Mastech profit down in 3Q but revenue rises slightly

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Mastech Holdings Inc. (NYSE MKT: MHH) is based in Pittsburgh.

Paul J. Gough

Digital Producer- Pittsburgh Business Times

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Pittsburgh-based IT staffing firm Mastech Holdings Inc. saw a slight rise in revenue but a dip in profits in its third quarter.

Mastech (NYSE MKT: MHH) on Wednesday reported net income of $879,000, or 20 cents per share, in the three months ended Sept. 30, down from $1.5 million, or 34 cents a share, in the same period a year ago, mostly due to a comparison from discontinued operations last year. Revenue was $28.6 million, up from $28.3 million a year ago.

Mastech CEO Kevin Horner said the company had recovered billable headcount in the quarter following the unexpected end of a big project.

"As a result of this recovery, we were able to achieve 4% sequential growth in both revenue and billable consultants during the third quarter. Additionally, we continued to invest for growth during the quarter by ramping-up the production side of our business with the aggressive hiring of recruitment resources at both of our facilities in India and sales staff in the U.S.," Horner said in a prepared statement. "While these hires constrained our bottom-line results in the third quarter, they will allow us to better service the demand side of our business going forward."

Paul J. Gough is digital producer at the Pittsburgh Business Times. Contact him at pgough@bizjournals.com or 412-208-3827. You can also follow him on Twitter.