IT services vendor Ciber Inc has raised its forecast for 2006 after reporting a strong performance for the second quarter of the year.
In the three months ended June 30, 2006, the Greenwood Village, Colorado-based company increased net profit 2.4% to $6.8m, on sales that grew 3.8% to $250m. The company sold its IT staffing business last year, and if this is factored out, sales grew 6% at an organic level.
Sales of consulting services rose 3.8% during the quarter to $240m, and the company’s hourly billing rate increased to $79.50 in the quarter, up $4 from the year-ago period. Contract wins with clients including the State of New Hampshire and Walter Reed Medical Center boosted Ciber’s order book to $2.5bn at the end of June.
Ciber’s best-performing unit was its state and local government division, which grew sales 17% at an organic basis to $36.2m, and the company’s European arm increased revenue 7% organically to $59m. The only weak spot was its US federal government practice, where sales fell 17% organically on the back of a lost subcontract.
Mac Slingerlend, the company’s president and CEO pointed to the development of the company’s offshore sourcing strategy over the last five years as a key factor behind its performance. The company opened a new 50,000-square-foot delivery center in Bangalore last month and the company is aiming to have about 500 billable consultants working out of India this year.
Ciber now expects full-year 2006 sales to reach between $975m and $985m.