Q2 2021 Computer Task Group Inc Earnings Call
Your conference will begin momentarily please continue to hold.
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Ladies and gentlemen, and thank for standing by and welcome to see T. Gs second quarter 2021 financial results conference call at.
All participants are in a listen only mode by way of managements prepared remarks, we will conduct a question and answer session and instructions will be given at that time as a reminder, today's conference call is being recorded for replay purposes.
And now I'll turn the conference call over to see T G Executive Vice President and.
At this time to officer, John Law Becker John Please go ahead.
Thank you for Elena and good morning to everyone on the call joining me on today's call Us fully P day, Ctg's, President and Chief Executive Officer.
Before we begin I want to remind listeners that statements made during the course of this conference call the state.
The companys or managements intentions hopes beliefs expectations and predictions for the future are forward looking statements.
It is important to note that the companys actual results could differ materially from those projected.
These forward looking statements are based upon information as of today Thursday July 29.2021.
<unk> assumes.
Assumes no obligation to update these statements based upon information from and after the date of today's conference call.
Additional information concerning factors that could cause actual results.
To differ from those made and the forward looking statements is contained in today's earnings press release as well as the company the SEC filings and.
In addition, the company's.
<unk> press release and management statements. During the call include discussions of certain adjusted non-GAAP measures and financial information.
These financial measures and reconciliations of GAAP to non-GAAP results are provided in both today's press release and the related form 8-K.
With that it is now my pleasure to turn the call over to <unk> for his opening remarks Felipe.
Thank you John.
Good morning through every 1 of them on the phone and webcast and.
Thank you for joining us on today's conference call.
I am pleased to report we had another solid quarter.
We continue to execute our digital solution strategy.
Revenue from solutions business.
<unk> grew 10% year over the year.
Reached 45% of total revenue and the second quarter.
On the also increased 18% over the first half of coupons and celebrity.
Coupled with our ongoing actions to disengage from lower margin staffing engagements.
We continue to drive an increased mix of higher value solutions business and significant improvement in our consolidated operating performance.
Our gross profit margin on the operating income for the second quarter increased sequentially and year over year.
Contributing to non-GAAP earnings, increasing 30% and the first half of 2021 over the prior year period.
The continued year over year improvement and our operating results further demonstrates that our strategy is very effective.
As part of our broader solution strategy, we've increasingly narrow their focus and continue to make ongoing investments around the core group of scalable digital transformation solutions.
These include agile and ex the cops internet of things.
Intelligent automation day.
And analytics cloud and automate the desk.
Collectively these core digital accelerators meaningfully expand our addressable markets of the series of disruptive trends drive the need for new.
Smuggles across a growing number of companies and industries.
CTG is increasingly well positioned to benefit from this accelerating demand for digital transformation and.
And we continue to expand our portfolio of digital solutions and.
The order to further capitalize.
And this rapidly growing market opportunities.
Yeah.
As mentioned on our previous conference call.
We launched the highly successful rebranding and marketing campaign in February.
This also included our introduction of Ctg's new tagline from.
Transformation.
And some accelerated.
Which is designed to reflect our mission of enabling clients to accelerate the project momentum and achieve the desired performance improvements from the digital transformation initiatives.
We've continued to receive considerable positive feedback.
And that since the law.
Yes, I'm also often asked what the CTG, thus for its clients and its typical digital solutions and engagement.
Therefore, I wanted to take the opportunity on today's call to briefly outline to real world Examples of Ctg's digital suite.
Solutions.
And the significant tangible value realized by our clients.
And as a reminder, the majority of our digital solutions offerings can be applied and many different vertical markets.
I'll start with the recent project to be completed.
Feedback on on automated testing engagements in the health care space.
A large hospital system and the eastern U S wanted to reduce the amount of time and resources cost and complexity of the frequently and required updates to the EHR system.
CTG.
And it's being utilized the software testing platform called the <unk> plant and apply to intelligent automation to the testing of the clients' workflows.
The resulting benefits to the clients are dramatic and included accelerated the test cycles lower cost and the reduction in the required.
CTG business.
To further quantify the magnitude of the benefits.
And we enabled the client to decrease the average ambulatory workflow testing clients by over 98%.
From approximately 12 hours down to 11 minutes.
Briefly summarizing and other projects.
CTG was engaged by a railroad operating and North America net.
Needed to rapidly and modernize the core software application the company had due to us for 30 plus years to operate the business.
