2014

Lionbridge Reports Q1 Revenue Of $112.1 Million And GAAP EPS Of $0.03 Grows Revenue 12% Year-on-Year; $12.4 Million Revenue Growth Drives $7.2 Million Earnings Expansion, Indicating Strong Momentum for FY 2012

WALTHAM, Mass., May 8, 2012 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the quarter ended March 31, 2012.  Financial highlights for the quarter include:

  • Revenue of $112.1 million, an increase of $12.4 million compared to the first quarter of 2011, reflecting year-on-year growth of 12%.
  • GAAP net income of $1.7 million, or $0.03 per share based on 59.7 million weighted average fully diluted shares outstanding.  This marks an increase of $7.2 million or $0.12 per share compared to the first quarter of 2011.  
  • Non-GAAP adjusted earnings of $3.9 million or $0.06 per share, an increase of $5.6 million or $0.09 per share from the first quarter of 2011.  The Company defines non-GAAP adjusted earnings as net income excluding restructuring and related costs, stock-based compensation and amortization of acquisition-related intangible assets.  Please see the section of this release entitled "Non-GAAP Financial Measures" and the attached table for details and reconciliations of this measure to the comparable GAAP measure. 

During the quarter, the Company secured several new customer engagements, including agreements with a large pharmaceutical company, a leading food and beverage retailer and a luxury retailer.

"Our strong first quarter results reflect positive momentum on all levels.  As we bring new offerings to market and diversify our client base across industry sectors, we are scaling many large accounts and accelerating new business," said Rory Cowan, CEO of Lionbridge.  "Our ongoing revenue and profit momentum underscores our commitment to growing our recurring revenue streams, broadening our client base and establishing new opportunities across the lifecycle of our clients' products and content."

The Company also provided revenue expectations for the second quarter of 2012 with estimated revenue of $113-116 million.

Lionbridge management will conduct a conference call at 9:00 a.m. ET this morning to discuss financial performance for the quarter and other matters and the Company's expectations for future performance. To participate, callers within the United States can dial 800-857-9821 and international callers can dial 210-234-0023.  The passcode for the call is Lionbridge.  The conference call will also be available live online.  

Non-GAAP Financial Measures
In this release, the Company's adjusted earnings and adjusted earnings per share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations.  These measures are presented because management believes they provide additional information to investors with respect to the performance of our fundamental business activities. These measures are Non-GAAP financial measures and should not be viewed as alternatives to GAAP measures of performance.  Management believes the most directly comparable GAAP financial measures for adjusted earnings and adjusted earnings per share are net income and net income per share and has provided a reconciliation of these measures to net income (loss) at the end of this release.

About Lionbridge
Lionbridge Technologies, Inc. (NASDAQ: LIOX) is a provider of translation, development and testing solutions. Lionbridge combines global resources with proven program management methodologies to serve as an outsource partner throughout a client's product and content lifecycle - from development to translation, testing and maintenance. Global organizations rely on Lionbridge services to increase international market share, speed adoption of global products and content, and enhance their return on enterprise applications and IT system investments. Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries and provides services under the Lionbridge and VeriTest brands. To learn more, visit http://www.lionbridge.com.

