MHH - Earnings call transcript Q1 2020

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Operator

Greetings. Welcome to Mastech Digital, Inc.

First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note, recorded. Please

now Ford Lacey, is Inc. you, my for pleasure Jennifer host, Thank your introduce Ms. Manager Digital, to Mastech It of Affairs Legal

Ford Lacey.

begin. may You

Jennifer Ford Lacey

first And to operator. conference you, Thank Mastech Digital's call. quarter welcome XXXX

a If of announcement, from website our obtained copy at you be yet www.mastechdigital.com. can earnings not our have received it

me the call Financial Digital's and Officer, Executive our on today Chief Mastech With Jack Officer. Chief are Vivek Cronin, Gupta,

are liquidity that historical I include about made which well and to during our cash operate. intentions forward-looking would These facts as beliefs strategies, remind statements statements. business, in call like we flows, are that our everyone this financial projections statements not and forward-looking statements costs markets concerning plans, growth our and as the

plans, us, foregoing, similar these to assume statements. These update Without the and intended identify information anticipates, on and circumstances statements to based as believes, words currently certain expects to the available we statements forward-looking change. are expressions obligation limiting no are

There actual its Exchange from events the company's XX-K and that with annual those available including and report to could www.sec.gov. in XXXX listed filed cause are forward-looking statements, materially on these Securities differ website Form uncertainties at Commission on risks and the

non-GAAP elected has a to measures management on Additionally, our provide financial results supplement presented certain financial to GAAP basis.

share to earnings Specifically, believe greater business. income respect we net will operating with data, used metrics key which we per by non-GAAP non-GAAP diluted and provide transparency management our provide will in

our www.mastechdigital.com. GAAP announcement, can in earnings non-GAAP these which at measures their financial from are obtained of measures included comparable Reconciliations to be our website

this or provide in we calls. will any not subsequent during call will nor we meetings reminder, guidance As one-on-one be providing a guidance

of to turn Jack the our call review I will quarter XXXX now results. first a for over

John Cronin

And Jen. good morning, everyone. Thanks,

the and Digital faced acknowledging Companies exception. our is unprecedented the challenges on economy profound having is a by COVID-XX Mastech impact with begin lives. are Obviously, environment. being pandemic global current on and me Let people's no

business from our of and other as be well financial recovery. mandates, the on impact adversely economic conditions the shelter-in-place will the arising impacted of COVID-XX, depend results this the by of other expected pace duration government largely While extent the and economic and as will

difficult this of We're to believe strong challenges combined the And a liquidity this our other enter leads to we cash pandemic period business liquidity out. severe in won't fortunate companies this, plays and model, some experience that that facing with us as are many position.

and QX turn backdrop, let $XX.X totaled our of first million XX% the increase to compared $XX.X first to XXXX results. quarter With represented XXXX. me quarter Revenue that now a in for XXXX financial million

the and industry global given contributed multiyear, customer of multimillion-dollar Data order Analytics of chip Services well, XXXX, year's this services revenue the which revenue segment financial results did in a a economy, during held with exceeded in million up by $X.X we and XX%. Our last levels March. Activity blue segment QX the in secure QX state significant

revenue we While pushing into first growth in second was the X% XXXX. from seeing the of clients pipeline is Year-over-year out IT projects opportunities segment half strong, year. of of our Services our Staffing are quarter some the

our However, hard-hit travel, particularly seeing in industries Services, demand we such and clients Staffing lower with energy are as manufacturing. for

of period last quarter $XX.X first to same the $XX.X year. compared for profit million the Gross in XXXX totaled million

first our XX.X% XX% is gross XXXX. of revenues margins quarter in This second to breaking gross Our for were the margin consecutive the quarter of of compared barrier. XX% QX XXXX

in both margins Services an margins from basis margins quarter first in earlier. gross for assignments Analytics and of an XXXX points XXXX were XX first segment our increase Data of Higher XX.X%, basis Services XX.X% of this segments QX had XXX largely gross quarter. increase And XXXX, year Staffing points the from improvement. segment Our a from IT responsible of new had