CTG employ the company.
Recently, showing of agile and Dev ops methodology to completely redevelop the client score application.
After the building and the initial framework for the new application CTG, then and utilize the scrum team met the service model too.
And the optimized functionality of the application.
And as well as implement the series of new features in near real time.
Impressively the day.
<unk> for the project consists of the talented employees from North America, Belgium, and Luxembourg.
Ultimately, we complete the delivery of the.
The new core operating application to the clients and less than 6 months.
The resulting in substantial improvements to the plains business operations.
And the customers' experiences.
Today. This clients continues to retain CTG of continue.
Incremental enhancements to the core operating application.
Now I will turn back to our broader solutions business under current market environment.
While the overall pace of proposal requests and contract commitments.
Has generally remained slower in recent months.
Our team has done an excellent job of driving a higher conversion rates on us solution of them.
Why are we have also continued to be successful in terms of building and maintaining a solid pipeline.
Pipeline of new business opportunities.
Despite the elevated uncertainty still expressed by many clients due to the pandemic.
Further highlighting our success.
Earlier this month, the team secured and new multimillion dollar contracts day.
It's the large go lives and pick implementation projects.
And provide the associate the training with the large regional healthcare system and the U S.
This represents our third goal of lot of implementation of wood in the past year.
The initial work on the projects.
Men are expected to begin this quarter.
Ramp significantly during the fourth quarter and essentially be complete by the end of the year.
In addition to our focus and ongoing investments to expand Ctg's digital solutions capabilities and offerings.
We continue to further enhance our solutions are delivered to clients.
Fundamental to this effort is our established network of global delivery centers, which enables us to utilize the centralized hubs North America, Western Europe, India and South.
America to provide the broad scope of scalable.
High quality digital solutions that are also cost effective the clients anywhere in the world.
For example, we recently won a contract with an existing client and Luxembourg.
We cannot come up for a new and being rebid by declines.
The 3 year renewal of the managed services contract include the multilingual circumstance surface management and governance and the infrastructure and network support.
Importantly, the project.
And also included transitioning delivery of the solution from our team in Europe.
And our recently established delivery center in Bogota, Colombia.
The end result is a win win for decline and for CTG.
As we continue to increase the adoption of the SKU.
On the delivery Center model.
We will provide more comprehensive and optimized solutions, while also achieving cost efficiencies on solutions.
Representing the value for both clients and CTG.
And other recurring question that I've been.
Bruce and recent months.
What's make CTG and the digital solutions of delivers unique.
My response is always the same day.
Core of our success of Stifel.
<unk> has incredible people.
As an organization, we pride ourselves on.
Seeking alpha and the retaining extremely talented individuals with deep industry experience.
Broking us teams, the eases and individuals and utilizing our innovative tools and methodologies and digital solutions and consistently delivering exceptional.
And that level of service.
The clients recognize and volume.
This often leads to clients coming back to CTG and asking us to replicate our previous success and other areas of their business or on future projects.
Ctg's.
The <unk> emphasis on finding and retaining key talent.
And the only apply to our employees.
This extends from bottom to top and.
Including to the company's board of directors.
The board recently had the pleasure of appointing and welcoming Ctg's newest star.
Director of Kt Stein through the Bourbon and early July.
Which follows. The addition of rush electrical power in December.
Both are seasoned the industry executives of the.
He brings deep industry knowledge and valuable perspective to our company.
And demonstrates.
Ctg's ongoing commitment to board diversity.
I will now turn the call over to John for.
For a detailed review of our second quarter results as well as commentary on our outlook for the coming quarters.
Thank you Felipe and again good morning, everyone and thank you for joining us on today's call and.
As reported in our press release earlier this morning.
Holidayed revenue and the second quarter was $92.2 million.
Compared with $97.1 million and the first quarter and $89.1 million and the second quarter of 2020.
The sequential decrease and second quarter revenue, primarily reflects 2 fewer billable days and the quarter as.
And as well as our continued disengagement from lower margin staffing business.
The increase in revenue year over year was driven by the continued expansion of our solutions business as well as year over year growth and Europe.
Currency translation had a positive impact of $3.9 million on revenue and the second quarter of 2021.
Compared with the positive impact of $4 million and the first quarter.
And of negative impact of 800000, and the second quarter of 2020.
Total billable days and the second quarter were <unk> 63.
Compared with 65 days and the first quarter.
And 64 days and the year ago second quarter.
