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Mastech Holdings, Inc. Reports Second Quarter 2012 Results

Mastech Holdings, Inc. Reports Second Quarter 2012 Results

Mastech Holdings, Inc. the national provider of Information Technology and Specialized Healthcare staffing services, has announced its financial results for the second quarter ended June 30, 2012.

Second Quarter Results:

Revenues for the second quarter were $25.3 million, which represented a 14% increase over the corresponding quarter last year and approximately a 4% improvement over first quarter 2012 results. Gross profit in the second quarter 2012 totaled $4.8 million compared to $4.4 million in the second quarter of 2011. Consolidated net income for the second quarter 2012 totaled $458,000, or $0.14 per diluted share, compared to $382,000, or $0.10 per diluted share, in the same period last year.

Demand for our staffing services remained solid during the second quarter as we were able to grow our IT billable consultant-base by 5% and achieve sequential revenue growth for the eighth consecutive quarter in our healthcare staffing business. Overall gross margins in the second quarter showed a marked improvement over the previous quarter, but continued to be impacted negatively by emerging supply-side pricing pressures in the marketplace.

Kevin Horner, Mastech's Chief Executive Officer stated, "During the quarter we maintained top-line revenue growth while aggressively growing bottom-line earnings per share. Internally, we are committed to and focused on strengthening our recruitment capabilities and effectiveness, aimed at enhancing the value proposition that we provide to our clients. As the supply of qualified IT and healthcare professionals continues to tighten, we believe organizations with a capable, competent recruiting and delivery engine will emerge as industry leaders."

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 $1.7 million no outstanding debt and access to $15.3 million of borrowing capacity. During the first six months of 2012, our cash balances declined by $4.1 million reflecting $2.4 million of investment in operating working capital, in support of our revenue growth, and $2.5 million in common stock repurchases.

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