8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 14, 2003

COMPUTER TASK GROUP, INCORPORATED
(Exact name of registrant as specified in its charter)

  New York
(State or other
jurisdiction of incorporation)   1-9410
 (Commission File Number)  16-0912632
 (IRS Employer
 Identification No.)

800 Delaware Avenue, Buffalo, NY	14209
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code (716) 882-8000

Not Applicable
(Former name or former address, if changed since last report)

Item 12. Results of Operations and Financial Condition.

            On July 14, 2003, the Registrant issued the press release concerning earnings for the quarter ended June 27, 2003 that is included with this Form 8-K as Exhibit 99. Pursuant to the rules of the Securities and Exchange Commission, the information contained in the press release is deemed to be "furnished" and not "filed."

Exhibits.

            99 - Press Release, dated July 14, 2003, issued by Computer Task Group, Incorporated.

SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	COMPUTER TASK GROUP, INCORPORATED
	(Registrant)
Date: July 14, 2003	By: /s/ Peter P. Radetich
	Name:  Peter P. Radetich
	Title:     Vice President & Secretary

EX-99

N E W S R E L E A S E

CONTACT:
Gregory M. Dearlove
Vice President & Chief Financial Officer
(716) 887-7262

CTG Reports 2003 Second Quarter Financial Results

Revenues Rise Sequentially; EPS Meets Guidance

BUFFALO, N.Y. ^- July 14, 2003 ^- CTG (NYSE: CTG), an international information technology (IT) solutions and staffing company, today announced its financial results for the second quarter of 2003, which ended on June 27, 2003. CTG's revenues for the second quarter of 2003 were $64.1 million, compared with revenues of $67.7 million in the second quarter of 2002. CTG's net income for the second quarter of 2003 was $0.5 million, or $0.03 per diluted share, compared with net income for the 2002 second quarter of $0.7 million, or $0.04 per diluted share.

For the 2003 first half, CTG reported revenues of $127.9 million, compared with revenues of $137.6 million in the 2002 first half. CTG's net income for the 2003 first half was $0.6 million, or $0.04 per diluted share, compared with a 2002 first half net loss of $35.9 million, or $2.11 per diluted share, which included the cumulative effect of the change in accounting principle related to the valuation of the Company's goodwill and intangible assets.

"CTG's quarterly earnings per share again met our expectations, and our revenues rose sequentially at a time when several IT services and consulting firms expect to report losses and further declines in revenues," said CTG Chairman and Chief Executive Officer James R. Boldt. "CTG's push to expand our strategic staffing client base is paying off with our new, large client relationships ramping up and our existing business continuing to improve. Our fourth consecutive quarter of solid results in our strategic staffing business helped offset some of the delays we are seeing in solutions and outsourcing projects, as a number of clients continue to defer the start-up of engagements based on the uncertain economic environment."

Mr. Boldt added, "We also continue to focus on key vertical markets. This is a sound, long-term growth strategy for CTG, as we are targeting industries where we have significant experience and the demand for IT services is strong and growing. Our newest vertical practice, which supports the life sciences market, positions us to capitalize on the emerging opportunity of 21 CFR Part 11 compliance for companies selling or distributing FDA-regulated products. CTG has already done a significant amount of 21 CFR Part 11 work for several major life sciences firms, and this work, coupled with our knowledge of the industry, should support the growth of this new vertical. Demand for health care IT, the focus of CTG's largest vertical practice, remains strong, in part a result of the higher-value integration work related to HIPAA compliance."

During the quarter, CTG sold an unused facility in Melbourne, Florida for $2.2 million, resulting in a $0.2 million pre-tax loss, or $.01 per diluted share, on the sale that is reflected in the 2003 second quarter results. The proceeds from this property sale were used to reduce long-term debt, which declined from $15.6 million at the 2003 first quarter-end to $7.6 million at the 2003 second quarter-end, its lowest level since the February 1999 acquisition of Elumen Solutions.

CTG also issued guidance for the third quarter of 2003. Based on current business and market conditions, CTG expects that its revenues and net income per diluted share for the third quarter of 2003 will range from $60 million to $62 million and $0.00 to $0.02, respectively.

Mr. Boldt concluded, "Our guidance for the third quarter reflects one less billing day than the second quarter and the seasonal vacation effect when consulting staff in both North America and Europe typically take vacation. The additional holiday and vacation's impact on utilization are expected to have a combined effect on revenue of $2.5 million to $3.5 million. Despite the normal seasonal decline, CTG continues to compare favorably to others in our industry in a business environment that remains very challenging. Our focus on staffing for large companies and our strength in other core competencies, combined with our vertical market experience and our sound financial condition, is providing CTG stability in the current IT services environment while positioning us well for the future."

