CIBER Reports Third Quarter 2000 Results; CIBER Stabilized by Strong Customer Base and IT Services Market Position.Business Editors & High-Tech Writers GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Oct. 24, 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 financial results for the third quarter of calendar year 2000, ended Sept. 30, 2000. CIBER reported $153.3 million in revenues for the September 2000 quarter, compared to $157.4 million in revenues for the June 2000 quarter and $187.0 million in revenues for the September 1999 quarter. The company reported cash earnings per share (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. ) of $0.10 for the September 2000 quarter, compared to cash EPS of $0.12 for the June 2000 quarter and $0.22 for the September 1999 quarter. Exclusive of the goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge announced earlier this month, net income was $3.9 million, or $0.07 per share, for the September 2000 quarter, compared to $10.3 million, or $0.18 per share, for the third quarter last year. Because of the goodwill charge, the company reported a net loss of $76.9 million, or $1.32 per share, for the third quarter. CIBER's third quarter results are in line with the company's expectations announced on Oct. 11. On that date, CIBER also announced it was taking a one-time, non-cash goodwill impairment charge of $80.8 million pre-tax, which significantly reversed the effect of the increase of $100 million to intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. in June 1999 when CIBER initiated its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The intangibles were generated at a time when valuations in the information technology services sector were much higher. Cash EPS is not impacted by this entry, and it increases future traditional GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). EPS by $0.02 per quarter through 2005. Further, the entry doesn't impact CIBER's tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). or cash flow; CIBER's earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"The September quarter was a stabilizing quarter for CIBER, as we and other consulting firms Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a in our sector faced challenging industry conditions," CIBER Chief Executive Officer Mac Slingerlend said. "CIBER earned revenues per billing day within 1 percent of the prior quarter, but the quarter reflected 2 percent less billing days. Our customers' demand for Internet solutions is growing our project base and lessening the effect of decreased traditional spending -- aiding our transition into an innovative IT services and solutions provider." Operations at CIBER branches were stable overall for the September quarter after a weak opening in July. Holidays and vacations combined with less billing days to represent a less than 1 percent decrease in revenues per billing day. This is a significant operational achievement when compared to both traditional and the newer pure e-business companies, of which many shrank shrank v. A past tense of shrink. shrank Verb a past tense of shrink shrank shrink 10 percent to 20 percent in revenues and incurred double-digit consultant reductions. CIBER credits its reputation and long-term, substantial client base as sustainable competitive advantages that helped this quarter and stand it in good stead stead n. 1. The place, position, or function properly or customarily occupied by another. 2. Advantage; service; purpose: "His personal relationship with the electorate stands in good stead" for future periods. CIBER's third quarter reflects an increase in consolidated revenue per billable day at DigiTerra, CIBER's package software, e-business-enabling subsidiary. DigiTerra's closed sales report continues strong with September 2000 representing its best month ever. "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the resurgence in license sales demand being experienced by certain package software vendors will be followed by increasing revenues of DigiTerra, which is the leading public implementor and integrator of package software," Slingerlend said. CIBER's subsidiary Neovation, Inc., a business problem-solving consultancy and full-service interactive agency, hired James G. Gionfriddo as Chief Executive Officer on Oct. 2. Gionfriddo is quickly utilizing his experience and acumen acumen Astuteness, perception, perspicacity to take hold of operational expenses and focus on revenue growth, Slingerlend said. "Global 2000 and middle-market companies and governments are turning increasingly to CIBER for leading Internet and technology solutions to drive their success in this dynamic marketplace," Slingerlend said. "Speed to market is an important driver. We're looking long term to our competitive advantages and the underlying growth drivers of the IT services industry to fuel CIBER's growth." CIBER will hold its earnings conference call at 9:30 a.m. Mountain Time today. To participate in the call, dial 952/556-2808 and provide confirmation code 4684099. A replay of the call will be available through Oct. 27 at 703/326-3020 and at www.ciber.com, with the same confirmation code. CIBER, Inc. is the trusted technology leader transforming businesses to be agile, scalable and connected. Backed by 27 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 and rapidly scaling companies and governments through its National Practices. Based in Greenwood Village, Colo., the company's consultants serve client businesses from 35 CIBER offices, 15 DigiTerra offices and four Neovation offices in the U.S., Canada and Europe.
CIBER, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
In thousands, except per share data
Three Months Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
---- ---- ---- ----
Consulting services $144,953 $176,400 $450,045 $533,631
Other revenues 8,332 10,642 26,903 33,358
------- ------- ------- -------
Total revenues 153,285 187,042 476,948 566,989
------- ------- ------- -------
Cost of consulting
services 99,081 118,601 306,776 347,072
Cost of other
revenues 5,164 6,065 16,660 21,020
Selling, general and
administrative
expenses 39,263 42,953 120,663 126,673
Nonrecurring and
other expenses -- -- 2,598 --
Goodwill impairment
charge 80,773 -- 80,773 --
Amortization of
intangible assets 2,931 3,023 11,018 8,392
------- ------- ------- -------
Operating income
(loss) (73,927) 16,400 (61,540) 63,832
Other income, net 127 1,489 714 2,799
------- ------- ------- -------
Income (loss) before
income taxes (73,800) 17,889 (60,826) 66,631
Income tax expense 3,088 7,629 8,757 27,313
------- ------- ------- -------
Net income (loss) $(76,888) $ 10,260 $(69,583) $ 39,318
======= ======= ======= =======
Earnings (loss)
per share -- diluted $ (1.32) $ 0.18 $ (1.20) $ 0.67
======= ======= ======= =======
Cash EPS (1)
-- diluted $ 0.10 $ 0.22 $ 0.34 $ 0.78
======= ======= ======= =======
Weighted average
shares -- diluted 58,803 58,423 58,931 58,780
======= ======= ======= =======
(1) Cash EPS is calculated excluding amortization of intangibles,
net of tax effects, and excluding the goodwill impairment charge.
For the three months ended September 30, 2000, and 1999, respectively, earnings (loss) per share -- basic was $(1.32) and $0.18 and weighted average shares -- basic were 58,105 and 57,464. For the nine months ended September 30, 2000, and 1999, respectively, earnings (loss) per share -- basic was $(1.20) and $0.68 and weighted average shares -- basic were 57,987 and 57,428. For purposes of calculating loss per share -- diluted, weighted average shares -- basic is used to avoid anti-dilution. "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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