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Mastech Holdings Inc. (AMEX: MHH), a Pittsburgh-based information technology staffing firm, reported a 10.4% year-over-year decline in fourth-quarter revenue to $23.1 million. The company cited tough economic conditions.
"The recession has deepened during the fourth quarter, and broadened well beyond the financial services sector," said CEO Steven Shangold. "These deteriorating economic conditions are compelling companies to reduce their discretionary spending in all areas, including IT services, and this is having an impact on our operations and bottom-line, as evidenced by our fourth quarter results."
Fourth-quarter gross margin fell to 17.8% from 19.2% in the year-ago period.
Fourth-quarter net income fell to $289,000 from $1.1 million. Mastech said it benefited from tax benefits in the fourth quarter of 2007 when it was still part of iGate Corp. Mastech spun off in the third quarter.
Mastech also said its billable consultant base declined by approximately 11% in the fourth quarter.
For full-year 2008, revenue fell 7.7% to $96.7 million, and gross margin slipped to 19.0% from 21.1%.
2008 net income fell 35.3% to $3.5 million from $5.4 million in the previous year.
Mastech Holdings Inc. (AMEX: MHH)
For the fourth quarter ended Dec. 31, 2008, compared with the same period in 2007.
Revenue: $23.1 million, -10.4%
Net income: $289,000, -74.8%
For the full year ended Dec. 31, 2008, compared with the previous year.
Revenue: $96.7 million, -7.7%
Net income: $3.5 million, -35.3%