CMTSU Liquidation (CBRI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:	Gary Kohn	Robin Caputo
	Investor Relations	Media Relations
	303-625-5256	303-267-3876
	gkohn@ciber.com	rcaputo@ciber.com

CIBER REPORTS FOURTH QUARTER 2011 RESULTS

GREENWOOD VILLAGE, Colo., Feb. 23, 2012— CIBER, Inc. (NYSE: CBR), a global information technology consulting, services and outsourcing company, today reported results for the fourth quarter of 2011.

The Company has made a strategic decision to sell its Federal division to focus on its core offerings.  The Company anticipates completing the sale in the first quarter of 2012 and therefore the Federal division is presented as a discontinued operation and its results are not included in results from continuing operations for all periods presented in CIBER’s consolidated financial statements herein, unless otherwise noted.  A schedule of quarterly results from continuing operations and Federal as a discontinued operation for 2011 and 2010 is included with this release.

Highlights from continuing operations for the fourth quarter 2011 include:

·Revenue of $238.9 million, a 5% decrease

·Gross margin of 25.9%

·Operating income of $5.0 million

·Last year’s fourth quarter operating loss was $3.7 million, or operating income of $3.6 million excluding $7.3 million of bad debt and project write-off charges

·Net income of $2.2 million, or $0.03 per share

·Last year’s fourth quarter net loss was $1.6 million or $0.02 per share.  Excluding the bad debt and project write-off charges net income was $2.8 million, or $0.04 per share

·Cash on hand at quarter end of $65.6 million, and bank debt outstanding of $66.2 million

·For the full-year including Federal, cash flow from operations of $31.5 million, capital expenditures of $15.4 million, and free cash flow of $16.1 million

Significant highlights since year end:

·Announced the pending sale of the Federal division

·Paid down $25 million of debt under the senior credit facility through the repatriation of international cash, with no cash-tax impact

·Progress towards refinancing the current senior credit facility

President and Chief Executive Officer Dave Peterschmidt said, “We have made measured progress this past year on the turnaround of CIBER.  The significant actions we have taken, including stabilizing North America, lowering our risk profile, agreeing to sell our Federal business and improving delivery quality, have come about by the changes we have made on several fronts including strengthening our leadership and overhauling our operational processes.  The results of these actions are now being reflected in a stronger balance sheet.  We do, however, understand the importance of delivering improved operating profits and cash flows and remain confident that we will achieve these goals as we move through 2012.”

Peterschmidt continued, “My focus is on continuing the momentum we have created in North America, and carrying that momentum to our International performance.  As part of this effort, Rick Genovese has been promoted to COO

with responsibility for global operations.  His charge is to unify the organization globally to ensure that CIBER is truly operating as one company.  While much work remains in 2012, I am confident that we are building a business model that will generate improved returns to shareholders as we drive revenue growth and profitability in the back half of this year.”

Claude Pumilia, Executive Vice President and Chief Financial Officer, commented, “I am pleased to have taken steps, as promised, to strengthen our balance sheet.  In January, we effectively deployed international cash to pay down $25 million of debt and plan to reduce total debt further by utilizing at least a portion of the net cash proceeds from the Federal sale.  In this past quarter, we improved our cash collections, which resulted in a meaningful reduction in days sales outstanding, and enabled us to turn cash flow positive for the year.  I expect improved cash flow in 2012 as our financial performance improves in the second half of the year.”

Fourth Quarter Financial Results from Continuing Operations

Revenue of $238.9 million decreased 5% on a reported and constant currency basis compared with the fourth quarter last year.  The North America segment experienced a decline of 12%.  This rate of the year-over-year revenue decline has lessened sequentially from the third quarter.  The International division’s revenue growth was 3% or 4% constant currency.

Gross margin for the fourth quarter was 25.9%.  Selling, general and administrative expenses (SG&A) in the quarter were 23.8% of revenue.  CIBER has improved both its gross margin and SG&A cost structure through increased utilization, targeted cost reductions, as well as less bad debt and project write-off charges.

Fourth quarter operating income was $5.0 million with an operating margin of 2.1%.  This compares to last year’s fourth quarter operating loss of $3.7 million which included $7.3 million of bad debt and project write-off charges.  Excluding these charges, operating income in the fourth quarter 2010 was $3.6 million with an operating margin of 1.4%.

