CTG Reports Solid Third Quarter Growth.BUFFALO, N.Y.--(BUSINESS WIRE)--Oct. 12, 1998--CTG (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 third quarter 1998 net income of $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. ) of $0.37, respective increases of 32 percent and 42 percent over the third quarter of 1997. Third quarter revenue was $116.2 million, an increase of 15 percent over revenue from the third quarter of 1997. "We continue to grow with our clients' needs based on the strength of our services and competencies," 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. ). "Quarter after quarter, 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) has demonstrated solid growth based on our Key Client strategy and our commitment to delivering more valuable services to those clients. As we continue to grow our revenue, improved profitability that comes by delivering more valuable services is the most important goal for us. Testimony to that is the significant improvement in our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: from 7.4 percent a year ago to 8.9 percent this quarter." In the third quarter the company realigned into two business development channels, one specializing in Managed Services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality such as Application Management, Business Consulting, Application Development and Systems Integration, and one specializing in Strategic Staffing for large clients. CTG also signed a number of key contracts in the third quarter, including contracts with a large multi-national financial institution, a global communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , a health care provider, and a national 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. organization. CTG continues to draw attention from the media and the investment community. Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. , an investment banking and securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the and brokerage firm, initiated coverage of CTG in the third quarter of 1998 with a buy rating. During the last 2 1/2 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company has attracted the coverage of nine brokerage firms. CNBC's "Power Lunch" (August 19) featured CEO Gale Fitzgerald discussing Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 Risk Management and Contingency Planning. Additionally, VARBusiness magazine (July 6) named CTG to the VARBusiness 500, its annual ranking of North America's largest IT solutions providers, for the second year in a row. CTG continued its progress toward its goal of becoming ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001-certified companywide, with eight more offices achieving this prestigious certification. For the first three quarters of the year, CTG reported revenue of $343.5 million, an increase of 16 percent over total revenue for the first three quarters of 1997. Net income and diluted EPS for the first three quarters of 1998 were $17.1 million and $1.01, respectively, increases of 33 percent and 38 percent over the first three quarters of 1997. CTG (Computer Task Group (NYSE: TSK)) is a $455 million information technology (IT) services company that provides IT solutions to Fortune 500 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, more than 6,000 IT professionals, a suite of proprietary service methodologies, strong project management expertise, and a proactive recruiting approach, CTG-SmartSource. CTG is proud to be named for the third year in a row by Computerworld magazine as one of the 100 best places to work in information systems. CTG has earned a reputation as a progressive employer. 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 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 1997 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 1997 annual report, which are incorporated by reference. -0-
COMPUTER TASK GROUP, INCORPORATED
Consolidated Statements of Income
(amounts in thousands except per share data)
For the Quarter Ended For the Nine Months Ended
Sept. 25, Sept. 26, Sept. 25, Sept. 26,
1998 1997 Change 1998 1997 Change
Total Revenue $116,174 $101,132 15% $343,503 $296,172 16%
Total Operating
Income 10,287 7,472 38% 28,491 20,639 38%
Percentage
of Revenue 8.9% 7.4% 8.3% 7.0%
Net Other Income 246 507 535 1,176
Income Before
Taxes 10,533 7,979 32% 29,026 21,815 33%
Percentage
of Revenue 9.1% 7.9% 8.4% 7.4%
Net Income $ 6,216 $ 4,717 32% $ 17,127 $ 12,871 33%
Percentage
of Revenue 5.4% 4.7% 5.0% 4.3%
Net Income
Per Share
Basic $0.38 $0.28 36% $1.06 $0.76 39%
Diluted $0.37 $0.26 42% $1.01 $0.73 38%
Weighted
Average Shares
Outstanding
Basic 16,248 16,880 16,184 16,842
Diluted 16,859 17,843 16,936 17,665
COMPUTER TASK GROUP, INCORPORATED
Consolidated Balance Sheets
(amounts in thousands)
Sept. 25, Sept. 26,
1998 1997
Current Assets:
Cash and Cash Equivalents $37,762 $49,237
Accounts Receivable, Net 84,819 64,211
Other Current Assets 3,807 3,929
Total Current Assets 126,388 117,377
Property and Equipment, Net 13,155 12,069
Other Assets 6,359 6,652
Total Assets $145,902 $136,098
Sept. 25, Sept. 26,
1998 1997
Current Liabilities:
Accounts Payable $12,178 $13,582
Accrued Compensation 32,338 23,048
Income Taxes Payable 6,907 4,429
Other Current Liabilities 7,406 7,794
Total Current Liabilities 58,829 48,853
Other Liabilities 10,758 10,287
Shareholders' Equity 76,315 76,958
Total Liabilities and
Shareholders' Equity $145,902 $136,098
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