Computer Task Group posted its second quarterly loss in the last three quarters as some of the Buffalo information technology company’s biggest clients cut back on the staffing they obtain through CTG.
CTG said it lost $16.2 million, or $1.03 per share, during the third quarter, as one-time accounting write-downs and severance expenses wiped out a small profit from the company’s operations.
Excluding those one-time items, CTG earned $794,000, or 4 cents per share, which was slightly better than the 3 cents per share that analysts were expecting.
But the third quarter was hard on CTG. The company’s revenues plunged by 16 percent to their lowest level for any quarter since the fourth quarter of 2009. CTG’s sales dropped to $78.1 million from $93.1 million because of the lower demand for staffing services and lower sales from its healthcare solutions business.
And the company warned that its sales during the current quarter would even weaker, at between $73 million and $75 million, after its biggest staffing customer said it would reduce its revenue by about 20 percent as it consolidates some of its service providers.
Sales from CTG’s healthcare solutions business, which accounts for about 28 percent of the company’s revenue, fell by a bigger-than-expected 27 percent to $22.1 million. Staffing revenues, which provides 72 percent of CTG’s sales, fell by 11 percent to $56 million.
CTG said it expects to earn between 4 cents and 6 cents per share during the current quarter, which would be on the high end of analyst forecasts of 4 cents per share.