Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | MASTECH DIGITAL, INC. | |
Entity Central Index Key | 0001437226 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | MHH | |
Security Exchange Name | NYSEAMER | |
Entity Address, State or Province | PA | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,596,031 | |
Entity File Number | 001-34099 | |
Entity Incorporation, State or Country Code | PA | |
Entity Address, Address Line One | 1305 Cherrington Parkway | |
Entity Address, City or Town | Moon Township | |
Entity Address, Postal Zip Code | 15108 | |
Entity Tax Identification Number | 26-2753540 | |
City Area Code | 412 | |
Local Phone Number | 787-2100 | |
Entity Address, Address Line Two | Building 210 | |
Entity Address, Address Line Three | Suite 400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 52,204 | $ 62,117 | $ 107,267 | $ 121,872 |
Cost of revenues | 38,560 | 45,371 | 80,141 | 89,194 |
Gross profit | 13,644 | 16,746 | 27,126 | 32,678 |
Selling, general and administrative expenses: | ||||
Operating expenses | 13,372 | 13,198 | 26,322 | 25,823 |
Employment-related claim, net of recoveries | 3,100 | 0 | 3,100 | 0 |
Total selling, general and administrative expenses | 16,472 | 13,198 | 29,422 | 25,823 |
Income (loss) before income taxes | (2,828) | 3,548 | (2,296) | 6,855 |
Interest income (expense), net | 80 | (127) | 84 | (241) |
Other income (expense), net | (30) | 195 | (87) | 249 |
Income (loss) before income taxes | (2,778) | 3,616 | (2,299) | 6,863 |
Income tax expense | (605) | 1,180 | (387) | 2,095 |
Net income | $ (2,173) | $ 2,436 | $ (1,912) | $ 4,768 |
Earnings (loss) per share: | ||||
Basic | $ (0.19) | $ 0.21 | $ (0.16) | $ 0.41 |
Diluted | $ (0.19) | $ 0.20 | $ (0.16) | $ 0.39 |
Weighted average common shares outstanding: | ||||
Basic | 11,620 | 11,607 | 11,629 | 11,558 |
Diluted | 11,620 | 12,110 | 11,629 | 12,079 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income (loss) | $ (2,173) | $ 2,436 | $ (1,912) | $ 4,768 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (12) | (319) | (7) | (466) |
Total other comprehensive (loss), net of taxes | (12) | (319) | (7) | (466) |
Total comprehensive income (loss) | $ (2,185) | $ 2,117 | $ (1,919) | $ 4,302 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 18,614 | $ 7,057 |
Accounts receivable, net of allowance for uncollectible accounts of $444 in 2023 and $444 in 2022 | 22,952 | 33,603 |
Unbilled receivables | 9,766 | 8,719 |
Insurance recovery | 2,200 | 0 |
Prepaid and other current assets | 4,759 | 3,795 |
Total current assets | 58,291 | 53,174 |
Equipment, enterprise software, and leasehold improvements, at cost: | ||
Equipment | 2,827 | 2,790 |
Enterprise software | 4,185 | 4,185 |
Leasehold improvements | 735 | 732 |
Total equipment, enterprise software, and leasehold improvements | 7,747 | 7,707 |
Less – accumulated depreciation and amortization | (5,604) | (5,042) |
Net equipment, enterprise software, and leasehold improvements | 2,143 | 2,665 |
Operating lease right-of-use assets, net | 3,118 | 3,886 |
Deferred financing costs, net | 256 | 293 |
Non-current deposits | 512 | 578 |
Goodwill, net of impairment | 32,510 | 32,510 |
Intangible assets, net of amortization | 14,387 | 15,773 |
Total assets | 111,217 | 108,879 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 1,100 |
Accounts payable | 4,382 | 4,475 |
Accrued payroll and related costs | 9,949 | 11,085 |
Current portion of operating lease liability | 1,228 | 1,504 |
Employment-related claim liability | 6,000 | 0 |
Other accrued liabilities | 1,480 | 1,186 |
Deferred revenue | 439 | 207 |
Total current liabilities | 23,478 | 19,557 |
Long-term liabilities: | ||
Long-term operating lease liability, less current portion | 1,851 | 2,294 |
Long-term accrued income taxes | 69 | 105 |
Deferred income taxes | 480 | 920 |
Total liabilities | 25,878 | 22,876 |
Commitments and contingent liabilities (Note 5) | ||
Shareholders' equity: | ||
Preferred Stock, no par value; 20,000,000 shares authorized; none outstanding | ||
Common Stock, par value $.01; 250,000,000 shares authorized and 13,304,812 shares issued as of June 30, 2023 and 13,269,118 shares issued as of December 31, 2022 | 133 | 133 |
Additional paid-in-capital | 33,886 | 32,059 |
Retained earnings | 57,641 | 59,553 |
Accumulated other comprehensive income (loss) | (1,562) | (1,555) |
Treasury stock, at cost; 1,708,781 shares as of June 30, 2023 and 1,646,420 shares as of December 31, 2022 | (4,759) | (4,187) |
Total shareholders' equity | 85,339 | 86,003 |
Total liabilities and shareholders' equity | $ 111,217 | $ 108,879 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for uncollectible accounts | $ 444 | $ 444 |
Preferred Stock, par value | $ 0 | $ 0 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 13,304,812 | 13,269,118 |
Treasury stock, shares | 1,708,781 | 1,646,420 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (loss) [Member] |
Beginning Balances at Dec. 31, 2021 | $ 74,428 | $ 131 | $ 28,250 | $ 50,841 | $ (4,187) | $ (607) |
Net income (loss) | 2,332 | 2,332 | ||||
Other comprehensive gain (loss), net of taxes | (147) | (147) | ||||
Stock-based compensation expense | 526 | 526 | ||||
Stock options exercised | 893 | 2 | 891 | |||
Ending Balances at Mar. 31, 2022 | 78,032 | 133 | 29,667 | 53,173 | (4,187) | (754) |
Beginning Balances at Dec. 31, 2021 | 74,428 | 131 | 28,250 | 50,841 | (4,187) | (607) |
Net income (loss) | 4,768 | |||||
Other comprehensive gain (loss), net of taxes | (466) | |||||
Ending Balances at Jun. 30, 2022 | 81,530 | 133 | 31,048 | 55,609 | (4,187) | (1,073) |
Beginning Balances at Mar. 31, 2022 | 78,032 | 133 | 29,667 | 53,173 | (4,187) | (754) |
Net income (loss) | 2,436 | 2,436 | ||||
Employee common stock purchases | 199 | 199 | ||||
Other comprehensive gain (loss), net of taxes | (319) | (319) | ||||
Stock-based compensation expense | 752 | 752 | ||||
Stock options exercised | 430 | 0 | 430 | |||
Ending Balances at Jun. 30, 2022 | 81,530 | 133 | 31,048 | 55,609 | (4,187) | (1,073) |
Beginning Balances at Dec. 31, 2022 | 86,003 | 133 | 32,059 | 59,553 | (4,187) | (1,555) |
Net income (loss) | 261 | 261 | ||||
Other comprehensive gain (loss), net of taxes | 5 | 5 | ||||
Stock-based compensation expense | 835 | 835 | ||||
Ending Balances at Mar. 31, 2023 | 87,104 | 133 | 32,894 | 59,814 | (4,187) | (1,550) |
Beginning Balances at Dec. 31, 2022 | 86,003 | 133 | 32,059 | 59,553 | (4,187) | (1,555) |
Net income (loss) | (1,912) | |||||
Other comprehensive gain (loss), net of taxes | (7) | |||||
Ending Balances at Jun. 30, 2023 | 85,339 | 133 | 33,886 | 57,641 | (4,759) | (1,562) |
Beginning Balances at Mar. 31, 2023 | 87,104 | 133 | 32,894 | 59,814 | $ (4,187) | (1,550) |
Net income (loss) | (2,173) | (2,173) | ||||
Employee common stock purchases | 150 | 150 | ||||
Other comprehensive gain (loss), net of taxes | (12) | (12) | ||||
Stock-based compensation expense | $ 842 | 842 | ||||
Shares repurchased | (572) | (572) | ||||
Ending Balances at Jun. 30, 2023 | $ 85,339 | $ 133 | $ 33,886 | $ 57,641 | $ (4,759) | $ (1,562) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (1,912) | $ 4,768 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,026 | 2,128 |