SG&A quarter million of principally $X.X first Data the $XXX,XXX in XXXX. of XXXX quarter global our segment, million and the This the segment, sales to staff-related $X areas largely delivery, due expenses in of first Analytics Services in were expenses of represented and Services compared expenses. million IT our investments increase $XXX,XXX Staffing higher $XX.X in in SG&A to and in

As had in our to continue we we of entered XXXX, investing segments. planned both business

conditions. will the start expenditures we we of until in recovery see meaningful current much to given a environment, planned these However, delay economic

of for income the $X.XX was in $X.X quarter $X net or or first the of XXXX. diluted share million XXXX to GAAP first compared share per diluted per quarter million $X.XX

income or or million net share diluted share quarter in XXXX. of XXXX million compared for was $X.X corresponding $X.XX per diluted $X.X per $X.XX Non-GAAP QX to the

not expense net earnings acquired release, in which of and SG&A is for of the tax and measures, quarter stock-based financial in benefit, items quarter compensation on detailed First included assets intangible non-GAAP our are our website. amortization first available

hand million on Addressing balances borrowing of XXXX, revolving XX, debt, $XX of of line. our cash outstanding financial our net over million At under $XX.X position. we availability and had existing March credit

our During X.XX million, by debt-to-equity we lowering debt compared the ago. to to reduced X.X ratio $X.X quarter, a year

Vivek I'll comments. to call the for now his turn over

Vivek Gupta

everyone. results morning, Jack, of Thank you, operating for the XXXX. Good review for the financial quarter first detailed of our

from XXXX. Digital areas relative saying so in in challenges of by following that navigating Let performances position strength me Mastech a is record critical many begin today's

customers entire these risks model to health service The employees work-from-home to provide mitigate times. remote continue mobilize and to during incredibly workforce quick working a our to our our to is to hard the We uninterrupted to service organization to our difficult were customers.

our technology been in last several possible over have the heavily made do quite Our investing years. by ability we solid to across so which our global environment, platforms was

of first going this revenue delivered best we parameters business through unprecedented crisis, have in in Ironically, has our the results growth while many one quarter quarterly including on XXXX, world been of segments. both the

thus see far March impacted we being in during COVID-XX and of said continue month our second impact some that, both see quarter. the Having adverse businesses the to did of

the substantially unable being results. with However, I'm opportunities one our on and with of new on existence other, the exact the you quantify hand for visibility QX limited to the continued on financial impact

that, you to that company are as and we fundamentals A, B, tell high economy confident very the what withstand does. I demand the C, the return we are of will economic these is well-positioned global can services remain strong; until recovers; But our for the headwinds it

we allow crisis, adjusting Meanwhile, the ways cost will our are during this artfully over we our that top-notch to prudently secured talent have structure years. maintain in us that

both in our prosperous our records that we're mindful recovery. any of speedy short-term track hinder businesses, proven and With for a may decision avoiding of ability

across both confidence daunting our tell despite to happy and that organization, morale I'm today's Lastly, you environment. entire are levels high

too that by been have understanding of the measures austerity many granular, undertaken getting the appreciation. with Without have organization we even received and well

can get as crisis to crises' an across I Mastech today. to XXXX. through to to see accomplishments be and Major seen bring associates of Digital, tend a eagerness similar get resolve this At our dedicated people successfully the world upon successes building in together, back our and

session I questions. now open will your the for

Operator

Thank you. Instructions]. [Operator

is Vogel from question Company. Josh from first Sidoti & Our

Joshua Vogel

is the do of morning, you. onset QX questions and your Thank despite for I I Really guess, a families bunch results looking pandemic. Vivek the well. Good Jack. the first are I have nice hope XX% of and lower you should doing you. was for why? just the quarters. one, forward? you it this rate reported QX, Can tax we than much It's of expect in tax us XX%, XX%. the the And tell rate you've prior over rate at new going couple the

