Greenwood, Colorado-based Ciber now expects revenue for the quarter to be in the range of $175m and $177m, and earnings to be between $0.07 and $0.09 per share, down from previous guidance of between $178m and $181m and earnings per share $0.10.
CEO Mac Slingerlend said this is because a major telecoms customer dramatically cut back its IT services investment with Ciber, which resulted in it cutting some 140 staff. There were other one-off factors, such as the strength of the US dollar, and the blackout that affected the north-east of the US, where 20% of Ciber’s US work is performed. At the same time, however the company said it had won new business with another telecoms client, which is expected to employ about 20 consultants by November.
Despite this, Slingerlend said he is confident about the outlook for the company. We presently believe the fourth quarter will show improving results, barring unforeseen events, as additional projects get underway. We remain very encouraged about 2004 and the longer term, he said.
Source: Computerwire