Interest amortization of deferred financing costs | 37 | 36 |
Stock-based compensation expense | 1,677 | 1,278 |
Deferred income taxes, net | (439) | 551 |
Employment-related claim liability, net of recoveries | 3,100 | 0 |
Operating lease assets and liabilities, net | 22 | (223) |
Loss on disposition of fixed assets | 1 | 0 |
Long term accrued income taxes | (36) | 0 |
Working capital items: | ||
Accounts receivable and unbilled receivables | 9,605 | (7,815) |
Prepaid and other current assets | (952) | 788 |
Accounts payable | (97) | 1,770 |
Accrued payroll and related costs | (449) | (990) |
Other accrued liabilities | 292 | (279) |
Deferred revenue | 232 | (75) |
Net cash flows provided by operating activities | 13,107 | 1,937 |
INVESTING ACTIVITIES: | ||
Recovery of (payment for) non-current deposits | 70 | 104 |
Capital expenditures | (112) | (797) |
Net cash flows (used in) investing activities | (42) | (693) |
FINANCING ACTIVITIES: | ||
(Repayments) on term loan facility | (1,100) | (2,200) |
Proceeds from the issuance of common shares | 150 | 199 |
Purchase of treasury stock | (572) | 0 |
Proceeds from the exercise of stock options | 0 | 1,323 |
Net cash flows (used in) financing activities | (1,522) | (678) |
Effect of exchange rate changes on cash and cash equivalents | 14 | (466) |
Net change in cash and cash equivalents | 11,557 | 100 |
Cash and cash equivalents, beginning of period | 7,057 | 6,622 |
Cash and cash equivalents, end of period | $ 18,614 | $ 6,722 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. Description of Business and Basis of Presentation: Basis of Presentation References in this Quarterly Report on Form 10-Q Description of Business We are a provider of Digital Transformation IT Services to mostly large and medium-sized Our portfolio of offerings includes data management and analytics services, digital learning services and IT staffing services. With our 2017 acquisition of the services division of Canada-based InfoTrellis, Inc., we added specialized capabilities in delivering data and analytics services to our customers, which became our Data and Analytics Services segment. This segment offers project-based consulting services in the areas of data management, data engineering and data science, with such services delivered using on-site Our IT staffing services segment combines technical expertise with business process experience to deliver a broad range of staffing services in digital and mainstream technologies. Our digital technologies include data management, analytics, cloud, mobility, social and artificial intelligence. We work with businesses and institutions with significant IT spending and recurring staffing service needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. The COVID-19 roll-out COVID-19- COVID-19 Accounting Principles The accompanying Financial Statements have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements and the accompanying notes. Actual results could differ from these estimates. These Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2022, included in our Annual Report on Form 10-K Principles of Consolidation The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Critical Accounting Policies Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K Segment Reporting The Company has two reportable segments, in accordance with Accounting Standards Committee (“ASC”) Topic 280 “Disclosures About Segments of an Enterprise and Related Information”: Data and Analytics Services and IT Staffing Services. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers The Company recognizes revenue on time-and-material Time-and-material out-of-pocket Out-of-pocket The Company recognizes revenue on fixed price contracts over time as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable. The Company’s time-and-material In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. We do not sell, lease or otherwise market computer software or hardware, and, essentially, 100% of our revenue is derived from the sale of data and analytics, IT staffing and digital transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within sales and marketing expenses. Each contract the Company enters into is assessed to determine the promised services to be performed and includes identification of the performance obligations required by the contract. In substantially all our contracts, we have identified a single performance obligation for each contract either because the promised services are distinct or the promised services are highly interrelated and interdependent and, therefore, represent a combined single performance obligation. Our Data and Analytics Services segment provides specialized capabilities in delivering data management and analytics services to its customers. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Data Engineering and Analytics, all of which can be delivered using onsite and offshore resources. Our IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital and mainstream technologies. Our digital technology stack includes data management and analytics, cloud, mobility, social and automation. Our mainstream technologies include business intelligence / data warehousing, web services, enterprise resource planning & customer resource management, and e-Business The following table depicts the disaggregation of our revenues by contract type and operating segment: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Data and Analytics Services Segment Time-and-material $ 6,438 $ 6,863 $ 13,139 $ 13,044 Fixed-price Contracts 2,335 4,387 5,029 8,358 Subtotal Data and Analytics Services $ 8,773 $ 11,250 $ 18,168 $ 21,402 Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) IT Staffing Services Segment Time-and-material $ 43,431 $ 50,867 $ 89,099 $ 100,470 Fixed-price Contracts — — — — Subtotal IT Staffing Services $ 43,431 $ 50,867 $ 89,099 $ 100,470 Total Revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 For the three months ended June 30, 2023, the Company had one client (CGI =24.0%) that exceeded 10% of total revenues. For the six months ended June 30, 2023, the Company had the same one client (CGI = 24.8%) that exceeded 10 The Company’s top ten clients represented approximately 55% and 52% of total revenues for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, the Company’s top ten clients represented approximately 55% and 52% of total revenues, respectively. The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) United States $ 51,265 $ 60,468 $ 105,020 $ 118,815 Canada 701 1,130 1,532 2,149 India and Other 238 519 715 908 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | 3. Goodwill and Other Intangible Assets, net Goodwill related to our June 15, 2015, acquisition of Hudson Global Resources Management’s U.S. IT staffing business (“Hudson IT”) totaled $8.4 million. Goodwill related to our July 13, 2017, acquisition of the services division of InfoTrellis totaled $27.4 million. During 2018, the Company recorded a goodwill impairment of $9.7 million related to the InfoTrellis acquisition. Goodwill related to our October 