Mastech Holdings sees $1.4m YoY gross profit increase in Q2 2016
Mastech Holdings, Inc. has today announced financial results for its second quarter ended 30th June 2016.
Gross profit in the second quarter of 2016 was $6.9m, a rise of $1.4m, compared to Q2 2015’s gross profit total of $5.5m.
Revenues for Q2 2016 totalled $33.6m, compared to $29.3m during Q2 2015.
GAAP net income for the second quarter of 2016 totaled $945,000, compared to $382,000 during the same period last year. Non-GAAP net income for the second quarter of 2016 was $1.1 million, compared to $801,000 in the second quarter of 2015.
Mastech said demand for its staffing services was up from the previous quarter, resulting in an increase to its consultant-base, from 62 consultants to a total of 916 consultants-on-billing at quarter end.
Gross margins in the second quarter of 2016 were 20.5%, representing a material increase from both the previous quarter's 19.3% gross margin performance and the 18.8% margins that were reported in second quarter 2015.
Commenting on the Company's second quarter 2016, Vivek Gupta (pictured), Mastech's chief executive, stated, "We were able to organically grow our consultant-base during the quarter by 7%; our gross margins improved nicely from a quarter ago; and we completed a number of personnel moves aimed at strengthening our leadership capabilities and improving our operational effectiveness. Additionally, we have begun our journey of re-positioning Mastech to capitalize on opportunities in the vast area of digital technologies."
Jack Cronin, Mastech's chief financial Officer, commented, "Our financial position at June 30, 2016 remains strong with $13 million of outstanding debt, net of cash balances on hand, and access to $10.7 million of borrowing capacity. During the quarter, we were able to reduce our outstanding debt balance by approximately $1.7 million."