Revenue rose 7.5% at IT staffing and solutions provider CTG (NASD: CTG) thanks to European business and revenue from its acquisition of Paris-based Soft Co. in February. The Buffalo, NY-based firm reported that excluding three of its largest clients, revenue rose 15.2% year over year.

North American revenue fell 7.1%, but European revenue was up 51.8%.

CTG also noted its effective income tax rate in the first quarter was 21.9% compared to 41.2% in the same quarter last year. The decrease was attributed to the tax cut. The company also noted its tax rate was 122.9% in the fourth quarter of last year. “The unusually high effective tax rate in the fourth quarter of 2017 was due to the charge related to the tax act that was partially offset by the non-taxable insurance gain,” according to the company.

Quote

“Our primary strategic focus remains centered around generating growth at both new and existing clients,” CTG President and CEO Bud Crumlish said. “During the quarter, we successfully converted an increasing number of pipeline opportunities into signed engagements. In staffing, we were designated as the sole service provider for incremental new service desk business at our largest staffing client and began transitioning resources in support of this work near the end of the quarter.”

Revenue by segment and geography

Guidance

CTG forecast second quarter revenue of between $87 million and $91 million, a year-over-year increase of between 15.2% and 20.5%.

Share price and market cap

Shares in CTG were up 2.51% at 12:29 p.m. Eastern time to $8.97. The company had a market cap of $137.2 million.