COMPUTER TASK GROUP INC | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2023 10-Q, filed Nov 8, 2023. Its latest SEC filing is a SC 13G/A from Feb 9, 2024.

The sections below describe the company as of the FY2022 annual report.

What Did They Do?

Provides digital technology solutions and services to organizations with complex technology and data needs, and supplies technology professionals to large technology service providers and other multi-location companies.

How Did They Make Money?

Clients pay CTG for project services and technology staffing: hourly work is charged as hours are worked, progress-billed jobs mainly monthly, and fixed-price project work over its course.

revenue

Segment	Share	Revenue
North America I T Solutions And Services Segment	26% FY2019: 19%
Europe I T Solutions And Services Segment	46% FY2019: 38%
Non Strategic Technology Services	28% FY2019: 44%

Who Were Their Customers?

CTG serves healthcare and financial-services organizations, industrial companies, and technology service providers; for staffing, its personnel take direction from client managers.

Customers above 10% of revenue, FY2022

of revenue from one customer

FY2020: 21% from one customer

Did Revenues Turn Into Profits?

Yes. It kept 2 cents of every revenue dollar as net income in FY2022 and turned 3 cents into free cash flow.

Operating income, FY2022

3% of revenue

▼ −13% vs FY2021 ($12.7M, 3%)

Net income, FY2022

2% of revenue

▼ −52% vs FY2021 ($13.7M, 4%)

Free cash flow, FY2022

3% of revenue

▲ +99% vs FY2021 ($5.5M, 1%)

How Were They Changing?

Since the FY2022 annual report

Latest quarter: Q3 FY2023, the three months to Sep 29, 2023

Revenue: ▼ −5%; vs $75M in Q3 FY2022
Net income: ▼ Now a loss; vs $1.1M in Q3 FY2022

Europe IT Solutions and Services Segment share of revenue vs 44.3% in Q3 FY2022

Dec 13, 2023 Cegeka completed its acquisition of CTG CTG became wholly owned by Cegeka; CTG requested trading suspension and delisting, and CEO Filip Gydé was not part of the new organization.

Shrank. Revenue fell 9% in 4 years, from $358.8M in FY2018 to $325.1M in FY2022, about 2% a year.

Focus on digital solutions CTG’s earlier description covered a broad mix of technology services and staffing; the latest report centers on digital solutions and says it is disengaging from lower-margin staffing accounts as contracts expire.

Expanded digital capabilities CTG added Eleviant’s mobile, cloud and artificial-intelligence capabilities and software platforms to its digital offerings; the older report describes application and custom-software services.

Revenue over time

North America I T Solutions And Services Segment Europe I T Solutions And Services Segment Non Strategic Technology Services

$500M$250M$0

FY2019 FY2020 FY2021 FY2022