What CIBER, Inc. (NYSE: CBR) reported as results for 2Q2016 turned out to be worse than what Wall Street expected. The stock slid on the weak quarterly results. But despite the tepid performance in the latest quarter, the management still exudes confidence that a turnaround is possible if only investors exercised some patience.
CIBER, Inc. (NYSE: CBR)’s CEO Michael Boustridge commented on the 2Q results and said that his team is continuing to execute well on the strategy. He expressed hope that a transformation is attainable and went ahead to explain what he said the team believes needs to be done to achieve that transformation.
CEO Boustridge revealed that dropping non-strategic asset is something that his team has identified as necessary to return the business to growth and profitability. On that, the company recently monetized a division in the Netherlands and managed to unlock $25 million in proceeds. But $5 million of that amount will be held in escrow to be released gradually over 12 and 18 months.
The other area that Boustridge said CIBER, Inc. (NYSE: CBR) is focusing on is lowering of costs, especially operating costs. Then he also talked about reigniting growth through targeted investment.
Boustridge insisted that these are not just dreams, but they have seen encouraging results from the efforts made so far.
What transpired in 2Q for CIBER, Inc. (NYSE:CBR)?
CIBER, Inc. (NYSE: CBR) generated revenue of $165.9 million in 2Q, which was down 17% from a similar quarter last year. Not only did the topline deteriorate from last year, but the also missed the consensus estimate of $171.9 million.
The decline in revenue didn’t help the bottom-line, which sank to EPS loss of $0.64. In the year-ago quarter, CBR posted positive EPS of $0.01.
North America sales down 13%
International business was a bit more complicated for CBR in 2Q was revenue from abroad contracted 21%. North America revenue pulled back 13%. Unfavorable foreign exchange terms added to the topline hit in the international business.
CIBER, Inc. (NYSE: CBR) finished 2Q with cash balance of $11.3 million and $40.7 million in its revolver facility. Cash balance at the end of the previous quarter was $18.4 million.