Computer Task Group (CTGX) provides staffing solutions for companies in need of information technology (IT) professionals. The company primarily operates in Europe and North America. The company’s staffing services include recruiting, retaining, and managing IT talent for its clients, including both large organizations with multiple locations and high-volume IT requirements, and companies that need to augment their own staff. Computer Task’s IT Solutions business helps clients select and test new software and other technology systems.
Computer Task Group focuses on vertical market areas, including technology service providers, healthcare, and financial services. Competitors include Computer Sciences Corp., IBM and Hewlett Packard. Last month, the New York-based company said it won a contract worth up to $15 million to provide the state of Alaska with IT security services and support for the state’s task order system, according to recent media reports. The company’s services encompass the IT business solution life cycle, including phases for planning, developing, implementing, managing, and maintaining the IT solution.
Computer Task’s shares, which have held up fairly well despite the slowdown in the US economy and decreased IT spending, are 23 percent-owned by insiders. Forty two institutions own another 56 percent. Mutual fund owners include DFA, Royce Small Cap Fund and Vanguard. The last analyst rating on Computer Task came from the brokerage firm Boeing & Scattergood a year ago and upgraded the shares to “market outperform” from “market perform.”
For its second quarter ending June 27, 2008, Computer Task reported revenue growth of 17 percent, or $13.9 million, to $94.1 million compared with 2007 second quarter revenue of $80.1 million. Net income more than doubled to $2.1 million from $1 million in the year earlier period. Due to increased demand from customers, especially in the medical field, the company said it expects earnings and sales for 2008 to exceed its previous expectations.
Shares of Computer Task closed at $6.75 on Thursday and have traded between $3.75 and $7.33 over the past year. The company has a market capitalization of $126.4 million and 12-month trailing price-to-earnings ratio of 19.6.
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