1, 2020, acquisition of AmberLeaf totaled $6.4 million. The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of June 30, 2023, and December 31, 2022: As of June 30, 2023 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 5,360 $ 2,639 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 8,959 10,682 Covenant-not-to-compete 5 1,201 1,003 198 Trade name 5 1,711 1,490 221 Technology 7 1,979 1,332 647 Total Intangible Assets $ 33,099 $ 18,712 $ 14,387 As of December 31, 2022 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 5,027 $ 2,972 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 8,140 11,501 Covenant-not-to-compete 5 1,201 959 242 Trade name 5 1,711 1,441 270 Technology 7 1,979 1,191 788 Total Intangible Assets $ 33,099 $ 17,326 $ 15,773 Amortization expense for the three and six-month The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2023, through December 31, 2027, is as follows: Years Ended December 31, 2023 2024 2025 2026 2027 (Amounts in thousands) Amortization expense $ 2,772 $ 2,693 $ 2,553 $ 2,413 $ 2,025 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 4. Leases The Company rents certain office facilities and equipment under noncancelable operating leases. As of June 30, 2023, approximately 96,000 square feet of office space is utilized for our sales and recruiting offices, delivery centers, and corporate headquarters. All our leases are classified as operating leases. The average initial lease term is 4.9 years. Several leases have an option to renew, at our sole discretion, for an additional term. Our present lease terms range from less than one year to 3.8 years, with a weighted average of 3.0 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The following table summarizes the balance sheet classification of the lease assets and related lease liabilities: June 30, 2023 December 31, 2022 (in thousands) Assets: Long-term operating lease right-of-use $ 3,118 $ 3,886 Liabilities: Short-term operating lease liability $ 1,228 $ 1,504 Long-term operating lease liability 1,851 2,294 Total Liabilities $ 3,079 $ 3,798 Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows: Amount as of (in thousands) 2023 (for remainder of year) $ 815 2024 949 2025 682 2026 666 2027 158 Thereafter — Total $ 3,270 Less: Imputed interest (191 ) Present value of operating lease liabilities $ 3,079 The weighted average discount rate used to calculate the present value of future lease payments was 3.7%. We recognize rent expense for these leases on a straight-line basis over the lease term. Rental expense for the three and six months ended June 30, 2023, totaled $0.4 million and $0.8 million, respectively. Rental expense for the three and six months ended June 30, 2022, totaled $0.5 million and $0.9 million, respectively. Total cash paid for lease liabilities for the three and six months ended June 30, 2023, totaled $0.4 million and $0.8 million, respectively. Total cash paid for lease liabilities for the three and six months ended June 30, 2022, totaled $0.5 million and $0.9 million, respectively. New leases entered into during the three and six months ended June 30, 2023, totaled zero dollars. New leases entered into during the three and six months ended June 30, 2022, totaled zero dollars and $0.5 million, respectively. New leases are considered non-cash |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies In December 2022, the Company received a demand letter from the attorney of a former employee who resigned from his employment with the Company in November 2022. Among other allegations in the letter, this former employee has asserted various employment-related claims against the Company, including a claim of wrongful termination. No lawsuit has been filed to date, and the parties currently are in negotiations to reach a resolution. For the three and six months ended June 30, 2023, the Company incurred $600,000 and $1 million, respectively, of professional service fees related to this matter. Additionally, the Company recorded a $3.1 million loss reserve, net of recoveries in the second quarter of 2023, with respect to an estimated settlement. These expenses are included in Selling, General and Administrative expenses in the Condensed Consolidated Statement of Operations. Please refer to Note 14 – Subsequent Event for additional information regarding this matter. In the ordinary course of our business, the Company is involved in several lawsuits. While uncertainties are inherent in the final outcome of these matters, the Company’s management believes, after consultation with legal counsel, that the disposition of these proceedings should not have a material adverse effect on our financial position, results of operations or cash flows. |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 6. Employee Benefit Plan The Company provides an Employee Retirement Savings Plan (the “Retirement Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), that covers substantially all U.S. based salaried and W-2 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In 2008, the Company adopted a Stock Incentive Plan (as amended from time to time, the “Plan”) which provided that up to 4,900,000 shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) should be allocated for issuance to directors, officers and key personnel. On May 10, 2023, the Plan was further amended to increase the number of shares of Common Stock that may be issued pursuant to the Plan by 500,000 shares, to a total of 5,400,000. Grants under the Plan may be made in the form of stock options, stock appreciation rights, performance shares or stock awards. During the three months ended June 30, 2023, the Company granted zero restricted share units and 25,000 stock options, with a strike price of $10.06, under the Plan. During the three months ended June 30, 2022, the Company granted 2,675 restricted share units and zero stock options under the Plan. During the six months ended June 30, 2023, the Company granted 19,924 restricted share units and 125,000 stock options, with an average strike price of $11.24, under the Plan. During the six months ended June 30, 2022, the Company granted 13,979 restricted share units and 400,000 stock options, with an average strike price of $18.41, under the Plan. As of June 30, 2023, there were 505,000 shares of Common Stock available for grants under the Plan. Stock-based compensation expense for the three months ended June 30, 2023 and 2022 was $842,000 and $752,000, respectively, and for the six months ended June 30, 2023, and 2022 was $1.7 million and $1.3 million, respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2023, the Company issued zero and 17,804 shares, respectively, related to the grant of restricted share units and the exercise of stock options. During the three and six months ended June 30, 2022, the Company issued 46,765 and 158,932 shares, respectively, related to the grant of restricted share units and the exercise of stock options. In October 2018, the Board of Directors of the Company approved the Mastech Digital, Inc. 2019 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”). The Employee Stock Purchase Plan is intended to meet