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CBR 7.71 CIBER Announces Solid Second Quarter and First Half 2007 Results
Record Revenue and Increased EPS for Both Periods; Outlook Increased
Jul 25, 2007 8:00:00 AM

GREENWOOD VILLAGE, Colo., July 25 /PRNewswire-FirstCall/ -- CIBER, Inc. (NYSE: CBR), today reported results for the second quarter and first half of 2007.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010927/CBRLOGO )

Financial Highlights --
Second Quarter 2007 Results
* Revenue increased to a record $266.5 million, up $16.5 million from
$250.0 million in 2006's June quarter. This represented 7% revenue
growth, 4% of which was organic.
* Gross profit margins improved 70 basis points sequentially from
2007's first quarter to 27.7%.
* Net income of $7.8 million increased 16% from $6.8 million for the
second quarter of 2006.
* GAAP EPS of $0.13 per share increased $0.02 per share, or 18%,
compared to the June 2006 quarter.

First Half 2007 Results
* Revenue of $525.7 million was $34.0 million higher than a year
earlier. This represented a revenue increase of 7%, 4% of which was
organic.
* Gross profit margins were 27.4% for the first half of 2007, a
60 basis point increase over the like 2006 period.
* Net income of $14.4 million for the first half of 2007 represented a
$3.2 million increase, or 29%, from 2006's first half.
* GAAP EPS of $0.23 per share was 28% higher than $0.18 per share for
the first half of 2006.

Management Comments

"Our second quarter and first half results continue to demonstrate the relevancy of our strategies and the quality of our employee base. Particular strength in our European and US ERP Practices led the current increases, both of which had improvements in gross margins for services and reduced overhead expenses," said Mac Slingerlend, CIBER's President and Chief Executive Officer. "Investments in leadership in the second quarter in our US ERP, Federal Government and Indian operations highlighted personnel actions to drive these strategic operations."

Results By Business Unit
US Commercial Practice
* This Practice, our largest, had a solid second quarter, adding
50 basis points to gross profit margins compared to the year earlier
quarter.
* Two outsourcing, re-badging wins in the quarter totaled
$13.5 million, continuing the trend of project level engagements and
offering flexibility to our clients' resource solutions.
European Practice
* European operations, our second largest business unit, posted strong
organic revenue growth of 19%, and a 36% increase in operating
contributions on a year-over-year basis.
* Meaningful contract wins in the quarter included Philips, Adidas,
Thalia, Handelsbanken, Random House and others.
State & Local Government Practice
* Gross profit margins decreased 280 basis points compared to a very
strong year ago quarter, however, an offsetting improvement in
overhead expenses kept the operating contributions even for the
quarter and higher for the first six months.
* A multi-year, multi-million dollar win with Nashville Electric was
secured and announced in early July.
US ERP Practices (CIBER Enterprise Solutions)
* CES rebounded from 1Q07 with a very solid quarter, aided by strong
sales from our hardware reselling Practice and improved
implementation services results, as well, the combination of which
led to a 270 basis point improvement in Practice gross margins and
to operating contributions increasing by a healthy 450 basis points
on a year-over-year basis.
* CES and CIBER's Commercial Practice collaborated on a cross-selling
$5 million SAP project win with North Carolina's State Controller's
Office.
Federal Government Practice
* Federal increased its operating contribution to 10% of revenue for
the current quarter, but continued to be challenged by delays and
other spending patterns.
* We are encouraged with our reinvigorated internal push to greater
prime bidding positioning, recent outsourcing activity, and new
leadership in our Civilian Agencies Practice, Rich Jarmusik, in
addition to the previously announced new Practice President, Marcia
Kim, in April 2007.

Pipeline and Wins

CIBER's pipeline (excluding Europe) remains strong at $3.1 billion, a $0.1 billion increase from March 2007. Wins for the quarter (including Europe) totaled $250 million, an approximate 1:1 book-to-bill ratio.

Balance Sheet -- as of June 30, 2007
* Cash was $22.3 million; bank line of credit borrowings were
$9.5 million.
* Shareholder equity increased to $431.8 million.
* DSOs on services were 70 days, a 3 day improvement from the March 2007
quarter.
* CIBER purchased 400,000 shares into treasury during the second
quarter, bringing year-to-date purchases to 1.15 million at an average
cost of $7.47 per share.

