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Additional information concerning factors that could cause actual results to differ from those in the forward-looking statements is contained in our earnings release as well as in the company's SEC filings. You can find these at our website or the SEC's website at sec.gov. Please review our forward-looking statements in conjunction with these precautionary factors.With that, I'd like to turn it over to Jim to begin the discussion. James Boldt Thanks, Jim, and good morning, everyone. This is Jim Boldt. I want to thank you for joining us this morning for our fourth quarter earnings conference call. As you read in our earnings release in the fourth quarter 2011 we were at our guidance for revenue and at the high end of our guidance for earnings per share. Revenue in 2011 increased over 2010 by 20% and our earnings per share increased 37%. Our revenue and earnings continue to grow as demand for our services expands, both as a result of the (inaudible) in the United States for staffing services and as the healthcare industry invests in electronic medical record and other initiatives requiring IT support. I’m going to talk more about our results and what we see for the 2012 first quarter and the full year. But first I'm going to ask Brendan to start us off with a review of our financial results. Brendan? Brendan Harrington Thanks, Jim. Good morning, everyone. For the fourth quarter of 2011 CTG's revenue was $100.9 million, an increase of $13.6 million or 16% compared with the fourth quarter of 2010. Q4 2011 had 63 billing days, which was one more than the fourth quarter of 2010. On a per billing day basis, revenue increased by 14%. Solutions revenue in the fourth quarter of 2011 was $40.5 million, an increase of $9.4 million or 30% compared with the fourth quarter of 2010. As a percentage of total revenue solutions revenue was 40% compared with 36% a year ago. The improvement in our business mix was mainly driven by revenue growth from more profitable healthcare projects.
Demand from our staffing clients increased staffing revenue in the quarter by $4.2 million or 8% to $60.4 million. Fourth quarter revenue from IBM, our largest customer, was $27.4 million compared with $26.9 million in the fourth quarter of 2010. Although the total revenue from IBM increased as a percent of total revenue it decreased to 27.2% in the 2011 fourth quarter, compared with 30.8% of total revenue in the fourth quarter of 2010.Revenue from our European operations was $16.5 million, a 3.8% increase from the $15.9 million recorded in last year's fourth quarter. The effect of foreign currency fluctuations during the fourth quarter of 2011 decreased the consolidated revenue by approximately $133,000. The recovery in Europe continues to lag that of the United States as indicated by the 4.5% increase in European revenue on a local currency basis as compared with the fourth quarter of 2010. Direct costs as percentage of revenue were 77.4% in the fourth quarter compared with 78.1% in the fourth quarter of 2010 and 79.3% in the trailing third quarter of 2011. SG&A expenses as a percent of revenue increased slightly to 17.2% from 17.1% in the fourth quarter of 2010. Fourth quarter operating income expanded at a greater rate than revenue and was $5.5 million, an increase of $1.2 million or 29% year-over-year reflecting the favorable effect of operating leverage and our higher margin solutions work. Compared with the trailing third quarter of 2011, fourth quarter operating income increased by $882,000 or 19.3%. Operating margin in the fourth quarter increased 5.4% of revenue, a 50 basis point improvement from last year's 4.9% due primarily to an increase in the solutions business and our sales mix and the additional operating leverage. 2011 fourth quarter operating margin increased 90 basis points compared to the third quarter 2011 primarily reflecting the change in the mix of the business.
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