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Mastech Holdings, Inc. Reports First Quarter 2012 Results

Mastech Holdings, Inc. Reports First Quarter 2012 Results

Mastech Holdings, Inc a national provider of Information Technology and Specialized Healthcare staffing services, has announced its financial results for the first quarter ended March 31, 2012.

First Quarter Results:

Revenues for the first quarter were $24.5 million, which represented a 23% increase over the corresponding quarter last year and a 2.5% improvement over fourth quarter 2011 results. Gross profit in the first quarter totaled $4.5 million compared to $3.8 million in the first quarter of 2011. Consolidated net income for the first quarter 2012 totaled $352,000, or $0.10 per diluted share, compared to $37,000, or $0.01 per diluted share, in the same period last year. Both the first quarter of 2012 and 2011 included severance expense equal to $0.02 per diluted share.

Demand for our IT and healthcare staffing services remained solid during the first quarter of 2012. Supply-side pricing pressures are starting to emerge within certain technologies of the IT business, as resources are commanding higher compensation levels. Market conditions in healthcare staffing remained largely positive and we achieved sequential revenue growth for the seventh consecutive quarter.

Kevin Horner, Mastech's Chief Executive Officer stated, "While we are pleased with 23% revenue growth for the quarter, we have to do a better job helping our client base understand the changes which are happening on the supply-side of the market. A tightening of industry supply will cause hardships for clients who are slow to recognize these industry trends. Additionally, we need to quickly adjust our pricing model to reflect these market dynamics."

Commenting on the Company's financial position, Jack Cronin, Mastech's Chief Financial Officer, stated, "Our balance sheet remains strong with cash on hand of $2.7 million no outstanding debt and access to $14.1 million of borrowing capacity as of March 31, 2012. During the quarter, we completed a partial tender offer in which we repurchased approximately 12% of our outstanding common stock. This $2.5 million transaction was entirely funded with cash balances on hand."

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