the requirements of Section 423 of the Code and was approved by the Company’s shareholders on May 15, 2019, to be so qualified. Under the Employee Stock Purchase Plan, 600,000 shares of Common Stock (subject to adjustment upon certain changes in the Company’s capitalization) are available for purchase by eligible employees who become participants in the Employee Stock Purchase Plan. The purchase price per share is 85% of the lesser of (i) the fair market value per share of Common Stock on the first day of the offering period, or (ii) the fair market value per share of Common Stock on the last day of the offering period. The Company’s eligible full-time employees are able to contribute up to 15% of their base compensation into the Employee Stock Purchase Plan, subject to an annual limit of $25,000. Employees are able to purchase shares of Common Stock at a 15% discount to the lower of the fair market value of Common Stock on the initial or final trading dates of each six-month six-month During the three and six months ended June 30, 2023, and 2022, there were 17,890 shares and 15,765 shares issued under the Employee Stock Purchase Plan, at a share price of $8.40 and $12.63, respectively. Stock-based compensation expense related to the Stock Purchase Plan for the three months ended June 30, 2023, and 2022 totaled $38,000 and $30,000, respectively. Stock-based compensation expense related to the Stock Purchase Plan for the six months ended June 30, 2023, and 2022 totaled $68,000 and $70,000, respectively, and is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations for the six months ended June 30, 2023, and 2022. As of June 30, 2023, there were 474,675 shares of Common Stock available for purchases under the Employee Stock Purchase Plan. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Credit Facility | 8. Credit Facility On July 13, 2017, the Company entered into a Credit Agreement (the “Credit Agreement”) with PNC Bank, as administrative agent, swing loan lender and issuing lender, PNC Capital Markets LLC, as sole lead arranger and sole book-runner, and certain financial institution parties thereto as lenders (the “Lenders”). The Credit Agreement, as amended, provides for a total aggregate commitment of $53.1 million, consisting of (i) a revolving credit facility (the “Revolver”) in an aggregate principal amount not to exceed $40 million and (ii) a $13.1 million term loan facility (the “Term Loan), as more fully described in Exhibit 10.1 to the Company’s Form 8-Ks 8-K/A The Revolver expires in December 2026 and includes swing loan and letter of credit sub-limits Amounts borrowed under the Term Loan were required to be repaid in consecutive quarterly installments of $1.1 million through and including the maturity date of October 1, 2024. In August 2022, the Company prepaid $7.6 million of the outstanding term loan with excess cash balances. The final term loan payment was made on January 3, 2023, taking the outstanding balance to zero. Borrowings under the Revolver and the Term Loan, which may be made at the Company’s election, bear interest at either (a) the higher of PNC’s prime rate or the federal funds rate plus 0.50%, plus an applicable margin determined based upon the Company’s senior leverage ratio or (b) the Bloomberg Short-Term Bank Yield Index (“BSBY”), plus an applicable margin determined based upon the Company’s senior leverage ratio. The applicable margin on the base rate is between 0.50% and 1.25% on Revolver borrowings and between 1.75% and 2.50% on Term Loan borrowings. The applicable margin on the BSBY is between 1.50% and 2.25% on Revolver borrowings and between 2.75% and 3.50% on Term Loan borrowings. A 20 to 30-basis The Company pledged substantially all of its assets in support of the Credit Agreement. The Credit Agreement contains standard financial covenants, including, but not limited to, covenants related to the Company’s senior leverage ratio and fixed charge ratio (as defined under the Credit Agreement) and limitations on liens, indebtedness, guarantees, contingent liabilities, loans and investments, distributions, leases, asset sales, stock repurchases and mergers and acquisitions. As of June 30, 2023, the Company was in compliance with all applicable provisions of the Credit Agreement. In connection with securing the commitments under the Credit Agreement and the April 20, 2018, October 1, 2020, and December 29, 2021, amendments to the Credit Agreement, the Company paid a commitment fee and incurred deferred financing costs totaling $975,000, which were capitalized and are being amortized as interest expense over the life of the Credit Agreement. Deferred financing costs of $256,000 and $293,000 (net of amortization) as of June 30, 2023, and December 31, 2022, respectively, are presented as long-term assets in the Company’s Consolidated Balance Sheets. As of June 30, 2023, and December 31, 2022, the Company’s outstanding borrowings under the Revolver totaled zero dollars; and unused borrowing capacity available was approximately $23.9 million and $31.8 million, respectively. The Company’s outstanding borrowings under the Term Loan were zero dollars and $1.1 million at June 30, 2023, and December 31, 2022, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The components of income (loss) before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Income (loss) before income taxes: Domestic $ (5,074 ) $ 3,858 $ (2,994 ) $ 7,173 Foreign 2,296 (242 ) 695 (310 ) Income (loss) before income taxes $ (2,778 ) $ 3,616 $ (2,299 ) $ 6,863 The Company has foreign subsidiaries which generate revenues from non-U.S.-based The provision (benefit) for income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Current provision (benefit): Federal $ (894 ) $ 932 $ (183 ) $ 1,030 State (136 ) 234 34 259 Foreign 591 (35 ) 145 51 Total current provision (benefit) (439 ) 1,131 (4 ) 1,340 Deferred provision (benefit): Federal (154 ) (58 ) (402 ) 484 State (38 ) (12 ) (98 ) 125 Foreign (2 ) (2 ) 60 (58 ) Total deferred provision (benefit) (194 ) (72 ) (440 ) 551 Change in valuation allowance 28 121 57 204 Total provision (benefit) for income taxes $ (605 ) $ 1,180 $ (387 ) $ 2,095 The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision (benefit) for income taxes for the three and six months ended June 30, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended Three Months Ended Income taxes computed at the federal statutory rate $ (583 ) (21.0 )% $ 759 21.0 % State income taxes, net of federal tax benefit (182 ) (6.5 ) 210 5.8 Excess tax expense (benefit) from stock options/restricted shares 17 0.6 68 1.9 Difference in income tax rate on foreign earnings/other 115 4.1 22 0.6 Change in valuation allowance 28 1.0 121 3.3 $ (605 ) (21.8 )% $ 1,180 32.6 % Six Months Ended Six Months Ended Income taxes computed at the federal statutory rate $ (483 ) (21.0 )% $ 1,441 21.0 % State income taxes, net of federal tax benefit (72 ) (3.1 ) 386 5.6 Excess tax expense (benefit) from stock options/restricted shares 40 1.7 (9 ) (0.1 ) Difference in income tax rate on foreign earnings/other 71 3.1 73 1.0 Change in valuation allowance 57 2.5 204 3.0 $ (387 ) (16.8 )% $ 2,095 30.5 % We evaluate deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. GAAP accounting guidance requires us to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative, using a “more likely than not” standard. Our assessment considers, among other things, the nature of cumulative losses, forecast of future profitability, the duration of statutory carry-forward periods and tax planning alternatives. At June 30, 2023, our valuation allowance was comprised of balances within locations of Singapore, Ireland and the United Kingdom. The valuation allowance balances at these locations totaled $616,000 and $559,000 as of June 30, 2023, and December 31, 2022, respectively, and reflect net operating losses which may not be realizable in the future. In the third quarter of 2022, the Company decided to close the Singapore and Ireland operations. The Company’s Canadian subsidiary is currently under audit by Revenue Canada for the years 2018 and 2019. