Mastech second-quarter revenues decrease to $16.9 million

Mastech Holdings, Inc. (NYSE Amex: MHH), a national provider of Information Technology and Specialized Healthcare staffing services, announced today its financial results for the second quarter ended June 30, 2010.

Revenues for the quarter were $16.9 million, compared to $17.7 million reported in the corresponding quarter last year.  Gross margins in the 2010 quarter increased to 19.9% compared to 19.3% for the 2009 quarter. Consolidated net income for the second quarter 2010 totaled $109,000 or $0.03 per diluted share, compared to $256,000, or $0.07 per diluted share, in the same period last year.  

Demand for our IT staffing services continued to improve during the second quarter and pricing of our service offerings have stabilized.  We were able to grow our billable consultant-base for the second consecutive quarter and deliver gross margin expansion during each of the last three quarters.  Business activity in healthcare remains challenging. However, we have been successful in expanding our healthcare service offerings geographically, as we position ourselves to capitalize on this sector's expected recovery from its cyclical trough.

Thomas Moran, Chief Executive Officer of Mastech stated, "While we have much work ahead of us, I'm pleased with the progress that has been made over the last year.  During second quarter, we achieved sequential organic revenue growth of 7.7%, our first quarterly sequential growth since fourth quarter 2007; expanded gross margins for a third consecutive quarter; and grew earnings per share, despite considerable SG&A investment aimed at accelerating future growth opportunities.  We remain committed to managing our organization for sustainable long-term value creation and will be making additional SG&A investment during the second half of 2010 to enhance and expand our ability to service both our existing and prospective clients."  

Commenting on the Company's financial position, Jack Cronin, Chief Financial Officer, stated, "At June 30, 2010, we had $6.1 million of cash on hand, no outstanding bank debt and access to $6.7 million of credit under our existing revolving credit facility.  Additionally, our accounts receivable are in good shape with less than 2% of the outstanding balance aged for more than 90-days."