Vivek Gupta

All question. for going right, ask your that. to you to Josh. Thank I'm answer Jack

John Cronin

about XXXX, to it XX%. And Yeah, QX tax in was actually normal the tax down XX% generally of Josh. level. Hi, and rate rate is was the down our around

is some get the which excess exercises gains did value lot – grant fair occurs the the of because generated XXXR the in expense. date, we stock of benefit when QX, as tax a had stock accounting options from for the at options of So, that we determined And – lingo the benefits. exceed exercises, which

between creates company the deductions higher they actually So, the difference tax for do two their returns. a when

those booked provision. are tax So, in tax additional our as reductions deductions

this elements still our part that opportunity forward, to So, going resurface. impact the always And provision. but XX% you an there's just expect the of should it's for situation

Joshua Vogel

that's helpful. you. Thank Okay,

– So any interest a good What to you've in changes there And QX? interest down rate? that prior debt paying I it? obviously at compared been to expense, pretty the effective the was shifting clip. dropped Fed's with Were it has at significantly looking moves your – year. dropped know the

Vivek Gupta

Jack?

John Cronin

Yeah.

second me a Just here. give

So, interest interest a effective our today effective is rate on loan a little our on is And rate X%. term little our revolver over X%. our over

is think average interest our those So, today quarter rate X.X%. first X.X%. would interest our effective if of – And XXXX, rate in around you was percentages I blend

the carries the due interest So, balance, cuts yeah, to And a and diminishing loan which term has combination been it's been a Fed rate. the of also dropping it of impact then dropping. higher

months. factor repayments, helping really over But So, probably have which interest. last that's the debt definitely our bigger XX our been overall good is the

Joshua Vogel

Okay, great.

I that programs? vehicles. liquidity to available position, any And On of in are know had mentioned million other was more than if access to potential on also, potentially government any just I existing the the wondering revolver. you you $XX partaking the you you you had

Vivek Gupta

Yeah. Jack, will you take too? this one

John Cronin

enough unexpected is do to have facility million credit get situation believe times. us nice $XX don't is to to But in have of expect that. that We more on. this accordion case than through a million The But and that draw to the we're availability, return Yeah. can we we normal feature occurs. PNC need draw that our it going in to we $XX on

thing. one that's So,

talking – or tax, far right? – the about you're as the tax stimulus As the

Joshua Vogel

Yes.

John Cronin

expenses. the employer effect paid at to FICA don't only nice taxes. deferral. provision cash are if going other It's we It's indirectly, Yeah. a until we expense the deferral, end interest that impact through The pretty have about $X take that a going savings the end of to back not to provision one the going they back half to expect SG&A accumulate it's a to lower and because – the which to this XXXX have of of to have to by end XXXX. the have year, the advantage to And going portion the our of on our not P&L. was they million we you be a allows be nice deferral. again, the defer on directly payments did don't But, of And is paid

took only advantage nice the a So, that's we that it's But of. provision benefit.

Joshua Vogel

great. helpful. Okay, That's

So, COVID-XX adjusting intended technology. how were in you Vivek, plan? you investments invested comment mentioned had And before that hold, to you know, you remind the mostly you the putting some investments was you personnel? these spend planned this on, Can cost today's I on a shifting all structure. had versus gears, much me on also,

a is So, and this technology? blend of personnel

speed your if economic of recovery you that on you of I guess, you that are will put concerned are then, investments some hold, do impact the concerned improve? when And conditions this these

Vivek Gupta

Good questions, Josh.

