CTG (NASD: CTG), an IT staffing and solutions provider, reported third-quarter revenue fell 3.9 percent year over year to $96.8 million. The decline came in the Buffalo, N.Y.-based firm’s solutions business.
It was previously announced that CEO James Boldt, who held the leadership role at the firm since 2001, died Oct. 13. “Everyone in the CTG family is deeply saddened by the unexpected death earlier this month of our CEO, Jim Boldt,” said board director Daniel Sullivan. “A strong leader, Jim was totally committed to CTG and its success throughout his nearly 20 years of service to the company.”
Earnings quote
“The reduction in our operating margin reflects the changing mix of our business due to current conditions in the healthcare markets that we serve,” said interim CEO Brendan Harrington. “We continue to be challenged in our healthcare business by the continuing reduction in hospital spending for electronic medical records implementation support.”
Revenue
| Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
| Revenue | $96,760 | $100,689 | -3.9% |
Revenue by segment and geography
| Q3 2014 (000s) | Q32013 (000s) | % growth | |
| Revenue by segment | |||
| Staffing | $61,500 | $60,700 | 1.3% |
| Solutions | $35,300 | $40,000 | -11.8% |
| European revenue | $18,300 | $18,200 | 0.5% |
Gross margin
| Q3 2014 | Q3 2013 | |
| Gross margin | 19.7% | 21.0% |
Net income
| Q3 2014 (000s) | Q3 2013 (000s) | % growth | |
| Net income | $2,726 | $3,863 | -29.4% |
Guidance
CTG expects fourth-quarter revenue of between $100 million and $102 million, down 2 percent at the range midpoint.