Net income for the fourth quarter was $2.2 million or $0.03.  Fourth quarter 2010 net loss was $1.6 million or $0.02 per share including the bad debt and project write-off charges.  Excluding the charges, fourth quarter 2010 net income was $2.8 million, or $0.04 per share.  The decrease in net income and EPS was driven by higher tax expense and interest expense.

The International division, which represented 49% of consolidated revenue, delivered revenue growth for the quarter of 3%, or 4% on a constant currency basis over the fourth quarter 2010.  Revenue growth slowed in light of the economic environment in Europe as well as lower billable headcount at two large customers.  Operating margin for the segment was 6.2%.  Gross and operating margins were down slightly from last year’s fourth quarter driven mostly from lower revenue.

The North American division, 43% of consolidated revenue, saw revenue decline 12% compared with 2010’s fourth quarter.  Gross margin in the fourth quarter was in the high twenties, an improvement from last year’s fourth quarter, as a result of fewer project overruns and improvements in utilization.  Operating margin, aided by cost reductions, was 4.6%.  The improved utilization rate and lower cost base should drive increased operating margins within this division throughout 2012.

Capital Deployment and Liquidity

CIBER’s cash balance at December 31, 2011 was $65.6 million, while the total outstanding balance on the senior credit facility was $66.2 million.   On January 31, 2012 the company met its obligation to repay $25 million under the facility through the repatriation of a portion of the International division’s cash, with no cash-tax impact.  The company also anticipates using at least a portion of the cash proceeds from the sale of its Federal division to reduce outstanding debt.

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Including Federal, cash flow from operating activities for the year was $31.5 million; capital expenditures totaled $15.4 million; yielding free cash flow of $16.1 million.

Through aggressive cash management and structural improvements in cash collections, CIBER reduced days sales outstanding as of December 31, 2011 to 53 days.

Investor and Analyst Conference Call

CIBER President and Chief Executive Officer Dave Peterschmidt invites you to participate in a conference call or audiocast today at 11:00 a.m. Eastern Time to discuss the Company’s financial results.

The conference call and audiocast of the conference call will be available to the public.  The audiocast will be available at www.ciber.com/cbr.  To participate in the conference call, dial 866-362-5158 (U.S.) or +1-617-597-5397 (outside the U.S.) ten minutes prior to the start of the call and provide the operator with the pass code 35338634.

A replay of the call and audiocast will be available one hour after the call ends through Mar. 23, 2012.  To access the telephone replay, dial 888-286-8010 (U.S.) or +1- 617-801-6888 (outside the U.S.) and use the pass code 73600296.  The audiocast replay will be available at www.ciber.com/cbr.

Non-GAAP Financial Information

CIBER presents a number of non-GAAP measurements because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods.  These non-GAAP measurements include: Free cash flow (cash flow from operations less capital expenditures); International revenue change adjusted for currency; and fourth quarter 2010 operating income from continuing operations, operating margin from continuing operations, net income from continuing operations and EPS from continuing operations excluding $7.3 million of bad debt and project write-off charges.

Reconciliations of non-GAAP to comparable GAAP measures are available in the body of this release as well as the accompanying schedules.   These reconciliations may also be found in the Investor Relations section of the Company’s website at www.ciber.com/cbr.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our operations, results of operations and other matters that are based on our current expectations, estimates, forecasts and projections.  Words, such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “opportunity,” “plan,” “potential,” “project,” “should,” and “will” and similar expressions, are intended to identify forward-looking statements.  For example, we make certain forward-looking statements regarding our current expectations for revenue, cash flow, debt balances and profitability for certain of our business units or the Company for 2012 and the future.  These statements reflect a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by our forward-looking statements.  These risks include, without limitation, risks that: (1) economic and political conditions, including regulatory or legislative action, adversely affect us or our clients’ businesses and levels of business activity; (2) the sale of the Federal division does not close as expected; (3) the refinancing of our credit facility is not completed as expected, in which case we face covenant issues; (4) we cannot expand and develop our services and solutions in response to changes in technology and client demand; (5) we cannot compete as effectively as we expect in the highly competitive consulting, systems integration and technology and outsourcing markets; (6) our work in the government contracting environment exposes us to additional risks; (7) our clients may terminate their contracts with us or they may be unable or unwilling to pay us for our services, which may impact our accounting

