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[CYSIVE LOGO]
Contact: John R. Lund, CFO
Press: Penny Karas
Cysive, Inc.
703.259.2300
Katherine Mittelbusher
Press: Evan Goetz
Morgen Walke Associates
212.850.5600
FOR IMMEDIATE RELEASE
CYSIVE REVISES FOURTH QUARTER EXPECTATIONS AND ANNOUNCES
RESTRUCTURING
BOARD OF DIRECTORS AUTHORIZES $25 MILLION STOCK REPURCHASE PROGRAM
Reston, Va. - December 13, 2000 - Cysive, Inc. (Nasdaq: CYSV) today announced
that it is lowering its revenue and earnings expectations for the fourth quarter
ending December 31, 2000. Cysive also announced today that its Board of
Directors approved a business restructuring plan designed to reduce costs.
Additionally, Cysive announced that its Board of Directors authorized the
repurchase of up to $25 million of Cysive's outstanding common stock. Under the
stock repurchase program, Cysive may purchase shares from time to time over the
next 24 months on the open market or otherwise.
For the fourth quarter ending December 31, 2000, revenues are now projected to
be approximately $9 million, and Cysive is projecting a loss between $(.10) and
$(.12) per share, before the restructuring charges.
Total pretax costs related to the business restructuring plan are estimated to
be between $6 million and $8 million, all of which will be recorded as a
restructuring charge in the fourth quarter of 2000. These charges are expected
to cover severance, bad debt, lease restructuring and other costs associated
with the restructuring. Cysive expects to eliminate approximately 40-50
non-engineering positions.
"The actions we announced today will streamline our cost structure," said Nelson
A. Carbonell, Jr., Chairman, President and Chief Executive Officer of Cysive.
"Our engineering focus, and experienced talent base, coupled with a cash balance
of $160 million to $165 million and no debt as of the end of the fourth quarter,
will ensure that Cysive continues to remain competitive over the long term."
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In light of this announcement, Cysive expects to provide an updated outlook for
the calendar year 2001 in conjunction with the release of its fourth quarter and
fiscal year end 2000 results.
Cysive will hold a conference call to discuss this announcement at 9 a.m. EST
today, December 13, 2000. To participate in the conference call, please dial
800-606-8940 approximately ten minutes prior to the call. A replay of the call
will be available through December 19, 2000. To access the replay, please dial
800-615-3210, access code 4845930. The call will also be available via webcast
at www.cysive.com.
ABOUT CYSIVE(TM)
Combining an experienced and highly skilled software engineering staff with the
use of cutting-edge technologies, Cysive has established itself as a leading
builder of custom e-business systems for customers including Cisco Systems,
Classified Ventures (cars.com), Equifax and medibuy.com. Cysive is headquartered
in Reston, Va. with additional offices in Atlanta, Boston, Chicago, Dallas,
Mountain View, Calif., New York, and Southern California, and sales offices in
Denver and Houston. Cysive can be found on the Internet at www.cysive.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Cysive's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's quarterly report on Form 10-Q
filed with the Commission on August 11, 2000, and its other filings under the
1934 Act as amended. Any forward-looking statements are made pursuant to the
Private Securities Litigation Reform Act of 1995 and, as such, speak only as of
the date made. Cysive is not undertaking to update any information in the
foregoing reports until the effective date of its future reports required by
applicable securities laws.
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