PITTSBURGH, April 27, 2011 /PRNewswire/ -- Mastech Holdings, Inc. (NYSE Amex: MHH), a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the first quarter ended March 31, 2011.
Revenues for the quarter were $19.9 million and represented a 27% increase over the corresponding quarter last year. Gross profit for the first quarter of 2011 totaled $3.8 million or approximately $0.8 million above gross profit for the first quarter of 2010. Consolidated net income for the first quarter of 2011 totaled $37,000 or $0.01 per diluted share, compared to $63,000 or $0.02 per diluted share, in the same period last year.
Demand for our IT staffing services remained solid during the first quarter of 2011 as we increased our billable consultant headcount by 3.5 percent. Market conditions in healthcare continue to show some signs of improvement and we were able to achieve sequential revenue growth for the third consecutive quarter. Investments in selling, general and administrative expenses during the quarter reduced our net income performance and included a severance charge.
Thomas Moran, Chief Executive Officer of Mastech stated, “During the quarter we established IT branch operations in Chicago, increased our offshore recruitment staff to support higher activity flow and new client wins, and adjusted the alignment of our recruitment reporting structure to improve efficiency and accountability. I’m confident that these first quarter investments will benefit the balance of 2011 as we capitalize more effectively on market opportunities.”
Commenting on the Company’s financial position, Jack Cronin, Chief Financial Officer, stated, “Our balance sheet remains strong with $4.8 million of cash on hand, no outstanding bank debt and access to $8.7 million of credit under our existing revolving credit facility. During the quarter our cash balances declined $1.5 million, as operating working capital levels increased in support of our revenue growth and a higher accounts receivable days-sales-outstanding (“DSO”) measurement. The DSO increase largely reflects short-term payment pattern variances at several major clients.”
In conjunction with its first quarter earnings release, Mastech will host a conference call at 9:00 A. M. EDT on April 27, 2011 to discuss these results and to answer questions. A live webcast of this conference call will be available on the company’s website, www.mastech.com. Simply click on the Investor Relations section and follow the links to the live webcast. The webcast will remain available for replay through May 4, 2011.
About Mastech Holdings, Inc.:
Leveraging the power of over 20 years of IT experience, Mastech (NYSE Amex: MHH) provides Information Technology Staffing services in the disciplines which drive today's business operations and Specialized Healthcare Staffing services to hospitals and other healthcare facilities. More information about Mastech can be found at Mastech's website: www.mastech.com.
Certain statements contained in this release are forward-looking statements based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements, which include but are not limited to projections of revenues, earnings, and cash flow. These statements are based on information currently available to the Company and it assumes no obligation to update the forward-looking statements as circumstances change. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation, the level of market demand for its services, the highly competitive market for the types of services offered by the company, the impact of competitive factors on profit margins, market conditions that could cause the Company’s customers to reduce their spending for its services, and the company’s ability to create, acquire and build new lines of business, to attract and retain qualified personnel, reduce costs and conserve cash, and other risks that are described in more detail in the company’s filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2010.
MASTECH HOLDINGS, INC.
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