Pittsburgh-based IT staffing firm Mastech Holdings Inc. (NYSE MKT: MHH) reported first-quarter revenue fell 5.7% to $27.1 million. The company also today announced plans to purchase the Americas IT staffing business of Hudson Global.

Demand for staffing services was solid for much of the quarter after some weakness in the first half of January, according to the company. Higher bench costs related to the start-up of the company’s technology practice group and higher benefit costs related to the Affordable Care Act contributed to the lower margin performance in the first quarter.

Mastech reported reported $305,000 of pre-tax severance costs related to a change in sales leadership.

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“As we discussed in our fourth quarter 2014 earnings call, we expected our financial results for the first half of 2015 to be down as compared to 2014,” said CEO Kevin Horner. “Nonetheless, consultant on billing growth in the last two months of the quarter was an encouraging sign. With our leadership changes and organizational realignments in place, I am starting to see clear improvements in the business as we enter the second quarter.”

Share price and market cap

Shares in Mastech fell 0.79% in late morning trading to $9.48. The company has a market cap of approximately $41.04 million, according to Yahoo!