Lionbridge Reports First Quarter Results

Company Maintains Fourth Quarter Revenue Level Despite Delays in

Domestic IT and Telecommunications Industries



VeriTest Division Reports 27% Year-on-Year Revenue Growth



Apr 26, 2001, 01:00 ET from Lionbridge Technologies, Inc.

    WALTHAM, Mass., April 26 /PRNewswire/ -- Lionbridge Technologies, Inc.
 (Nasdaq: LIOX), a provider of solutions for worldwide deployment of technology
 and content, today announced financial results for the first quarter of 2001.
 First quarter revenue of $27.3 million remained nearly even with revenue of
 $27.7 million for the fourth quarter of 2000.  Revenue for the first quarter
 of 2001 decreased by 3% compared to revenue of $28.2 million for the first
 quarter of 2000.
     "I am pleased that we were able to backfill the larger than expected delay
 in projects from our IT and telecom clients during the first quarter," said
 Rory Cowan, Lionbridge president and CEO.  "First rate execution from our
 sales force enabled Lionbridge to maintain revenue at roughly the same level
 as the fourth quarter of 2000, and within the guidelines we discussed during
 our March 8 investor call in which we discussed our agreement to acquire Data
 Dimensions, Inc."
     "During the first quarter, 76% of our revenue was derived from customers
 with four or more quarters of consecutive business activity with Lionbridge,"
 said Cowan.  "Not only did recurring revenue act as a backstop, but our
 VeriTest division grew 27% year-on-year with first quarter revenue of $3.2
 million."
     The Company provided services to 322 customers during the first quarter of
 2001, compared to 314 customers during the first quarter of 2000.  New
 customers during the first quarter of 2001 totaled 81, compared to 88 new
 customers during the first quarter of 2000.
     The Company reported a net loss of $5.5 million, or $0.20 per share for
 the first quarter of 2001, based on 27.8 million weighted-average shares
 outstanding.  This compares to a net loss attributable to common stockholders
 of $8.3 million, or $0.39 per share, for the first quarter of 2000. On a "cash
 EPS" basis (which excludes only amortization of acquisition-related intangible
 assets, non-recurring charges, and accrued dividends on preferred stock), the
 manner in which Lionbridge is carried by First Call, the Company reported a
 loss of $0.13 per share for the first quarter of 2001, compared to a loss of
 $0.20 per share for the first quarter of 2000.
     "Our solutions focus is improving efficiencies for global businesses with
 operations in multiple markets around the world," continued Cowan.  "In the
 current environment, there must be demonstrable ROI for technology and service
 investments.  Lionbridge clients, including IBM, Rational Software and SAP,
 have achieved significant savings in time-to-market and in localization costs
 using our globalization technology and services."
 
     Business Highlights During the First Quarter
     -- VeriTest Revenue Increase of 27%
        Through increased activity in software quality and certification
        testing, as well as interoperability and compatibility testing for
        global deployment, VeriTest revenue increased by 27% compared to the
        first quarter of 2000, and 11% compared to the fourth quarter of 2000.
        In addition, VeriTest announced new certification programs for AT&T
        Wireless and Palm Computing, and a verification testing program for
        Stratus Technologies.
 
     -- Acquisition of Data Dimensions
        Lionbridge announced its agreement to acquire Data Dimensions, Inc., a
        software testing business based in Bellevue, Wash.  Data Dimensions
        will be integrated into Lionbridge's VeriTest division, making VeriTest
        the largest outsourced testing services business in the industry.  The
        acquisition is expected to close during the second quarter of 2001.
 
     -- Henri Broekmate Named Vice President of Product Sales & Marketing
        A globalization industry leader and former executive vice president of
        e-business for TRADOS Corporation,  Broekmate is responsible for the
        commercialization of the Lionbridge Globalization Platform.
 
     -- Strong Recurring Revenue
        During the first quarter, 76% of revenue was derived from customers
        with four or more consecutive quarters of business activity with
        Lionbridge.
 
     Business Outlook
     "Because our clients are contractually obligated to support their overseas
 markets, we tend to see project delays rather than project cancellations
 during times of economic uncertainty," continued Cowan. "Though some of our
 clients postponed work during the fourth and first quarters, our pipelines are
 beginning to recover and we are encouraged by the number of RFPs we are
 seeing."
     "Looking ahead, there are certain business trends that we believe will
 have a positive impact on our sales during 2001.  First, global businesses are
 making multilingual e-support a priority, primarily because of its dramatic
 cost savings over call center support.  Second, testing is becoming more and
 more tightly integrated with global deployment projects.  Software quality
 assurance and certification testing pays for itself many times over through
 the elimination of remediation expenses and increased customer satisfaction.
 The third trend is the continued growth in the demand for translation and
 China Connect services in the Asian market."
     The Company will host a conference call today at 5:00 pm EDT regarding the
 content of this release. The conference call will be carried live on the
 Internet.  Instructions for listening to the call over the Internet are
 available on the Investors page of the Lionbridge website
 atwww.lionbridge.com.  A replay will be available at this location for two
 weeks.
 