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assumptions; (8) our outsourcing services subject us to operational and financial risk; (9) we cannot maintain favorable pricing and utilization rates; (10) our business is restricted by our current level of indebtedness and we could breach our financial covenants, and/or be unable to amend, extend or replace our current debt facility under favorable terms; (11) we cannot anticipate the cost and complexity of performing our work or we are not able to control our costs especially on fixed price contracts; (12) our global operations are subject to complex risks, some of which are beyond our control, including, but not limited to, fluctuations in foreign exchange rates; (13) we cannot balance our resources with client demand or hire sufficient employees with the required skills and background; (14) we may incur liability from our subcontractors’ or other third parties’ failure to deliver their project contributions on time or at all; (15) we cannot manage the organizational challenges associated with our size or our business strategy; (16) our share price could fluctuate due to numerous factors, including variability in revenues, operating results and profitability; and/or (17) other factors discussed from time to time in the Company’s news releases and public statements, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in the Company’s Form 10-Q and most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission.  Most of these factors are beyond CIBER’s ability to predict or control.  Forward-looking statements are not guarantees of performance and speak only as of the date they are made, and CIBER undertakes no obligation to publicly update any forward-looking statements in light of new information or future events.  Readers are cautioned not to put undue reliance on forward-looking statements.

About CIBER, Inc.

CIBER, Inc. is a global information technology consulting, services and outsourcing company applying practical innovation through services and solutions that deliver tangible results for both commercial and government clients. Services include application development and management, ERP implementation, change management, project management, systems integration, infrastructure management and end-user computing, as well as strategic business and technology consulting. Founded in 1974 and headquartered in Greenwood Village, Colorado, CIBER has more than 8,500 employees and subcontractors and operates in 18 countries, serving clients in North America, Europe and Asia/Pacific. Annual revenue in 2011 was $1.1 billion. CIBER trades on the New York Stock Exchange (NYSE: CBR), and is included in the Russell 2000 Index and the S&P Small Cap 600 Index. For more information, visit www.ciber.com.

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CIBER, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended  December 31,						Year Ended December 31,
	2011			2010			2011			2010
REVENUES
Consulting services	$	226,174		$	237,479		$	929,409		$	907,470
Other revenue	12,687			13,736			47,517			46,328
Total revenues	238,861			251,215			976,926			953,798
OPERATING EXPENSES
Cost of consulting services	169,398			182,842			710,989			686,267
Cost of other revenue	7,525			8,096			27,468			28,368
Selling, general and administrative	56,814			63,198			230,637			226,997
Goodwill impairment	—			—			16,300			82,000
Amortization of intangible assets	89			764			1,534			3,213
Total operating expenses	233,826			254,900			986,928			1,026,845
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS	5,035			(3,685		)	(10,002		)	(73,047		)
Interest income	580			422			987			614
Interest expense	(2,526		)	(1,830		)	(7,898		)	(6,553		)
Other income (expense), net	481			47			(2,524		)	61
Income (loss) from continuing operations before income taxes	3,570			(5,046		)	(19,437		)	(78,925		)
Income tax expense (benefit)	1,378			(3,453		)	32,668			(23,389		)
Net income (loss) from continuing operations	2,192			(1,593		)	(52,105		)	(55,536		)
Loss from discontinued operations, net of income tax	(18,519		)	(1,699		)	(15,127		)	(22,154		)
CONSOLIDATED NET LOSS	(16,327		)	(3,292		)	(67,232		)	(77,690		)
Net income (loss) attributable to noncontrolling interests	(176		)	22			29			(530		)
NET LOSS ATTRIBUTABLE TO CIBER, INC.	$	(16,151	)	$	(3,314	)	$	(67,261	)	$	(77,160	)
Basic and diluted earnings (loss) per share attributable to CIBER, Inc.:
Continuing operations	$	0.03		$	(0.02	)	$	(0.73	)	$	(0.79	)
Discontinued operations	(0.25		)	(0.03		)	(0.21		)	(0.32		)
Basic and diluted loss per share attributable to CIBER, Inc.	$	(0.22	)	$	(0.05	)	$	(0.94	)	$	(1.11	)
Weighted average shares outstanding:
Basic	72,484			70,029			71,831			69,626
Diluted	72,484			70,029			71,831			69,626

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CIBER, Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

