CTG Reports 22 Percent Growth in Revenue

CTG (NASDAQ:CTG), a leading provider of information technology (IT) solutions and services announced its financial results for the second quarter ended June 29, 2019.

The company reported that its revenue grew 22.7 percent year-over-year to US$92.7 million which is above their high-end of guidance.

It was noted by the company that the revenue from its largest client grew 15 percent year-over-year.

As quoted in the press release:

Second Quarter Financial Summary

• Organic revenue in Europe increased 16.8% year-over-year
• GAAP net income was $940,000, or $0.07 per diluted share, and non-GAAP earnings were $0.08 per diluted share, both at the midpoint of guidance
• For the first six months of 2018, revenue increased 15.0%, and earnings per diluted share grew by 12.5% on a GAAP basis, and 27.3% on a non-GAAP basis as compared with the same period in 2017

Second Quarter and Recent Business Highlights

• Completed transition of more than 350 employees in support of newly awarded service desk business at largest Staffing client
• Further extended the trend of growth in Europe, including two significant multi-year contracts with European ministries
• Health Solutions headcount increased 25% sequentially due in part to new contracts with Catholic Health Initiatives (CHI) and a prominent university medical center
• Launched new EIM Advantage^TM solution to address clients’ growing need for enterprise information management services
• Secured multiple new clients and improved conversion rate on pipeline of new business engagements in all lines of business

“Consolidated revenue grew 12% sequentially and 22.7% year-over-year to $92.7 million, which was above the high-end of guidance,” stated Bud Crumlish, CTG President and CEO. “Our results were driven by a combination of strong organic growth in both Staffing and Solutions as well as the first full quarter of revenue contribution from Soft Company, which was acquired in mid-February. Second quarter GAAP and non-GAAP earnings per share were at the midpoint of guidance, reflecting improved profitability resulting from targeted investments made in our sales organization, and the Soft Company acquisition, offset by certain acquisition-related expenses.”

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