From a financial perspective, Eleviant provides approximately $10 million of incremental annual revenue and given its industry-leading margin profile, is immediately accretive to EBITDA margin. With the addition of established talent in India gained with the acquisition, we have increased capacity and added greater flexibility and agility to our global delivery network. Eleviant provides strong offerings in AI, machine learning, and intelligent automation while complementing many of our other solutions and services. A compelling addition, Eleviant further advances our strategy of transformation into a higher value digital IT solutions provider. Gydé added, “We are excited to add Eleviant, which we acquired at the end of the quarter on September 29, 2022, to our solutions team. We continued to strengthen our business and disengaged from $8.8 million of non-strategic staffing business in the quarter.” Our gross margin expanded 190 basis points year-over-year and 40 basis points sequentially, and gross margin for our North America and Europe IT Solutions and Services segments was a combined 29.1%. Our strategy is delivering an improved mix of digital IT solutions while reducing lower-margin, non-core business. 08, 2022 (GLOBE NEWSWIRE) - CTG (Nasdaq: CTG) (“Company”), a leader in North America and Western Europe helping companies employ digital IT solutions and services to drive their productivity and profitability, today reported its financial results for the third quarter ended September 30, 2022.įilip Gydé, CTG President and CEO commented, “We believe our results continue to validate the effectiveness of our strategy to evolve into a digital solutions and services focused business with solid margin expansion against revenue headwinds. Eleviant acquisition accelerates strategy and portfolio innovation, while adding significantly higher margins.īUFFALO, N.Y., Nov.Generated $9.7 million of cash from operations in the quarter and $12.5 million year-to-date free cash flow was $6.7 million year-to-date.Achieved net income of $1.1 million Adjusted EBITDA increased 2.1% to $3.8 million with a 100 basis points improvement in margin to 5.1%.Operating margin was 3.0% non-GAAP operating margin expanded 70 basis points to 4.0%.North America and Europe IT Solutions and Services segments delivered combined gross margin of 29.1%, an increase of 130 basis points from the prior year.North America and Europe IT Solutions and Services segments revenue increased on a constant currency basis and considering the impact in the prior year of the large training, implementation, and support engagement for a health system in North America.Revenue relatively unchanged year-over-year on a constant currency basis and excluding intentional disengagement of lower margin Non-Strategic Technology Services business.Improved mix of business as a result of digital transformation strategy drove gross margin expansion of 190 basis points to 24.3% on revenue of $75.0 million.
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