Computer Task Group's first-quarter profits fell by 44 percent as the Buffalo information technology company absorbed higher expenses as its revenues grew.
CTG's profits fell to $422,000, or 3 cents per share, from $751,000, or 5 cents per share, a year ago. But excluding one-time items, CTG's profits reached 6 cents per share, which was better than last year and in line with analyst forecasts. The corporate tax cut that took effect this year helped reduce CTG's income tax expense by more than $400,000.
The company's revenues grew by 8 percent to $82.8 million from $77 million and were stronger than CTG's guidance as its European business strengthened, currency rates turned more favorable and sales started to flow from its recent acquisition of Soft Co.
CTG narrowed its full-year revenue forecast to between $343 million and $357 million, while maintaining its guidance that earnings would range between 25 cents and 37 cents per share. Excluding one-time items, CTG said its profits were expected to be between 30 cents and 42 cents per share.