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View All NewsMastech Q4 revenue in-line with year ago
IT staffing provider Mastech Digital Inc. (NYSE MKT: MHH) reported revenue edged down 0.4% in the fourth quarter to $32.4 million. Gross margin narrowed and net income slipped.
The Pittsburgh-based firm reported demand for its staffing services was in-line with the previous quarter and largely offset a higher level of assignment ends historically expected during the fourth quarter. This resulted in the company’s billable consultant-base being essentially unchanged from the previous quarter.
Mastech Holdings Inc. changed its name to Mastech Digital Inc. in September as part of a rebranding initiative to reflect its ongoing shift into a digital technologies company.
| (US$ thousands) | Q4 2016 | Q4 2015 | % change |
| Revenue | $32,402 | $32,540 | -0.4% |
| Gross profit | $6,398 | $6,718 | -4.8% |
| Gross margin | 19.7% | 20.6% | |
| Net income | $640 | $1,289 | -50.3% |
Quote
“While our fourth quarter operating results were challenged on a year-over-year basis, due in part to several favorable cost adjustments in the 2015 quarter and increased investment in our business, I was pleased with our consultants-on-billing performance and the continued progress with respect to our digital transformation efforts,” said CEO Vivek Gupta. “With investments made in 2016 to enhance both our sales and recruitment capabilities, I'm confident in our abilities to accelerate growth in 2017.”
Full-year results
| (US$ thousands) | 2016 | 2015 | % change |
| Revenue | $132,008 | $123,470 | 6.9% |
| Gross profit | $26,297 | $23,799 | 10.5% |
| Gross margin | 19.9% | 19.3% | |
| Net income | $2,520 | $2,753 | -8.5% |
Share price and market cap
Shares in Mastech fell 4.95% in late morning trading today to $6.72. The company had a market cap of approximately $30.04 million, according to Yahoo.