	December 31, 2011			December 31, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	65,567		$	69,329
Accounts receivable, net of allowances of $1,422 and $7,367, respectively	182,359			216,286
Prepaid expenses and other current assets	25,700			23,379
Deferred income taxes	3,302			11,373
Current assets of discontinued operations	20,382			24,945
Total current assets	297,310			345,312
Property and equipment, net of accumulated depreciation of $64,929 and $58,159, respectively	26,845			25,023
Goodwill	275,504			294,644
Other intangible assets, net	649			2,154
Other assets	6,900			9,318
Long-term assets of discontinued operations	17,862			45,913
TOTAL ASSETS	$	625,070		$	722,364
LIABILITIES AND EQUITY
Liabilities:
Current liabilities:
Current portion of long-term debt	$	25,571		$	10,473
Accounts payable	35,112			47,835
Accrued compensation and related liabilities	60,124			67,013
Deferred revenue	22,308			21,194
Income taxes payable	8,613			9,760
Other accrued expenses and liabilities	45,454			47,156
Current liabilities of discontinued operations	7,310			9,517
Total current liabilities	204,492			212,948
Long-term debt	41,380			77,879
Deferred income taxes	15,462			6,159
Other long-term liabilities	6,729			5,878
Total liabilities	268,063			302,864
Commitments and contingencies
Equity:
CIBER, Inc. shareholders’ equity:
Preferred stock, $0.01 par value, 1,000 shares authorized, no shares issued	—			—
Common stock, $0.01 par value, 100,000 shares authorized, 74,487 shares issued	745			745
Treasury stock, at cost, 1,919 and 4,363 shares, respectively	(10,998		)	(25,003		)
Additional paid-in capital	330,088			325,177
Retained earnings	44,337			118,113
Accumulated other comprehensive income (loss)	(7,006		)	661
Total CIBER, Inc. shareholders’ equity	357,166			419,693
Noncontrolling interests	(159		)	(193		)
Total equity	357,007			419,500
TOTAL LIABILITIES AND EQUITY	$	625,070		$	722,364

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CIBER, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Year Ended December 31,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated net loss	$	(67,232	)	$	(77,690	)
Adjustments to reconcile consolidated net loss to net cash provided by operating
Loss from discontinued operations	15,127			22,154
Goodwill impairment	16,300			82,000
Depreciation	11,184			11,108
Amortization of intangible assets	1,534			3,213
Deferred income tax expense (benefit)	26,900			(30,443		)
Provision for doubtful receivables	337			6,369
Share-based compensation expense	4,678			3,881
Change in value of contingent consideration	3,898			462
Amortization of debt costs	2,182			1,915
Other, net	298			2,417
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	30,540			(41,939		)
Other current and long-term assets	(1,497		)	(786		)
Accounts payable	(12,693		)	16,607
Accrued compensation and related liabilities	(3,176		)	5,740
Other current and long-term liabilities	(2,887		)	16,660
Income taxes payable/refundable	(2,555		)	4,337
Cash provided by operating activities — continuing operations	22,938			26,005
Cash provided by operating activities — discontinued operations	8,584			9,116
Cash provided by operating activities	31,522			35,121
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions, net of cash acquired	(895		)	(3,580		)
Purchases of property and equipment, net	(15,364		)	(12,968		)
Cash used in investing activities — continuing operations	(16,259		)	(16,548		)
Cash used in investing activities — discontinued operations	(67		)	(1,022		)
Cash used in investing activities	(16,326		)	(17,570		)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on long-term debt	377,676			385,481
Payments on long-term debt	(399,483		)	(396,618		)
Employee stock purchases and options exercised	7,490			2,384
Purchases of treasury stock	—			(2,444		)
Credit facility fees paid	(2,000		)	(685		)
Acquisition of noncontrolling interest	—			(1,558		)
Other, net	(1,019		)	61
Cash used in financing activities — continuing operations	(17,336		)	(13,379		)
Effect of foreign exchange rate changes on cash and cash equivalents	(1,622		)	(2,267		)
Net increase (decrease) in cash and cash equivalents	(3,762		)	1,905
Cash and cash equivalents, beginning of period	69,329			67,424
Cash and cash equivalents, end of period	$	65,567		$	69,329

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CIBER, Inc.

