CTG (NASD: CTG) today lowered its guidance for second-quarter revenue and full-year revenue.

The Buffalo, N.Y.-based IT staffing and solutions provider, announced second-quarter revenue is expected to be approximately $100 million — slightly less than the $101 million to $103 million guidance. The decrease is due to lower-than-anticipated revenue from the company’s staffing business.

CTG also reported it expects earnings of 20 cents per diluted share, down from the range of 21 cents to 23 cents in previous guidance. The company cited an increase in medical costs based on significantly higher-than-expected claims from its self-insured medical plan.

It lowered full-year 2014 revenue guidance to a range of $390 to $400 million, down from the previous range of between $393 million and $407 million. Estimated earnings were lowered to a range of 75 cents to 81 cents per diluted share from the previous guidance of 83 cents to 91 cents. The 2014 earnings guidance changes primarily reflect higher medical costs in the second quarter and an increase in the budget for medical expenses for the rest of the year as well as isolated pricing pressures from one of the company’s larger staffing clients, according to the company.

“The increase in medical expenses from our self-insured employee medical plan was due to much higher utilization of the plan in the 2014 second quarter which reduced net income for the quarter by two cents per share,” said Chairman and CEO James Boldt.

“Absent these higher than expected costs, CTG’s second quarter earnings would have met our initial guidance for the quarter,” Boldt said. “While this higher level of medical expense may be an anomaly to the second quarter, to be prudent we are increasing our projected medical costs for the rest of the year. While most of the earnings reduction relates to higher medical expense, we have also made adjustments in our earnings guidance for the full year based on some rate renegotiations in our staffing business. The reduction in revenue for the year is a result of slightly lower demand for our staffing business than previously projected.”