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% |
Guidance
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.