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Information technology and solutions and services firm Computer Task Group Inc. (NASD: CTGX) reported revenue rose 29.1 percent in the fourth quarter ended Dec. 31, 2010, to $87.3 million.
The company cited growth in its healthcare information technology and managed services staffing businesses as the drivers of the revenue growth.
"Even with the lowest number of billing days of any quarter in 2010, fourth-quarter revenue and earnings were the highest of the year coming in at the top end of our guidance," said CTG Chairman and CEO James Boldt. "High demand for technical resources from our U.S. clients and our growing healthcare IT business were the primary contributors to our strong results in the quarter and throughout 2010."
Net income rose 62.8 percent in the fourth quarter, hitting $2.7 million. Fourth-quarter gross margin slipped to 21.9 percent from 22.2 percent in the year-ago quarter.
The company's fourth-quarter solutions revenue rose 41 percent to $31.2 million, accounting for about 36 percent of the company's revenue. The sector accounted for 33 percent of the company's revenue the year-ago period. Staffing revenue was $56.1 million, an increase of 23 percent over the previous year and 64 percent of the company's total fourth-quarter revenue. European revenue rose 4.6 percent year over year to $15.9 million. The company cited adverse changes in currency exchange rates for the low growth.
Revenue for the full year ended Dec. 31, 2010, was $331.4 million, up 20.3 percent from the previous year. The solutions business accounted for 34 percent of revenue, or $111.4 million, a 22 percent year-over-year increase. The staffing business rose 20 percent to $220.0 million, amounting to 66 percent of total revenue. European revenue slipped 3.2 percent to $60.7 million.
CTG projects first-quarter revenue of $90 million to $93 million (a year-over-year increase of between 14.7 percent and18.5 percent). The company projects full-year revenue of between $365 million and $385 million (+10.1 and +16.2 percent).
Computer Task Group Inc. (NASD: CTGX)
For the fourth quarter ended Dec. 31, 2010, vs. same quarter in ended 2009
Revenue: $87.3 million, +29.1 percent
Net income: $2.7 million, +62.8 percent
For the year ended Dec. 31, 2010, vs. the same period in 2009
Revenue: $331.4 million, +20.3 percent
Net income: $8.4 million, +41.1 percent