IT services company Computer Task Group Inc has fallen short of its revenue expectations in its second quarter. In the three months ending July 2, 2004, the Buffalo, New York-based company increased net profit 20% to $600,000, on revenue that fell 5.3% to $59m.
CTG had expected sales to reach between $61m and $63m. The results do not include contributions from CTG’s disposed Dutch operation, whose sale was announced in April.
CEO James Boldt said the company had been hit by a delay in expected growth in spending from its healthcare sector clients, and also admitted that revenue had been hit by pricing pressure. He said the company’s small European operation was profitable in the second quarter, and is also experiencing rising demand.
CTG, which provides applications management, staffing and systems integration services, said it expects third-quarter revenue to fall slightly to between $56m and $58m. Boldt added: After four years of a weak market, we are finally seeing the return of more normal IT staffing demand.