CIBER Announces 20% Increase in Services Revenues for Calendar 1999
7 February 2000
CIBER Announces 20 Percent Increase in Services Revenues for Calendar 1999; Reports December Quarter Results; e.Business Growth Mitigates Weaker Legacy Activity; e.Business Transition on Track
Business Editors
ENGLEWOOD, Colo.--Feb. 7, 2000-- CIBER, Inc.
, a leading orchestrator of e.Business acceleration for the
Internet-based economy, today reported revenues and earnings for the
year and quarter ended December 31, 1999. The company recently changed
its fiscal year end from June 30 to December 31.
CIBER reported $742.0 million in revenues for the 1999 calendar
year, reflecting a 20 percent increase in services revenues and a 15
percent increase in total revenues compared to $645.2 million in
revenues for the 1998 calendar year. Cash EPS for 1999 was $0.96,
compared to $0.97 for 1998. Pro forma net income for 1999 was $46.7
million, or $0.80 per diluted average share, compared to pro forma net
income of $46.6 million, or $0.85 per diluted average share, for 1998.
For the December 1999 quarter, CIBER reported $175.0 million in
revenues, compared to $174.1 million in revenues for the December 1998
quarter. Increasing demand for CIBER's e.Business offerings helped
mitigate the anticipated softened demand industry-wide for traditional
information technology services. Cash EPS was $0.18 for the December
1999 quarter, compared to $0.27 for the December 1998 quarter. Net
income for the December 1999 quarter was $7.4 million, or $0.13 per
diluted average share, compared to net income of $14.3 million, or
$0.26 per diluted average share, for the December 1998 quarter.
"Calendar 1999 started well, but finished amid the biggest
spending curtailment in our industry's history due to Y2K concerns and
the Internet revolution's impact on traditional IT systems
expenditures," said Mac Slingerlend, CIBER's Chief Executive Officer.
"Momentum is increasing for CIBER clients demanding more
solutions-oriented activity aimed at electronic commerce. As a result,
we continue to shift our staff to gain e.Business skills and reduce
reliance on legacy-only consulting."
Slingerlend outlined several strategic moves during the quarter
that will assist CIBER as spending patterns re-emerge in 2000:
- Gaining new, innovative, solutions-based e.Business projects during
the quarter for ".coms" and emerging companies in industries
including manufacturing, banking, automotive and retail.
- Signing a letter of intent with Verio, Inc. and Centennial Funds to
create a joint venture with its Application Service Provider (ASP),
CIBER Enterprise Outsourcing, which is nearing final agreements.
- Acquiring 78 percent of Interactive Papyrus Co., which is
positioned to grow interactive consulting agency work and to
enhance CIBER's Internet "front-end" solutions.
- Completing CIBER's first international acquisition of Solution
Partners B.V. in the Netherlands, a leader in SAP and e.Supply
Chain solutions.
- Adding the Chicago-based Waterstone Consulting practice, experts
in web-to-cash consulting in both the business-to-customer and
business-to-business arenas.
- Expanding CIBER's higher education vertical industry capability
through the Isadore Group acquisition, with expertise in PeopleSoft
Student Administration applications and Advancement module.
- Building on its Philadelphia presence through the acquisition of
Software Design Concepts.
- Growing CIBER's e.Business model and services depth, including
development of the e.Acceleration methodology to ensure project
performance and creation of the e.Government practice.
CIBER REPORTS 20 PERCENT INCREASE IN SERVICES REVENUES
"We're continuing CIBER's transition to build our competitive
position in the new electronic commerce economy," Slingerlend said.
"Our transition is progressing and we all are anxious for consistent
client IT spending in 2000 to re-start. We see the March 2000 quarter
forming the base from which we will re-accelerate our growth. We are
containing costs, re-tooling our consultant base and other positions,
and improving CIBER's infrastructure. We are working from top to
bottom in each of our businesses to broaden our e.Business strategy,
and we anticipate further aggressive alliances and actions to
reinvigorate shareholder value. Fundamental shifts are happening in
the IT marketplace; this is not the time for business as usual."
CIBER, Inc. is a leading orchestrator of e.Business acceleration
for the Internet-based economy. CIBER's proven business and technology
practices combine the experience, flexibility and innovation to help
enterprise and ".com" clients gain a competitive advantage in today's
fast-moving marketplace. Headquartered in Englewood, Colo., CIBER has
a team of more than 6,000 professionals serving client businesses from
45 offices in the U.S., Canada and Europe.
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CIBER, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Fiscal Year Three Months
In thousands, except Ended December 31, Ended December 31,
per share data
1999 1998 1999 1998
---- ---- ---- ----
Consulting services $698,354 $581,218 $164,723 $155,552
Other revenues 43,593 63,989 10,235 18,504
--------- ---------- ---------- -----------
Total revenues 741,947 645,207 174,958 174,056
-------- --------- --------- ----------
Cost of consulting
services 459,121 370,850 111,252 100,164
Cost of other revenues 26,275 44,379 6,174 12,720
Selling, general and
administrative expenses 167,771 144,638 40,976 36,955
Amortization of
intangible assets 12,123 4,179 3,731 1,069
Merger costs -- 3,886 -- --
--------- --------- -------- --------
Operating income 76,657 77,275 12,825 23,148
Interest income 2,230 2,303 208 718
Interest expense (190) (62) (190) --
Other income, net 778 -- 1 --
--------- --------- --------- --------
Income before
income taxes 79,475 79,516 12,844 23,866
Income tax expense 32,774 30,142 5,461 9,546
--------- --------- --------- --------
Net income 46,701 49,374 7,383 14,320
Pro forma adjustment
to income
tax expense -- (2,726) -- --
---------- ---------- ---------- --------
Pro forma net income $ 46,701 $ 46,648 $ 7,383 $ 14,320
========= ========= ========== =========
Pro forma income
per share - diluted $ .80 $ .85 $ .13 $ .26
========= ========= ========== =========
Cash EPS(1) $ .96 $ .97 $ .18 $ .27
========= ========= ========== =========
Weighted average
shares - diluted 58,727 54,885 58,568 55,478
========= ========= ========== =========
(1) Cash EPS is calculated excluding merger costs and
amortization of intangibles, net of tax effects.
For the years ended December 31, 1999 and 1998, respectively, pro
forma income per share - basic was $.81 and $.89 and weighted average
shares - basic were 57,377 and 52,620. For the three months ended
December 31, 1999 and 1998, respectively, net income per share - basic
was $.13 and $.27 and weighted average shares - basic were 57,226 and
53,708.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements are contained herein
and 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.
CIBER, Inc., 5251 DTC Parkway, Suite 1400, Englewood, CO 80111
www.ciber.com