Computer Task Group, Incorporated (NASDAQ:CTG) Q2 2020 Earnings Conference Call - Final Transcript

Jul 21, 2020 • 11:00 am ET


Computer Task Group, Incorporated (NASDAQ:CTG) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the CTG Quarterly Investor Call.

[Operator Instructions]

I'd now like to turn the conference over to your host, Jim Culligan, Director of Investor Relations. Please go ahead.

Jim Culligan

Thank you, Shaun, and good morning, everyone.

With me on today's call are Filip Gyde, CTG's President and Chief Executive Officer, and John Laubacker, Executive Vice President and Chief Financial Officer.

Before we begin, I want to remind listeners that statements made during the course of this conference call that state the company's or management's intentions, hopes, beliefs, expectations and predictions for the future are forward-looking statements. It's important to note that the company's actual results could differ materially from those projected. These forward-looking statements are based on information as of today, Tuesday, July 21, 2020. The company assumes no obligation to update these statements based on information from and after the date of this conference call. Additional information concerning factors that could cause actual results to differ from those made in the forward-looking statements is contained in today's earnings press release, as well as in the company's SEC filing.

In addition, the company's press release and management statements during the call include discussions of certain adjusted non-GAAP measures and financial information. These financial measures and a reconciliation of GAAP to non-GAAP results are provided in both today's press release and the related Form 8-K.

With that, I will now turn the call over to Filip for his opening remarks.

Filip J. L. Gyde

Thank you, Jim. Good morning, and thank you for joining us today.

Acknowledging the broad and ongoing impact that COVID-19 has had on so many people, I hope that you and your families are all doing well. And we appreciate you taking the time to participate on today's call.

Over the past few months, CTG has continued to build on our solid start to the year. We delivered strong second quarter results, with both revenue and non-GAAP operating profit increasing sequentially, despite the unprecedented and challenging global business environment. These results are directly attributable to our team's success and disciplined execution, and collectively contributed to CTG achieving our highest first half operating margin and non-GAAP earnings per share in six years. We are pleased with these results and believe the consistent progress we have made in our transformation to a solution-centric organization and our favorable performance trends over the past year are proof that our strategy is working.

Our ongoing focus on accelerating our strategic shift towards solutions has served us extremely well in the first half of 2020. We are enhancing the resilience of our business by meeting a broader range of client needs while generating higher margins, and we are confident this will also allow us to emerge from the pandemic from a position of strength. We continue to take steps to build on this momentum and position CTG to capitalize on the significant long-term growth opportunities in our served end markets. The transformation underway would not be possible without the