Mastech Digital, Inc. (MHH) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

Exhibit 99.1

FOR IMMEDIATE RELEASE:

Mastech Digital Reports 12% Organic Revenue Growth in First Quarter 2020

Data & Analytics Segment Generates Record Revenues with 28% YOY Growth

PITTSBURGH, PA – April 29, 2020 - Mastech Digital, Inc. (NYSE American: MHH), a leading provider of Digital Transformation IT Services, announced today its financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Highlights:

Mastech’s Response to COVID-19:

Vivek Gupta, the Company’s President and Chief Executive Officer stated “as you are aware the current COVID-19 pandemic and the public health responses to contain it have resulted in global recessionary conditions. I am pleased to say that Mastech Digital responded to these ever-changing developments and challenges in a very proactive manner. We were quick to mobilize our workforce, in both of our business segments, to a remote work-from-home model to mitigate the health risks to our employees and to continue to provide uninterrupted service to our customers. Our entire organization is working incredibly hard to service our customers during these difficult times. We are also prudently adjusting our cost structure in ways that will allow us to maintain our top-notch talent that we have so artfully secured over the years. And we are laser-focused on the business elements that are within our control, and can help mitigate the impact of these recessionary conditions on our financial results. With that said, we did see some impact of COVID-19 during the month of March and we continue to see our businesses being impacted thus far in the second quarter. The ultimate impact on the second quarter and full year 2020 will depend heavily on the duration of social distancing and shelter-in-place mandates, as well as the substance and pace of macroeconomic recovery, all of which are uncertain and difficult to predict considering the rapidly evolving landscape of the COVID-19 pandemic and the public health responses to contain it.”

First Quarter Results:

Revenues for the first quarter of 2020 totaled $50.4 million compared to $45.2 million during the corresponding quarter last year. Gross profits in the first quarter of 2020 were $12.7 million, a 17.4% increase as compared to $10.8 million in the same quarter of 2019. Gross margins in the 2020 quarter were 25.2% or 120-basis points higher than first quarter 2019. GAAP net income for the first quarter of 2020 totaled $1.9 million or $0.16 per diluted share, compared to $1.0 million or $0.09 per diluted share during the same period last year. Non-GAAP net income for the first quarter of 2020 was $2.7 million or $0.23 per diluted share, compared to $1.6 million or $0.15 per diluted share in the first quarter of 2019.