Benzinga | Apr 29, 2021 11:13AM EDT

CTG Posts Upbeat Q1 Results, Declines To Provide FY21 Outlook

* Computer Task Group Inc (NASDAQ: CTG) reported first-quarter FY21 revenue growth of 11.7% year-on-year to $97.1 million, beating the analyst estimate of $93.22 million. Expanded contribution from Solutions business and continued new business momentum in Europe drove the revenue growth.

* Solutions revenue rose 25.3% Y/Y to $43.1 million, and Staffing revenue was $54 million.

* Revenue breakup by Vertical Market: Technology Service Providers contributed 31%, Financial Services, Healthcare, and Manufacturing generated 17%, 15%, and 12% of the revenue. Energy and General Markets contributed 6% and 12% of the revenue.

* The gross margin expanded 180 basis points to 21.4%. Non-GAAP operating margin contracted 10 basis points to 2.8%.

* Non-GAAP net income rose 42.9% to $2 million. Non-GAAP EPS amounted to $0.13, beating the consensus estimate of $0.11.

* Adjusted EBITDA increased 9.9% year-over-year to $3.7 million.

* The company held $33.5 million in cash and equivalents. It generated $2.3 million in operating cash flow.

* Guidance: CTG did not provide an outlook due to end markets volatility from the continued global impact of the COVID-19 pandemic.

* Price action: CTG shares traded lower by 3.80% at $9.88 on the last check Thursday.