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Ciber reports Q4 and full year 2013 results

Highlights From Continuing Operations for the Fourth Quarter 2013 Include:

1.            Revenue of $222.3 million, a 1% increase, flat in constant currency

2.            Operating income of $6.1 million, before $2.0 million charge associated with previously announced restructuring program, representing an operating income margin of 2.8%

3.            Net income from continuing operations of $1.5 million, or net income from continuing operations of $3.0 million before restructuring charges, or $0.04 per share

4.            Operating cash flow from continuing operations of $29.6 million

 Highlights From Continuing Operations for the Full Year 2013 Include:

1.            Revenue of $877.3 million, a 1% increase, flat in constant currency

2.            Operating income of $17.4 million, before $16.9 million in restructuring charges, representing an operating income margin of 2.0%

3.            Net loss from continuing operations of $7.6 million, or net income from continuing operations of $6.9 million before restructuring charges, or $0.09 per share

4.            Operating cash flow from continuing operations of $25.2 million

President and Chief Executive Officer Dave Peterschmidt said, "We are mindfully investing to offer clients capabilities and services that will help them get the most out of their technology investment. The fourth quarter of 2013 demonstrated that our business is getting stronger on all financial measures. Our initiatives are having a positive impact on both revenues and costs, and we ended the year with good momentum."

Christian Mezger, recently named Chief Financial Officer (see separate release, dated today), commented, "As I look at our fourth quarter, there are a couple of items that strike me about our results that I think are worth highlighting. Our financial strength and profitability have both improved.  Our balance sheet strength is continuing to improve as evidenced by our cash position and zero debt. Our restructuring initiatives are beginning to deliver the benefits we set out to achieve, and as a result our gross and operating margins improved sequentially."

Mike Lehman, who will continue with the Company in an advisory role, commented, "Turning to 2014, we have a plan in place and are well underway towards meeting our first-quarter’s goals and objectives.   I have observed a vastly improved sense of urgency on the part of the broader leadership team as well as shared commitment to the steps necessary to achieve the plan."

Market Highlights in the Fourth Quarter Include:

1.            Printus, a German mail order company for office supplies, selected Ciber to replace its legacy ERP system with an SAP solution for retailers, as well as human capital management and customer relationship management applications.

2.            A global engineering company with some 48,000 employees designing and manufacturing technology for aerospace, automotive, mining and other industries selected Ciber for an SAP ERP implementation at one of its UK plants.

3.            One of the largest nonprofit, nonpartisan associations in the United States selected Ciber to support and deliver their online web presence and implement best practices that can benefit association members. This is a continuation of and expansion to an existing relationship that includes distributed delivery from Ciber North America and Ciber India.

4.            Essent, the largest energy company in the Netherlands and a member of the RWE Group, one of Europe’s five largest gas and electric companies, extended its managed services contract for Ciber to oversee applications infrastructure through 2015.

5.            Tally Weijl, a leading international fashion label and retailer with more than 790 stores in 37 countries, chose Ciber Managed Services to oversee its SAP landscape and applications.

Fourth-Quarter Financial Results from Continuing Operations

Revenue of $222.3 million increased 1%, or flat in constant currency, compared with last year’s fourth quarter.  Sequentially from the third quarter of 2013, revenue was up 3% in U.S. dollars, or up nearly 2% in constant currency.

Gross margin for the fourth quarter was 26.0%, compared with 26.1% in last year’s fourth quarter and 25.1% in the third quarter of 2013.

Selling, general and administrative expenses (SG&A) in the fourth quarter were $51.6 million, a decrease of 2% from the fourth quarter of last year, and a 4% decrease sequentially.

Fourth quarter 2013 operating income from continuing operations of $6.1 million, before restructuring charges of $2.0 million, yielded an operating margin of 2.8%, compared to 2.2% in the prior-year fourth quarter, and 0.2% compared to the third quarter of 2013.

Net income from continuing operations, before restructuring charges, for the fourth quarter of 2013 was $3.0 million, or $0.04 per share. Including restructuring costs, net income from continuing operations was $1.5 million in the quarter.  Last year’s fourth quarter net income from continuing operations, before restructuring charges, was $0.7 million, or $0.01 on a per share basis.  For the third quarter of 2013, net loss from continuing operations, before restructuring charges, was $1.2 million, or $(0.02) per share.

Revenue in the International division was $118.9 million for the fourth quarter of 2013, which was up 6% compared to the year-ago fourth quarter, and up 3% in constant currency. Compared to the third quarter of 2013, International revenue was up 7% in USD and up 4% in constant currency.  Operating margin of 6.6% was up 90 basis points compared to the fourth quarter of 2012 and up 250 basis points from the third quarter of 2013.

The North American division posted revenue of $104.5 million, down almost 3% from the year-ago fourth quarter and flat compared to the third quarter of 2013.  Operating margin of 8.0% improved 80 basis points from the year-ago fourth quarter and was down 10 basis points from the third quarter of 2013.

Full Year Financial Results from Continuing Operations

Revenue of $877.3 million increased 1%, or flat in constant currency, compared to 2012.

Gross margin for the full year decreased to 25.4%, compared with 25.8% in 2012.

Selling, general and administrative expenses (SG&A) for the full year increased $3.4 million to $205.6 million, a 2% increase from 2012.  Excluding CFO transition costs, SG&A for the full year was $203.1 million, a $0.9 million increase or nearly flat from 2012.

2013 operating income from continuing operations of $17.4 million, before restructuring charges of $16.9 million, yielded an operating margin of 2.0%, down 50 bps from 2012.

Net income from continuing operations in 2013, before restructuring charges, was $6.9 million, or $0.09 per share. Including restructuring, net loss from continuing operations was $7.6 million for the year.  2012 net loss from continuing operations was $4.1 million, or $(0.06) on a per diluted share basis.

Revenue in the International division was $456.4 million in 2013, which was up 5% compared to 2012, and up 3% in constant currency.  Operating margin in 2013 was 5.1%, down 30 basis points from 2012.

The North American division posted revenue of $423.3 million 2013, down 2% from 2012.  2013 operating margin of 7.9% improved 90 basis points from 2012.

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