     About Lionbridge
     Lionbridge Technologies, Inc. provides solutions for worldwide deployment
 of technology and content to the IT, telecommunications, life sciences and
 financial services industries.  Lionbridge's integrated globalization
 technologies and services enable global businesses to create and maintain
 their products and dynamic databases in multiple languages and cultural
 formats.  Based in Waltham, Mass., Lionbridge maintains facilities in Canada,
 Ireland, the Netherlands, France, Germany, China, South Korea, Japan, Taiwan,
 Brazil and the United States.  To learn more, visit www.lionbridge.com.
 
     Forward Looking Statements
     This press release contains forward-looking statements that involve risks
 and uncertainties, including statements regarding the timing and effect of the
 proposed Data Dimensions acquisition, and expected business trends affecting
 Lionbridge's sales in 2001 identified under "Business Outlook".  Lionbridge's
 actual experience may differ materially from those discussed in the forward-
 looking statements.  Factors that might cause such a difference include the
 termination of customer contracts prior to the end of their term; Lionbridge's
 dependence on clients' product releases to generate revenues; the loss of a
 major client; the size, timing and recognition of revenue from major clients;
 Lionbridge's ability to raise additional capital; customer delays or
 postponements of services; the costs and expenses associated with the expected
 acquisition of Data Dimensions and the difficulties Lionbridge may encounter
 in the integration of operations of Data Dimensions; the impact of foreign
 currency fluctuations (particularly with respect to the Euro) on its operating
 results and revenue growth; risks associated with management of growth; market
 acceptance of new service offerings; the failure to keep pace with the rapidly
 changing requirements of its clients; Lionbridge's ability to attract and
 retain key personnel; Lionbridge being held liable for defects or errors in
 its solutions; one or more of Lionbridge's multi-year outsourcing
 relationships may be unprofitable; political, economic and business
 fluctuations in international markets; as well as risks of downturns in
 conditions generally, and in the information technology and software
 industries specifically, and risks associated with competition and competitive
 pricing pressures.  For a more detailed description of the risk factors
 associated with Lionbridge, please refer to Lionbridge's Registration
 Statement on Form S-4 filed with the Securities and Exchange Commission on
 April 9, 2001, and its Annual Report on Form 10-K filed with the Securities
 and Exchange Commission on April 2, 2001.
 
                          Financial Statements Follow
 
 
                         LIONBRIDGE TECHNOLOGIES, INC.
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                             (Amounts in thousands)
 
                                                       Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Revenue                                         $ 27,280       $ 28,196
     Cost of revenue                                   17,065         19,502
     Gross profit                                      10,215          8,694
 
     Operating expenses:
     Sales and marketing                                3,126          2,874
     General and administrative                         8,931          8,073
     Research and development                             644            774
     Amortization of acquisition-related
      intangible assets                                 1,670          1,605
     Merger, restructuring and other charges              125            ---
     Stock-based compensation                             148            217
     Total operating expenses                          14,644         13,543
 
     Loss from operations                             (4,429)        (4,849)
 
     Interest expense                                     542            698
     Other expense, net                                   418            225
 
     Loss before income taxes                         (5,389)        (5,772)
     Provision for income taxes                           143            204
 
     Net loss                                         (5,532)        (5,976)
     Accrued dividends on preferred stock                 ---          2,274
 
     Net loss attributable to common stockholders    $(5,532)       $(8,250)
 
     Basic and diluted net loss per
      share attributable to common stockholders       $(0.20)        $(0.39)
 
     Shares used in computing basic and
      diluted net loss per share
      attributable to common stockholders              27,826         21,334
 
 
                         LIONBRIDGE TECHNOLOGIES, INC.
 
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in thousands)
 
                                                     March 31,    December 31,
                                                         2001           2000
                                                     (unaudited)
     ASSETS
     Current assets:
     Cash and cash equivalents                         $9,982        $16,741
     Accounts receivable, net of allowances
      of $709 and $699 at March 31, 2001
      and December 31, 2000, respectively              17,232         16,355
     Work in process                                    6,125          6,710
     Other current assets                               1,661          1,795
 
     Total current assets                              35,000         41,601
 
     Property and equipment, net                        4,568          4,932
     Goodwill and other intangible assets, net         13,593         14,865
     Other assets                                         646            648
 
     Total assets                                    $ 53,807        $62,046
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
     Short-term debt and current portion
      of long-term debt                              $ 15,568       $ 11,337
     Current portion of capital lease obligations         183            255
     Accounts payable                                   7,187          6,669
     Accrued expenses                                  13,689         15,303
     Deferred revenue                                   2,909          3,578
     Deferred income taxes                                224            224
 
