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Business Segments and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments and Geographic Information
16.
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
resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expands our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations.
The IT Staffing Services segment offers staffing services in digital and mainstream technologies 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 learning services on a fixed price basis.
Below are the operating results of our reporting segments:
 
    
Years Ended December 31,
  
    
2024
     
2023
     
2022
  
    
(Amounts in thousands)
  
Revenues:
         
Data and Analytics Services
    $ 36,625      $ 34,358      $ 40,594  
IT Staffing Services
      162,318        166,740        201,644  
  
 
 
     
 
 
     
 
 
  
Total revenues
    $ 198,943      $ 201,098      $ 242,238  
  
 
 
     
 
 
     
 
 
  
Cost of Revenues:
         
Data and Analytics Services
    $ 18,660      $ 19,411      $ 23,745  
IT Staffing Services
      124,686        130,651        155,310  
  
 
 
     
 
 
     
 
 
  
Total cost of revenues
    $ 143,346      $ 150,062      $ 179,055  
  
 
 
     
 
 
     
 
 
  
 
    
Years Ended December 31,
  
    
2024
    
2023
    
2022
  
    
(Amounts in thousands)
  
Gross Profit:
       
Data and Analytics Services
    $ 17,965     $ 14,947     $ 16,849  
IT Staffing Services
      37,632       36,089       46,334  
  
 
 
    
 
 
    
 
 
  
Total gross profit
    $ 55,597     $ 51,036     $ 63,183  
  
 
 
    
 
 
    
 
 
  
Gross Margin %:
       
Data and Analytics Services
      49.1 %      43.5 %      41.5 % 
IT Staffing Services
      23.2 %      21.6 %      23.0 % 
  
 
 
    
 
 
    
 
 
  
Total gross margin %
      27.9 %      25.4 %      26.1 % 
  
 
 
    
 
 
    
 
 
  
Sales & Marketing Expenses:
       
Data and Analytics Services
    $ 7,333     $ 6,511     $ 5,861  
IT Staffing Services
      9,100       8,335       9,470  
  
 
 
    
 
 
    
 
 
  
Total sales & marketing expenses
    $ 16,433     $ 14,846     $ 15,331  
  
 
 
    
 
 
    
 
 
  
Operations Expenses:
       
Data and Analytics Services
    $ 685     $ 1,297     $ 2,304  
IT Staffing Services
      8,742       8,596       11,010  
  
 
 
    
 
 
    
 
 
  
Total operations expenses
    $ 9,427     $ 9,893     $ 13,314  
  
 
 
    
 
 
    
 
 
  
General & Administrative Expenses:
       
Data and Analytics Services
    $ 6,703     $ 8,946     $ 5,355  
IT Staffing Services
      14,467       13,104       12,557  
  
 
 
    
 
 
    
 
 
  
Total general & administrative expenses
    $ 21,170     $ 22,050     $ 17,912  
  
 
 
    
 
 
    
 
 
  
Segment operating income (loss):
       
Data and Analytics Services
    $ 3,244     $ (1,807 )    $ 3,329  
IT Staffing Services
      5,323       6,054       13,297  
  
 
 
    
 
 
    
 
 
  
Subtotal
      8,567       4,247       16,626  
Unallocated Costs:
       
Amortization of acquired intangible assets
      (2,693 )      (2,772 )      (2,987 ) 
Goodwill impairment
      —        (5,300 )      —   
Employment-related claim, net of recoveries
      —        (3,100 )      —   
Severance expense
      (2,083 )      (2,350 )      (990 ) 
Cybersecurity breach
      —        —        (450 ) 
Interest income (expense), FX gains/losses and other, net
      633       244       292  
  
 
 
    
 
 
    
 
 
  
Income (loss) before income taxes
    $ 4,424     $ (9,031 )    $ 12,491  
  
 
 
    
 
 
    
 
 
  
Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:
 
   
Total Assets
    
Depreciation & Amortization
    
Capital Expenditures
  
(Amounts in thousands)
  
2024
    
2023
    
2022
    
2024
    
2023
    
2022
    
 2024 
    
 2023 
    
 2022 
  
Data and Analytics Services
   $ 44,053     $ 45,681     $ 54,544     $ 2,572     $ 2,704     $ 2,860     $ 249     $ 177     $ 756  
IT Staffing Services
     67,431       59,546       54,335       927       1,151       1,335       692       158       79  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 111,484     $ 105,227     $ 108,879     $ 3,499     $ 3,855     $ 4,195     $ 941     $ 335     $ 835  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Below is geographic information related to our revenues from external customers and fixed assets, net (equipment, enterprise software and leasehold improvements):
 
    
Revenues
     
Equipment, Enterprise

Software and Leasehold

Improvements, net
  
Amounts in thousands
   
2024
     
2023
     
2022
     
2024
     
2023
     
2022
  
United States
    $ 195,455      $ 197,246      $ 236,187      $ 851      $ 791      $ 1,353  
Canada
      1,041        2,474        4,215        254        332        429  
India and Other
      2,447        1,378        1,836        893        790        883  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 198,943      $ 201,098      $ 242,238      $ 1,998      $ 1,913      $ 2,665