Mastech Digital Inc (MHH) has reported a 50.35 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.64 million, or $0.14 a share in the quarter, compared with $1.29 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.84 million, or $0.19 a share compared with $1.39 million or $0.31 a share, a year ago. Revenue during the quarter went down marginally by 0.42 percent to $32.40 million from $32.54 million in the previous year period. Gross margin for the quarter contracted 90 basis points over the previous year period to 19.75 percent. Total expenses were 96.56 percent of quarterly revenues, up from 93.20 percent for the same period last year. That has resulted in a contraction of 336 basis points in operating margin to 3.44 percent.
Operating income for the quarter was $1.11 million, compared with $2.21 million in the previous year period.
Commenting on the Company’s 2016 fourth quarter results, Vivek Gupta, Mastech Digital’s chief executive officer stated, “While our fourth quarter operating results were challenged on a year-over-year basis, due in part to several favorable cost adjustments in the 2015 quarter and increased investment in our business, I was pleased with our consultants-on-billing performance and the continued progress with respect to our digital transformation efforts. With investments made in 2016 to enhance both our sales and recruitment capabilities, I’m confident in our abilities to accelerate growth in 2017.”
Working capital increases
Mastech Digital Inc has recorded an increase in the working capital over the last year. It stood at $10.71 million as at Dec. 31, 2016, up 20.22 percent or $1.80 million from $8.91 million on Dec. 31, 2015. Current ratio was at 1.87 as on Dec. 31, 2016, up from 1.75 on Dec. 31, 2015.
Debt comes down
Mastech Digital Inc has recorded a decline in total debt over the last one year. It stood at $9.94 million as on Dec. 31, 2016, down 20.75 percent or $2.60 million from $12.54 million on Dec. 31, 2015. Total debt was 25.16 percent of total assets as on Dec. 31, 2016, compared with 32.59 percent on Dec. 31, 2015. Debt to equity ratio was at 0.52 as on Dec. 31, 2016, down from 0.79 as on Dec. 31, 2015.
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