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View All NewsCTG revenue rises 22% with fastest growth in European operations
Revenue rose 21.9% at IT staffing and solutions provider CTG (NASD: CTG). A combination of factors drove the increase: organic growth in both solutions and staffing in North America and Europe, as well as the revenue from Paris-based Soft Co., which the company acquired in February.
The Buffalo, NY-based firm also noted the ramp-up of its health solutions business — CTG secured three new health solutions clients, and either expanded or extended contracts with 10 existing healthcare clients.
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Revenue | $90,260 | $74,039 | 21.9% |
| Gross margin | 19.2% | 17.5% | |
| Net income | $1,181 | $40 | nm |
Revenue growth in Europe outpaced that of North America with Europe revenue up 55.6% compared to 9.5% in North America.
Quote
“Third-quarter revenue grew nearly 22% year-over-year to $90.3 million, which was above the high-end of our $86 to $90 million guidance range due to the ramp-up of our Health Solutions business with multiple new clients, and continued growth in our European operations,” President and CEO Bud Crumlish said in a statement.
Revenue by segment and geography
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Revenue by segment | |||
| IT staffing | $61,331 | $52,170 | 17.6% |
| IT solutions | $28,929 | $21,869 | 32.3% |
| North American revenue | $59,211 | $54,082 | 9.5% |
| European revenue | $31,049 | $19,957 | 55.6% |
Guidance
CTG forecast fourth-quarter revenue of between $89 million and $94 million, a year-over-year increase of between 19% and 26%.
It also increased its forecast for full-year revenue to $355 million to $360 million, up from its prior forecast of $350 million to $360 million.
Share price and market cap
Shares in CTG were down 7.12% at 12:56 p.m. Eastern time to $4.96. The company had a market cap of $71.78 million.