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 BUFFALO, N.Y., Oct. 21 /PRNewswire/ -- Computer Task Group (NYSE: TSK), Incorporated (CTG), an international Information Technology consulting firm, today released its third quarter financial results for the period ended October 1, 1993. The company also announced major changes in its structure.
 CTG reported revenues of $71 million, compared to $75 million of revenue in the third quarter of 1992. Pretax income for the third quarter of 1993 was $1.2 million, a $1.2 million decline from 1992's third quarter pretax income of $2.4 million. Earnings per share (EPS) were $0.06, compared to $0.13 of a year ago.
 At $223 million, revenues for the first nine months of 1993 were slightly below 1992's nine-month revenues of $227 million. Year-to-date 1993 pretax income was $4.7 million, compared to $8.5 million in 1992. EPS were $0.25, compared to $0.47 for the nine months ended Sept. 30, 1992.
 David Campbell, chairman and CEO, said, "Today we've taken a key step in identifying the new members of our management team who are enthusiastic about their opportunity to make CTG an effective customer- designed company. We believe we will quickly see significant progress in our goals for market share expansion and improving financial performance."
 Recently, CTG announced its intention to target Professional Services and Managed Services business as separate offerings. In Professional Services, CTG provides Information Technology (IT) skills in response to clients' immediate or long-term needs. In Managed Services, CTG provides IT solutions whereby CTG assumes responsibility for a defined deliverable or service level. Today, the company introduced its new structure to pursue those areas of business.
 CTG's renewed Professional Services efforts will be facilitated by the redistricting of regions. The company's existing four-region structure has been broadened to six regions to provide better marketplace coverage. In Managed Services, the company has formed three lines of business focused on providing solutions throughout the systems development lifecycle. They include Business Consulting (with initial offerings in Business Process Redesign, Information Technology Assessments and Joint Technology Selection), Solution Development (with initial offerings in client/server application development and package implementation) and Production Support (with initial offerings in applications maintenance outsourcing, help desk and systems operations).
 New management includes the following:
 Richard Ballou, newly named Vice President, Mid-Atlantic, is a 12-year CTG employee who advanced from technical through marketing levels in Raleigh, N.C., to branch management. Ballou has previous experience as a Consultant for North Carolina State University. He holds degrees in English and Computer Science from North Carolina State University.
 Chuck Barbour, newly appointed Vice President, Midwest, is a 16-year CTG employee who progressed through the technical ranks to branch management in CTG's Midwest region. He has previous work experience with Amoco Oil and CNA Insurance. Barbour holds a BS in Industrial Management/Finance and an Associate's degree in Computer Technology from Purdue University.
 Jan Cole, newly appointed Vice President, Northeast, is a 13-year CTG employee who progressed through the technical and marketing ranks in Syracuse to branch management. She was instrumental in helping CTG broaden its Northeast presence and has previous work experience with Marine Midland, Agway, GTE/Sylvania and Allied Chemical. Cole has pursued studies in liberal arts, mathematics and science at Onondaga Community College, in chemistry at SUNY at Oswego, and in computer science at SUNY at Buffalo.
 Duaine Goulding, newly appointed Vice President, West, is a six-year CTG employee who has had both management and marketing responsibility in our West region. He has had previous work experience with S&A Restaurant Corp. and Arco Oil & Gas. Goulding holds a BS and an MBA from the University of Texas.
 Jack Nale, Vice President, South, is a 13-year CTG employee who joined CTG when the company acquired Neoterics, a professional services firm. He has held various marketing and management positions in the southeast US and holds a BS in Marketing from the University of Baltimore.
 Jerry Selzer, Vice President, Central, is a 15-year CTG employee with both marketing and management experience in several CTG regions. He has previous work experience with US Steel and Dresser Industries and holds a BA in Business Administration from Thiel College in Pennsylvania.
 Richard Gibson was named Director, Applied Technology Council, and Acting Manager, Solution Development. Gibson is a seven-year CTG employee who has held management and technical advisement roles. He was most recently Information Engineering Director and has previous international work experience with BBC-TV, Milk Marketing Board and Shubrooks Design. Gibson holds a certificate in data processing has pursued coursework in business law, management and marketing.