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders’ Equity On February 8, 2023, the Company announced that the Board of Directors authorized a share repurchase program of up to 500,000 shares of Common Stock over a two-year Additionally, the Company makes stock purchases from time to time to satisfy employee tax obligations related to the Plan. The Company did not purchase any shares to satisfy employee tax obligations during the six months ended June 30, 2023 and 2022. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 11. Earnings (Loss) Per Share The computation of basic earnings (loss) per share is based on the Company’s net income (loss) divided by the weighted average number of shares of Common Stock outstanding. Diluted earnings (loss) per share reflect the potential dilution that could occur if outstanding stock options were exercised. The dilutive effect of stock options was calculated using the treasury stock method. For the three and six months ended June 30, 2023, all stock options and restricted shares were anti-dilutive and excluded from the computation of diluted (loss) per share. For the three and six months ended June 30, 2022, there were 403,000 and 211,000 anti-dilutive stock options excluded from the computation of diluted earnings per share. |
Business Segments and Geographi
Business Segments and Geographic Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Information | 12. 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 Atlanta, Toronto and London, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site 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. Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Revenues: Data and Analytics Services $ 8,773 $ 11,250 $ 18,168 $ 21,402 IT Staffing Services 43,431 50,867 89,099 100,470 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 Gross Margin %: Data and Analytics Services 45.6 % 43.6 % 41.9 % 44.3 % IT Staffing Services 22.2 % 23.3 % 21.9 % 23.1 % Total gross margin % 26.1 % 27.0 % 25.3 % 26.8 % Segment operating income (loss): Data and Analytics Services $ (881 ) $ 817 $ (1,561 ) $ 1,789 IT Staffing Services 1,846 3,523 3,751 6,650 Subtotal 965 4,340 2,190 8,439 Amortization of acquired intangible assets (693 ) (792 ) (1,386 ) (1,584 ) Employment-related claim, net of recoveries (3,100 ) — (3,100 ) — Interest expenses, FX gains/losses and other, net 50 68 (3 ) 8 Income (loss) before income taxes $ (2,778 ) $ 3,616 $ (2,299 ) $ 6,863 Below is a reconciliation of segment total assets to consolidated total assets: June 30, December 31, (Amounts in thousands) Total assets: Data and Analytics Services $ 54,012 $ 54,544 IT Staffing Services 57,205 54,335 Total assets $ 111,217 $ 108,879 Below is geographic information related to our revenues from external customers: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) United States $ 51,265 $ 60,468 $ 105,020 $ 118,815 Canada 701 1,130 1,532 2,149 India and Other 238 519 715 908 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | 13. Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board issued ASU 2021-08, A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any, that the implementation of such proposed standards would have on the Company’s consolidated financial statements. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 14. Subsequent Event On August 4, 2023, the Company and certain of its wholly owned subsidiaries (collectively, the “Company Entities”) entered into a Confidential Agreement and General Release (the “Settlement Agreement”) with the former employee whose attorney submitted the December 2022 demand letter described in Note 5 “Commitments and Contingencies” of the Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q. The Settlement Agreement is scheduled to become effective no later than August 12, 2023 and contains mutual general releases of all claims between the Company Entities and this former employee (including a release of all claims asserted in the December 2022 demand letter). Based on the terms of the Settlement Agreement, the Company expects to pay the settlement amount during the third quarter of 2023. The exact terms of the Settlement Agreement are to remain confidential; however, the settlement amount, net of expected recoveries, was fully reserved in the second quarter of 2023 and is included in Selling, General and Administrative expenses in the Condensed Consolidated Statement of Operations included in this quarterly report on Form 10-Q. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment | The following table depicts the disaggregation of our revenues by contract type and operating segment: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Data and Analytics Services Segment Time-and-material $ 6,438 $ 6,863 $ 13,139 $ 13,044 Fixed-price Contracts 2,335 4,387 5,029 8,358 Subtotal Data and Analytics Services $ 8,773 $ 11,250 $ 18,168 $ 21,402 Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) IT Staffing Services Segment Time-and-material $ 43,431 $ 50,867 $ 89,099 $ 100,470 Fixed-price Contracts — — — — Subtotal IT Staffing Services $ 43,431 $ 50,867 $ 89,099 $ 100,470 Total Revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 |
Summary of Revenue from External Customers | The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) United States $ 51,265 $ 60,468 $ 105,020 $ 118,815 Canada 701 1,130 1,532 2,149 India and Other 238 519 715 908 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Identifiable Intangible assets | The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of June 30, 2023, and December 31, 2022: As of June 30, 2023 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 5,360 $ 2,639 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 8,959 10,682 Covenant-not-to-compete 5 1,201 1,003 198 Trade name 5 1,711 1,490 221 Technology 7 1,979 1,332 647 Total Intangible Assets $ 33,099 $ 18,712 $ 14,387 As of December 31, 2022 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 5,027 $ 2,972 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 8,140 11,501 Covenant-not-to-compete 5 1,201 959 242 Trade name 5 1,711 1,441 270 Technology 7 1,979 1,191 788 Total Intangible Assets $ 33,099 $ 17,326 $ 15,773 |
