IT Staffing Report: Oct. 23, 2014

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Mastech revenue edges up, hires CIO

Mastech Holdings Inc. (NYSE MKT: MHH) reported third-quarter revenue rose 1.2 percent year over year to $28.6 million. The Pittsburgh-based IT staffing firm also recently announced it hired Denis Deet as VP of technology and chief information officer. Deet will lead the development of new technology-focused business practices and oversee the company’s internal systems environment.Deet has more than 30 years of leadership experience in the technology sector and has held various global IT leadership roles with ALCOA.

Mastech's earnings announcement came Wedneday. The company reported demand for IT staffing services remained in-line with activity levels of a quarter ago. Net income fell 40.6 percent.

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"I'm pleased to report that we have essentially recovered all of our billable consultant headcount that was lost in the surprise project termination during the previous quarter," CEO Kevin Horner said. "As I communicated in our last earnings call, third quarter's revenue and gross profit performance would be impacted by this unexpected project termination. As a result of this recovery, we were able to achieve 4 percent sequential growth in both revenues and billable consultants during the third quarter. Additionally, we continued to invest for growth during the quarter by ramping-up the production side of our business with the aggressive hiring of recruitment resources at both of our facilities in India and sales staff in the US. While these hires constrained our bottom-line results in the third quarter, they will allow us to better service the demand side of our business going forward." 

Revenue

  Q3 2014 (000s) Q3 2013 (000s) % growth
Revenue $28,634 $28,283 1.2%

Gross margin

  Q3 2014  Q3 2013 
Gross margin 18.3% 18.9%

Net income

  Q3 2014 (000s) Q3 2013 (000s) % growth
Net income $879 $1,480 -40.6%