CTG (NASDAQ: CTG), a provider of IT staffing and solutions in the US and Europe, reported second-quarter revenue fell 11.2% year over year amid the Covid-19 pandemic. The Buffalo, New York-based firm reported the decrease in revenue was in North America, where it fell 21.2%. European revenue at CTG rose 5.4% in the second quarter.
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Revenue | $89,146 | $100,408 | -11.2% |
| Gross margin | 21.0% | 18.3% | |
| Net income | $1,759 | $943 | 86.5% |
CTG also reported an increase in gross margin and a jump in net income. The company reported a gain of approximately $800,000 through the sale of its headquarters building in Buffalo.
Revenue by geography
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Revenue by segment | |||
| IT staffing | $55,301 | $64,787 | -14.6% |
| IT solutions | $33,845 | $35,621 | -5.0% |
| North American revenue | $49,357 | $62,653 | -21.2% |
| European revenue | $39,789 | $37,755 | 5.4% |
CTG isn’t providing guidance for the full year, but it does expect to be affected in the third quarter as employees take vacations that they had delayed, said Executive VP and CFO John Laubacker.
“We also expect a reduction in government subsidies in Europe for technical employment, the sale of a customer’s business unit in Alaska to another company and our continued investments in business development and solutions experts to impact earnings in the second half of the year.”
Share price and market cap
Shares in CTG were up 13.0% to $4.80 as of 7:05 a.m. Eastern time; the company had a market cap of $63.99 million, according to FT.com.