Schedule of Estimated Amortization Expense | The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2023, through December 31, 2027, is as follows: Years Ended December 31, 2023 2024 2025 2026 2027 (Amounts in thousands) Amortization expense $ 2,772 $ 2,693 $ 2,553 $ 2,413 $ 2,025 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Summary of Balance Sheet classification of lease assets and related lease liabilities | The following table summarizes the balance sheet classification of the lease assets and related lease liabilities: June 30, 2023 December 31, 2022 (in thousands) Assets: Long-term operating lease right-of-use $ 3,118 $ 3,886 Liabilities: Short-term operating lease liability $ 1,228 $ 1,504 Long-term operating lease liability 1,851 2,294 Total Liabilities $ 3,079 $ 3,798 |
Schedule of Minimum Future Rental Payments | Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows: Amount as of (in thousands) 2023 (for remainder of year) $ 815 2024 949 2025 682 2026 666 2027 158 Thereafter — Total $ 3,270 Less: Imputed interest (191 ) Present value of operating lease liabilities $ 3,079 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | The components of income (loss) before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Income (loss) before income taxes: Domestic $ (5,074 ) $ 3,858 $ (2,994 ) $ 7,173 Foreign 2,296 (242 ) 695 (310 ) Income (loss) before income taxes $ (2,778 ) $ 3,616 $ (2,299 ) $ 6,863 |
Provision for Income Taxes | The provision (benefit) for income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Current provision (benefit): Federal $ (894 ) $ 932 $ (183 ) $ 1,030 State (136 ) 234 34 259 Foreign 591 (35 ) 145 51 Total current provision (benefit) (439 ) 1,131 (4 ) 1,340 Deferred provision (benefit): Federal (154 ) (58 ) (402 ) 484 State (38 ) (12 ) (98 ) 125 Foreign (2 ) (2 ) 60 (58 ) Total deferred provision (benefit) (194 ) (72 ) (440 ) 551 Change in valuation allowance 28 121 57 204 Total provision (benefit) for income taxes $ (605 ) $ 1,180 $ (387 ) $ 2,095 |
Reconciliation of Income Taxes | The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision (benefit) for income taxes for the three and six months ended June 30, 2023 and 2022 were as follows (amounts in thousands): Three Months Ended Three Months Ended Income taxes computed at the federal statutory rate $ (583 ) (21.0 )% $ 759 21.0 % State income taxes, net of federal tax benefit (182 ) (6.5 ) 210 5.8 Excess tax expense (benefit) from stock options/restricted shares 17 0.6 68 1.9 Difference in income tax rate on foreign earnings/other 115 4.1 22 0.6 Change in valuation allowance 28 1.0 121 3.3 $ (605 ) (21.8 )% $ 1,180 32.6 % Six Months Ended Six Months Ended Income taxes computed at the federal statutory rate $ (483 ) (21.0 )% $ 1,441 21.0 % State income taxes, net of federal tax benefit (72 ) (3.1 ) 386 5.6 Excess tax expense (benefit) from stock options/restricted shares 40 1.7 (9 ) (0.1 ) Difference in income tax rate on foreign earnings/other 71 3.1 73 1.0 Change in valuation allowance 57 2.5 204 3.0 $ (387 ) (16.8 )% $ 2,095 30.5 % |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) Revenues: Data and Analytics Services $ 8,773 $ 11,250 $ 18,168 $ 21,402 IT Staffing Services 43,431 50,867 89,099 100,470 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 Gross Margin %: Data and Analytics Services 45.6 % 43.6 % 41.9 % 44.3 % IT Staffing Services 22.2 % 23.3 % 21.9 % 23.1 % Total gross margin % 26.1 % 27.0 % 25.3 % 26.8 % Segment operating income (loss): Data and Analytics Services $ (881 ) $ 817 $ (1,561 ) $ 1,789 IT Staffing Services 1,846 3,523 3,751 6,650 Subtotal 965 4,340 2,190 8,439 Amortization of acquired intangible assets (693 ) (792 ) (1,386 ) (1,584 ) Employment-related claim, net of recoveries (3,100 ) — (3,100 ) — Interest expenses, FX gains/losses and other, net 50 68 (3 ) 8 Income (loss) before income taxes $ (2,778 ) $ 3,616 $ (2,299 ) $ 6,863 |
Summary of Assets, Depreciation and Amortization and Capital Expenditures by Segment | Below is a reconciliation of segment total assets to consolidated total assets: June 30, December 31, (Amounts in thousands) Total assets: Data and Analytics Services $ 54,012 $ 54,544 IT Staffing Services 57,205 54,335 Total assets $ 111,217 $ 108,879 |
Summary of Revenue from External Customers and Long-lived Assets | Below is geographic information related to our revenues from external customers: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Amounts in thousands) (Amounts in thousands) United States $ 51,265 $ 60,468 $ 105,020 $ 118,815 Canada 701 1,130 1,532 2,149 India and Other 238 519 715 908 Total revenues $ 52,204 $ 62,117 $ 107,267 $ 121,872 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - Agreement | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Percentage of billing expense revenues | 2% | |||
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | CGI [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total accounts receivable | 24% | 22.30% | 24.80% | 20.10% |
Number of customers | 1 | 1 | 1 | 1 |
Top Ten Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue percentage of total revenue | 55% | 52% | 55% | 52% |
Data and Analytics Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percent of revenue from services | 100% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | $ 52,204 | $ 62,117 | $ 107,267 | $ 121,872 |
Data and Analytics Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | 8,773 | 11,250 | 18,168 | 21,402 |
Data and Analytics Services [Member] | Time-and-Material Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | 6,438 | 6,863 | 13,139 | 13,044 |
Data and Analytics Services [Member] | Fixed-Price Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | 2,335 | 4,387 | 5,029 | 8,358 |
IT Staffing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | 43,431 | 50,867 | 89,099 | 100,470 |
IT Staffing Services [Member] | Time-and-Material Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | 43,431 | 50,867 | 89,099 | 100,470 |
IT Staffing Services [Member] | Fixed-Price Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues by contract type and operating segment | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Revenue from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from External Customer [Line Items] | ||||
Total | $ 52,204 | $ 62,117 | $ 107,267 | $ 121,872 |
United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total | 51,265 | 60,468 | 105,020 | 118,815 |
Canada [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total | 701 | 1,130 | 1,532 | 2,149 |
India and other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total | $ 238 | $ 519 | $ 715 | $ 908 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2018 | Dec. 31, 2022 | Oct. 01, 2020 | Jul. 13, 2017 | Jun. 15, 2015 | |
Goodwill and Intangible Assets [Line Items] | |||||||||
Goodwill | $ 32,510 | $ 32,510 | $ 32,510 | ||||||
Amortization expense | $ 693 | $ 792 | $ 1,386 | $ 1,584 | |||||
Hudson IT [Member] | |||||||||
Goodwill and Intangible Assets [Line Items] | |||||||||
Goodwill | $ 8,400 | ||||||||
Info Trellis Inc [Member] | |||||||||