SUMMARY SEGMENT DATA

(Dollars in thousands)

(Unaudited)

Summary Segment Analysis

	Three Months Ended December 31,								Year Ended December 31,
	2011			2010			Change		2011			2010			Change
Revenues:
International	$	116,350		$	112,559		3	%	$	471,034		$	385,155		22	%
North America	101,761			115,858			(12	)%	419,564			487,219			(14	)%
IT Outsourcing	23,235			24,783			(6	)%	94,717			88,968			6	%
Total segment revenues	241,346			253,200			(5	)%	985,315			961,342			2	%
Corporate/Inter-segment	(2,485		)	(1,985		)			(8,389		)	(7,544		)
Total revenues	$	238,861		$	251,215		(5	)%	$	976,926		$	953,798		2	%
Operating income (loss) from continuing operations:
International	$	7,238		$	7,268		—	%	$	29,214		$	19,842		47	%
North America	4,688			668			602	%	8,541			30,710			(72	)%
IT Outsourcing	1,617			(239		)	777	%	1,958			(518		)	478	%
Total segment operating income	13,543			7,697			76	%	39,713			50,034			(21	)%
Corporate expenses	(8,218		)	(10,382		)			(31,343		)	(36,800		)
Unallocated expenses of discontinued operations	(201		)	(236		)			(538		)	(1,068		)
EBITA	5,124			(2,921		)			7,832			12,166
Goodwill impairment	—			—					(16,300		)	(82,000		)
Amortization of intangible assets	(89		)	(764		)			(1,534		)	(3,213		)
Total operating income (loss) from continuing operations	$	5,035		$	(3,685	)			$	(10,002	)	$	(73,047	)

Segments as Percent of Total Segment Revenue and Total Segment Operating Income

(excluding Corporate/Inter-segment and corporate expenses, goodwill impairment and amortization)

	Three Months Ended December 31,				Year Ended December 31,
	2011		2010		2011		2010
Revenues:
International	48	%	44	%	48	%	40	%
North America	42	%	46	%	42	%	51	%
IT Outsourcing	10	%	10	%	10	%	9	%
Total segment revenues	100	%	100	%	100	%	100	%
Operating income:
International	53	%	94	%	74	%	40	%
North America	35	%	9	%	21	%	61	%
IT Outsourcing	12	%	(3	)%	5	%	(1	)%
Total segment operating income	100	%	100	%	100	%	100	%

Segment Operating Margins

(excluding corporate expenses, goodwill impairment and amortization)

	Three Months Ended December 31,				Year Ended December 31,
	2011		2010		2011		2010
Operating margin:
International	6	%	6	%	6	%	5	%
North America	5	%	1	%	2	%	6	%
IT Outsourcing	7	%	(1	)%	2	%	(1	)%
Total segment operating margin	6	%	3	%	4	%	5	%

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CIBER, Inc.

QUARTERLY RESULTS OF OPERATIONS

(Dollars in thousands)

(Unaudited)

