CTG (NASD: CTG), a Buffalo, N.Y.-based information technology services company, reported fourth-quarter revenue fell 4.4% year over year to $98.3 million. The company reported spending has declined on implementations of electronic health records (EHR); healthcare represented 26% of the company’s revenue in the fourth quarter.

Net income fell 66.9% in the fourth quarter, which included $2.0 million in costs associated with the death of Chairman and CEO James Boldt under the terms of his employment agreement, and a non-cash impairment charge of $1.5 million to write off the net book value of its medical fraud, waste and abuse software solution.

The company reported it has narrowed the search for CEO candidates and expects to name a new CEO in the near term.

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“The charges taken in the fourth quarter significantly reduced earnings for the quarter and full year,” said CTG Interim CEO Brendan Harrington. “Excluding these charges, we were able to mitigate most of the effect of lower revenue and earnings from electronic health record (EHR) implementation projects in the quarter with the contribution from a large medical analytics project that was completed at the end of 2014.”

Revenue by segment and geography

Full-year results

Guidance

CTG expects first-quarter revenue of between $97 million and $99 million, unchanged at the range midpoint compared to the year-ago quarter. For full-year 2015, CTG expects revenue of between $375 million and $395 million, down 2% year over year at the range midpoint.

Share price and market cap

Shares in CTG fell 8.42% in late morning trading to $7.83. The firm had a market cap of $145.41 million, according to Yahoo!