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Revenue rose 7.8 percent year-over-year at Computer Task Group Inc. (NASD: CTGX) to $103.4 million in the first quarter amid growing healthcare IT revenue. The Buffalo, N.Y.-based provider of information technology staffing and solutions reported staffing revenue was flat at $62.2 million in the first quarter. However, CTG’s solutions revenue rose 22 percent year-over-year to $41.2 million.
Gross margin improved to 21.1 percent in the first quarter from 20.6 percent in the year-ago quarter.
“This quarter’s robust increases in margins and earnings primarily reflect continued growth in our health solutions business," said CTG Chairman and CEO James Boldt. “Client demand remains very strong in the healthcare division, our most profitable business unit, where revenue increased 19 percent in the first quarter while demand in our lower margin IT staffing business moderated as expected.”
Boldt said growth in electronic medical records boosted healthcare IT revenue. EMR revenue rose 12 percent in the first quarter, and EMR-related work is expected to continue at a robust pace in 2012.
European revenue edged up to $17.2 million in the first quarter from $17.1 million in the same period last year.
First-quarter net income rose 18.8 percent to almost $3.4 million.
CTG forecasts second-quarter revenue of between $104 million and $106 million, a 6.8 percent increase at the midpoint of the range.
Computer Task Group Inc. (NASD: CTGX)
For the first quarter ended March 30, 2012, compared with the same period in the previous year.
Revenue: $103.4 million, +7.8 percent
Net income: $3.4 million, +18.8 percent