IT staffing and solutions provider CTG (NASDAQ: CTG) reported second-quarter revenue rose 3.4% as it continues to focus on its solutions business. Growth in the quarter was driven by the Buffalo, New York-based firm’s solutions business while IT staffing revenue edged downward.
“We continued to execute our digital solutions strategy during the quarter, resulting in solutions revenue growing 10% year over year to 45% of total revenue,” said Filip Gydé, CTG president and CEO. “Our focus continues to be on driving CTG’s digital transformation offerings, and increasing the overall mix of higher value Solutions revenue.”
Gydé noted CTG continues to disengage from lower-margin staffing business.
| (US$ thousands) | Q2 2021 | Q2 2020 | % change |
| Revenue | $92,164 | $89,146 | 3.4% |
| Gross profit | $20,379 | $18,738 | 8.8% |
| Gross margin | 22.1% | 21.0% | |
| Net income | $1,833 | $1,759 | 4.2% |
Revenue slipped in CTG’s North America operations while European revenue rose.
Revenue by segment and geography
| (US$ thousands) | Q2 2021 | Q2 2020 | % change |
| Revenue by segment | |||
| IT staffing | $50,782 | $51,616 | -1.6% |
| IT solutions | $41,382 | $37,530 | 10.3% |
| North American revenue | $47,004 | $49,387 | -4.8% |
| European revenue | $45,160 | $39,759 | 13.6% |
Guidance
CTG is not releasing formal guidance at this time given the effects of Covid-19. Still, the company said it does expect continued year-over-year growth and operating profit driven by an increasing mix of solutions revenue.
Share price and market cap
Shares in Computer Task Group were up 0.55% to $9.09 at 11:54 a.m. Eastern time today; they were 22.17% below their 52-week high, according to FT.com. The company had a market cap of $139.0 million.