
Total operating income	$	12,275		$	934		$	20,893		$	(20,585	)

A single client accounted for 16% and 20% of the consolidated total net revenue during the three months ended June 30, 2021 and 2020, respectively, and 17% and 18% during the six months ended June 30, 2021 and 2020, respectively.
 

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

	As on		As on
	June 30, 2021		December 31, 2020
Property, plant and equipment, net:
Americas		13,127		14,455
India & Sri Lanka		9,618		8,069
Malaysia		3,285		3,749
Middle East		5,509		4,736
Argentina & Peru		1,287		1,257
Rest of World		1,866		1,959
Total	$	34,692	$	34,225