think it's already. we we I I exact be was have as invest, So, the how numbers have and out to of a But how to can don't say done I much to planning were significant yet pretty amount that invested. much that,

want economy that, deep will hinders demand guided But to we able Then A been scale defer taken should fairly should start principles. players. the and more coming quickly. don't – ready has to our ability these austerity expenditure, when starts future by to And but be cut all back all see, spend or the to extent we've point, but four possible. that measures, essential so point be it because when B at investments recovering, time. which come our main protect larger deep think for to minimize is importantly, growth, things discretionary to done we and eliminate we've ourselves or quickly We recovering, the anyway, the scale it minimize that that in We and

action that. have we So, taken any deliberately not that not – compromises

So, question, answer does your Josh? that

Joshua Vogel

And more and hop queue. I'll in definitely. Yes, the one back just

a curious at both within we that any If and back about assuming comments Staffing Data look about commentary. we balance in year, what had June could for guidance any three-month Analytics if over as and sort revenue that I recovery July, US if cadence it region IT think – of directional say, or you're Thank the and know you you. a new and – I the on lag maybe So, like or look just model could the of was but that. normal in the to the so the we're seeing we giving APAC not get

Vivek Gupta

Okay.

the been Let in it as differently me impact has answer try and what slightly both businesses. far so to the

getting that's and one On of side, decisions the deferred thing looking is Europe Analytics the or there. happening later robust, is The The America. year. demand the Data that and and delayed North includes part that still still are is Asia-Pac, the pipeline into

were of year quite to to very or planning beginning So, delayed. for itself half get the in happen hoping first we the going maybe rapidly scaling that up is the

IT definitely Staffing demand On the the has business, other side, come down.

of the early in as industries, come mentioned, Jack ends, clients those who transportation, are And they've some customers heavy-hit actually like are up who manufacturing. energy, industries, in with

it how so happened that's So, far.

very again, closer And rather sense? things hoping will demand we Does said decisions quickly. are year. into a start ago, start that Data further Analytics But, when feel when that little will come getting we little back out up, like the pulled we the that then, start make economies than that up and a ease the recovering, that things I while staffing settling down, expect

Joshua Vogel

Thank definitely. the hop I'll in you Yeah, again. back queue.

Operator

VA. Rosencrans Howard from our Please question. proceed question And with your is next from

Howard Rosencrans

and as you you fully all employees wanted to you theirs. follow-up just – answer understood your about your are question. plus your and million I all last order. I'm not had hope I healthy guys. that are families safe ask and the on $XX and sure and I Hi, have

and the on get really a would saying And pushouts that little got of the context was of IT I on more The a – terminations, seeing answer that provide exactly you're not two business, December. Data in – the believe a there's So, believe I piece. that separate sure the the in you businesses? it Analytics to little prior you're and earlier color clarity color that you. order more large Thank large, you I'm on

Vivek Gupta

Okay. Nice you the hear voice. Thank to Hi, question. for Howard. your

business So, as two Services have Staffing Data you Howard, the IT know, the Analytics segments, we and business.

The going them Analytics month. we these upon secured delivering contracts. the December. is $XX after business and were multimillion And dollar, are business strong to contracts Data that one million multiyear of say three Happy in month are those

that's quarter, we keep this in to started fourth dollar. the executing multiyear, a we've – in is which added also March, quality, also multimillion of similar fact, And and In of month one, size that. upon going

because further levels. to a I not hoping is getting That part the delayed So, pipeline in the where of the is still are Analytics saying business that Data to the right decisions higher scaling that there, is of pushed trying affected. we business, it was the on been now is that little getting except customers' the into were have to future. beyond any out point I'm scale make those

the first we were we is half second to it hoping achieve were hoping going of will year XXXX, what in in of the in to probably XXXX. the So, achieve half the probably in early happen what half, second and to happen

as and Data concerned. that's the Analytics far segment as So, is

saying piece associates early of for and IT terminations from parts was of North staffing we and plus the have are somewhat a X,XXX about that have for has that primarily on X,XXX, business, some The have America, folks where cruise I out clients customers billing affected, reduced and plus some few saw we of demand talking our on the different airlines, that's badly billing the percentage Staffing that of US, from been seen like we about the side, – and we and forth. were so the were industry so points X,XXX early in who were customer that

distinction I between the businesses. make the that's two was to So, trying

your answer that question, Does Howard?

