IT consultancy and service provider Ciber Inc yesterday announced that IBM Corp has transferred a significant part of its work with Ciber to fellow IT vendor Analysts International. As a result, Ciber revised it future revenue expectations downward.
The company has steadily reduced its IBM work in the past few years, as part of its plans to phase out its procurement-led business, according to Ciber CEO Mac Slingerlend. IBM now accounts for 1.3% of overall Ciber revenue, down from as much as 6% in the past. Ciber declined to comment on the specifics of its IBM work or any other details of the deal.
Ciber lowered its guidance its third-quarter guidance by $3m to between $236m and $241m, with earnings between $0.11 and $0.13 per share. Yearly revenue expectations dropped $7m to between $963m and $973m, with earnings of $0.50 to $0.54 a share.
IBM will transfer the national staffing component of its Ciber relationship to AI. IBM recently decided to reduce its number of IT staffing suppliers and in July named AI as one of its preferred vendors.
AI is currently working on an $88m merger deal with IT staffing and services provider Computer Horizons Corp., but a group of CHC investors is protesting the merger on the grounds that it is too expensive and will weaken the company’s best offerings. CHC has fired back, however, saying the investors are only looking for quick gain at the expense of shareholders. CHC shareholders will vote on the deal on September 2.