Mastech Digital, Inc. (MHH) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

Exhibit 99.1

FOR IMMEDIATE RELEASE:

Mastech Digital, Inc. Reports Fourth Quarter and Full Year 2016 Results – 2016 revenues grow by 7% year over year

PITTSBURGH, PA – February 8, 2017 - Mastech Digital, Inc. (NYSE MKT: MHH), a national provider of Information Technology staffing and Digital Transformation services, announced today its financial results for the fourth quarter and full year ended December 31, 2016.

Fourth Quarter 2016 Highlights:

Fourth Quarter Results:

Revenues for the fourth quarter of 2016 totaled $32.4 million compared to $32.5 million during the corresponding quarter last year. Gross profit in the fourth quarter of 2016 was $6.4 million, compared to $6.7 million in the fourth quarter of 2015. GAAP net income for the fourth quarter of 2016 totaled $640,000 or $0.14 per diluted share, compared to $1.3 million or $0.29 per diluted share during the same period last year. Non-GAAP net income for the fourth quarter of 2016 was $841,000 or $0.19 per diluted share, compared to $1.4 million or $0.31 per diluted share in the fourth quarter of 2015.

Demand for the Company’s staffing services was in-line with the third quarter of 2016 and largely offset a higher level of assignment ends historically expected during the fourth quarter. This resulted in the Company’s billable consultant-base being essentially unchanged from the previous quarter.

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.”

Full Year Results:

Revenues for the full year 2016 totaled $132.0 million compared to $123.5 million in 2015. Our top-line growth largely reflected our June 15, 2015 acquisition of Hudson IT. Gross profit for 2016 totaled $26.3 million or 19.9% of total revenues, compared to $23.8 million or 19.3% of total revenues in 2015. GAAP net income for 2016 totaled $2.5 million or $0.56 per diluted share, compared to $2.8 million or $0.62 per diluted share in 2015. Non-GAAP net income for 2016 totaled $3.8 million or $0.84 per diluted share, compared to $3.8 million or $0.85 per diluted share one year earlier.