Information technology services firm Computer Task Group said Tuesday that second-quarter profits fell 32 percent from a year ago as revenues tumbled, but demand for staffing services stabilized.

The Buffalo-based technology firm reported earnings of $1.4 million, or 9 cents per share, down from $2.1 million, or 13 cents per share, a year ago.

Revenues fell 29 percent to $66.6 million, while operating income fell 40 percent to $2.4 million. The profit margin fell sharply from a year ago, but expanded from the first quarter.

Still, officials credited new technology solutions work with higher margins and tighter cost controls for partially offsetting the impact of lower revenues. As a result, per-share profits came in at the high end of the company’s earnings guidance for Wall Street.

“These factors also helped limit the contraction of our operating margin from last year — which was the highest in almost 10 years — while driving margin expansion from this year’s first quarter,” Chairman and CEO James R. Boldt said in a release.

Boldt said the company benefited from growing demand for electronic medical records work, reflected in proposal activity, as well as the stabilization in demand for the company’s staffing services. Healthcare revenues comprised 25 percent of the total.

He said the recently issued federal guidelines for the American Recovery and Reinvestment Act, which includes money to convert to electronic medical records, “make it most advantageous financially for providers to implemnet EMRs that fit ARRA criteria by 2011.”

And he said the company is already starting work on new electronic medical records implementation, and expects more contracts “as the year progresses,” since CTG is “one of a small number of firms” with experience helping to start a community-wide EMR system.

“Although the tight credit markets have decreased demand in our solutions business . . . we are encouraged that access to financing is beginning to open up for EMR projects,” Boldt said.

Solutions revenues in the second quarter fell 28 percent to $23.1 million, representing 35 percent of total revenues. Staffing revenues fell 30 percent to $43.5 million, or 65 percent of revenues. European revenues of $15 million fell 30 percent, comprising 23 percent of the total.

Selling, general and administrative costs fell 29.4 percent to $12.5 million, or 18.8 percent of revenues, as the company adjusted spending with revenues as market demand fell.

The company generated $6.8 million in cash from operations, while using just $300,000. It had $14.7 million in cash and no outstanding debt at June 30, versus $4.3 million in cash and $3.8 million in debt a year ago.

The company said it expects third-quarter revenues between $66 million and $68 million, down 25 percent from a year earlier, and projected net income per share of 7 cents to 9 cents, down 38 percent.