The new federal tax law led to a fourth-quarter loss at Computer Task Group, but the Buffalo-based information technology company said it expects stronger sales and profits this year.
CTG lost $419,000, or 3 cents per share, during the fourth quarter, all because the new tax law wiped out $1.7 million in tax benefits it no longer can claim. That was less than the profit of $1.1 million, or 7 cents a share, it earned during the fourth quarter of last year.
But excluding one-time items, CTG said its earnings improved to $865,000, or 6 cents per share, which was in line with its guidance. CTG's sales were down 4 percent to $74.6 million as cutbacks from some of its big staffing clients offset higher revenues from smaller clients.
For 2018, CTG said it expects to earn between 25 cents and 37 cents per share, up from 5 cents per share last year. Excluding one-time items, CTG said its earnings would reach 30 cents to 42 cents per share. It forecast that sales would rise by about 16 percent to between $340 million and $360 million, compared with $301 million last year.