First-quarter revenue rose 17.2% at IT staffing provider Mastech Holdings Inc. (NYSE MKT: MHH) to $31.7 million. The increase reflects Mastech’s acquisition of Hudson IT in June 2015.

The Pittsburgh-based IT staffing firm reported solid demand for staffing services as new assignments improved by 21% over the fourth quarter of 2015. Consultants-on-billing headcount increased by approximately 1% to 854 consultants during the first quarter after two quarters of sequential declines.

D. Kevin Horner last month resigned as president and CEO and director of the board. Mastech’s board appointed Vivek Gupta as his successor in these roles.

Quote

“While it’s encouraging to see an expansion in our consultant-base during the first quarter of 2016 after several quarters of decline, we will work to strengthen our organization by seeking to add talent in all facets of our business,” Gupta said. “Additionally, we will continue to assess cost savings opportunities in areas where we are not achieving the desired paybacks. I’m confident that we can return the company to a growth trajectory, without materially altering our ‘industry advantaged’ operating cost structure.”

Share price and market cap

Shares in Mastech fell 7.79% in late morning trading today to $7.10. The company had a market cap of approximately $30.90 million, according to Yahoo!