Ciber, Inc. (NYSE CBR)
Ciber: Falling Revenue is impacting its Share Price Performance
Ciber, Inc. (NYSE: CBR), a leading global information technology consulting, services and outsourcing company’s share price is on the downward trend amid falling revenues increasing losses.
“The company is continuing to execute our strategy to bring about the transformation of Ciber,” said President and Chief Executive Officer Michael Boustridge. “We are focused on exiting non-strategic businesses, lowering G&A costs, using targeted investment to reignite revenue growth, and generating positive operating cash flow to strengthen our financial position. Some of the important steps we have taken are already beginning to produce results.”
Though the company continues to transform its business and is selling its non-core businesses, but investors believe this strategy could take a longer time for complete stabilization.
Its revenue declined 17% to $165.9 million in the latest quarter compared with last year’s second quarter. Its North America segment generated revenue of $95.1 million, declined 13% from the year-ago second quarter and declined 5% compared to the first quarter of this year. Its revenue in the International segment also declined 21% to $71.0 million compared to the year-ago second quarter.
With the decline in sales, its operating losses are also expanding over the recent periods. In Q2, it generated an operating loss of $53.3 million compared to adjusted net income of 22 million in the last year quarter.
Christian Mezger, Chief Financial Officer, commented, “Our focus remains on further reductions to our cost structure and enhancing cash generation to improve future results.”
The company’s cash position also continues to fall amid declining earnings. Ciber’s cash balance at the end of the second quarter stood around $11.3 million. The outstanding balance on the credit facility was $40.7 million.