Howard Rosencrans

appreciate certainly the It's I helpful. And color. very

the remains can you few business I deliver next over years. contract picked the that in backlog understanding you also Data basically also for in few the off that of could so that steady And Am next another Analytics, So, terms and March, up you correctly? deliver years.

Vivek Gupta

Yes.

years. today, the be are we the we these that there to by now. week, deals mentioned, right upon comfortable the as visibility we'll are will multiyear and limited over and that But few by them have As hour continue, things changing I've signed of is execute able next

Howard Rosencrans

Do or the cancellation follow activity stop? Would on expect limited a either be penalty would with that only to customers without meaningful have or fee? ability of the defer you they canceled any fairly sort that can to

Vivek Gupta

the hold, any putting the with or point Well, way customers, are that contract contracts giving not be, Howard, to are seeing the we both on in time. worded a conversations indication this at of that the it having other, sides but each option stopping are that in happening notice the need if of have we

Howard Rosencrans

and you all wishing you. both. Thanks safety so Okay. Thank Thank continued And health. and much. one

Vivek Gupta

Thank you, Howard.

Operator

And our next from from [Lisa is question Lisa Zacks Thompson] Thomas (sic) Research.

Lisa Thompson

morning. Good

Vivek Gupta

Hi, Lisa.

Lisa Thompson

that allow The decode you first structure retain cost question to Does had cryptic top-notch what us adjusting does talent. that is, I mean? just could people you gave raises? Like, this mean to

Vivek Gupta

that actually impact things is of not there the We've bunch talent. to Lisa, top-notch Well, tried we done. have a

when said, with plan. all I our principles our that's been protect want players. up As austerity B to the coming We and been one of we've A

things time actually in this of already April. we on springtime dramatically. the has have – we've some which in Xst our among our in delayed that of joining delayed freeze. around a minimized dates are done, increases, put initiatives hold We've people a – who of hiring hiring it, We were done typically marketing participation So, lot We've events. process. reduced or put including all effective got of Travel conferences, internal compensation

which is a of eliminated complete also annual we do after and feature, our C annual players which springtime around we appraisals. anyway bunch We've bottom an

with looking have our We off, people reduced paid they and situation, current utilization the been are negotiating of because time and home. of and collaboration. But at need spirit from suppliers in working the when better or are we especially partners renegotiating of

unintended we've people saved locations. some going of and because not to from infrastructure on consequence office work working benefited We've of in operational home. costs are also course, sort global And of the

and we our key players the of this do at them. control impact at, that as list not to to to look see so that have SG&A long continue lose whole and we've So, we we to and not keep there things a that under is looked

Does question, that answer your Lisa?

Lisa Thompson

Yes. That's more Thank clear. much you.

June be rest that mean of So, should down for to SG&A the the that one and year? sequentially does expect

Vivek Gupta

up, Well, the if in definitely, as will are they things business starts our the to what well. how up QX. pick a extent? down. and quarters, SG&A in will SG&A picking then Depending unfortunately, hurry, remain they Again, future in SG&A pick pick should It's economies a the be keep progress. down on work if, in don't we up up But where the

Lisa Thompson

for many had billable number do you how the have of And Okay. you the quarter? consultants exact

Vivek Gupta

I of these upwards but are... And XX, don't X,XXX. have March exact it the was of as number

John Cronin

X,XXX. It exactly was

Vivek Gupta

The And course, billable billable Data on would closer XXX or Staffing Analytics side. IT on the be have of that then, we side, people to and so.

you So, quarter. people X,XXX were the in that's can billing last add two, the roughly

Lisa Thompson

Okay.

it. what's since the Just much end that hundreds on so come we at when or based Because vaguely. due happened So, to Are we're April, talking far, don't it of number quantify kind of down how scary of tens sounds you people? has cancellations?