Outlook

For the third quarter ending September 30, 2007, management believes revenue will be $257-262 million and GAAP EPS $0.12-0.13 per share.

For calendar 2007, management is increasing its revenue outlook to $1.035- 1.045 billion and GAAP EPS to $0.48-0.51 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 Wednesday, July 25, 2007, and may be heard live by visiting the Investors portion of the company website at www.ciber.com/cbr/. To participate in the call, dial 1-800-240-7305 within the United States, and 303-262-2211 internationally, using the conference ID number 11092795. A replay of the conference call will be available through August 27, 2007 by dialing 800-405-2236 within the United States, and 303-590-3000 internationally, using the ID number 11092795. 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 for both private and government sector clients. CIBER's global delivery services are offered 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., the company now serves client businesses from over 60 US offices, 20 European offices and five offices in Asia. Operating in 18 countries, with over 8,000 employees and annual revenue of approximately $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

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 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 and the CIBER logo are trademarks or registered trademarks of CIBER, Inc. Copyright(C) 2007.

CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)


In thousands, except per Three Months Ended Six Months Ended
share data June 30, June 30,
2006 2007 2006 2007
Consulting services $236,735 $251,272 $464,073 $496,230
Other revenue 13,233 15,271 27,638 29,498
Total revenue 249,968 266,543 491,711 525,728

Cost of consulting
services 175,132 184,611 346,760 364,489
Cost of other revenue 5,499 8,047 12,944 17,326
Selling, general and
administrative expenses 54,972 57,759 106,521 113,739
Amortization of
intangible assets 1,491 1,409 2,938 2,800
Operating income 12,874 14,717 22,548 27,374
Other expense, net (1,763) (1,957) (4,053) (4,110)
Income before
income taxes 11,111 12,760 18,495 23,264
Income tax expense 4,359 4,912 7,293 8,851
Net income $6,752 $7,848 $11,202 $14,413

Earnings per share
- diluted $0.11 $0.13 $0.18 $0.23

Weighted average shares
- diluted 62,393 62,268 62,436 62,171


For the three months ended June 30, 2006 and 2007, respectively, earnings per share -- basic were $0.11 and $0.13 and weighted average shares -- basic were 61,969 and 61,287.

For the six months ended June 30, 2006 and 2007, respectively, earnings per share -- basic were $0.18 and $0.23 and weighted average shares -- basic were 62,044 and 61,404.

CIBER, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)

In thousands December 31, June 30,
2006 2007

Assets
Current assets:
Cash and cash equivalents $33,319 $22,337
Accounts receivable, net 226,055 244,968
Prepaid expenses and other current assets 21,020 23,348
Deferred income taxes 3,748 4,169
Total current assets 284,142 294,822

Property and equipment, net 26,521 26,736
Intangible assets, net 453,106 454,439
Other assets 15,910 15,014
Total assets $779,679 $791,011

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $41,486 $26,764
Accrued compensation and related
liabilities 43,579 44,184
Other accrued expenses and liabilities 51,173 59,165
Income taxes payable 7,147 9,376
Total current liabilities 143,385 139,489

Long-term line of credit - bank 11,949 9,495
Long-term debentures 175,000 175,000
Other long-term liabilities 31,975 33,466
Total liabilities 362,309 357,450

Minority interest 1,248 1,739

Shareholders' equity 416,122 431,822
Total liabilities and shareholders'
equity $779,679 $791,011


CIBER, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Six Months Ended
June 30,
In thousands 2006 2007

Operating activities:
Net income $11,202 $14,413
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation 5,974 5,775
Amortization of intangible assets 2,938 2,800
Other, net (10,293) (18,546)
Net cash provided by
operating activities 9,821 4,442

Investing activities:
Acquisitions, net of cash acquired (4,832) (1,465)
Purchases of property and equipment, net (5,807) (5,569)
Capitalized software development costs (526) --
Net cash used in
investing activities (11,165) (7,034)

Financing activities:
Employee stock purchases and options
exercised 2,797 3,415
Purchases of treasury stock (5,110) (8,592)
Borrowings (payments) on long-term
bank line of credit (net) (7,124) (2,454)
Other, net 363 (1,213)
Net cash used in
financing
activities (9,074) (8,844)