Backed by 37 years' experience, CTG provides IT application management, consulting, software development and integration, and staffing solutions to help Global 2000 clients focus on their core businesses and use IT as a competitive advantage to excel in their markets. CTG combines in-depth understanding of our clients' businesses with a full range of integrated services and proprietary ISO 9001:2000-certified service methodologies. Our 2,700 IT professionals based in an international network of offices in North America and Europe have a proven track record of delivering solutions that work. More information about CTG is available on the Web at www.ctg.com.

This document contains certain forward-looking statements concerning the Company's current expectations as to future growth. These statements are based upon a review of industry reports, current business conditions in the areas where the Company does business, the availability of qualified professional staff, the demand for the Company's services, and other factors that involve risk and uncertainty. As such, actual results may differ materially in response to a change in such factors. Such forward-looking statements should be read in conjunction with the Company's disclosures set forth in the Company's 2002 Form 10-K and Management's Discussion and Analysis section of the Company's 2002 annual report, which are incorporated by reference. The Company assumes no obligation to update the forward-looking information contained in this release.

CTG will hold a conference call on July 15, 2003 at 11:00 a.m. EDT to discuss its financial results and business strategy. CTG Chairman and Chief Executive Officer James R. Boldt will lead the call. Interested parties can dial in to 1-800-869-4362 between 10:45 a.m. and 10:50 a.m. and ask for the CTG conference call and identify James Boldt as the conference chairperson. A replay of the call will be available between 1:00 p.m. EDT July 15, 2003 and 1:00 p.m. EDT July 18, 2003 by dialing 1-800-642-1687 and entering the conference ID number 1412681.

COMPUTER TASK GROUP, INCORPORATED (CTG)
Consolidated Statements of Operations
(amounts in thousands except per share data)

	For the Quarter Ended					For the Two Quarters Ended
		June 27, 2003		June 28, 2002		June 27, 2003		June 28, 2002
Revenue	$	64,057	$	67,667	$	127,919	$	137,561
Direct costs		46,834		48,986		93,988		99,135
Selling, general and administrative expenses		15,988		17,374		32,274		35,317
Operating income		1,235		1,307		1,657		3,109
Net other expense		445		198		643		1,258
Income before income taxes and cumulative effect of change in accounting principle		790		1,109		1,014		1,851
Provision for income taxes		332		438		426		731
Net income before cumulative effect of change in accounting principle		458		671		588		1,120
Cumulative effect of change in accounting principle (a)		-		-		-		(37,038)
Net income (loss)	$	458	$	671	$	588	$	(35,918)
Basic net income (loss) per share:
Net income before cumulative effect of change in accounting principle		$0.03	$	0.04	$	0.04	$	0.07
Cumulative effect of change in accounting principle (a)		-		-		-		(2.24)
Basic net income (loss) per share	$	0.03	$	0.04		0.04	$	(2.17)
Diluted net income (loss) per share:
Net income before cumulative effect of change in accounting principle	$	0.03	$	0.04	$	0.04	$	0.07
Cumulative effect of change in accounting principle (a)		-		-		-		(2.18)
Diluted net income (loss) per share	$	0.03	$	0.04	$	0.04	$	(2.11)
Weighted average shares outstanding:
Basic		16,646		16,557		16,635		16,545
Diluted		16,711		17,029		16,738		17,000

a. In conjunction with the required adoption of SFAS No. 142 and based upon an independent appraisal, CTG recorded a pre-tax, non-cash loss for impairment of $37.0 million or $2.24 per basic share and $2.18 per diluted share in the 2002 first quarter. The write-off primarily relates to the goodwill that resulted from the acquisition in February 1999 of the healthcare information technology services provider Elumen Solutions, Inc.

COMPUTER TASK GROUP, INCORPORATED (CTG)
Consolidated Balance Sheets

(amounts in thousands)

		June 27, 2003		June 28, 2002			June 27, 2003		June 28, 2002
Current Assets:					Current Liabilities:
Cash and cash equivalents	$	1,968	$	2,731	Accounts payable	$	8,121	$	8,238
Accounts receivable, net		46,839		52,280	Accrued compensation		19,449		21,985
Other current assets		3,343		4,799	Income taxes payable		-		2,802
					Other current liabilities		4,357		7,594
Total Current Assets		52,150		59,810	Total Current Liabilities		31,927		40,619
Property and equipment, net		8,110		12,666	Long-term debt		7,643		13,234
Other assets		40,611		40,278	Other liabilities		7,499		7,704
					Shareholders' equity		53,802		51,197
					Total Liabilities and
Total Assets	$	100,871	$	112,754	Shareholders' Equity	$	100,871	$	112,754

- END ^-

Today's news release, along with CTG news releases for the past year, is available on the Web at www.ctg.com.