Third-quarter IT staffing revenue at Mastech Digital Inc. (NYSEAMERICAN: MHH) fell as clients responded to the uncertain US economy, the company reported today. Still, the pullback in demand was less pronounced than in the previous two quarters. The Pittsburgh-based firm also noted its “data and analytics services” segment was affected by project award delays.

Third-quarter revenue was down 25.1% in Mastech’s IT staffing business and down 20.2% in its data and analytics services operations.

“The prevalent uncertain economic conditions have continued to impact clients’ spending dynamics during the third quarter of 2023,” President and CEO Vivek Gupta said in a press release. “As a result, both of our business segments experienced revenue declines during this period.”

Gupta said the company is working to reduce its operating cost structure in response.

“We believe that our businesses remain fundamentally sound, and that our balance sheet and liquidity position continue to be solid,” he added.

Overall revenue at Mastech was down 24.3% year over year in the third quarter. However, gross margin improved. Net income fell by 94.8%.

The third quarter of 2022 included a $450,000 reserve for a cybersecurity breach and $120,000 in severance expenses. Excluding these — as well as adjustments for amortization of acquired intangible assets, stock-based compensation and income tax — net income fell just 68.8% to approximately $1.3 million.

Click on image to enlarge.

Share price

Shares in Mastech were down 1.19% to $8.65 as of 12:22 p.m. Eastern time; they set a new 52-week low during trading today when they reached $8.35, according to FT.com.