 Roger Pelham, President, Profimatics, will assume leadership of CTG's Logistics, Metals and Manufacturing Systems Services, which were formerly part of the company's Industrial Systems Integration group. Pelham is a five-year CTG employee with a 30-year history in the information technology field. He has previous expertise with Chevron and the Atomic Energy Authority in the UK. He holds advanced degrees in chemical engineering and business.
 Dick Trautman, Senior Vice President, Production Support, is a 24-year CTG employee who has been instrumental in building CTG's Northeast and Southeast regions. He has prior work experience with Cornell Aeronautical Labs (now Calspan) and holds a BA in Geography from State University of New York at Buffalo.
 Stuart Woodward, Vice President, Business Consulting, is a two-year CTG employee who has held management positions in Business Development and with our Pharmaceuticals Practice. He has previous management experience with Saatchi & Saatchi Consulting and Andersen Consulting. Woodward is a CPA and holds an MBA from Northwestern University's Kellogg School and a BA in Economics from Coe College.
 Gale S. Fitzgerald, who has been President and Chief Operating Officer since July 1 said, "Our clients have a high degree of confidence in CTG and our professionals. We believe this new structure will allow us to capitalize on the strengths of our existing resources, as well as attract additional professionals, to deliver to our clients the highest value services in the market today."
 Computer Task Group, Inc., founded in 1966 and headquartered in Buffalo, N.Y., has 4,000 professionals helping companies compete using Information Technology. CTG serves customers in every industry, including the majority of the Fortune 100, throughout North America and Europe. CTG's stock is traded on the NYSE and the Amsterdam Stock Exchange under the symbol TSK.
 Consolidated Statement of Income
 (unaudited, amounts in thousands except per share data)
 For The For The
 Quarter Ended Three Quarters Ended
 Oct. 1, Sept. 30, Oct. 1, Sept. 30,
 1993 1992 1993 1992
 Revenue $ 71,196 $ 74,844 $223,048 $226,692
 Operating Costs
 and Expenses 63,491 65,288 199,274 197,081
 Selling, General
 and Administrative
 Expenses 6,053 7,048 18,596 20,623
 Operating Income 1,652 2,508 5,178 8,988
 Pct of Revenue 2.3 3.4 2.3 4.0
 Net Interest and
 Other Expense 489 120 472 451
 Income Before Income
 Taxes 1,163 2,388 4,706 8,537
 Percentage of Revenue 1.6 3.2 2.1 3.8
 Provision For Income
 Taxes 528 1,086 2,129 3,872
 Net Income $ 635 $ 1,302 $ 2,577 $ 4,665
 Percentage of Revenue 0.9 1.7 1.2 2.1
 Net Income Per
 Share $ 0.06 $ 0.13 $ 0.25 $ 0.47
 Weighted Average Shares
 Outstanding 10,636 10,115 10,494 9,978
 Consolidated Balance Sheet
 October 1, 1993
 (unaudited, amounts in thousands)
 Current Assets:
 Cash and Marketable Securities $ 14,941
 Accounts Receivable, Net 58,104
 Other Current Assets 7,090
 Total Current Assets 80,135
 Property and Equipment, Net 21,884
 Other Assets 36,549
 Total Assets $138,568
 Current Liabilities:
 Short-Term Borrowings $ 4,729
 Accounts Payable 5,941
 Other Current Liabilities 16,567
 Total Current Liabilities 27,237
 Long-Term Debt 9,014
 Deferred Income Taxes 1,170
 Other Liabilities 5,548
 Shareholders' Equity 95,599
 Total Liabilities and
 Shareholders' Equity $138,568
 -0- 10/21/93
 /CONTACT: Samuel D. Horgan, vice president - finance, chief financial officer, 716-887-7300, or Tracey Eastman, marketing communications, 716-887-7378, both of Computer Task Group/

CO: Computer Task Group ST: New York IN: CPR SU: ERN

BM-AR -- CL031 -- 5364 10/21/93 15:08 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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