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Mastech Holdings, Inc. Reports Second Quarter 2011 Results

Mastech Holdings, Inc. Reports Second Quarter 2011 Results

Mastech Holdings, Inc. the US based national provider of Information Technology and Specialized Healthcare staffing services, has announced its financial results for the second quarter ended June 30, 2011.

Second Quarter Results:

Revenues for the quarter were $22.1 million which represented a 31% increase over the corresponding quarter last year. Gross profit in the second quarter of 2011 totaled $4.4 million or approximately $1.1 million greater than those achieved during the second quarter of 2010. Gross margin for the second quarter of 2011 was 20.1%, slightly above the 19.9% generated during the second quarter of 2010. Consolidated net income for the second quarter of 2011 totaled $382,000 or $0.10 per diluted share, compared to $109,000 or $0.03 per diluted share, in the same period last year.

Demand for our IT staffing services increased during the second quarter of 2011 as we grew our billable consultant headcount by 12.3%. Market conditions in healthcare continue to show some signs of improvement and we were able to achieve sequential revenue growth for the fourth consecutive quarter.

Thomas Moran, Chief Executive Officer of Mastech stated, "I'm pleased to report that during the quarter we grew total revenues by 11% sequentially over first quarter and by 31% on a year- over-year basis, while materially improving our earnings per share performance from both first quarter 2011 as well as from the second quarter of 2010. This solid performance reflects investments that we have made in our operating structure over the past several quarters. While we will continue to invest in our organization to support our organic growth objectives, we would expect the rate of investment to decline from previous quarters."

Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "Our balance sheet remains strong with $5.3 million of cash on hand, no outstanding bank debt and access to $9.3 million of credit under our existing revolving credit facility. During the quarter our accounts receivable balance increased in support of our revenue growth. However, this increase was mitigated by an improvement of 2-days to our accounts receivable days sales outstanding measurement (DSO)."

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