Revenues up 10% in Q4 2018 for Mastech Digital
Mastech Digital, Inc. has released its financial results for the fourth quarter and full year ended 31st December 2018.
Revenues for the fourth quarter of 2018 totalled $44.6m, up 10%, compared to $40.5m during the corresponding quarter last year. Gross profit in the fourth quarter of 2018 was $10.7m, compared to $9.5m in the same quarter of 2017. GAAP net income for the fourth quarter of 2018 totalled $874,000 or $0.08 per diluted share, compared to $865,000 or $0.08 per diluted share during the same period last year. Non-GAAP net income for the fourth quarter of 2018 was $1.8m or $0.16 per diluted share, compared to $1.7m or $0.16 per diluted share in the fourth quarter of 2017.
Activity levels at the company's data and analytics services segment were up from the previous quarter, and revenues for the fourth quarter of 2018 improved by $245,000 over revenues reported in the fourth quarter of 2017. Demand for the company's IT staffing services remained strong during the quarter and more than offset the expected higher level of seasonal assignment ends that the company experiences during the fourth quarter.
Revenues for the full year 2018 totalled $177.2m, up 20%, compared to $147.9m in 2017. Top-line growth reflected the July 2017 acquisition of the services division of Canada-based InfoTrellis, Inc and 11% organic growth in its IT staffing segment. Gross profit for 2018 totaled $42.5m or 24.0% of total revenues, compared to $31.6m or 21.4% of total revenues in 2017. GAAP net income for 2018 totalled $6.7m or $0.60 per diluted share, compared to $1.6m or $0.16 per diluted share in 2017. Non-GAAP net income for 2018 totalled $8.2m or $0.74 per diluted share, compared to $4.6m or $0.46 per diluted share one year earlier. Segment operating income for the full year 2018 totalled $5.7m in the company's data and analytics services segment and $7.2m in the company's IT staffing services segment, compared to $2.5m and $5.3m in those respective segments in 2017.
"I am very pleased with Mastech Digital's performance in the fourth quarter as well as the full year 2018," commented Vivek Gupta, Mastech Digital's president and chief executive officer. "We continue to make good progress in our mission of becoming a leading provider of digital transformation services. Our data and analytics services segment did well during the fourth quarter in terms of both pipeline growth and project wins. Investments made in our sales organization during the year are starting to bear fruit when we look at fourth quarter activity levels. Our IT staffing services segment delivered great results in the fourth quarter - as revenues grew by 11%; gross margins expanded by 60 basis points; and profitability improved largely as a result of our focus on digital technologies.”
Jack Cronin, Mastech Digital's chief financial officer, stated, "At December 31, 2018 we had bank debt, net of cash balances on hand, of $37.8 million and approximately $9 million of borrowing capacity available to us under our revolving credit line. During the quarter, debt levels declined by $3.6 million, as we made progress on cash conversion matters related to the implementation of our new Cloud-based ERP platform."
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