CTG Comments On Third Quarter 2000 Results.Business Editors BUFFALO, N.Y.--(BUSINESS WIRE)--Oct. 2, 2000 CTG CTG Cartridge CTG Center for Technology in Government (SUNY, Albany, New York) CTG Center for Technology in Government CTG Computer Task Group (IT consulting company; Buffalo, NY, USA) (NYSE NYSE See: New York Stock Exchange : TSK tsk interj. Used to express disappointment or sympathy. n. A sucking noise made by suddenly releasing the tongue from the hard palate, used to express disappointment or sympathy. ), an international information technology (IT) and e-business solutions company, today announced that the company's pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. from operations would be close to break-even in the third quarter of 2000. The company further stated that its financial results for the third quarter of 2000 would be impacted by two significant adjustments: an unfavorable year-to-date adjustment in the $.06 - $.08 per-diluted-share range of its previously recorded tax benefit and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reversal of approximately $1.5 million or $.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). reserve established in the first quarter of 2000. After these adjustments, a net loss is expected for the third quarter of 2000 between $.01 and $.04 per diluted share. The company stated that the adjustment for income taxes is attributable to a constant level of non-deductible goodwill amortization expense on lower-than-projected income. The adjustment to the previously expensed restructuring reserve reflects the company's ability to implement changes at a lower-than-anticipated cost. CTG's final results for the 2000 third quarter will be released after the close of the market on October 16, 2000. James R. Boldt, acting chief executive officer of CTG, commented, "With actual year-to-date revenues and income below our initial projections, we need to make this adjustment now to more closely reflect our likely actual tax position for the full year." Boldt concluded, "Although 2000 has been a very challenging year for CTG and our industry, we are now seeing significantly increased demand in most markets we serve. We are especially encouraged by greater demand from our own customers in our ITCapital staffing business. During the third quarter, we responded to this renewed activity by significantly increasing our recruiting staff. While the addition of recruiters occurred too late in the third quarter to have a significant impact on revenues, it is expected to positively affect CTG's revenues in the 2000 fourth quarter." Backed by more than 30 years' experience, CTG provides business consulting, e-business, and IT management solutions to help Global 2000 clients focus on their core business and use IT as a competitive advantage to excel in their markets. With 4,000 IT and business consulting professionals worldwide, CTG combines a deep understanding of the business power of the Internet with integrated, end-to-end services, proprietary service methodologies, and CTG's proven track record of delivering solutions that work. More information about CTG is available on the Web at http://www.ctg.com. This document contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning the Company's current expectations as to future growth. These statements are based upon a review of industry reports, current business conditions in the areas where the Company does business, the availability of qualified professional staff and other factors which involve risk and uncertainty. As such, actual results may differ materially in response to a change in such factors. Such forward-looking statements should be read in conjunction with the Company's disclosures set forth in the Company's 1999 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial section of the Company's 1999 annual report, which are incorporated by reference. Today's news release, along with CTG news releases for the past year, is available on the Web at http://www.ctg.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion