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View All NewsCTG revenue rises 23%; European operations lead growth
Revenue rose 22.7% at IT staffing and solutions provider CTG (NASD: CTG) to $92.7 million. The Buffalo, NY-based firm reported that organic growth in its staffing and solutions businesses drove the increase in revenue; its acquisition of Paris-based Soft Co. in February also boosted growth.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue | $92,667 | $75,521 | 22.7% |
| Gross margin | 19.1% | 18.1% | |
| Net income | $940 | $434 | 116.6% |
Revenue growth in Europe outpaced that of North America with Europe revenue up 69.8% compared to 7.0% in North America. However organic growth in Europe excluding acquisitions was 16.8%.
Quote
“We continued to experience solid growth and momentum in our European operations,” said President and CEO Bud Crumlish. “The performance of Soft Co. has been strong and our integration efforts remain on plan as we continue to increase the collaboration across our sales and administrative teams.”
Revenue by segment and geography
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue by segment | |||
| IT staffing | $63,385 | $52,964 | 19.7% |
| IT solutions | $29,282 | $22,557 | 29.8% |
| North American revenue | $60,522 | $56,587 | 7.0% |
| European revenue | $32,145 | $18,934 | 69.8% |
Guidance
CTG forecast third quarter revenue of between $86 million and $90 million, a year-over-year increase of between 16.2% and 21.6%.
It also increased its forecast for full-year revenue to $350 million to $360 million, up from its prior forecast of $343 million to $357 million.
Share price and market cap
Shares in CTG were down 6.04% at 11:48 a.m. Eastern time to $7.00. The company had a market cap of $100.60 million.