CIBER's revenues shrank by 13 percent in 2009, or nine percent after adjusting for currency effects.
In its annual report, the firm told shareholders that "many of our clients and prospects have been focused on initiatives to deliver near- and medium-term cost savings, and while they continue to exercise caution in launching new IT projects, especially larger ones, we are engaging in more conversations with our clients and prospects about possible projects relating to their future growth. Many clients and prospects have reduced, delayed
or cancelled IT spending."
The firm's bottom line is also hurting. CIBER's gross profit shrank from 27.2 percent to 25 percent, between 2008 and 2009.
"The significant declines in consulting services' gross margins were primarily due to pricing pressures, which has reduced pricing on our existing work, as well as lowered pricing for new competitive awards. As customers have reduced, delayed or canceled projects, it has been difficult to maintain our normal levels of consultant utilization, which has also contributed to the reduction in our gross margin." [CMSARTICLELIST:body|({indexcode} LIKE '%CMAG.A.150%')|1]
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