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CIBER, Inc. 5251 DTC Parkway, Suite 1400 Greenwood Village, CO 80111…
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Created: Wed Apr 23 11:04:45 2008
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CIBER, Inc.
5251 DTC Parkway, Suite 1400
Greenwood Village, CO 80111
www.ciber.com
For Immediate Release Contacts: Jennifer Matuschek Diane Stoner
VP/Investor Relations Media Relations
303-220-0100 303-220-0100
jmatuschek@ciber.com dstoner@ciber.com
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS
Revenue Increases 14% (7% organic); EPS Increases 9%
GREENWOOD VILLAGE, Colorado April 24, 2008 CIBER, Inc. (NYSE: CBR), today announced its
results for the first quarter of 2008, ended March 31st.
First Quarter 2008 Highlights
ˇ Record revenue of $294.5 million was $35.3 million (14%) higher than 1Q07, 7% of which was organic
growth.
ˇ Operating income of $14.9 million was 17% greater than the $12.7 million of the first quarter of 2007.
ˇ EBITDA (see appended table) was $20.3 million, a $2.7 million (16%) increase compared to 1Q07.
ˇ Cash Flow Provided by Operating Activities was a very strong $25.0 million versus a negative $8.7
million in 1Q07.
ˇ Net income of $7.2 million was 9% higher than 1Q07 net income of $6.6 million.
ˇ GAAP EPS of $0.12 per share was 9% higher than the year earlier quarter of $0.11 per share.
Management Comments
"2008 has commenced very solidly, particularly in organic revenue growth, setting a new record for
quarterly revenue. Strong results, especially in Europe and our US Commercial Division, contributed to first
quarter strength," said Mac Slingerlend, CIBER's President and Chief Executive Officer. "We are very
encouraged in the US as we begin the second quarter with headcount stability, recent wins in our Commercial
and Federal Divisions and the pipelines in our ERP and our public sector divisions. We believe the momentum
of our operations will counter the negative economic forces that prevail in a few of the territories in which we
operate."
1Q08 Operational Highlights
US Commercial Division
ˇ Revenue in this Division increased both sequentially and year-over-year. Operating contributions
grew 19% year-over-year.
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 2
ˇ Several sizable wins, collectively approximating $175 million, many with offshore delivery
participation, keyed the quarter's Commercial Division wins.
European Division
ˇ Continued headcount growth, broad demand, and the weaker US dollar all contributed to a solid
quarter. Revenue increased 40% quarter-over-quarter, 22% of which was organic. Operating
contribution increased 78% at the EBITA line.
ˇ Improved results in most areas of our European operations, provided balanced growth in operating
contributions and gained the highest Divisional revenue quarter in its history.
State & Local Government Division
ˇ Significant receivable collections ($9.9 million) on aged City of New Orleans receivables
contributed to the quarter's strong cash flow.
ˇ Reduction in lower margin subcontractors offset by additional consultants at better margins will
help gross margins in the second quarter.
Federal Government Division
ˇ Critical first time audit approval of our Federal accounting system in mid-March opens the path
to more "prime" bidding by CIBER.
ˇ Recompete wins in the quarter helped stabilize the base of operations for 2008.
CIBER Enterprise Solutions Division (CES) (US ERP)
ˇ Wins totaling $27 million in the Oracle Practice alone in the quarter included the City & County of
San Francisco, the University of Wisconsin and two universities.
ˇ The large Pennsylvania Turnpike SAP project remains on schedule for delivery later this year.
ˇ We continued to invest in our domestic SAP project delivery procedures, which held back
operating contributions in this Division.
Eastern Asia-Pacific Operations
ˇ New work in various verticals commenced in India in the March 2008 quarter.
ˇ Australia gained two SAP wins in the retail sector, both with VAR license participation.
Pipeline and Wins Data
CIBER's pipeline (US only) at March 31, 2008 was approximately $3.3 billion, a $0.4 billion (14%)
increase from year-end 2007. Wins (including Europe) were approximately $370 million for the quarter, a solid
1.25:1 book-to-bill ratio.
Balance Sheet Highlights (March 31, 2008)
ˇ Working capital was flat with December 2007, at $174.8 million.
