Revenue Up 19% (12% Organic); Outlook Raised

GREENWOOD VILLAGE, Colo., July 24 /PRNewswire-FirstCall/ -- CIBER, Inc. (NYSE: CBR), an emerging global leader in IT services, reported results for the second quarter and first half of 2008, ended June 30th, exceeding or at the high-end of its expectations.

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    Financial Highlights:
    -- Second Quarter of 2008
       -- Revenue of $317.6 million increased $51.1 million (19%, 12% of which
          was organic) as compared to $266.5 million for the second quarter of
          2007.  This is the highest quarterly revenue ever for CIBER and its
          first ever $300 million quarter.
       -- Operating income of $17.4 million was a $2.7 million (18%) increase
          over 2Q07.
       -- EBITDA (see appended table) was $23.1 million, compared to
          $19.7 million for 2Q07, a 17% increase.
       -- Cash Flow from Operations was $16.0 million, an increase of
          $2.8 million (21%) as compared to the second quarter of 2007.
       -- Net income of $8.9 million was a $1.1 million increase (14%) on a
          quarter-over-quarter basis.
       -- GAAP EPS of $0.15 per share was 15% greater than $0.13 per share for
          2007's second quarter.

    -- First Half of 2008
       -- Revenue of $612.0 million was a $86.3 million increase (16%, 9% of
          which was organic) as compared to the first half for 2007 of
          $525.7 million.
       -- Operating income for the first half of 2008 was $32.3 million, an
          18% year-over-year increase.
       -- EBITDA of $43.4 million was a $6.1 million (16%) improvement over
          2007's first half.
       -- Cash Flow from Operations (see statement below) for the first six
          months of 2008 at $40.9 million was a very strong nine times the
          $4.4 million of 2007's like period.
       -- Net Income of $16.1 million for 1H08 was a $1.7 million (12%)
          increase over the first half of 2007.
       -- GAAP EPS of $0.27 per share compares to $0.23 per share, an increase
          of 17% on a year-over-year basis.

Management Comments:

'Another good quarter, fueled by accelerated organic growth, helped second quarter and first half 2008 revenue exceed expectations and set a new CIBER high. More importantly, we continued to invest in our project solutions transition and achieved earnings growth over 2007's similar period,' said Mac Slingerlend, CIBER's President and Chief Executive Officer. 'We are encouraged that the U.S. Commercial Division is showing revenue vitality, that Europe continues to perform robustly, and that our Federal Division was able to sequentially improve its results for the first time in several quarters. These positives overcame a mixed quarter from our US ERP group, where some projects have been concluding successfully, while others have had some struggles and new starts have been delayed. That said, with challenged industry growth, our operational leadership and technical talent are matching up very well and taking share from our domestic and international competitors. We have upgraded our expectations for all of 2008 in the Outlook section below.'

    2Q08 Operational Highlights
    US Commercial and IT Outsourcing (ITO) Divisions
    -- Organic revenue growth in this Division of 11% was its highest growth
       rate since 1999.
    -- Year-over-year results were fueled by stable headcounts, higher
       productivity and bill rates.

    European Division
    -- Revenue grew a robust 53% (30% of which was organic growth) to
       $116.0 million for 2Q08, the first time its revenue exceeded
       $100 million in a quarter in our history.
    -- Improved results in most every country helped European operations
       achieve an 8.6% EBITA margin and its highest ever quarterly result.
    -- An acquisition of a smaller, high-end SAP consultancy in Norway further
       enhances CIBER's Nordic SAP competency.
    -- Contract wins remained strong and geographically broad-based.

    State & Local Government Division
    -- Gross profit margins, a targeted area for progress, improved
       sequentially 120 basis points to 24.9% for 2Q08 and are positioned to
       improve further as the year proceeds.
    -- The pipeline of opportunities for this division continues to be very
       solid.

    Federal Government Division
    -- Improved operating results were driven by higher productivity and
       contract renewals.
    -- We are continuing to prepare and submit bids as a prime contractor,
       while adding to our capture leadership this quarter also.  We are
       hopeful the second half of 2008 will begin to bear fruit in this
       regard, and we continue to believe 2009-2011 will be a meaningful
       growth period.

    CIBER Enterprise Solutions Division (CES) (US ERP)
    -- Improved results in our Oracle Practice activity led CES this quarter.
    -- The SAP Practice experienced reduced contributions, but was buoyed by
       prospects of its enhanced sales and delivery teams and its pipeline of
       opportunities.

    Eastern Asia-Pacific Operations
    -- Australia and New Zealand continued to post solid operating results.
    -- China will be assisting the UK in an international SAP retail sector
       client new rollout.

Pipeline and Wins Data

The pipeline of opportunities (excluding Europe) being tracked at June 30th was approximately $3.1 billion.