	Three months ended
	Dec. 31, 2011			Sept. 30, 2011			June 30, 2011			Mar. 31,  2011			Dec. 31,  2010			Sept. 30,  2010			June 30,  2010			Mar. 31,  2010
REVENUES
Consulting services	$	226,174		$	231,064		$	228,614		$	243,557		$	237,479		$	225,938		$	222,423		$	221,630
Other revenue	12,687			11,101			12,373			11,356			13,736			11,032			10,517			11,043
Total revenues	238,861			242,165			240,987			254,913			251,215			236,970			232,940			232,673
OPERATING EXPENSES
Cost of consulting services	169,398			174,223			184,705			182,663			182,842			170,121			167,146			166,158
Cost of other revenue	7,525			6,756			6,704			6,483			8,096			7,622			6,014			6,636
Selling, general and administrative	56,814			55,199			60,083			58,541			63,198			52,315			59,145			52,339
Goodwill impairment	—			—			16,300			—			—			—			82,000			—
Amortization of intangible assets	89			131			682			632			764			783			716			950
Total operating expenses	233,826			236,309			268,474			248,319			254,900			230,841			315,021			226,083
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS	5,035			5,856			(27,487		)	6,594			(3,685		)	6,129			(82,081		)	6,590
Interest income	580			203			148			56			422			70			29			93
Interest expense	(2,526		)	(2,005		)	(1,875		)	(1,492		)	(1,830		)	(1,520		)	(1,314		)	(1,889		)
Other income (expense), net	481			469			(2,689		)	(785		)	47			(608		)	561			61
Income (loss) from continuing operations before income taxes	3,570			4,523			(31,903		)	4,373			(5,046		)	4,071			(82,805		)	4,855
Income tax expense (benefit)	1,378			3,143			27,070			1,077			(3,453		)	1,171			(22,837		)	1,730
Net income (loss) from continuing operations	2,192			1,380			(58,973		)	3,296			(1,593		)	2,900			(59,968		)	3,125
Income (loss) from discontinued operations, net of income tax	(18,519		)	1,784			708			900			(1,699		)	464			(21,094		)	175
CONSOLIDATED NET INCOME (LOSS)	(16,327		)	3,164			(58,265		)	4,196			(3,292		)	3,364			(81,062		)	3,300
Net income (loss) attributable to noncontrolling interests	(176		)	24			108			73			22			(38		)	(289		)	(225		)
NET INCOME (LOSS) ATTRIBUTABLE TO CIBER, INC.	$	(16,151	)	$	3,140		$	(58,373	)	$	4,123		$	(3,314	)	$	3,402		$	(80,773	)	$	3,525
Basic earnings (loss) per share attributable to CIBER, Inc.:
Continuing operations	$	0.03		$	0.02		$	(0.82	)	$	0.05		$	(0.02	)	$	0.04		$	(0.86	)	$	0.05
Discontinued operations	(0.25		)	0.02			0.01			0.01			(0.03		)	0.01			(0.30		)	—
Basic earnings (loss) per share attributable to CIBER, Inc.	$	(0.22	)	$	0.04		$	(0.81	)	$	0.06		$	(0.05	)	$	0.05		$	(1.16	)	$	0.05
Diluted earnings (loss) per share attributable to CIBER, Inc.:
Continuing operations	$	0.03		$	0.02		$	(0.82	)	$	0.05		$	(0.02	)	$	0.04		$	(0.86	)	$	0.05
Discontinued operations	(0.25		)	0.02			0.01			0.01			(0.03		)	0.01			(0.30		)	—
Diluted earnings (loss) per share attributable to CIBER, Inc.	$	(0.22	)	$	0.04		$	(0.81	)	$	0.06		$	(0.05	)	$	0.05		$	(1.16	)	$	0.05
Weighted average shares outstanding:
Basic	72,484			72,209			71,695			70,936			70,029			69,734			69,389			69,353
Diluted	72,484			72,609			71,695			72,091			70,029			69,929			69,389			69,633

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CIBER, Inc.

NON-GAAP FINANCIAL INFORMATION

(Dollars in millions, except per share amounts)

(Unaudited)

CIBER reports its financial results in accordance with generally accepted accounting principles (“GAAP”).  However, management believes that certain non-GAAP financial measures used in managing our business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results.  Certain of the information set forth in this press release constitutes non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission.  We have presented below a reconciliation of these measures to the most directly comparable GAAP financial measure.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for comparable amounts determined in accordance with GAAP in the United States.

Components of Revenue

	Three Months Ended December 31, 2011
	Constant Currency Revenue Growth		Foreign Exchange  Impact		GAAP Reported Revenue Growth
Revenues:
Consolidated	(5	)%	—	%	(5	)%
International	4	%	(1	)%	3	%

Operating Income from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

	Three Months Ended December 31,
	2011			2010
GAAP operating income (loss) from continuing operations	$	5.0		$	(3.7	)
Bad debt expense and project write-offs, pre-tax	—			7.3
Operating income from continuing operations, excluding bad debt expense and project write-offs	$	5.0		$	3.6
GAAP operating income (loss) margin from continuing operations	2.1		%	(1.5		)%
Operating income margin from continuing operations, excluding bad debt expense and project write-offs	2.1		%	1.4		%

Net Income from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

	Three Months Ended December 31,
	2011		2010
GAAP net income (loss) from continuing operations	$	2.2	$	(1.6	)
Bad debt expense and project write offs, after tax	—		4.4
Net income from continuing operations, excluding bad debt expense and project write-offs	$	2.2	$	2.8

Earnings (Loss) Per Share from Continuing Operations Excluding Bad Debt Expense and Project Write-Off Charges

	Three Months Ended December 31,
	2011		2010
GAAP earnings (loss) per share from continuing operations	$	0.03	$	(0.02	)
Bad debt expense and project write-offs	—		0.06
Earnings per share from continuing operations, excluding bad debt expense and project write-offs	$	0.03	$	0.04

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