CTG Continues Long-term Growth.BUFFALO, N.Y.--(BUSINESS WIRE)--April 19, 1999-- 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) (Computer Task Group)(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) services company, today announced first quarter 1999 revenues and net income. Excluding the expense of a non-recurring arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. , net income for the first quarter of 1999 was $6.2 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were $0.37, respective increases of 22 percent and 23 percent over the first quarter of 1998. Including the non-recurring charge, net income for the first quarter was $4.7 million and diluted earnings per share were $0.28. First quarter 1999 revenue was $116.6 million. "CTG's growth is focused on the long term. We are developing more high-value services so our Key Clients can leverage information technology to succeed in their increasingly competitive marketplaces," said Gale S. Fitzgerald, CTG's chairman and chief executive officer (CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ). CTG's first quarter results reflect the integration of approximately five weeks of financial results of the former Elumen Solutions, Inc., which CTG acquired in late February. Elumen was the largest privately held consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in IT services for health care organizations. CTG's new health care IT practice, CTG HealthCare Solutions, is positioned as a leading national IT consultant to the health care industry. With $44 million in combined health care revenues in 1998, CTG HealthCare Solutions has 250 health care client relationships and more than 300 health care IT consultants. "Our acquisition of Elumen Solutions during the first quarter positions CTG as a leader in health care IT services. We are also well positioned in other high-impact areas such as business consulting, enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ), e-business, supply chain management, and business application management," Ms. Fitzgerald said. "Our strong European operation continues to extend our global reach." As expected, Ms. Fitzgerald said, CTG's revenue growth was slowed somewhat in the first quarter, as it was in the fourth quarter of 1998, primarily due to constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. sales from the company's oil and gas customers and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) . Pursuing its Key Client strategy, CTG signed a number of key contracts in the first quarter, including contracts with a large European financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company, a national textile company, a large metropolitan area health care provider, and a large retail grocery chain. While valuations in the IT services sector remain under severe pressure - which many analysts attribute to the fear that the IT services sector as a whole is overexposed o·ver·ex·pose tr.v. o·ver·ex·posed, o·ver·ex·pos·ing, o·ver·ex·pos·es 1. To expose too long or too much: Don't overexpose the children to television. 2. with Year 2000 (Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 ) work - CTG continued to draw favorable attention from the investment community as a sound value investment. Ms. Fitzgerald noted that CTG has purposely pur·pose·ly adv. With specific purpose. purposely Adverb on purpose USAGE: See at purposeful. Adv. 1. limited its Y2K work to less than 15 percent of its business, unlike most companies in the sector. CTG has been continuing its focus on attracting and retaining the best IT professionals. In 1998, Computerworld magazine named CTG one of the 100 best places to work in information systems for the third year in a row. CTG (Computer Task Group)(NYSE: TSK) is a $475 million information technology (IT) services company that provides IT solutions to Fortune 1000 and other companies through strategic partnerships. Backed by more than 30 years' experience, CTG manages IT services for some of the world's leading companies so they can focus on their core businesses and use IT, which has become vital to competitiveness, to excel in their markets. CTG's resources include its 55 offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe, 6,000 IT professionals, a suite of proprietary service methodologies, strong project management expertise, and a proactive recruiting approach, CTG-SmartSource. Today's news release, along with CTG news releases for the past year, is available by fax at no charge by calling Corporate News on the Net at (800) 742-7505. Additional information about CTG is available on the World Wide Web at these addresses: http://www.ctg.com and http://www.businesswire.com/cnn/tsk.htm. 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 1998 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 1998 annual report, which are incorporated by reference.
COMPUTER TASK GROUP, INCORPORATED (CTG)
Consolidated Statement of Income
(amounts in thousands except per share data)
For the Quarter Ended
March 26, March 27,
1999 1998 Change
--------- --------- --------
Total Revenue $ 116,618 $ 109,683 6%
Total Operating Income(a) 8,016 8,389 (4)%
Percentage of Revenue 6.9% 7.6%
Net Other Income 180 216
--------- ---------
Income Before Taxes(a) 8,196 8,605 (5)%
Percentage of Revenue 7.0% 7.8%
Net Income(a) $ 4,699 $ 5,077 (7)%
========= =========
Percentage of Revenue 4.0% 4.6%
Net Income Per Share:(a)
Basic $0.29 $0.32 (9)%
========= =========
Diluted $0.28 $0.30 (7)%
========= =========
Weighted Average Shares
Outstanding:
Basic 16,424 16,104
Diluted 16,827 16,994
(a): Includes the expense of a non-recurring arbitration award which
lowered Operating Income and Income Before Taxes by approximately
$2.5 million, and Net Income and Net Income Per Share by
approximately $1.5 million and $.09, respectively.
COMPUTER TASK GROUP, INCORPORATED (CTG)
Consolidated Balance Sheet
(amounts in thousands)
March 26, March 27,
1999 1998
--------- ---------
Current Assets:
Cash and Cash Equivalents $ 10,367 $ 17,412
Accounts Receivable, Net 93,704 82,217
Other Current Assets 6,231 4,742
Total Current Assets 110,302 104,371
Property and Equipment, Net 14,828 13,127
Other Assets 90,642 6,573
--------- ---------
Total Assets $ 215,772 $ 124,071
========= =========
COMPUTER TASK GROUP, INCORPORATED (CTG)
Consolidated Balance Sheet
(amounts in thousands)
March 26, March 27,
1999 1998
--------- ---------
Current Liabilities:
Accounts Payable $ 14,302 $ 11,718
Accrued Compensation 31,288 24,766
Short-term Borrowings 44,300 -
Income Taxes Payable 11,436 6,656
Other Current Liabilities 12,727 7,278
--------- ---------
Total Current Liabilities 114,053 50,418
Other Liabilities 11,451 10,675
Shareholders' Equity 90,268 62,978
Total Liabilities and
Shareholders' Equity $ 215,772 $ 124,071
========= =========
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