Mastech Holdings, Inc. Completes Spin-Off from iGATE, Announces Guidance for Fiscal Year 2008
October 01 2008 - 5:00AM
PR Newswire (US)
PITTSBURGH, Oct. 1 /PRNewswire-FirstCall/ -- Mastech Holdings, Inc.
(AMEX:MHH) ("Mastech"), a national provider of Information
Technology consulting services, is pleased to announce the
completion of its spin-off from parent company iGATE Corporation
effective October 1, 2008 (NASDAQ:IGTE) ("IGATE"). (Logo:
http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b ) For
over twenty years, Mastech has been a leading I.T. Services
provider specializing in emerging technologies such as Enterprise
Resource Planning (ERP) and Business Intelligence/Data Warehousing
(BI/DW), and more recently Recruitment Process Outsourcing (RPO).
Since 2000, Mastech has functioned as iGATE Corporation's
Professional Services business segment. The spin-off transaction
positions Mastech to capitalize on future growth opportunities.
Mastech will remain headquartered in Pittsburgh, PA, and will
continue to be led by its existing management team. Commenting on
the spin-off transaction, Steve Shangold, CEO stated, "We are
excited about Mastech's prospects as an independent company and our
mission of creating long-term value for its shareholders. While
current economic conditions will continue to present challenges for
the industry during the balance of 2008, we believe that our
company is well-positioned to take advantage of favorable long-term
trends in the markets that we serve, through our talented
professionals, unique global recruitment engine and strong heritage
as an industry leader. For fiscal year 2008, we expect revenues in
the range of $93 million to $95 million and operating profit of
$3.5 million to $4.0 million. The Company will be debt-fee at the
transaction date and, we believe, will have adequate cash balances
to support its existing working capital needs." "Operating as an
independent company will provide Mastech greater financial and
operational flexibility, and will allow it to aggressively take
advantage of market opportunities," stated the company's
Co-Chairmen, Sunil Wadhwani and Ashok Trivedi. About Mastech
Holdings, Inc.: Leveraging the power of 20 years I.T. experience,
Mastech (AMEX:MHH) provides Information Technology services in the
disciplines which drive today's business operations. Clients turn
to Mastech for comprehensive I.T. services including: I.T.
Consulting; OneSource(tm) Co-Managed projects and supplemental I.T.
resources. Mastech's niche focus includes Business
Intelligence/Data Warehousing; Enterprise Resource Planning (ERP);
Service Oriented Architecture (SOA); Web Development and I.T.
Project Management. Mastech also provides Recruitment Process
Outsourcing (RPO) services and Brokerage Operations Staffing
services through its RPOworldwide and Global Financial Services
subsidiaries. Mastech is a certified minority-owned business
enterprise. More information about Mastech can be found at
Mastech's website: http://www.mastech.com/. Forward-Looking
Statements Some of the statements contained in this news release
that are not historical facts are forward-looking statements. These
forward-looking statements include the company's financial, growth
and liquidity projections as well as statements concerning the
company's plans, strategies, intentions and beliefs concerning
business cash flows, costs and the markets in which it operates.
Without limiting the foregoing, the words "believes,"
"anticipates," "plans," "expects" and similar expressions are
intended to identify certain forward-looking statements. These
statements are based on information currently available to the
company and it assumes no obligation to update the forward
statements as circumstances change. There are risks and
uncertainties that could cause actual events to differ materially
from the forward-looking statements. These risks include, but are
not limited to, the company's ability to predict its financial
performance, the level of market demand for its services, the
highly-competitive market for the types of services offered by the
company, the impact of competitive factors on profit margins,
market conditions that could cause the company's customers to
reduce their spending for its services, the company's ability to
create, acquire and build new businesses and to grow existing
businesses, attract and retain qualified personnel, and other risks
that are described in more detail under the heading "Risk Factors"
in the Company's Registration Statement on Form 10, dated September
11, 2008, filed with the Securities and Exchange Commission.
http://www.newscom.com/cgi-bin/prnh/20080508/NETH059LOGO-b
http://photoarchive.ap.org/ DATASOURCE: Mastech Holdings, Inc.
CONTACT: Christopher R. Evans, Director of Global Marketing,
Mastech, +1-888-330-5497, Web site: http://www.mastech.com/
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