Solutions revenue and the second quarter was $41.4 million.
Of 44, 9% of total revenue.
This compared with $43.4 million.
And for 44, 7% of total revenue and the previous quarter.
Year over year solutions revenue increased $3.9 million of approximately 10% from $37.5 million or 42, 1% of total revenue and the second quarter of 2020.
Revenue from IBM and the second quarter was $19.6 million or 21, 2% total revenue.
Compared with 19 points of $6 million or 22% of total revenue and the first quarter and $18.9 million of 21, and 2% of total revenue and the year ago quarter.
The other client represented more than 10 per cent of our revenue during the second quarter of 2021 or and recent comparable periods.
Gross profit.
And the second quarter was $24 million of 22, 1% of revenue compared with $20.8 million or 21, 4% of revenue and the first quarter of 2021 and.
And $18.7 million or 21% of revenue and the year ago second quarter.
Second quarter SG&A expense of 17.
$1.6 million reflects our continued investment in it and digital transformation offerings and business development resources consistent with our solution strategy.
This compared with $18.7 million in the first quarter and $16.8 million and the second quarter of 2020.
GAAP operating margin and the second.
Quarter improved to 3%.
Compared with 2.2% and the first quarter and 2.1% and the second quarter of 2020.
Non-GAAP operating margin and the second quarter, which excludes approximately $165000 of the acquisition related expenses was 3.2% compared with $2.8.
<unk> and the first quarter, and 3.2% and the year ago second quarter.
The effective income tax rate and the second quarter was 28% compared with 22, 6% from the first quarter and.
And 43, 7% and the second quarter of 2020.
The lower than historical effective tax rate and the first half of 2 <unk>.
And 1 reflects the deduction of expenses that were previously non deductible for tax purposes.
And the higher tax rate and the second quarter of 2020 was the result of certain non deductible expenses occurred in the us during that period.
GAAP net income and the second quarter was $1.8 million of <unk> 12 per diluted share and included.
Approximately $119000 of <unk> per diluted share of.
Of acquisition related expenses.
Non-GAAP net income for the quarter was $2 million or <unk> 13 per diluted share.
For comparison GAAP net income for the first quarter of 2021 was $1.5 million or <unk> 10 per diluted share included approximately.
<unk> $500000 or <unk> <unk> per diluted share of acquisition related and rebranding expenses.
Non-GAAP net income for the first quarter was $2 million of <unk> 13 per diluted share.
GAAP net income and the second quarter of 2020 was $1.8 million or <unk> 12 per diluted share.
Which included approximately.
$1000 of net income or <unk> <unk> per diluted share.
Comprised of severance and acquisition related expenses offset by gains from non taxable life insurance and the sale of the building.
Non-GAAP net income was $1.4 million or <unk> 10 per diluted share and the year ago second quarter.
Adjusted EBITDA on the site.
Foreign order of 2021 was $4.1 million.
Compared with $3.7 million and the first quarter and $4.1 million and the second quarter of 2020 and.
Adjusted EBITDA for the trailing 12 months as of the end of the second quarter of 2021 was $16.1 million balance.
Ctg's total headcount at the end of the second.
Second was approximately 3006 hundred 50.
Compared with 3700 and at the end of both the prior quarter and the year ago second quarter.
90% of our second quarter of 2021 headcount was billable.
Turning to our balance sheet.
Cash and cash equivalents at the end of the second quarter were $29.
$2 million, which in part reflected the cash outlay of approximately $5.6 million related to the timing of payroll on the last day of the quarter.
At the end of the second 2021 second quarter of the company had no outstanding balance on its revolving credit facility and no other long term debt.
Capital expenditures for the second quarter were.
Quarter or <unk> 98.
Compared with 891000, and the first quarter and 493000 and the second quarter of 2020.
Looking forward the evolving global impacts of the COVID-19, pandemic have continued to limit visibility and <unk> and markets and clients and as such we're not providing quantitative guidance for the third.
For 200 and full year 2021.
Company does however, expect continued year over year revenue growth driven by an increasing mix of solutions revenue.
Partially offset by the ongoing strategic disengagement from lower margin staffing business.
We continue to be very pleased with our consistent progress.
And third core advancement of of the company digital transformation strategy.
Which contributed to the growth of solutions revenue and our strong operating results and the second quarter and first half of the year.
Specific to the third quarter, while we are well positioned and expect to achieve continued topline growth year over year. We also anticipate of return of more seasonal trends.
