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Mastech revenue up 6%

July 23, 2014

Pittsburgh-based information technology staffing firm Mastech Holdings Inc. (NYSE MKT: MHH) reported second-quarter revenue rose 5.8 percent year over year to $27.7 million.

IT staffing services remained in-line with activity levels of a quarter ago, according to the company. However, new assignments declined from the previous quarter as the ratio of new assignments-to-activity levels fell during the second quarter. Mastech also had an unexpected project termination during the quarter which resulted in an overall decline in consultants on billing.

Gross margin for the second quarter fell to 18.5 percent from 19.0 percent in the year-ago quarter.

Mastech reported second-quarter net income rose 13.2 percent to $893,000.

Quote
“We are disappointed with our performance in the second quarter when compared to our historical trend lines,” said CEO Kevin Horner. “The challenges that we faced in second quarter plainly illustrate a pressing need to accelerate the scale of our recruitment engine. With demand likely to remain at healthy levels during the second half of the year, we will look to aggressively ramp-up our off-shore recruiter hiring.”

Revenue

  Q2 2014 ($000s) Q2 2013 ($000s) % growth
Revenue $27,656 $26,135 5.8%

Gross margin

  Q2 2014  Q2 2013 
Gross margin 18.5% 19.0%

Net income

  Q2 2014 ($000s) Q2 2013 ($000s) % growth
Net income $893 $789 13.2%

Share price and market cap
Shares in Mastech were down 13.35 percent in early afternoon trading to $13.95 and Mastech has a market cap of approximately $59.94 million, according to Yahoo!