| Business Segments and Geographic Information |
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Business Segments and Geographic Information | Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services. The Data and Analytics Services segment was acquired through the July 13, 2017, acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as “Mastech InfoTrellis” and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Toronto and London, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expanded our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations. The IT Staffing Services segment offers staffing services in digital and mainstream technologies, engineering services and uses digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis. Below are the operating results of our reporting segments.
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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Revenues: |
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Data and Analytics Services |
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$ |
8,589 |
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$ |
8,876 |
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$ |
17,549 |
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$ |
16,943 |
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IT Staffing Services |
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40,508 |
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40,658 |
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79,865 |
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79,414 |
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Total revenues |
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$ |
49,097 |
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$ |
49,534 |
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$ |
97,414 |
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$ |
96,357 |
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Cost of Revenues: |
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Data and Analytics Services |
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$ |
4,706 |
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$ |
4,507 |
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$ |
9,719 |
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$ |
8,829 |
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IT Staffing Services |
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30,571 |
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31,047 |
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60,983 |
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61,417 |
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Total cost of revenues |
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$ |
35,277 |
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$ |
35,554 |
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$ |
70,702 |
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$ |
70,246 |
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Gross Profit: |
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Data and Analytics Services |
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$ |
3,883 |
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$ |
4,369 |
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$ |
7,830 |
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$ |
8,114 |
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IT Staffing Services |
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9,937 |
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9,611 |
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18,882 |
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17,997 |
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Total gross profit |
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$ |
13,820 |
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$ |
13,980 |
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$ |
26,712 |
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$ |
26,111 |
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Gross Margin %: |
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Data and Analytics Services |
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45.2 |
% |
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49.2 |
% |
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44.6 |
% |
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47.9 |
% |
IT Staffing Services |
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24.5 |
% |
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23.6 |
% |
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23.6 |
% |
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22.7 |
% |
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Total gross margin % |
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28.1 |
% |
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28.2 |
% |
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27.4 |
% |
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27.1 |
% |
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Sales & Marketing Expenses: |
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Data and Analytics Services |
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$ |
1,785 |
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$ |
1,862 |
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$ |
3,839 |
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$ |
4,279 |
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IT Staffing Services |
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2,439 |
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2,233 |
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4,686 |
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4,397 |
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Total sales & marketing expenses |
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$ |
4,224 |
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$ |
4,095 |
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$ |
8,525 |
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$ |
8,676 |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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Operations Expenses: |
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Data and Analytics Services |
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$ |
194 |
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$ |
176 |
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$ |
346 |
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$ |
343 |
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IT Staffing Services |
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1,831 |
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2,143 |
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3,898 |
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4,070 |
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Total operations expenses |
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$ |
2,025 |
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$ |
2,319 |
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$ |
4,244 |
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$ |
4,413 |
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General & Administrative Expenses: |
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Data and Analytics Services |
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$ |
2,058 |
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$ |
1,587 |
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$ |
3,927 |
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$ |
3,202 |
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IT Staffing Services |
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3,917 |
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3,593 |
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8,214 |
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7,147 |
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Total general & administrative expenses |
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$ |
5,975 |
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$ |
5,180 |
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$ |
12,141 |
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$ |
10,349 |
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Segment operating income (loss): |
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Data and Analytics Services |
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$ |
(154 |
) |
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$ |
744 |
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$ |
(282 |
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$ |
290 |
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IT Staffing Services |
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1,750 |
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1,642 |
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2,084 |
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2,383 |
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Subtotal |
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1,596 |
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2,386 |
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1,802 |
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2,673 |
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Unallocated Cost: |
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Amortization of acquired intangible assets |
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$ |
(649 |
) |
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$ |
(693 |
) |
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$ |
(1,299 |
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$ |
(1,386 |
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Finance and accounting transition expense |
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(688 |
) |
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— |
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(688 |
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— |
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Severance expense |
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(232 |
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— |
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(1,641 |
) |
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— |
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Interest income (expense), FX, gains (losses) and other, net |
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183 |
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116 |
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274 |
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240 |
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Income (loss) before income taxes |
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$ |
210 |
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$ |
1,809 |
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$ |
(1,552 |
) |
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$ |
1,527 |
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| Below is a reconciliation of segment total assets to consolidated total assets:
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Total assets: |
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Data and Analytics Services |
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$ |
41,295 |
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$ |
44,053 |
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IT Staffing Services |
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69,097 |
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67,431 |
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Total assets |
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$ |
110,392 |
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$ |
111,484 |
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| Below is geographic information related to our revenues from external customers:
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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United States |
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$ |
48,582 |
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$ |
48,515 |
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$ |
96,334 |
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$ |
94,631 |
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Canada |
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|
146 |
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308 |
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|
276 |
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|
602 |
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India and Other |
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|
369 |
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|
711 |
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|
804 |
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1,124 |
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Total revenues |
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$ |
49,097 |
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$ |
49,534 |
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$ |
97,414 |
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$ |
96,357 |
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