Vivek Gupta

Yeah.

give I So, sense. you can a

and, We we of think mention. I you people had lost that can Jack, number, QX. exact But – have many XX in XX you the billing. to in if region the

percentages X,XXX. about So, and of twenties the X,XXX. of tens we're We're few talking about talking percent not a on

Lisa Thompson

Okay.

up I in Analytics? So, will Or apply be to your new could guess, of that also that means sequentially. number then Data sequentially? down revenues contracts, that be Staffing because Does

Vivek Gupta

have Analytics. we IT But yes, in for a Data this we I time, little feel – don't it for, this Staffing think at on will remain side, sequentially, the point go the number down or will same down. whether are that be

Lisa Thompson

as much what's is going Wait, Thank you to This clearer on. great. right, question. one more so All much. Okay.

as recruiting things, situation in As has like visa for yourself? the far changed anything and

Vivek Gupta

situation not the point this has at in changed us. for Actually, time,

I as over we the the because – don't changed. but billing we has Of hasn't now, whole from purposes overseas process hire US bring people recruiting so, changed for within – it people home, of locally from think of as course, working

Lisa Thompson

Okay, great. Thank questions. so much. my you That's all

Operator

Instructions]. [Operator

question is next & from Sidoti Josh Our Vogel from Company.

Joshua Vogel

Hey.

to you US your base immigration what the Just or legislation on thoughts holders? HXB into question. visa the limit that impact following up have comments and Can of that's could potentially on that last recent give going the any around

Vivek Gupta

overseas put the hold, current So, the is bringing who into immigration we today on Josh, But the here. been impact which does people right is of this fresh country. legislation now, has people what are not from understand already as

point week, we where in change, can can come don't in are out things weeks, Now next know. we this at the two But time. that's something

Joshua Vogel

reset just going Okay. And just we've and everything make about on, deals I market pipeline seen what of some your was valuations. in the looks appetite last one, given a And curious like. kind to like

Vivek Gupta

in if you're M&A, So, talking as about deals make then...

Joshua Vogel

Yes, sorry. Yes.

Vivek Gupta

not we right obviously now, to time is this are Then that. do – the

open-minded. still are We

options aggressively out are We pursuing I there. be will think are this don't are But it out crisis. the of looking at what current until economic we we

Joshua Vogel

one. what comes could within energy, sneak quantify Okay. I'm businesses percent When from one in sorry. just of impact? like the about see what say you the sectors? talked essential you clients hard-hit of from would last maybe transportation, then If percent industries those you'd And you an manufacturing, I less the could revenue comes maybe where

Vivek Gupta

is Actually, amount and The transportation It's more. it's X% only. little probably a actually bit one Manufacturing is or fortunate. hadn't I total comes segment Energy mentioned, which we've small. X% of travel one is more. – been transportation from very then, and the that retail business –

health more don't spread segments, larger care ones. actually or well major But one we are and in although concentration are financial fairly two the services have out. any industry probably any So, we

these course, everything while actually have So, been what's out, happened have positive. But, of you them negative an some balance it's hit net-net, a even of badly, when is, seen couple of than more very industries uptick.

yeah, concentration, kind So, which risk us. for serious any the we have don't exaggerates industry of

John Cronin

industry In we break down verticals. Josh. our our Hey, report, annual do

businesses, you description under find our will our five So, industry top of verticals.

might help So, that you.

Joshua Vogel

guys. out safe again there, great. all questions. And my for Okay, Thanks stay taking

Vivek Gupta

appreciate you, questions. Josh. Thank your And

Operator

next VA. Rosencrans from with Howard question. question Please from your proceed our is And

Howard Rosencrans

visa just to and on more et again. get wanted cetera. little I a situation employees, ability Hi the to the follow-up

understanding of if a sort a deeper of historical this. So, had felt is apologize I question. this I I like

believe, working sign give them are garner status clarity have already [HXB]. status the you and I'm cases, I trying some to employer come, they where you're and/or to just better to employees, to that achieved from the I United their Thank understand. Your they you're that but has have predominantly the in employees with can that – (sic) HBX within for on – on them you. that, status as so India States, hiring get