Goodwill and Intangible Assets [Line Items] | |||||||||
Goodwill | $ 27,400 | ||||||||
Goodwill impairment | $ 9,700 | ||||||||
Amber Leaf Partners Inc [Member] | |||||||||
Goodwill and Intangible Assets [Line Items] | |||||||||
Goodwill | $ 6,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Components of Identifiable Intangible assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Intangible Assets, Accumulated Amortization | $ 18,712 | $ 17,326 |
Total Intangible Assets, Gross Carrying Value | 33,099 | 33,099 |
Total Intangible Assets, Net Carrying Value | $ 14,387 | $ 15,773 |
Client Relationships [Member] | IT Staffing Services [Member] | ||
Amortization Period (In Years) | 12 years | 12 years |
Intangible Assets, Gross Carrying Value | $ 7,999 | $ 7,999 |
Intangible Assets, Accumulated Amortization | 5,360 | 5,027 |
Intangible Assets, Net Carrying Value | $ 2,639 | $ 2,972 |
Client Relationships [Member] | Data and Analytics Services [Member] | ||
Amortization Period (In Years) | 12 years | 12 years |
Intangible Assets, Gross Carrying Value | $ 19,641 | $ 19,641 |
Intangible Assets, Accumulated Amortization | 8,959 | 8,140 |
Intangible Assets, Net Carrying Value | $ 10,682 | $ 11,501 |
Covenant Not-to-Compete [Member] | IT Staffing Services [Member] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 319 | $ 319 |
Intangible Assets, Accumulated Amortization | 319 | 319 |
Intangible Assets, Net Carrying Value | $ 0 | $ 0 |
Covenant Not-to-Compete [Member] | Data and Analytics Services [Member] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 1,201 | $ 1,201 |
Intangible Assets, Accumulated Amortization | 1,003 | 959 |
Intangible Assets, Net Carrying Value | $ 198 | $ 242 |
Trade Name [Member] | IT Staffing Services [Member] | ||
Amortization Period (In Years) | 3 years | 3 years |
Intangible Assets, Gross Carrying Value | $ 249 | $ 249 |
Intangible Assets, Accumulated Amortization | 249 | 249 |
Intangible Assets, Net Carrying Value | $ 0 | $ 0 |
Trade Name [Member] | Data and Analytics Services [Member] | ||
Amortization Period (In Years) | 5 years | 5 years |
Intangible Assets, Gross Carrying Value | $ 1,711 | $ 1,711 |
Intangible Assets, Accumulated Amortization | 1,490 | 1,441 |
Intangible Assets, Net Carrying Value | $ 221 | $ 270 |
Technology [Member] | Data and Analytics Services [Member] | ||
Amortization Period (In Years) | 7 years | 7 years |
Intangible Assets, Gross Carrying Value | $ 1,979 | $ 1,979 |
Intangible Assets, Accumulated Amortization | 1,332 | 1,191 |
Intangible Assets, Net Carrying Value | $ 647 | $ 788 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Jun. 30, 2023 USD ($) |
Intangible Liability Disclosure [Abstract] | |
Estimated aggregate amortization expense for year ending 2023 | $ 2,772 |
Estimated aggregate amortization expense for year ending 2024 | 2,693 |
Estimated aggregate amortization expense for year ending 2025 | 2,553 |
Estimated aggregate amortization expense for year ending 2026 | 2,413 |
Estimated aggregate amortization expense for year ending 2027 | $ 2,025 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | |
Square feet of office space | ft² | 96,000 | 96,000 | ||
Average initial lease term | 4 years 10 months 24 days | 4 years 10 months 24 days | ||
Discount rate | 3.70% | 3.70% | ||
Operating leases, rent expense, net | $ 0.4 | $ 0.5 | $ 0.8 | $ 0.9 |
Total lease payments | 0.4 | 0.5 | 0.8 | 0.9 |
Lease obligation incurred | $ 0 | $ 0 | $ 0 | $ 0.5 |
Minimum [Member] | ||||
Lease term range | 1 year | |||
Maximum [Member] | ||||
Lease term range | 3 years 9 months 18 days | |||
Weighted Average [Member] | ||||
Lease term range | 3 years |
Leases - Summary of Balance She
Leases - Summary of Balance Sheet classification of lease asset and related lease liability (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Long-term operating lease right-of-use assets | $ 3,118 | $ 3,886 |
Liabilities: | ||
Short-term operating lease liability | 1,228 | 1,504 |
Long-term operating lease liability | 1,851 | 2,294 |
Total Liabilities | $ 3,079 | $ 3,798 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
2023 (for remainder of year) | $ 815 | |
2024 | 949 | |
2025 | 682 | |
2026 | 666 | |
2027 | 158 | |
Thereafter | 0 | |
Total | 3,270 | |
Less: Imputed interest | (191) | |
Present value of operating lease liabilities | $ 3,079 | $ 3,798 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Former Employee Unasserted Claim [Member] - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | ||
Professional fees | $ 600,000 | $ 1,000,000 |
Loss contingency accrual, provision | $ 3,100,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contributions | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
May 10, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | May 15, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares allocated for issuance to directors, officers and key personnel | 5,400,000 | 4,900,000 | 4,900,000 | |||||
Number of Options, Granted | 25,000 | 0 | 125,000 | 400,000 | ||||
Stock-based compensation expense | $ 1,677,000 | $ 1,278,000 | ||||||
Strike price | $ / shares | $ 10.06 | $ 11.24 | $ 18.41 | |||||
Restricted shares granted | 0 | 2,675 | 19,924 | 13,979 | ||||
Employee stock purchase estimation | The fair value of the six-month “look-back” option in the Company’s Employee Stock Purchase Plan is estimated by adding the fair value of 15% of one share of stock to 85% of the fair value of an option on one share of stock. | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Number of additional shares authorized for issuance under share-based payment arrangement | 500,000 | |||||||
Stock Options And Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares issued related to employee stock purchases | 0 | 46,765 | 17,804 | 158,932 | ||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for future grants | 474,675 | 474,675 | 600,000 | |||||
Stock-based compensation expense | $ 842,000 | $ 752,000 | $ 1,700,000 | $ 1,300,000 | ||||
Number of shares issued related to employee stock purchases | 17,890 | 15,765 | 17,890 | 15,765 | ||||
Percentage of maximum contribution of salary towards plan | 15% | 15% | ||||||
Maximum contribution towards plan | $ 25,000 | $ 25,000 | ||||||
Discount on purchase of common stock | 15% | |||||||
Share issued price per share | $ 8.4 | $ 12.63 | $ 8.4 | $ 12.63 | ||||
Share-based payment arrangement, expense | $ 38,000 | $ 30,000 | $ 68,000 | $ 70,000 | ||||
Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for future grants | 505,000 | 505,000 |
Credit Facility - Additional in
Credit Facility - Additional information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 04, 2022 | Oct. 01, 2020 | Aug. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||||||||
Current borrowing capacity under line of credit facility | $ 23,900,000 | $ 31,800,000 | ||||||
Deferred financing costs | 256,000 | 293,000 | ||||||
Repayments of debt | 1,100,000 | $ 2,200,000 | ||||||
Term Loan Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Outstanding borrowings amount | 0 | 1,100,000 | ||||||
Revolving Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of eligible accounts receivable | 85% | |||||||
