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CTG Revenue Rises 9%

July 24 2012

Computer Task Group (NASD: CTGX) reported second-quarter revenue rose 8.5 percent on a year-over-year basis to $106.7 million. The Buffalo, N.Y.-based information technology staffing and services firm reported results got a boost from the ramp-up of new healthcare IT projects, expansion of existing healthcare IT deals and increased billable headcount.

“Reflecting trends in the market, demand in our staffing business is modestly above our expectations at the start of the year,” Chairman and CEO James Boldt said. “In the last month, we moved several new large healthcare projects from our pipeline to billable work. While competition for healthcare IT technical resources remains strong and a challenge for all healthcare IT providers, we are still achieving robust growth in revenue from our healthcare business.”

CTG’s second-quarter gross margin improved to 21.5 percent from 21.1 percent in the year-ago quarter.

Second-quarter net income rose 45.7 percent to $4.1 million. The company received $400,000 in other income from life insurance proceeds following the death of CTG co-founder and director Randolph Marks.

CTG estimates third-quarter revenue of between $105 million and $107 million — an increase of 4.8 percent at the midpoint of the range.

Computer Task Group Inc. (NASD: CTGX)
 For the second quarter ended June 29, 2012, compared with the same period in the previous year.
 Revenue: $106.7 million, +8.5 percent
 Net income: $4.1 million, +45.7 percent

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