CTG (NASD: CTG) reported fourth-quarter revenue fell 3.7% amid weaker demand from the company’s largest clients. Excluding its three largest staffing clients, revenue rose 11.3% at the Buffalo, NY-based IT staffing and solutions firm. In addition, European revenue jumped 29.3%, or 18.9% excluding the impact of currencies.

CTG reported a fourth-quarter net loss of $419,000, but results for the quarter included, net of tax, an $11.7 million, noncash charge related to the recently enacted Tax Cuts and Jobs Act, and a nontaxable gain of $386,000 on the proceeds from a life insurance policy on a former CTG executive. 

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“The momentum we gained in the fourth quarter was impressive, and it continued in 2018 with the addition of Soft Company, as this acquisition creates a dynamic expansion of our business in Western Europe,” said CFO John Laubacker. “We also have high expectations for the many investments we made in the business in 2017 and early in 2018 to drive growth and operating improvement throughout the coming year without the need for significant additional investments, as reflected in our revenue and earnings guidance.”

Revenue by segment and geography

Full-year results

Guidance

CTG estimates first-quarter revenue to range between $77.0 million and $82.0 million, reflecting flat growth to an increase of 6.5%. It estimates full-year 2018 revenue to be between $340 million to $360 million, an increase of between 12.9% and 19.5%.

Share price and market cap

Shares in CTG rose 8.52% to $6.37 as of 11:48 a.m. Eastern time today. The company had a market cap of $98.68 million.