Ciber (CBR), a leading global information technology consulting, services and outsourcing company, saw its loss widen to $5.47 million or $0.07 a share for the quarter ended Jun. 30, 2014, due to fall in sales and increase in expenses. In the previous year period, the company disclosed a loss of $1.77 million or $0.02 a share. Analysts on average had predicted net income of $0.06 a share.
Revenue during the second-quarter went down marginally 2.61 percent to $214.65 million from $220.40 million in the last year period.
Gross margin contracted by 1 basis points over the previous year period to 25.42 percent. Operating margin for the current period stood at negative 1.12 percent as compared to positive 2.28 percent for the previous year period.
The company disclosed operating loss of $2.41 million, compared with operating income of $5.04 million in the last year period.
Christian Mezger, chief financial officer, commented, ''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. The program will begin in the third quarter of 2014 and is expected to be completed in the next twelve months. Finally, our cash position and growth in our operating cash flow, permit us the flexibility to execute our plans.''
Cash Flow
Ciber has spent $28.03 million cash to meet operating activities during the first half, as against cash outgo of $20.53 million in the last year period.
The company has spent $5.85 million cash to meet investing activities during the first half, as against cash outgo of $1.60 million in the last year period. It has made net capital expenditure of $5 million during the first half, which was higher by 289.50 percent or $3.72 million, from a year ago.
The company has generated cash of $9.15 million from financing activities during the first half, up $8.67 million, when compared with the last year period. It has borrowed net of $7.46 million through debt during the first half. It has raised net of $4.37 million by selling common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $20.36 million, down 39.43 percent or $13.26 million from Jun. 30, 2013.
Working Capital
Ciber has witnessed a decline in the working capital over the last one year. The company's working capital stood at $98.67 million as at Jun. 30, 2014, down $18.13 million or 15.53 percent from $116.80 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.70 as at Jun. 30, 2014 from 1.80 on Jun. 30, 2013.
Debt Position
The company has witnessed a decline in long-term debt over the last one year. As on Jun. 30, 2014, long-term debt stood at $7.40 million, down 71.21 percent or $18.30 million, from Jun. 30, 2013. The company's total debt was 1.35 percent of total assets as on Jun. 30, 2014, compared with 5.20 percent on Jun. 30, 2013.
Shares of the company gained $0.08 or 1.83 percent to settle at $4.44 on Monday.