Forward-Looking Statements 
This press release contains forward-looking statements that involve risks and uncertainties, including expected financial performance and expected revenue and earnings growth, and the momentum, pace and strengthening of such growth, of Lionbridge in Q2 2012 and FY 2012.  These forward-looking statements reflect management's current views and Lionbridge does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date hereof except as required by law.  Lionbridge's actual experiences, actions, financial and operating results may differ materially from those discussed in the forward-looking statements. Factors that might cause such a difference include Lionbridge's ability to provide and maintain high quality services at a competitive price and related customer satisfaction with such service delivery; the loss of or reduction in demand from one or more major client or customer, which would materially reduce revenue and cash flow and adversely affect Lionbridge's business; Lionbridge's ability to expand its relationships with existing clients; Lionbridge's ability to broaden its client base; the ability of Lionbridge to realize the expected benefits of its technology initiatives and the timing of the realization of such benefits; market acceptance of and customer demand for the Company's SaaS-based technology offerings, including Translation Workspace and GeoFluent; errors, interruptions or delays in SaaS-based technology or Web hosting; breaches of security measures; risks associated with the financial aspects of the subscription model utilized in connection with the its SaaS-based technology offerings; the cost, complexity, timing and speed of continued development and enhancements of  real-time machine translation technology initiatives, including customer and user acceptance of the Company's services and technologies; the termination of customer contracts or engagements prior to the end of their term; the size, timing and recognition of revenue from clients;  the impact of foreign currency fluctuations on revenue, margins, costs, operating results and profitability and the Company's ability to successfully manage this exposure through hedge instruments and other strategies; the portion of the Company's service engagements that are subject to the impact of foreign currency fluctuations; continued uncertainty and volatility in global economic conditions that could negatively affect demand for the Company's services and technologies; reduced demand for the Company's services that adversely impacts Lionbridge's future revenues, cash flows, results of operations and financial condition; Lionbridge's ability to perform services in lower cost operational locations and the timing of its transfer of service execution to such locations, and customer acceptance of service execution in such locations; risks associated with conducting business outside of the United States, including compliance with changing and potentially conflicting laws and regulations and expenses and delays associated with any such activities;  longer collection cycles in particular jurisdictions; risks associated with competition;  Lionbridge's ability to forecast revenue, profitability, technology adoption, customer demand and operating results; changes in tax rates applicable to the Company and changes to the interpretations of applicable tax rates; changes in interpretation of statutory and regulatory positions by international tax authorities in countries in which Lionbridge conducts business; changes in interpretation of employment and tax positions by U.S. state and federal authorities; the Company's dependence on clients' product releases, production schedules and procurement strategies to generate revenues; the impact of competing language technology on the Company's existing customer relationships and ability to secure new customers; the failure of Lionbridge to keep pace with technological changes or changing customer needs; the risk of claims by third parties of intellectual property claims; the ability of Lionbridge to respond to fluctuations in the complexity, timing and mix of services required by customers; and Lionbridge being held liable for defects or errors in its service offerings. For a more detailed description of the risk factors associated with Lionbridge, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent filings with the SEC (copies of which may be accessed through the SEC's website at http://www.sec.gov).

 

LIONBRIDGE TECHNOLOGIES, INC.



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Amounts in thousands, except per share data)




Three Months Ended


March 31,


2012

2011




Revenue

$ 112,096

$ 99,652

Operating expenses:



Cost of revenue (excluding depreciation and amortization shown separately below)

 

78,173

 

71,736

Sales and marketing

8,509

8,278

General and administrative

19,176

18,625

Research and development

1,362

1,396

Depreciation and amortization

1,645

1,291

Amortization of acquisition-related intangible assets

480

583

Restructuring and other charges

284

2,103

Total operating expenses

109,629

104,012




Income (loss) from operations

2,467

(4,360)




Interest expense:



Interest on outstanding debt 

190

149

Amortization of deferred financing costs

25

25

Interest income 

20

17

Other (income) expense, net

(31)

458

 

Income (loss) before income taxes

2,303

(4,975)

Provision for income taxes

582

471

 

Net income (loss) 

 

$    1,721

 

$    (5,446)

 

Net income (loss) per share of common stock:



Basic

$      0.03

$      (0.09)

Diluted

$      0.03

$      (0.09)




Weighted average number of common shares outstanding:



Basic

58,557

57,523

Diluted

59,662

57,523




 

 

LIONBRIDGE TECHNOLOGIES, INC.





CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands)






March 31,


December 31,


2012


2011





ASSETS




Current assets:




Cash and cash equivalents

$    19,932


$    25,219

Accounts receivable, net of allowances of $500 at March 31, 2012 and
          December 31, 2011

 

62,961


 

58,413

Unbilled receivables

27,825


20,665

Other current assets

10,781


9,120

 

Total current assets

 

121,499


 

113,417

 

Property and equipment, net

 

21,935


 

21,725

Goodwill

9,675


9,675

Other intangible assets, net

6,776


7,256

Other assets

5,562


5,674

 

Total assets

 

$  165,447


 

$  157,747





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$   21,257


$   19,347

Accrued compensation and benefits

17,712


15,696

Other accrued expenses and current liabilities

22,894


21,802

Deferred revenue

11,353


11,057

 

Total current liabilities

 

73,216


 

67,902





Long-term debt, less current portion

24,700


24,700

Deferred income taxes, long-term

641


641

Other long-term liabilities

13,231


13,212





Total stockholders' equity

53,659


51,292









Total liabilities and stockholders' equity

$  165,447


$  157,747

 

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EPS (Unaudited)
(Amounts in thousands, except per share data)






Three Months Ended


March 31,


2012

2011




Net income (loss)

$     1,721

$     (5,446)




Amortization of acquisition-related intangible assets

480

583

Stock-based compensation

1,385

1,091

Restructuring and other charges

284

2,103

Adjusted earnings

3,870

(1,669)




Fully diluted weighted average number of common shares outstanding

59,662

57,523

Adjusted EPS

$  0.06

$ (0.03)

 

Contact:

Sara Buda
Lionbridge
+1-781-434-6190
sara.buda@lionbridge.com

SOURCE Lionbridge Technologies, Inc.



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