2014

Lightbridge Anticipates Lower Second Quarter Revenue Due to Recent WorldCom Events and Slower Subscriber Growth Company Announces Restructuring Plan to Preserve Financial Strength



    BURLINGTON, Mass., June 27 /PRNewswire-FirstCall/ --
 Lightbridge, Inc. (Nasdaq:   LTBG), a global provider of mobile business
 solutions to communications providers, today announced it expects to report
 lower-than-anticipated revenues for the second quarter in the range of
 approximately $33.0 million to $34.0 million and a loss of $0.08 to $0.09 per
 diluted share for the quarter ending June 30, 2002.  The anticipated second-
 quarter loss includes a pre-tax restructuring charge in the range of $3.6
 million to $4.2 million.  Excluding the restructuring charge, Lightbridge
 expects to report pro forma net income for the 2002 second quarter of  $0.00
 to $0.01 per diluted share.  Lightbridge expects its second quarter cash and
 short-term investments to grow approximately $1.0 million from the first
 quarter balance of $122.3 million.
     Lightbridge also announced that it plans to reduce its total workforce by
 seven percent, eliminating about 65 positions at its Burlington,
 Massachusetts, Broomfield, Colorado and Irvine, California locations.  The
 Company also plans to consolidate its Waltham, Massachusetts call center
 operations in the Lynn, Massachusetts and Broomfield, Colorado facilities by
 the end of the year.  These actions are expected to generate savings in the
 range of $7.0 million to $7.5 million in 2003.  The $3.6 million to $4.2
 million restructuring charge planned for the quarter ending June 30, 2002 is
 principally related to employee severance costs, facilities reductions and
 call center capital equipment write-offs associated with these measures.
     In the second quarter, Lightbridge provided approximately $2.0 million of
 transaction services to WorldCom, Inc.  Because of the recent developments at
 WorldCom, the revenues associated with these services are excluded from the
 second quarter estimates issued today.  The Company will continue to monitor
 the situation for any other possible operational effects.
     "We believe our decision to exclude WorldCom revenues from our preliminary
 results is the proper action at this time," said Pamela D.A. Reeve, Chief
 Executive Officer.  "Given the near-term prospects for the telecom industry,
 we have taken additional steps to streamline our organization, to focus on
 priority investments in our transaction and software businesses and to
 maintain prudent expense control.  We believe consolidating our Waltham call
 center with the Lynn and Broomfield facilities better aligns the size of the
 operation with expected activity levels and allows us to efficiently provide
 these services.  The elimination of selected staff positions, a step we have
 taken with caution and reluctance, reflects our straightforward commitment to
 manage the Company at responsible levels as we weather continued soft demand
 in both our transactions and software businesses.  On a positive note, we are
 pleased with the strength of our balance sheet and the long-term contracts we
 maintain with some of the largest wireless providers in the world."
     "These steps represent only the latest in a series of actions taken over
 the past several quarters to address the challenging telecom market and
 capitalize on the global movement toward mobile business," Reeve said.
 "During the past several quarters, we have streamlined operations and
 substantially reduced operating expenses.  At the same time, we have invested
 significantly in mobile business research and development and absorbed two
 acquisitions - while continuing to maintain our strong balance sheet.  We
 believe Lightbridge will be well positioned when the telecommunications sector
 recovers and as mobile business services are deployed.  The mobile business
 market extends far beyond basic wireless services and we believe that this
 market offers a new and very real opportunity of growth for the Company."
     The Company plans to provide revised guidance for the year when it
 announces its results of operations for the second quarter in a press release
 and conference call scheduled for July 25, 2002.
 
     Conference Call Information
     Lightbridge will conduct a conference call for investors at 5:00 P.M. (ET)
 today to discuss the information contained in this news release.  The Company
 will provide a live audio Webcast of the conference call on the Investor
 Relations section of its Web site at www.lightbridge.com.  The Webcast will be
 available for the next week.  The conference call can also be accessed via
 telephone by dialing (630) 395-0038 and providing the operator with the
 following information: "Password-Lightbridge; Conference Leader-Pam Reeve."
 
     About Lightbridge
     Lightbridge is a global provider of mobile business solutions, offering
 communication providers essential products and services that are designed to
 increase revenue, productivity and customer loyalty.  Building on its twelve-
 year heritage in the wireless communications arena, Lightbridge integrates a
 reliable infrastructure for the mobile business economy that supports the
 complete customer lifecycle, including customer acquisition, risk management,
 prepay and replenishment, customer relationship management and retention.  For
 more information visit www.lightbridge.com or call 800-LIGHTBR.
 
     Forward-looking Statements
     Certain statements in this news release may constitute forward-looking
 statements, including, without limitation, those relating to the outlook for
 the telecommunications industry, the impact of the financial and operating
 difficulties of WorldCom on the Company's financial results, the impact of the
 restructuring on the Company's business and operations, the Company's
 financial guidance for the quarter ending June 30, 2002, and the Company's
 expectations for future growth associated with the potential recovery of the
 telecom sector and deployment of mobile business services.  Actual results may
 vary materially from those contained in forward-looking statements based on a
 number of factors including, without limitation, (i) dependence on a limited
 number of clients, (ii) the Company's revenue concentration in the wireless
 telecommunications business, (iii) the adverse impact that the financial and
 operating difficulties of the Company's clients may have on the Company's
 future revenues, and financial and operating results, (iv) continuing rapid
 change in the telecommunications industry and other markets in which the
 Company does business that may affect both the Company and its clients, (v)
 uncertainties associated with the Company's ability to develop new products,
 services and technologies, (vi) market acceptance of the Company's new
 products, services and technologies and continuing demand for the Company's
 products, services and technologies, (vii) the impact of competitive products,
 services and pricing on both the Company and its clients, (viii) current and
 future economic conditions including, without limitation, decreases or delays
 in capital spending by carriers and in new subscriber growth, and global
 economic recession, (ix) integration, employee retention, recognition of cost
 and other benefits and revenue synergies, and other risks associated with
 acquisitions including the merger with Corsair Communications, Inc. and the
 Altawave acquisition, (x) the Company's ability to execute on its objectives,
 plans or strategies including, without limitation, product or services
 development plans, the mobile business strategy and the plans to develop
 alliances and grow its client base, (xi) economic and political instability in
 the domestic and international markets including, without limitation, the
 impact of terrorist threats and hostilities and the declaration of war or
 similar actions, (xii) uncertainties associated with the Company's ability to
 expand into new markets including, without limitation, the mobile business
 market, (xiii) the impact of restructuring and other changes on the Company's
 business and operations, and (xiv) the factors disclosed in the Company's
 filings with the U.S. Securities and Exchange Commission including, without
 limitation, its 2001 Annual Report on Form 10-K. The Company undertakes no
 obligation to update any forward-looking statements.
 
      Contacts:
      Susan Griffin                 Glen Zimmerman
      Investor Relations            Media Relations
      Lightbridge, Inc.             Lightbridge, Inc.
      781/359-4854                  781/359-4705
      sgriffin@lightbridge.com      gzimmerman@lightbridge.com
 
      Tim Bonang/David Calusdian
      IR Counsel for Lightbridge
      Sharon Merrill Associates
      617/542-5300
      ltbg@investorrelations.com
 
     Lightbridge and the Lightbridge logo are registered trademarks and
 Altawave is a trademark of Lightbridge, Inc.  All other trademarks or
 registered trademarks are the properties of their respective owners.
 
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SOURCE Lightbridge, Inc.

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