And the event in recent years as many individuals, especially those in Europe look to take more vacation time during the quarter.
That completes our prepared remarks philina could you please initiate and manage our question and answer session.
Yes, Sir ladies and gentlemen, if you wish to ask the question. Please press 1 day zero.
And if you're using a speakerphone please pick up the handset before pressing the numbers.
Once again, if you wish to ask a question. Please press 1 zero now.
And our first question comes from the line of Josh Vogel with Sidoti. Your line is open Sir.
Thank you.
John and Felipe you guys doing well.
No.
Good morning, Josh.
Good morning first question I have.
Can you quantify the pipeline conversion rate and the quarter and how it measure it up.
The historical rates.
And just with the heightened focus and need.
Stage of transformation services and capabilities, especially those brought the late by the pandemic.
Kind of curious are you seeing a level of pent up demand that's coming through the channel that's meaningfully.
And.
And compressing the sales cycle, but also improving the conversion rates. Thank you.
And the insurance.
Josh.
And we've seen that the the new Delta of Valeant.
Still create sort of sustains.
Challenging and volume.
However, we also saw a higher closure rate and we have seen in and the last quarter.
I think our teams worldwide have done that and.
Outstanding job of closing new deals.
And on at the same time and building the pipeline.
I wouldn't say then.
The conversion rates is on.
Already at pre Covid.
On levels.
Seating noticeable improvement.
Okay. Thank you and maybe maybe just a little tangent.
And you know I'm seeing prevailing theme there around pent up demand even as the pandemic lingers.
I'm curious you know.
Once.
A contract is signed and our clients looking to start engagements as soon as possible are you seeing any sort of compression there between when when it's signed versus when you start ramping.
And that's a very good question Josh.
Because it also shows that there.
The positive change and in the markets.
And it is in fact, the assuming that the clients have signed.
And they wanted to get staff.
And that is very much how it works pre pandemic suite.
And.
Still even pre pandemic as the.
Clients are still cautious about making decisions.
And the pace of the decision of the slower.
Once the decision is made.
And then we almost starts immediately so we've re.
Ex to be ready.
And our approaches with our people.
With our teams.
To start the soon as the signature has been booked.
Alright, great and shifting gears a little bit of.
And maybe for John.
Thinking about the <unk>.
Really initiatives and on what it takes band your addressable market.
Or and you've highlighted to us.
Sales and business development, and new offering and Japan, and the global delivery network can.
Can you just give some directional commentary around the the level of spend we should expect outside or above normal.
And these operations as well as <unk>.
The other targeted areas of your plan to focus on the back half of this year.
Yes.
It's a great question, Josh what we have the approach that we've taken overall from a spend standpoint is to position the company for.
And what comes next and so as we've pretty consistently talked about we continue to make investments and the solutions leadership and solutions talent to yes, as Felipe was indicating on signed contracts the very responsible and those contracts come in and of our sign and have people on a position.
To drive those solutions.
Some of it is.
Thought leadership around building out and developing those.
And solutions to expand them to expand the market.
Some of those investments are in traditional sales.
Roles of the business development roles as well and so the investments themselves are across the gamut.
<unk>.
From solutions to business development to the thought leadership.
From that perspective.
And we made significant investments at the beginning of the year.
To bring people on board.
And drive again drive those perspectives that will drive revenue and the second half of the year and years beyond.
I would anticipate.
Bet that we will continue to be aggressive and building that knowledge base and that talent base and that business development phase and the second half of the year, but not as aggressive on the spend perspective, we did and the first and second quarter for us.
Not on the first quarter.
Okay. Thank you for that.
So we've mentioned the.
The new multi million dollar contracts of the go live of mutation.
And Q3 ramps and Q4 ends at the end of the year can you just give us a sense of what type of revenue contribution that could and should add and in the quarters.
No.
The.
It's a significant volume.
Are you talking.
On a multimillion.
We're thinking debt most of the work is going to happen in Q4.
As of Q3 is already ongoing and of course and it needs to start ups.
Brett.
Nevertheless, the.
The baked not so we'll speak of our work.
So it's going to be Q4, mostly.
And.
Yeah and.
And that's how it's going to be.
Distribute it.
John could you add some color.
Yes.
Yes, Josh we haven't we haven't done as you know we didn't put out guidance or didn't extend guidance for the second half of the year. This is a significant project.
That again to <unk>.