ˇ DSOs on services, aided by New Orleans/FEMA collections, improved 2 days sequentially to 70
days.
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 3
ˇ Treasury stock purchases were 800,000 shares at $5.08 per share. A new authorization to buy up to
$10 million in shares was announced in February.
ˇ The Company purchased $61 million of its convertible debentures in the quarter: at March 31st
CIBER owned $84 million of the $175 million debentures, the balance of which is putable to the
Company in December 2008.
2Q08 and 2008 Outlook
ˇ Second Quarter 2008
CIBER believes the second quarter of 2008 will achieve revenue of $290-300 million and GAAP
EPS of $0.13-0.15 per share.
ˇ Fiscal 2008
The Company is increasing its fiscal 2008 revenue guidance to $1.150 and $1.175 billion (6-9%
greater than 2007) and increasing its annual GAAP EPS at $0.54-0.57 (15-21% greater than 2007)
per share.
Conference Call and Webcast
A webcast to discuss the company's financial results and outlook will be held at 11:00 a.m. ET on
Thursday, April 24, 2008 and may be heard live by visiting the Investor Relations portion of the company
website at www.ciber.com/cbr/. To participate in the call, dial 800-218-9073 within the United States, and
303-262-2137 internationally, using the conference ID number 11111653. A replay of the conference call will
be available through May 24, 2008 by dialing 800-405-2236 within the United States, and 303-590-3000
internationally, using the ID number 11111653. The replay will also be available on CIBER's website.
About CIBER, Inc.
CIBER, Inc. (NYSE: CBR) is a pure-play international system integration consultancy with superior
value-priced services and reliable delivery for both private and government sector clients. CIBER's services are
offered globally on a project- or strategic-staffing basis, in both custom and enterprise resource planning (ERP)
package environments, and across all technology platforms, operating systems and infrastructures. Founded in
1974 and headquartered in Greenwood Village, Colo., CIBER now serves client businesses from over 60 U.S.
offices, 25 European offices and seven offices in Asia/Pacific. Operating in 18 countries, with more than 8,000
employees and annual revenue over $1 billion, CIBER and its IT specialists continuously build and upgrade
clients' systems to "competitive advantage status." CIBER is included in the Russell 2000 Index and the S&P
Small Cap 600 Index. CIBER, ALWAYS ABLE. www.ciber.com. CIBER and the CIBER logo are
trademarks or registered trademarks of CIBER, Inc. CopyrightŠ 2008.
Forward-Looking and Cautionary Statements
Statements contained in this release may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 4
factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and
Exchange Commission. CIBER undertakes neither intention nor obligation to publicly update or revise any forward-
looking statements.
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 5
CIBER, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
In thousands, except per share data March 31,
2007 2008
Consulting services $ 244,958 $ 281,163
Other revenue 14,227 13,301
Total revenue 259,185 294,464
Cost of consulting services 179,878 205,120
Cost of other revenue 9,279 8,379
Selling, general and administrative expenses 55,980 64,491
Amortization of intangible assets 1,391 1,571
Operating income 12,657 14,903
Other expense, net 2,153 3,137
Income before income taxes 10,504 11,766
Income tax expense 3,939 4,589
Net income $ 6,565 $ 7,177
Earnings per share diluted $0.11 $0.12
Weighted average shares diluted 62,073 60,322
For the three months ended March 31, 2007 and 2008, respectively, earnings per share basic were $0.11 and
$0.12 and weighted average shares basic were 61,520 and 60,263.
