CTG’s solutions business leads Q3 revenue growth; implementation deal with Epic to fuel Q4 expansion

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November 09, 2021

Third-quarter revenue rose 2.2% year over year at CTG (NASDAQ: CTG) due to growth in its higher-margin IT solutions business. The Amherst, New York-based firm reported IT staffing revenue fell 4.6% year over year in the third quarter as it exited from less profitable work.

(US$ thousands) Q3 2021 Q3 2020 % change
Revenue $90,603 $88,648 2.2%
Gross profit $20,290 $19,547 3.8%
Gross margin  22.4% 22.1%  
Net income $1,672 $2,831 -40.9%

CTG President Filip Gydé noted the company recently began work on implementing an Epic medical records system for a US client. The multimillion-dollar deal is expected to contribute significantly to fourth-quarter revenue and will serve more than 10,000 end users at the client.

“This project involves coordinating hundreds of solutions experts, leveraging innovative and purpose-built application tools, and providing the training to support thousands of end users — all of which are designed to accelerate our client’s transformation and maximize the return from their investment,” Gydé said.

Revenue by segment

(US$ thousands) Q3 2021 Q3 2020 % change
Revenue by segment      
IT staffing $49,263 $51,642 -4.6%
IT solutions $41,340 $37,006 11.7%
North American revenue $50,285 $48,668 3.3%
European revenue $40,318 $39,980 0.8%


CTG forecast fourth-quarter revenue of between $110 million and $115 million, a year-over-year increase of between 8.5% and 13.5%.

Full-year revenue is forecast to be between $390 million and $395 million, an increase of between 6.5% and 7.9%.

Share price and market cap

Shares in CTG were up 0.8% to $8.15 as of 12:13 p.m. Eastern time; shares were 41.16% above their 52-week low, according to FT.com. The company had a market cap of $123.9 million.

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