The leaps point will mostly be completed in the fourth quarter, our fiscal fourth quarter.
So we do expect a significant increase in revenue in that quarter.
Okay, Great understood last 1 from me.
The adjusted EBITDA generated.
And by the business. Your press release, you mentioned, 70% coming from solutions.
And I'm curious when.
And you hit your targets.
And our 50.50 revenue split what do you think.
The contribution will be.
From solutions.
And then also.
And I calculate about a 7% margin there for solutions and if I recall, you recently talked about solutions being down 10% I know that year and the midst of investing but.
Is that still the goal or target when we.
About longer term EBITDA margin on the solutions business.
Maybe I'll start with.
With the high level answer and BMO.
I'll pass on to Jim.
On our <unk>.
Longer term targets for EBITDA and Josh.
She's obviously.
Higher than the 7%.
And knowing that you're still investing and getting the solutions the business development and the marketing already.
When the.
On the machine.
Starting to run that.
What are the right seeds cruising altitude so to speak I think those investments will obviously.
Less and less on the total.
And also looking at all of the margins are moving to digital solutions.
The.
That sort of global delivery network.
Helping us to lower delivery costs, and also moving work offshore to India and South America.
All of those elements should help us increase.
EBITDA level above the 7%.
All of us the 10% does seem.
For the long term.
Percentage, where we need to go to.
And John you want to add some more detail.
Thanks Lloyd.
Think that the points you made are great and and sort of round out the continued thought process around it and.
And so if we're going to make going forward.
But I would agree Josh.
And the release itself and some of the financial information and the back we had a gross profit went up to $22..1. So overall you see that that increased and.
Gross profit and solutions was 32, 3% up 2% from last quarter. So as we continue to.
To sell the right business and as fleets and deliver it as effectively as we can utilizing offshore and and whatnot. Those margins will continue to go up.
We're going to continue to invest as we've talked a couple of times already on this call, but at the end of the day.
And a long term target of 10% is certainly.
<unk> out there and sort of certainly something that we think we can achieve and.
The flip when I talk about this a lot not to get ahead of ourselves because again, we've got a lot of work to do to get the 10%, but we talk about the.
Destinations I don't think Thats the Thats a milepost on the destination I don't think that Thats the ultimate destination.
Great well.
Appreciate all of the insights and for taking my questions.
Thank you.
Thanks Charles.
Thank you and our next question comes from the line of Kevin Liu with K <unk> Company. Your line is open.
Hi, good morning, guys.
Hey, Kevin Good morning, Kevin.
First question here, just wanted to delve into some of the seasonality.
Dynamics, a little bit more certainly if we go back past here of Q3 tends to be down as you guys mentioned because of the vacation and particularly in Europe. At the same time. This quarter you were talking about a lot more pipeline conversion into new business. So.
And so when we flush that all out of you guys can you just give us some help on whether you expect revenue to actually be down the seasonally.
And here in Q3 or do you have enough new business to the perhaps help offset that and keeping us relatively stable if not growing.
Joe and I think this is the question why the pure Robyn.
Thanks Luke.
Kevin There is a really I think of number of moving dynamics.
1 of the seasonality that we.
I did mentioned specifically around.
The Q3 and not just in Europe, but certainly in Europe and.
Throughout the North America peoples interest and taking some time off taking the holiday after a very long.
Covid period now obviously the rise of the increase of the Delta variant of Covid might impact.
<unk> talked about.
And I think we've got the transforming or changing perspective quite frankly over the last.
A few weeks and so.
If that Delta very continues to rise we may see less vacations taken and holiday time taken than we originally anticipated at the same time.
We do have as you mentioned and as we've said pipeline conversion and nice opportunities and we do have a large project that will start although most of us in Q4 some of it will start in Q3.
And then you've got our continued strategic part of our plan to disengage from the lowest margin staffing business. So I don't anticipate.
Hum.
The sequential a significant sequential change in revenue either up or down it might be up and it might be down, but I do anticipate revenue overall being higher than last year's.
The number which was almost $89 million year over year I do expect an increase sequentially I don't expect.
Heck of lot of change again, maybe up maybe down but.
There is 3 or 4 factors that are driving that underneath the surface.
Understood and appreciate the color.
Certainly some of the new wins, you guys talked about 10 of the stem more from the health care side, what's curious if thats. Indeed, the case, where it's mostly coming and health care or are you seeing.
In other industries, where the conversion rates are picking up as well.