Outstanding borrowings amount | $ 0 | 0 | ||||||
Revolving Line of Credit [Member] | United States [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of eligible unbilled accounts | 60% | |||||||
Revolving Line of Credit [Member] | Canada [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 10,000,000 | |||||||
Percentage of eligible accounts receivable | 85% | |||||||
Percentage of eligible unbilled accounts | 60% | |||||||
Revolving Line of Credit [Member] | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 5,000,000 | |||||||
Revolving Line of Credit [Member] | Swing Loans [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 6,000,000 | |||||||
Federal Funds Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
PNC Bank, N.A. [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 53,100,000 | |||||||
Payment of deferred financing costs | $ 975,000 | |||||||
PNC Bank, N.A. [Member] | Term Loan Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 13,100,000 | |||||||
Credit facility, periodic payment | 1,100,000 | |||||||
Repayments of debt | $ 7,600,000 | |||||||
Line of credit facility outstanding amount | $ 0 | |||||||
PNC Bank, N.A. [Member] | Revolving Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 40,000,000 | |||||||
Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility percentage margin over base rate | 1.25% | |||||||
Term loan percentage margin over base rate | 2.50% | |||||||
Revolving credit facility percentage margin adjusted LIBOR rate | 2.25% | |||||||
Term loan percentage margin adjusted LIBOR rate | 3.50% | |||||||
Maximum [Member] | PNC Bank, N.A. [Member] | Revolving Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility additional borrowing capacity upon certain conditions | $ 20,000,000 | |||||||
Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility percentage margin over base rate | 0.50% | |||||||
Term loan percentage margin over base rate | 1.75% | |||||||
Revolving credit facility percentage margin adjusted LIBOR rate | 1.50% | |||||||
Term loan percentage margin adjusted LIBOR rate | 2.75% |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income (loss) before income taxes: | ||||
Domestic | $ (5,074) | $ 3,858 | $ (2,994) | $ 7,173 |
Foreign | 2,296 | (242) | 695 | (310) |
Income (loss) before income taxes | $ (2,778) | $ 3,616 | $ (2,299) | $ 6,863 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current provision (benefit): | ||||
Federal | $ (894) | $ 932 | $ (183) | $ 1,030 |
State | (136) | 234 | 34 | 259 |
Foreign | 591 | (35) | 145 | 51 |
Total current provision (benefit) | (439) | 1,131 | (4) | 1,340 |
Deferred provision (benefit): | ||||
Federal | (154) | (58) | (402) | 484 |
State | (38) | (12) | (98) | 125 |
Foreign | (2) | (2) | 60 | (58) |
Total deferred provision (benefit) | (194) | (72) | (440) | 551 |
Change in valuation allowance | 28 | 121 | 57 | 204 |
Total provision (benefit) for income taxes | $ (605) | $ 1,180 | $ (387) | $ 2,095 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes computed at the federal statutory rate, Value | $ (583) | $ 759 | $ (483) | $ 1,441 |
State income taxes, net of federal tax benefit, Value | (182) | 210 | (72) | 386 |
Excess tax expense (benefit) from stock options/restricted shares | 17 | 68 | 40 | (9) |
Difference in income tax rate on foreign earnings/other | 115 | 22 | 71 | 73 |
Change in valuation allowance | 28 | 121 | 57 | 204 |
Total provision (benefit) for income taxes | $ (605) | $ 1,180 | $ (387) | $ 2,095 |
Income taxes computed at the federal statutory rate | (21.00%) | 21% | (21.00%) | 21% |
State income taxes, net of federal tax benefit | (6.50%) | 5.80% | (3.10%) | 5.60% |
Excess tax benefit from stock options/restricted shares | 0.60% | 1.90% | 1.70% | (0.10%) |
Difference in tax rate on foreign earnings/other | 4.10% | 0.60% | 3.10% | 1% |
Change in valuation allowance[Percent] | 1% | 3.30% | 2.50% | 3% |
Effective for income tax rate, Total | (21.80%) | 32.60% | (16.80%) | 30.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Tax Liabilities Valuation Allowance | $ 616 | $ 559 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Feb. 08, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares purchased to satisfy employee tax obligation | 0 | 0 | ||
Number of shares repurchased during the period | 62,361 | 62,361 | ||
Stock repurchase program average purchase price per share | $ 9.15 | $ 9.15 | ||
Common Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized to be repurchased | 500,000 | |||
Stock repurchase program, period in force | 2 years |
Earnings (Loss) per Share - Ad
Earnings (Loss) per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities not included in computation of earnings per share | 403,000 | 211,000 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 | |
Data and Analytics Services [Member] | Business Combination Credit Agreement [Member] | |
Segment Reporting Information [Line Items] | |
Business acquisition date | Jul. 13, 2017 |
Business Segments and Geograp_4
Business Segments and Geographic Information - Summary of Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 52,204 | $ 62,117 | $ 107,267 | $ 121,872 |
Total gross margin % | 26.10% | 27% | 25.30% | 26.80% |
Segment operating income (loss): | $ (2,828) | $ 3,548 | $ (2,296) | $ 6,855 |
Amortization of acquired intangible assets | (693) | (792) | (1,386) | (1,584) |
Employment-related claim, net of recoveries | (3,100) | 0 | (3,100) | 0 |
Interest expenses, FX gains/losses and other, net | 50 | 68 | (3) | 8 |
Income (loss) before income taxes | (2,778) | 3,616 | (2,299) | 6,863 |
Data and analytics services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8,773 | $ 11,250 | $ 18,168 | $ 21,402 |
Total gross margin % | 45.60% | 43.60% | 41.90% | 44.30% |
IT staffing services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 43,431 | $ 50,867 | $ 89,099 | $ 100,470 |
Total gross margin % | 22.20% | 23.30% | 21.90% | 23.10% |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss): | $ 965 | $ 4,340 | $ 2,190 | $ 8,439 |
Operating Segments [Member] | Data and analytics services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss): | (881) | 817 | (1,561) | 1,789 |
Operating Segments [Member] | IT staffing services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss): | $ 1,846 | $ 3,523 | $ 3,751 | $ 6,650 |
Business Segments and Geograp_5
Business Segments and Geographic Information - Summary of Assets by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 111,217 | $ 108,879 |
Data and analytics services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 54,012 | 54,544 |
IT Staffing Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 57,205 | $ 54,335 |
Business Segments and Geograp_6
Business Segments and Geographic Information - Summary of Revenue from External Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 52,204 | $ 62,117 | $ 107,267 | $ 121,872 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 51,265 | 60,468 | 105,020 | 118,815 |
Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 701 | 1,130 | 1,532 | 2,149 |
India and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 238 | $ 519 | $ 715 | $ 908 |