STARTEK, INC. Item 8.01 Other Events.
Delay in Filing of Form 10-Q
The current COVID-19 outbreak has caused severe disruptions and has required the
Company's accounting staff and the staff of the Company's independent registered
public accounting firm to work from home, resulting in limited access to the
Company's facilities and financial records and delays in the closing of the
Company's books of accounts. In addition, the COVID-19 outbreak has made
collection of data slower and more difficult. These factors have caused a delay
in the Company's ability to prepare and analyze its financial statements for
inclusion in the Quarterly Report. The Company therefore has decided to rely on
the conditional relief provided in the Order. Notwithstanding the foregoing, the
Company expects to file the Quarterly Report on or before
In light of the COVID-19 outbreak, the Company included the following risk
factor in its Annual Report on Form 10-K for the year ended
Our financial condition and results of operations for 2020 could get adversely affected by health pandemics such as the recent Coronavirus or COVID-19 outbreak.
Our business could be materially and adversely affected by health pandemics, including, but not limited to, outbreaks of the Coronavirus or COVID-19. Outbreaks of COVID-19 have alarmed people around the world, affecting economic activity around the world. More recently, cases of the COVID-19 virus have been identified internationally, including confirmed human outbreaks and deaths. Any prolonged pandemic of the COVID-19, or other contagious infection in the markets in which we do business may result in worker absences, lower asset utilization rates, voluntary closure of our offices and delivery centers, travel restrictions on our employees, and other disruptions to our business. Moreover, health epidemics may force local health and government authorities to mandate the closure of our offices and delivery centers. Any prolonged or widespread health pandemic could severely disrupt our business operations, result in a significant decrease in demand for our services, and have a material adverse effect on our financial condition, results of operations and cash flows.
In light of recent developments, the Company plans to include the following updated risk factor in its Quarterly Report:
The recent Coronavirus or COVID-19 outbreak continues to expand and may adversely affect our financial condition and results of operations for 2020.
The recent government-imposed restrictions around the world have significantly impacted businesses and their workforces. Most of the geographies in which we operate have been affected by local lockdowns or restrictions on facilities access. Other geographies may be impacted as the coronavirus/COVID-19 spreads and/or existing restrictions may be extended/strengthened.
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At this point, it is impossible to predict the degree to which supply and demand for our outsourcing services will be affected, as well as the duration of such impact. This uncertainty makes it challenging for management to estimate the future performance of our businesses. However, the impact of COVID-19 will have an adverse impact on our results of operations over the near to medium term.
Given the overall uncertainty and fluidity of the current global pandemic response, coupled with how various government-imposed limitations may translate into client service delivery constraints, the Company may identify additional risk factors going forward which will be provided in the Quarterly Report.
Change in Location of Annual Meeting of Stockholders
On
Item 9.01 Financial Statements and Exhibits
Exhibit Description Number 99.1 Press Release datedMay 5, 2020 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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