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Ciber revenue falls, announces $24 million restructuring

July 29, 2014

Ciber Inc. (NYSE: CBR) reported revenue fell 2.6 percent in the second quarter to $214.6 million with revenue from international operations down 3.6 percent. The Greenwood Village, Colo.-based IT solutions and staffing provider also announced a $24 million restructuring program and said second-quarter results were below expectations.

“We announced a $24 million restructuring program focused on the implementation of a go-to-market model, realigning the organization and improving our offshore delivery mix,” said CFO Christian Mezger. “The program will begin in the third quarter of 2014 and is expected to be completed in the next 12 months. Finally, our cash position and growth in our operating cash flow, permit us the flexibility to execute our plans.”

The company’s net loss was $5.5 million in the second quarter, an increase from a $1.8 million loss in the second quarter of last year.

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“Despite progress in North America, our second-quarter results were below internal expectations,” said President and CEO Michael Boustridge. “Challenges in international have been an ongoing area of management focus, diluting the significant opportunity Ciber is uniquely positioned to capture. These issues require immediate action and we have begun implementation of a plan to accelerate the move to global practice areas and substantively change our global delivery mix. These changes will be executed methodically and with a sense of urgency.”

Revenue

  Q2 2014 (000s) Q2 2013 (000s) % growth constant currency growth
Revenue $214,646 $220,395 -2.6% 5%

Revenue by segment

  Q2 2014 (000s) Q2 2013 (000s) % growth
International $109,830 $113,935 -3.6%
North America $105,154 $106,759 -1.5%
Other $567 $895  
Total segment revenue $215,551 $221,589 -2.7%
Inter-segment -$905 -$1,194  
Total revenue $214,646 $220,395 -2.6%

Gross margin

  Q2 2014  Q2 2013 
Gross margin 25.4% 25.4%

Net loss

  Q2 2014 (000s) Q2 2013 (000s)
Net loss -$5,467 -$1,766

Share price and market cap

Ciber shares fell 11.94 percent in late morning trading to $3.91. The company had a market cap of $303.56 million, according to Yahoo!