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Fourth-quarter net income rose 13.4% at technology staffing firm Computer Task Group Inc. (NASD: CTGX). The Buffalo NY-based company posted net income of more than $1.2 million compared with almost $1.1 million in the fourth quarter of 2006.
CTG said net income would have been $1.4 million in the fourth quarter of 2007 excluding costs to evaluate merger offers from RCM Technologies Inc. (NASD: RCMT) in 2007. CTG's board rejected both offers as inadequate.
Fourth-quarter revenue rose 8.3% to $84.5 million from $78.0 million in the same period last year. Gross margin slipped to 22.2% from 24.5%.
Full-year 2007 net income rose 21.5% to $4.2 million from almost $3.5 million in 2006. Full-year revenue of $325.3 million, however, was down 0.6% from $327.3 million in 2006. Gross margin slipped to 22.3% from 22.7%.
The company gave first-quarter revenue guidance of between $83 million and $85 million and full-year 2008 revenue guidance in the range of $340 million to $350 million. Analysts were estimating $83.5 million for the first quarter and $349.0 million for fiscal year 2008.
"While overall market demand for staffing is lower due to the recent slowdown in the economy, we expect stability or modest growth in CTG's staffing revenue this year based on recent staffing wins," said Chairman and CEO James Boldt.
The company also announced that its board approved the repurchase of 1 million shares.
Computer Task Group Inc. (NASD: CTGX)
For the fourth quarter ended Dec. 31, 2007, compared with the same period in 2006.
Revenue: $84.5 million, +8.3%
Net income: $1.2 million, +13.4%
For full-year 2007 ended Dec. 31, 2007, compared with the previous year.
Revenue: $325.3 million, -0.6%
Net income: $4.2 million, +21.5%