CIBER Reports First Quarter 2000 Results; DigiTerra Separation Progresses, New E-Business Projects Underway.Business Editors and Technology Writers ENGLEWOOD, Colo.--(BUSINESS WIRE)--April 25, 2000 CIBER CIBER Center for International Business Education and Research (various locations) CIBER Center for International Business and Research (Michigan State University) CIBER Cellular Inter-Carrier Billing Exchange Record , Inc. (NYSE NYSE See: New York Stock Exchange :CBR (1) (Computer-Based Reference) Reference materials accessible by computer in order to help people do their jobs quicker. For example, this database on disk! (2) (Constant Bit Rate) A uniform transmission rate. ) today reported revenues and earnings for the first quarter of calendar year 2000, ended March 31, 2000, with significant steps toward strengthening its planned separation of DigiTerra, Inc. and increasing e-business project work. CIBER reported $166.3 million in revenues for the March 2000 quarter, compared to $184.9 million in revenues for the March 1999 quarter. Excluding nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". of $2.3 million in the quarter, Cash EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. was $0.13 and EPS was $0.08. After these charges, Cash EPS was $0.11 and EPS was $0.06. The nonrecurring charges resulted from asset write-downs related to the company's planned separation of DigiTerra and business-model personnel realignments. Net income for the March 2000 quarter was $3.3 million, compared to net income of $14.9 million for the March 1999 quarter. "CIBER's e-business project work has increased and net demand since early March again is on the upswing Upswing An upward turn in a security's price after a period of falling prices. by companies seeking agile, scalable and connected Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solutions from industry veterans," said Mac Slingerlend, CIBER's Chief Executive Officer. "The March quarter revenues were in line with consensus expectations and industry trends, and net income, exclusive of the nonrecurring charges, was near expectations. We see the March quarter as having set the base for expected growth in revenues and earnings going forward. As expected, lower consultant productivity caused by industry-wide spending weakness, particularly in January and February, combined with our investment of resources to launch DigiTerra contributed to the quarter's results. Our increasing project load and pipeline are helping us gain ground in our company-wide transition to a complete Internet solutions provider, for which e-business now makes up approximately 60 percent of consolidated revenues and our Internet-skilled consultants have increased company-wide to approximately 1,500. Our branch managers are reporting a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in activity, especially for web-enabling solutions." CIBER's activities since January 1 include progress on the planned separation of DigiTerra as a public company, and new initiatives and projects for CIBER's ongoing operations. These actions include: -- Closing the $80 million joint venture of CIBER's Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) to form Agilera.com, Inc. with Verio Inc. (Nasdaq:VRIO VRIO Virtual Reality Input Output ), the world's largest web-hosting company, and Centennial Ventures, Colorado's largest venture capital firm. -- Transitioning DigiTerra's operations for its 15 offices in the U.S., Canada and Europe and signing new DigiTerra e-business projects in the first quarter with middle-market and Fortune 1000 companies. Innovative projects include a Commerce One higher-education market exchange with a large commercial bank in which DigiTerra will share in transaction fees. -- Re-engaging area leaders across CIBER's ongoing operations through its 35 U.S. offices and increasing CIBER's e-business projects in the first quarter for Global 2000 and scaling dot.com customers, including a B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business portal project for one of the largest U.S. investment banking firms and an end-to-end Internet solution for a leading metals electronic marketplace. -- Completing the business combination in April of Waterstone Consulting, an e-business strategy and problem-solving consultancy acquisition, with Interactive Papyrus papyrus (pəpī`rəs), a sedge (Cyperus papyrus), now almost extinct in Egypt but so universally used there in antiquity as to be the hieroglyphic symbol for Lower Egypt and a common motif in art. , a creative Internet architect agency, increasing CIBER's ownership to 90 percent. Interactive Papyrus signed several new e-business contracts during the first quarter. -- Growing projects in CIBER's e.Government Practice, including two new large contracts totaling $12 million in the next two years. Additionally, CIBER is creating a new G2C G2C Government to Citizen G2C Government to Consumer website for Commonwealth of Pennsylvania residents and its hunting and fishing agency. -- Strengthening CIBER's National Practice Leaders via the hiring of Khalid Mansour for the Business Intelligence National Practice, company-wide training regarding all of CIBER's national practices and the growing establishment of local practice leaders at CIBER's offices through the U.S. -- New marketing and business development initiatives to position the new companies, including the hiring of Rick Bolin to a new position as Director of Business Development. "In addition to our innovative solutions as an operating company operating company A business that engages in transactions with outsiders. , we continue to invest in high-growth areas of the new Internet See Web 2.0 and Internet2. economy through new industry leaders DigiTerra, Agilera.com and Interactive Papyrus / Waterstone," Slingerlend said. "We are a successful operating company, stronger by our vision to create new separate companies poised to add value to our shareholders. It's great to have the IT services industry back on an upswing." CIBER, Inc. is the trusted technology leader transforming businesses to be agile, scalable and connected. Backed by 26 years of information technology consulting Information technology consulting (IT consulting or business and technology services) is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. , CIBER provides thought leadership in Internet solutions to Global 2000 companies and rapidly scaling "dot.coms" through its National Practices. Based in Englewood, Colo., the company's consultants serve client businesses from 35 CIBER offices, 15 DigiTerra offices and four Interactive Papyrus / Waterstone offices in the U.S., Canada and Europe.
CIBER, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months
In thousands, except per share data Ended March 31,
2000 1999
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Consulting services $156,407 $173,456
Other revenues 9,899 11,445
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Total revenues 166,306 184,901
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Cost of consulting services 106,654 110,372
Cost of other revenues 6,007 7,953
Selling, general and administrative expenses 41,831 40,382
Nonrecurring charges 2,275 -
Amortization of intangible assets 4,046 2,314
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Operating income 5,493 23,880
Other income, net 285 644
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Income before income taxes 5,778 24,524
Income tax expense 2,453 9,641
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Net income $3,325 $14,883
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Earnings per share - diluted $0.06 $0.26
Cash EPS(1) $0.11 $0.29
Weighted average shares - diluted 59,211 58,021
(1) Cash EPS is calculated excluding amortization of intangibles,
net of tax effects.
For the three months ended March 31, 2000 and 1999, respectively,
earnings per share -- basic was $0.06 and $0.27 and weighted average
shares -- basic were 57,845 and 56,154.
"Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve risks and uncertainties that could cause actual results to vary materially from such statements. Please refer to discussions of certain of these risks and uncertainties in the Company's Annual Reports, 10-Ks, 10-Qs and other Securities and Exchange Commission filings. |
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