Computer Task Group Inc. (NASD: CTGX) reported second-quarter revenue rose 21.2 to $98.3 million from $81.1 million in the year-ago quarter.

Staffing revenue at CTG rose 13.7 percent to $62.3 million from the year-ago quarter. The company’s solutions segment posted $36.0 million in revenue, up 36.9 percent from year-ago revenue.

European revenue rose 20.1 percent to $17.3 million.

Second-quarter gross margin narrowed to 21.1 percent from 21.9 percent in the second quarter of last year.

 “Demand remains strong in our managed staffing services and healthcare businesses and is driving the significant growth we are achieving this year,” said CTG Chairman and CEO James Boldt. “Healthcare revenue was up 30% in the second quarter, increasing to 29% of total revenue, its highest level ever. The growth in our healthcare business was also the major contributor to a favorable change in our business mix to higher margin solutions revenue, increasing to 37% of revenue from 32% a year ago."

The company reported net income of $2.8 million, a 48.6 percent jump over year-ago net income of $1.9 million.

Going forward, the company expects to post revenue of between $98.0 million and $100.0 million in the third quarter, an increase of 17 percent at the midpoint of the range.

Further, the company is tightening its projection for 2011 revenue to between $390 and $396 million, up about 19% at the midpoint over 2010 revenue of $331.4 million.

Computer Task Group Inc. (NASD: CTGX)
Results for the second quarter ended July 1, 2011, compared with the same period in the previous year.
Revenue: $98.3 million, +21.2 percent
Net income: $2.8 million, +48.6 percent