Lionbridge Secures New Multi-Year Agreements Estimated to Generate Approximately $35 Million in New Business Lionbridge's Unique Crowd-in-the-Cloud(SM) Solutions Enable Global Leaders across Industries to Manage Locally-Relevant, Brand-Consistent Content Worldwide
WALTHAM, Mass., Jan. 16, 2014 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced that it recently secured several new, multi-year, multi-million dollar engagements with organizations in the automotive, manufacturing, travel, technology and retail industries. Lionbridge estimates these programs will generate approximately $11-13 million of annual recurring revenue once these programs have fully ramped. The new programs include:
- Appointment as the globalization partner for a key division of a multi-billion dollar European automotive manufacturer. As part of this appointment, estimated at $15 million over its five-year term, Lionbridge will be the unique globalization partner for the company's After Sales and University division. Lionbridge will integrate its cloud-based language technology platforms and global program management capabilities to support the client's online content across more than 23 languages. Lionbridge estimates this program will generate approximately $3 million per year once fully ramped.
- A five-year, estimated $8 million agreement with the security and communications division of a world leading supplier of technology and services to the automotive, industrial and construction sectors. The client will rely on Lionbridge's sophisticated workflow technology and a dedicated online portal to centralize and streamline all translation needs worldwide. The program is expected to generate $1.6 million in annual revenue for the duration of the contract.
- A new, three year, estimated $5-6 million program with a global consulting, technology, innovation and talent company. As the company's Global Corporate Language Services Vendor, Lionbridge will provide translation of the company's internet sites, marketing and corporate communications content. Lionbridge estimates this three-year engagement will generate approximately between $1.0 and $2.0 million in annual revenue.
- A master services agreement with a convention and visitors authority for a large, tourist-centric US city. As the sole provider of translation for the visitor authority's frequently-changing website content, Lionbridge estimates this agreement will generate approximately $1.0 million in annual revenue.
- A master services agreement with the largest car rental service provider in the world with wholly-owned operations across the UK, Germany, Ireland, France, Spain, the United States and Canada. Lionbridge estimates this agreement will generate approximately $1.0 million in annual revenue.
- New engagements with a global leader in virtualization and cloud infrastructure. As the client consolidates and centralizes its translation processes, Lionbridge estimates that these engagements will generate approximately $2.0 million in annual revenue.
- A new engagement with the corporate truck division of a large US car manufacturer. This engagement expands the long-standing relationship between Lionbridge and this client. Lionbridge expects this new program to generate $1.0 million in incremental revenue above existing program levels.
- A new program with an existing client that provides Command, Control, Communications, Intelligence, Surveillance and Reconnaissance systems to government organizations. For this new engagement Lionbridge will provide technical engineering services for certain field support systems. Lionbridge estimates this new engagement will generate more than $1.0 million in incremental annual revenue.
"These new engagements underscore the growing demand for global crowd-in-the-cloud solutions that enable enterprises to effectively manage rapidly-changing online content and communications worldwide," said Rory Cowan, CEO of Lionbridge. "We have the right strategy, the right technology and the right leadership in place. As a result, our teams are securing large-scale agreements with new clients across diverse end markets. 2014 will be an exciting year for Lionbridge as we extend our track record of establishing and growing strong client relationships with recurring revenue."
Lionbridge enables more than 800 world-leading brands to increase international market share, speed adoption of products and effectively engage their customers in local markets worldwide. Using our innovative cloud technology platforms and our global crowd of more than 100,000 professional cloud workers, we provide translation, online marketing, global content management and application testing solutions that ensure global brand consistency, local relevancy and technical usability across all touch points of the customer lifecycle. Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries. To learn more, visit http://www.lionbridge.com.
This press release contains express or implied forward-looking statements, including statements relating to estimated revenues associated with customer engagements and the timing of expected customer demand for the Company's services. Lionbridge's actual experiences and results may differ materially from those discussed in the forward-looking statements. Factors that might cause such a difference include; the termination of customer contracts or engagements prior to the end of their term; the size, timing and recognition of revenue; changes in the timing of customer demand for services; the duration of ramp and transition of new customer programs; changes in scope and work mix of the particular engagements; Lionbridge's ability to forecast revenue, profitability and customer demand; customer delays, postponement or reduction of services. For a more detailed description of the risk factors associated with Lionbridge, Please refer to Lionbridge's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2013.
SOURCE Lionbridge Technologies, Inc.