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CIBER, Inc. Q2 2008 Earnings Call Transcript

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2008-08-07 10:24:19.0

Tags: CIBER Inc.

Question-and-Answer Session

Operator

Thank you, sir. (Operator instructions) Our first question comes from the line of Anurag Rana with KeyBanc. Please go ahead.

Anurag RanaKeyBanc Capital Markets

Hi, good morning, everyone. Congratulations on a very good quarter.

Mac Slingerlend

Thank you, Anurag.

Anurag RanaKeyBanc Capital Markets

Just wanted to get an idea about overall technology spending from your clients, folks you have talked to over the last several weeks or few months. What are they talking about regarding their budgets for next year or just general spending, the general spending environment?

Mac Slingerlend

It's probably a hackneyed comment, Anurag, to say it's kind of the same things we always talked about over calls or otherwise. But, we are not seeing cancellations. I can't really sit here and tell you we are seeing slowdowns. We are probably seeing – our growth is a little bit more spotty as opposed to 100% in 100 places. It's more growth in some areas or maybe even sectors. For example, the telecom sector is meaningful to us and our portion of the financial sector, because we are involved in the subprime activities that others were doing in the last year or two. So, still I would have to say we have stability. We've had a little bit of popping of the pipeline in the Oracle public sector space that has been a bottleneck for somewhere around two or three quarters now. Some things came out of the third quarter – sorry, some victories are coming out of the Oracle public sector late second quarter or early third quarter that we haven't seen for some time, and that's certainly a positive signal for us. Federally, we are holding our own and we’ve got several things submitted, just kind of hoping that they get broken out of the log jam before either the end of the fiscal year, change of staffing regardless of party, et cetera. And so, things generally are holding up or else we wouldn't have the organic growth that we're able to show you here. And our head counts are holding up. So head counts are up a hair, not dramatically, but they are up 1% or 2% from, say, March time frame. So head counts are holding up and organic growth is there, and it appears things are holding up for us.

Anurag RanaKeyBanc Capital Markets

Great. And any update on plans to expand offshore?

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