Revenue fell 8.0% in the fourth quarter to $77.5 million at Computer Task Group Inc. (NASD: CTG). However, revenue exceeded the Buffalo, NY-based IT staffing provider’s guidance range of $73 million to $75 million.

Net income at CTG fell 56.3% year over year in the fourth quarter to $1.1 million.

In early January, CTG released its three-year strategic plan aimed to increase revenue growth and improve profitability in all lines of business. The revenue goal is $400 million by the end of 2019, which represents an approximate 7% compounded organic annual growth rate.

CTG also recently appointed Owen Sullivan to its board of directors and has transformed two-thirds of the board’s composition in approximately 15 months. Sullivan has more than 30 years of executive-level experience in the staffing solutions and professional resourcing industry, most recently as president of ManpowerGroup’s specialty brands business.

Quote

“Fourth quarter financial results were above the high-end of our guidance, with staffing declining less than previously expected and our solutions business growing modestly over the prior quarter,” said CEO Bud Crumlish. “Notably, we were able to retain more business with our largest staffing client than we had anticipated during the quarter, which when combined with the cost reductions implemented in the fourth quarter, enabled us to end 2016 with better than expected results.”

Revenue by segment and geography

Full-year results

Guidance

CTG expects first-quarter revenue to range between $76 million and $78 million, a decline of between 9.1% and 11.5%. There are 64 billing days in the first quarter of 2017 compared with 65 in the first quarter of last year.

Share price and market cap

Shares in CTG rose 5.05% in early afternoon trading to $5.20 and the firm had a market cap of $82.62 million, according to Yahoo.