Benzinga | Jul 29, 2021 07:53AM EDT

Computer Task Group Posts Mixed Q2 Results, Notes Strong Solutions Segment Performance

* Computer Task Group Inc (NASDAQ:CTG) reported second-quarter FY21 revenue growth of 3.4% year-on-year to $92.2 million, missing the analyst consensus of $94.1 million.

* Solutions revenue increased 10.3%Y/Y to $41.4 million, and the Solutions gross margin expanded 80 bps to 32.3%. Staffing revenue was $50.8 million.

* Gross profit increased 8.8% to $20.4 million, and gross margin expanded by 110 bps to 22.1%.

* The non-GAAP operating margin remained steady at 3.2%.

* Non-GAAP EPS of $0.13 beat the analyst consensus of $0.12.

* It held $29.2 million in cash and equivalents.

* Computer Task Group did not provide any guidance citing the pandemic-driven uncertainties.

* Meanwhile, it expects continued year-over-year revenue growth and operating profit improvement, driven by an increasing mix of Solutions revenue, partially offset by the ongoing strategic disengagement from lower-margin Staffing business.

* The company's focus continues to be on driving CTG's digital transformation offerings and increasing the overall mix of higher value Solutions revenue, CEO Filip Gyd? stated.

* Price action: CTG shares closed lower by 0.66% at $9.04 on Wednesday.