Mastech Holdings reports Q2 adjusted EPS 11c vs. 30c last year

Reports Q2 revenue $52.2M vs. $62.1M last year. Vivek Gupta, the company’s President and CEO stated: “The possibility of a recession continued to weigh in on clients’ spending dynamics during the second quarter of 2023 – particularly in the financial services industry. As a result, both or our business segments experienced revenue declines in the second quarter of 2023. While we see a modest improvement in demand from some of our clients, we are aggressively pursuing measures to reduce our cost structure in response to these challenging times. Finally, it’s important to reiterate that we believe that our businesses remain fundamentally sound, and that our balance sheet is solid, given that we had no bank debt and $18.6 million of cash on hand as of June 30, 2023.” Michael Fleishman, the company’s CEO of the Data and Analytics Services segment stated: “We continued to make progress in expanding our bookings and pipeline of opportunities during the second quarter. We also achieved improvements in utilization during the second quarter of 2023, which helped increase our gross margins to 45.6% from 38.5% in the previous quarter. However, in the first half of 2023, we have been challenged by clients reducing resources on existing projects, as they respond to economic uncertainty.”