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Business Segments and Geographic Information
 3 Months Ended
Mar. 31, 2025
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
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 expanded our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise applications across sales, marketing and customer service organizations.
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. Below are the operating results of our reporting segments.
 
    
Three Months Ended

March 31,
  
    
2025
    
2024
  
    
(Amounts in thousands)
  
Revenues:
     
Data and Analytics Services
    $ 8,960     $ 8,067  
IT Staffing Services
      39,357       38,756  
  
 
 
    
 
 
  
Total revenues
    $ 48,317     $ 46,823  
  
 
 
    
 
 
  
Cost of Revenues:
     
Data and Analytics Services
    $ 5,013     $ 4,322  
IT Staffing Services
      30,412       30,370  
  
 
 
    
 
 
  
Total cost of revenues
    $ 35,425     $ 34,692  
  
 
 
    
 
 
  
Gross Profit:
     
Data and Analytics Services
    $ 3,947     $ 3,745  
IT Staffing Services
      8,945       8,386  
  
 
 
    
 
 
  
Total gross profit
    $ 12,892     $ 12,131  
  
 
 
    
 
 
  
Gross Margin %:
     
Data and Analytics Services
      44.1 %      46.4 % 
IT Staffing Services
      22.7 %      21.6 % 
  
 
 
    
 
 
  
Total gross margin %
      26.7 %      25.9 % 
  
 
 
    
 
 
  
Sales & Marketing Expenses:
     
Data and Analytics Services
    $ 2,054     $ 2,417  
IT Staffing Services
      2,247       2,164  
  
 
 
    
 
 
  
Total sales & marketing expenses
    $ 4,301     $ 4,581  
  
 
 
    
 
 
  
 
    
Three Months Ended

March 31,
  
    
2025
     
2024
  
    
(Amounts in thousands)
  
Operations Expenses:
      
Data and Analytics Services
    $ 152      $ 167  
IT Staffing Services
      2,067        1,927  
  
 
 
     
 
 
  
Total operation expenses
    $ 2,219      $ 2,094  
  
 
 
     
 
 
  
General & Administrative Expenses:
      
Data and Analytics Services
    $ 1,869      $ 1,615  
IT Staffing Services
      4,297        3,554  
  
 
 
     
 
 
  
Total general & administrative expenses
    $ 6,166      $ 5,169  
  
 
 
     
 
 
  
Segment operating income (loss):
      
Data and Analytics Services
    $ (128 )     $ (454 ) 
IT Staffing Services
      334        741  
  
 
 
     
 
 
  
Subtotal
      206        287  
Unallocated Cost:
      
Amortization of acquired intangible assets:
    $ (650 )     $ (693 ) 
Goodwill impairment
      —         —   
Severance expense
      (1,409 )     — 
Interest income (expense), FX, gains (losses) and other, net
      91        124  
  
 
 
     
 
 
  
Income (loss) before income taxes
    $ (1,762 )     $ 282  
  
 
 
     
 
 
  
Below is a reconciliation of segm
ent
total assets to co
nsoli
dated total assets:
 
    
March 31,

2025
     
December 31,

2024
  
    
(Amounts in thousands)
  
Total assets:
      
Data and Analytics Services
    $ 42,323      $ 44,053  
IT Staffing Services
      67,753        67,431  
  
 
 
     
 
 
  
Total assets
    $ 110,076      $ 111,484  
  
 
 
     
 
 
  
Below is geographic information related to our revenues from external customers:
 
    
Three Months Ended

March 31,
  
    
2025
     
2024
  
    
(Amounts in thousands)
  
United States
    $ 47,752      $ 46,116  
Canada
      130        294  
India and Other
      435        413  
  
 
 
     
 
 
  
Total revenues
    $ 48,317      $ 46,823