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Computer Task Group revenue rises 5%

April 28 2010

First-quarter revenue rose 5.3% year-over-year at Computer Task Group Inc. (NASD: CTGX). The Buffalo NY-based information technology staffing and services firm reported first-quarter revenue of $78.5 million compared with $74.6 million in the year-ago quarter.

Demand for healthcare solutions projects helped propel revenue growth, according to the company.

IT solutions revenue rose 0.4% to $25.1 million in the first quarter. IT staffing revenue rose 7.7% to $53.4 million.

Gross margin narrowed to 21.7% from 22.4% in the first quarter of 2009.

CTG posted first-quarter net income of $1.8 million, up 37.2% from $1.3 million in the year-ago quarter.

The company estimated second-quarter will increase between 17% and 23%, and that full-year 2010 revenue would rise between 14% and 17%.

"At the end of the first quarter, we closed on a significant multi-year engagement for a large physician practice that includes an enterprise-wide electronic health records system implementation to meet the meaningful use criteria for receiving federal stimulus money," Chairman and CEO James Boldt said in a press release. "In addition, in the first quarter of 2010 one of the largest states notified us that we had been selected to perform statewide planning for health information exchanges."

Computer Task Group Inc. (NASD: CTGX)
For the first quarter ended April 2, 2010, compared with the same period in 2009.
Revenue: $78.5 million, +5.3%
Net income: $1.8 million, +37.2%

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