Effect of foreign exchange rate
changes on cash 2,027 454
Net decrease in cash
and cash
equivalents (8,391) (10,982)
Cash and cash equivalents, beginning
of period 40,661 33,319
Cash and cash equivalents, end of
period $32,270 $22,337


Selected Financial Information
Unaudited Reconciliation of Non-GAAP and Segment Financial Measures


I. Reconciliation of Revenue Growth Components ($ in Millions)

Three Months Ended


June 30, Foreign June 30,
Practices 2006 Organic Acquired Exchange Total 2007

Commercial $90.4 -2.2% --% --% -2.2% $88.4

State & Local 36.2 1.7 -- -- 1.7 36.8

CES (US ERP) 30.2 4.0 -- -- 4.0 31.4

Federal 34.6 -1.7 -- -- -1.7 34.0

Europe 58.6 19.0 0.8 9.7 29.5 75.9

$250.0 4.1% 0.2% 2.3% 6.6% $266.5


Six Months Ended
June 30, Foreign June 30,
Practices 2006 Organic Acquired Exchange Total 2007

Commercial $179.3 0.2% --% --% 0.2% $179.7

State &
Local 69.1 4.5 -- -- 4.5 72.2

CES (US ERP) 58.5 0.2 -- -- 0.2 58.6

Federal 71.1 -4.1 -- -- -4.1 68.2

Europe 113.7 17.1 1.3 10.9 29.3 147.0

$491.7 4.1% 0.3% 2.5% 6.9% $525.7


II. EBITDA Reconciliation to Net Income (000's omitted)

Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2006 2007 2006 2007
Net Income $6,752 $7,848 $11,202 $14,413
Income Tax 4,359 4,912 7,293 8,851
Pre-Tax Income 11,111 12,760 18,495 23,264
Other Expense,
net 1,763 1,957 4,053 4,110
Operating
Income 12,874 14,717 22,548 27,374
Amortization 1,491 1,409 2,938 2,800
Depreciation 3,079 2,929 5,974 5,775
EBITDA $17,444 $19,055 $31,460 $35,949


III. Segment Operating Results Analysis

CIBER, Inc.
Operating Results Analysis
For the Quarters and Six Months Ended June 30, 2006 and 2007
(unaudited) ($ In millions)
Three Months Ended Six Months Ended
By Practice June 30, 2006 June 30, 2007 June 30, 2006 June 30, 2007
% of % of % of % of
Amount Revenue Amount Revenue Amount Revenue Amount Revenue
Commercial* $90.4 36% $88.4 33% $ 179.3 36% $179.7 34%
State & Local 36.2 14 36.8 14 69.1 14 72.2 14
CES (US ERP) 30.2 12 31.4 12 58.5 12 58.6 11
Federal 34.6 14 34.0 13 71.1 15 68.2 13
Europe* 58.6 24 75.9 28 113.7 23 147.0 28
Total $250.0 100% $ 266.5 100% $491.7 100% $525.7 100%

% % % %
of Div. of Div. of Div. of Div.
Operating Income Revenue Revenue Revenue Revenue
Commercial* $6.8 8% $7.2 8% $12.0 7% $15.1 8%
State & Local 3.7 10 3.6 10 5.6 8 7.2 10
CES (US ERP) 2.2 7 3.7 12 5.4 9 5.7 10
Federal 3.4 10 3.3 10 6.9 10 5.8 9
Europe* 3.2 5 4.3 6 5.5 5 8.0 5
Corporate (4.9) (2) (6.0) (2) (10.0) (2) (11.6) (2)
EBITA 14.4 6% 16.1 6% 25.4 5% 30.2 6%
Amort.
Expense (1.5) (1) (1.4) (-) (2.9) (-) (2.8) (1)
Operating
Income $12.9 5% $14.7 6% $22.5 5% $27.4 5%

* U.S. Commercial includes India's results and domestic eliminations;
Europe includes Eastern Asia & Australia/NZ results.


SOURCE CIBER, Inc.

----------------------------------------------

Jennifer Matuschek
VP/Investor Relations
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or Diane Stoner
Media Relations
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both of CIBER
Inc.
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