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CTG revenue falls 19%

February 24 2010

Computer Task Group Inc. reported fourth-quarter revenue fell 18.8% on a year-over-year basis to $67.7 million. The Buffalo NY-based information technology staffing firm, said fourth-quarter staffing revenue fell by 18.3% to $45.2 million.

Fourth-quarter gross margin narrowed to 22.2% from 22.4% in the year-ago quarter.

Net income for the fourth quarter was $1.6 million, down 29.2% from $2.3 million in the fourth quarter of 2008.

CTG reported full-year 2009 revenue fell 22.0% on a year-over-year basis to $275.6 million. Gross margin edged up to 22.4% from 22.3%.

2009 net income was $5.9 million, down 24.3% from $7.8 million in 2008.

CTG said work related to electronic medical records contributed 9% of total revenue in 2009, and it expects more such work in 2010.

"As the year begins, activity is increasing for [electronic medical records] work and our clients' need for external IT resources remains strong," Chairman and CEO James Boldt said. "These trends and our pipeline of new projects support our forecast of a return to double-digit revenue and earnings growth for CTG in 2010."

The company estimates first-quarter revenue will range from $74.0 million to $76.0 million, representing a decrease of 0.7% to an increase of 1.9%. It expects full-year 2010 revenue to range from $301.0 million to $309.0 million, an increase of between 9.2% to 12.1%

Computer Task Group Inc. (NASD: CTGX)
For the fourth quarter ended Dec. 31, 2009, compared with the same period in the previous year.
Revenue: $67.7 million, -18.8%
Net income: $1.6 million, -29.2%

For the full year ended Dec. 31, 2009, compared with the previous year.
Revenue: $275.6 million, -22.0%
Net income: $5.9 million, -24.3%

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