CIBER Reports Second Quarter Results
Continued Momentum on Revenue Growth
August 05, 2010 09:00 AM Eastern Daylight Time
GREENWOOD VILLAGE, Colo.--(EON: Enhanced Online News)--CIBER, Inc. (NYSE: CBR), a global
information technology consulting, services and outsourcing company, today reported results for the second quarter
of 2010.
Highlights for the second quarter 2010:
l Revenue increased 2% to $265.4 million, the largest increase in 6 quarters
l Constant currency adjusted revenue increased 3%
l Operating loss of $111.2 million, including $118.1 million of one-time charges
l Excluding significant charges, operating income of $7.0 million
l Net loss of $80.8 million, or $1.16 per share
l Excluding significant charges, net income of $4.1 million, or $0.06 per share
l Cash on hand at quarter end of $42 million
Significant Charges:
In the second quarter of 2010, the Company incurred two significant, primarily non-cash, charges. The significant
charges totaled $84.9 million after-tax ($118.1 million pre-tax), or $1.22 per share, of which $112.5 million were
non-cash. The items were:
l A $81.2 million after-tax ($112.0 million pre-tax), or $1.17 per share, non-cash charge for impairment of
goodwill. Testing of goodwill as of June 30, 2010, using discounted cash flow analysis supported by
comparative market multiples to determine the estimated fair values, indicated that the book values of Federal
and Custom Solutions divisions’ goodwill were impaired. The goodwill impairment charge for these divisions
was primarily driven by adverse equity market conditions that caused a sustained depression in CIBER’s
stock price and the financial performance of these divisions. The charge reduces goodwill recorded in
connection with acquisitions made in previous years and does not impact the Company’s business operations
or cash flow.
l A $3.7 million after-tax ($6.1 million pre-tax), or $0.05 per share, charge for the departure of the former chief
executive officer in April 2010 and th