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 6
CIBER, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
In thousands December 31, March 31,
2007 2008
Assets
Current assets:
Cash and cash equivalents $ 31,717 $ 38,536
Accounts receivable, net 269,070 264,306
Prepaid expenses and other current assets 24,032 24,349
Deferred income taxes 9,384 11,417
Total current assets 334,203 338,608
Property and equipment, net 27,297 27,647
Intangible assets, net 475,677 480,939
Other assets 11,936 11,640
Total assets $ 849,113 $ 858,834
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 35,538 $ 33,674
Accrued compensation and related liabilities 54,837 58,901
Current portion of long-term bank debt 9,108 3,355
Other accrued expenses and liabilities 53,493 62,396
Income taxes payable 5,447 5,451
Total current liabilities 158,423 163,777
Long-term bank debt 49,810 101,458
Debentures 152,000 90,985
Deferred income taxes 31,857 34,345
Total liabilities 392,090 390,565
Minority interest 2,464 2,943
Shareholders' equity 454,559 465,326
Total liabilities and shareholders' equity $ 849,113 $ 858,834
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 7
CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
In thousands 2007 2008
Operating activities:
Net income $ 6,565 $ 7,177
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 2,846 3,055
Amortization of intangible assets 1,391 1,571
Other, net (19,519) 13,171
Net cash provided by (used in) operating activities (8,717) 24,974
Investing activities:
Acquisition, net of cash acquired (1,365) (498)
Purchases of property and equipment, net (2,218) (2,971)
Net cash used in investing activities (3,583) (3,469)
Financing activities:
Employee stock purchases and options exercised 1,519 440
Purchases of treasury stock (5,265) (4,067)
Borrowings on long-term bank debt, net 3,503 45,658
Retirement of debentures - (58,979)
Other 74 113
Net cash used in financing activities (169) (16,835)
Effect of foreign exchange rate changes on cash (204) 2,149
Net increase (decrease) in cash and cash equivalents (12,673) 6,819
Cash and cash equivalents, beginning of period 33,319 31,717
Cash and cash equivalents, end of period $ 20,646 $ 38,536
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 8
Selected Financial Information
Unaudited Reconciliation of Non-GAAP and Segment Financial Measures
I. Reconciliation of Revenue Growth Components
(Quarters Ended)
($ in Millions)
March 31, Foreign March 31,
2007 Organic Acquired Exchange Total 2008
Commercial $ 91.2 2.2 % 0.0 % 0.0 % 2.2 % $ 93.2
Europe 71.2 21.5 2.0 16.7 40.2 99.8
State & Local Gov. 35.5 7.0 0.0 0.0 7.0 38.0
Federal Gov. 34.1 -6.2 0.0 0.0 -6.2 32.0
US ERP (CES) 27.2 1.1 14.7 0.0 15.8 31.5
$ 259.2 6.9 % 2.1 % 4.6 % 13.6 % $ 294.5
II. Segment Operating Results Analysis
For the Quarters Ended March 31, 2007 and 2008
($ in millions)
Three Months Ended
March 31, 2007 March 31, 2008
% of % of
Revenue Amount Revenue Amount Revenue
By Divisions
Commercial* $ 91.2 35% $ 93.2 31%
Europe* 71.2 28 99.8 34
State & Local Gov. 35.5 14 38.0 13
Federal Gov. 34.1 13 32.0 11
US ERP (CES) 27.2 10 31.5 11
Total $ 259.2 100% $ 294.5 100%
% of % of
Operating Income Revenue Revenue
Commercial* $ 7.9 9% $ 9.4 10%
Europe* 3.6 5 6.4 6
State & Local Gov. 3.6 10 3.2 8
Federal Gov. 2.6 8 1.4 4
US ERP (CES) 2.0 7 1.7 5
Corporate Expense (5.6) (2) (5.6) (2)
EBITA $ 14.1 5% $ 16.5 6%
Amortization Expense (1.4) (-) (1.6) (1)
Operating Income $ 12.7 5% $ 14.9 5%
*Commercial includes India's results and domestic eliminations; Europe includes Eastern Asia/Pacific results.
CIBER REPORTS STRONG FIRST QUARTER 2008 RESULTS PAGE 9
III. EBITDA Reconciliation to Net Income
(Quarters Ended)
(000's omitted)
March 31, 2007 March 31, 2008
Net Income $ 6,565 $ 7,177
Income Tax 3,939 4,589
Pre-Tax Income 10,504 11,766
Other Expense, net 2,153 3,137
Operating Income 12,657 14,903
Share Based Comp. 655 769
Amortization 1,391 1,571
Depreciation 2,846 3,055
EBITDA $ 17,549 $ 20,298
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