And while delivering very good question.
Actually seeing the same trends and.
And in more industries.
We're seeing and in Europe.
And usually of Europe.
The little more cautious and.
And picking up.
On the positive trends and then happened wouldn't normally and the states, but also in Europe, and and define and sector.
And even in the government, we see more and more movements indications.
Health.
And of course the <unk>.
Examples.
And we see the conversion rates picking up.
But also on energy.
And so I think per key said, it's kind of almost all over the board.
Got it.
And just looking at.
The head count numbers and kind of what you ended up reporting to the staffing segment and it did look like can you guys, perhaps disengaged from business intra quarter.
Questions I had around that with us as your head count at the appropriate level to support some of the pipeline conversion et cetera.
And you expect to add talent over the next quarter or 2 and then more specific to the.
The staffing side of the business have we seen the full impact of any business of disengaged from and the quarter or would there be another kind of falloff and as we look forward and the back half of the year.
Alright.
And I think we will add talent going forward.
With.
Sales conversion rates, we see.
The new project starts and.
No the old projects that are only focused on the ore.
And we're mostly focused on 1 quarter of lot of the the wins behalf on multi years and all.
Sure.
Ramping up over time.
So I see us growing in the solutions area and.
I think you picked it up very well.
We are continuing to disengage from the lower margin staffing.
And we have done that already this year and we plan to continue debt.
And whenever it makes sense like we said the adversary.
Solid and strict way of looking at that business on.
And if it makes sense to continue or 2 to walk away.
And at renewal time.
So we anticipate on a staffing.
And resources.
It will go down and.
And now the only and the next couple of quarters, but we'll.
Probably see that's continuing and.
Knowing that we're also focusing on staffing that is more and more aligned with us.
<unk> starts we need from.
And digital solutions, so our staffing and solutions. These are coming together and digital solutions on the staffing that's outside of that and low margin is going to ban the.
Slowly the.
Superior.
Yeah.
Alright, and then just 1 last question from me you know, perhaps using kind of the renewal of the managed services contract and as an example, or if you guys want to generalize a little bit more outside of this customer.
But for and engagement, where you are getting that renewal and you're able to move from more of the delivery of offshore tier of Columbia Center and can you just talk a little bit about what sort.
For all of that has both in terms of the.
The amount of revenue you can generate from the program as well as the impacts you see on the margin side.
And right, we see that the trends for CTG is only just starting.
So we see.
And that's the half of proofing.
The global delivery network. The all of our clients are seeing that sort of delivering the results on the each time.
The renewal on each failures of new managed services contracts.
And we can present and with different options.
And the option that totally.
Onshore and the option that's fully offshore and options that are that are mixed and all of the high grades and.
And when you look at the right the.
Costs and the difference between.
Delivering something fully from India for instance.
And the fully from the United States.
And it easily is 1 corridor 1 fourth of.
Of the cost.
Obviously, if you look.
Growth, where the client debt.
We have worked with always on them on.
Basis, and we're moving the work of sport.
That the client is.
Naturally expecting some of the benefit on some of the price.
The cuts from that Oh.
And also wants to pay a lower price so it's not that.
Got that.
True.
Cost savings were doing on the delivery sites of immediately and increased margin sort of it's like I said and in my prepared remarks, it's always and it's a win win for our clients and CTG.
Great. Thanks for taking the questions and good luck to you on the second half.
It's Kevin Thanks, Kevin.
I would like to announce on the call back over to management for closing remarks.
Thank you Celina.
In closing we have a comprehensive strategy in place centered around digital solutions that the.
Yes.
Producing tangible results as evidenced by the continued year over year growth of our solutions business as well as improved operating performance and <unk>.
The second quarter and for the first half of 2020 of them.
I am very proud with the C D E themes.
Throughout our global organization.
And the consistent progression, we've demonstrated towards achieving ctd's longer term vision and.
Positioning the company as of yet.
Leading enabler and accelerates or of.
Digital transformation services.
As we continue to execute.
Our strategy and build the off of our solid pipeline and the second half of the year on.
And I'm confident we will continue to succeed and driving higher revenue and operating profits and then.
And third and create Tayo for all of you for our shareholders.
Thank you for participating.
On today's conference call on the.
Your continued support of CTG.
Selina you may now disconnect the call.
Ladies and gentlemen, the conference is now on terminate it you may now disconnect. Thank you for using AT&T teleconference and services.
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