Vivek Gupta

like employees this. Card and from and hire So, origin, the We or potential of And a citizens Howard, within US. could that are US who've not. so Many holders of half it's lot been Green of them almost be Indian are here.

transfer, And then, we have now another pool which come and working is the have been pool opportunities. HXB on who on. company's of that's those – they've to HXB do And are candidates. have able And there, the we they find. opportunities. on for come that new we is help a the that piece And them they other to are jobs to people they've And and called we what better HXBs work transfer we looking HXB, find an are

and am the countries put does at from your being missing hiring talking points? about it's hold, at immigration are not the But because this people earlier coming which other we that that in is looking from I the moment, answer question? people key US. impact India when here immediately or a fresh within some Does us already pool, Or HXBs. us for were into we little in on So, on country

Howard Rosencrans

no. no, No,

I think that does.

since particularly for it's lot lower sort impact hiring would consultants further you capability. people or now, for impact there's employees. demand of your needed ability a your out, It So, it doesn't if

fair right? say, that's think to I

Vivek Gupta

down, things far demand supply were time more in when than true. was that's more. come because frame. Actually, Yes. looking January, the Today, has The supply the demand February is we at

So, them. customers which for those in for for to easier some talent still the our find open looking and are ways, right it positions, makes recruiters are it

Howard Rosencrans

you the time give versus down? don't as year? you're to us as the year-to-year some down, people know, weeks you seeing, deep it commented comparing quoted. a XX was could are believe color of How that end April last the few that I on of first what about basis And you're to QX. to You cuts the year-end were or frame I XX you if

would the had a the had on revenues you your quarter during increased. both in vein, I you Although same that because assume – because segments pickup

actually few understood that went XX% to say? weeks to you. a first has peak probably would And of I April? is from additional March And – in the let's assume you cut just Thank cut from, what trying So, in – to quarter-end. say been that fair the there's

Vivek Gupta

Okay.

is not yet. April over So,

the we even It people. looks over quarter, don't like. have better has period happened what has numbers in cut what also, a final we rates comment April of the So, the March in places, gross we well. in starts of in happen very been in first happened some What the it and, happened by about to some better ways, lose quarter. quarter. it that day got happened coming new margins. of your ways, for on the the But some compensated headcount, as the But continuing. back first But got were bill trend in yeah, And did some the entire did not

the revenues carryover second reduction the So, have quarter we is into in. for it did not are fully But impact impact going a to that definitely that. that

can't continuing for of in precise you have way I the number in but April, So, give a been the March. sort it reductions started

Howard Rosencrans

Okay. Do and IT approximately Do was? quarter. guys the employee you you this was peak when of know You what the occurred? X,XXX end the of your peak what know at count that it your comment year regular

Vivek Gupta

or or I wouldn't Whether know can above I'll was look my I X,XXX information. get said, immediately, have as X,XXX. that But X,XXX is it records. at we it X,XXX, but to

Howard Rosencrans

Okay.

it You you're doing guys are very sounds what's gracious very well. and I thank of you. in And like I light transpiring, think

have you regard. certainly like seems off in and picking people It up talented share. hats So, to you that lot a of you're

the on getting you. congrats So, Thank you're way through.

Vivek Gupta

Thanks, Howard. it. Appreciate

Operator

back end Vivek the And the And session. now to Gupta call I remarks. over closing reached of we have will for question-and-answer the turn

Vivek Gupta

stay If operator. with are July. you, XXXX Thank safe. like would I look And forward quarter our please to you results Until today. no in there joining thank second sharing late further for Thank questions, then, to you our we you. call on

Operator

lines And you for this may Thank your this time. your conference you today's disconnect participation. and concludes at

Mastech Digital (MHH) 3 May 202020 Q1 Earnings call transcript