CTG (NASDAQ: CTG), an IT solutions and staffing provider, reported third-quarter revenue fell 4.9% year over year to $71.3 million but gross margin improved. The company is currently in the process of being acquired by Cegeka Groep nv, an IT solutions provider based in Hasselt, Belgium. The deal is expected to close Dec. 13.

CTG noted the decrease in revenue reflects the company’s continued shift to more solutions and services-based business and its disengagement of $11.8 million from its nonstrategic technology services business (IT staffing).

“We continue to be pleased with the execution of our strategy where our gross margin improved 300 basis points in the third quarter compared with 2022, despite high inflation and a softening demand for IT services, and lower utilization generally incurred during the summer months,” President and CEO Filip Gydé said in a press release.

Revenue from CTG’s “North America IT solutions and services” segment rose 24.0% year over year to $25.2 million.

The growth in this sector reflects continued contributions from the acquisition of Eleviant Technologies and organic growth, despite a general decrease in the current demand for IT services.

In CTG’s “Europe IT solutions and services” segment, third-quarter revenue rose 9.7% to $36.4 million.

However, revenue in CTG’s nonstrategic technology services division, which provides IT staffing, fell 55.1% to $9.6 million.

Guidance

Citing the rapid pace of change and continued uncertainty in the macroenvironment, CTG is not providing full-year guidance.

Share price and market cap

Shares in CTG were up 0.53% to $10.36 as of 1:45 p.m. Eastern time today; they were 0.9% below their 52-week high, according to FT.com.