     Total current liabilities                         39,760         37,366
 
     Long-term debt, less current portion               7,210         13,265
 
     Capital lease obligations, less current portion      100            114
     Other long-term liabilities                          303            117
 
     Stockholders' equity                               6,434         11,184
 
     Total liabilities and stockholders' equity      $ 53,807       $ 62,046
 
 
           Contact:
           Cathy Maloney                           Tom Walsh
           Investor Relations Officer              Senior Account Executive
           Lionbridge Technologies                 Marenghi Public Relations
           cathy_maloney@lionbridge.com            twalsh@marenghi.com
           781-434-6010                            781-915-5021
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X18154409
 
 

SOURCE Lionbridge Technologies, Inc.
    WALTHAM, Mass., April 26 /PRNewswire/ -- Lionbridge Technologies, Inc.
 (Nasdaq: LIOX), a provider of solutions for worldwide deployment of technology
 and content, today announced financial results for the first quarter of 2001.
 First quarter revenue of $27.3 million remained nearly even with revenue of
 $27.7 million for the fourth quarter of 2000.  Revenue for the first quarter
 of 2001 decreased by 3% compared to revenue of $28.2 million for the first
 quarter of 2000.
     "I am pleased that we were able to backfill the larger than expected delay
 in projects from our IT and telecom clients during the first quarter," said
 Rory Cowan, Lionbridge president and CEO.  "First rate execution from our
 sales force enabled Lionbridge to maintain revenue at roughly the same level
 as the fourth quarter of 2000, and within the guidelines we discussed during
 our March 8 investor call in which we discussed our agreement to acquire Data
 Dimensions, Inc."
     "During the first quarter, 76% of our revenue was derived from customers
 with four or more quarters of consecutive business activity with Lionbridge,"
 said Cowan.  "Not only did recurring revenue act as a backstop, but our
 VeriTest division grew 27% year-on-year with first quarter revenue of $3.2
 million."
     The Company provided services to 322 customers during the first quarter of
 2001, compared to 314 customers during the first quarter of 2000.  New
 customers during the first quarter of 2001 totaled 81, compared to 88 new
 customers during the first quarter of 2000.
     The Company reported a net loss of $5.5 million, or $0.20 per share for
 the first quarter of 2001, based on 27.8 million weighted-average shares
 outstanding.  This compares to a net loss attributable to common stockholders
 of $8.3 million, or $0.39 per share, for the first quarter of 2000. On a "cash
 EPS" basis (which excludes only amortization of acquisition-related intangible
 assets, non-recurring charges, and accrued dividends on preferred stock), the
 manner in which Lionbridge is carried by First Call, the Company reported a
 loss of $0.13 per share for the first quarter of 2001, compared to a loss of
 $0.20 per share for the first quarter of 2000.
     "Our solutions focus is improving efficiencies for global businesses with
 operations in multiple markets around the world," continued Cowan.  "In the
 current environment, there must be demonstrable ROI for technology and service
 investments.  Lionbridge clients, including IBM, Rational Software and SAP,
 have achieved significant savings in time-to-market and in localization costs
 using our globalization technology and services."
 
     Business Highlights During the First Quarter
     -- VeriTest Revenue Increase of 27%
        Through increased activity in software quality and certification
        testing, as well as interoperability and compatibility testing for
        global deployment, VeriTest revenue increased by 27% compared to the
        first quarter of 2000, and 11% compared to the fourth quarter of 2000.
        In addition, VeriTest announced new certification programs for AT&T
        Wireless and Palm Computing, and a verification testing program for
        Stratus Technologies.
 
     -- Acquisition of Data Dimensions
        Lionbridge announced its agreement to acquire Data Dimensions, Inc., a
        software testing business based in Bellevue, Wash.  Data Dimensions
        will be integrated into Lionbridge's VeriTest division, making VeriTest
        the largest outsourced testing services business in the industry.  The
        acquisition is expected to close during the second quarter of 2001.
 
     -- Henri Broekmate Named Vice President of Product Sales & Marketing
        A globalization industry leader and former executive vice president of
        e-business for TRADOS Corporation,  Broekmate is responsible for the
        commercialization of the Lionbridge Globalization Platform.
 
     -- Strong Recurring Revenue
        During the first quarter, 76% of revenue was derived from customers
        with four or more consecutive quarters of business activity with
        Lionbridge.
 
     Business Outlook
     "Because our clients are contractually obligated to support their overseas
 markets, we tend to see project delays rather than project cancellations
 during times of economic uncertainty," continued Cowan. "Though some of our
 clients postponed work during the fourth and first quarters, our pipelines are
 beginning to recover and we are encouraged by the number of RFPs we are
 seeing."
     "Looking ahead, there are certain business trends that we believe will
 have a positive impact on our sales during 2001.  First, global businesses are
 making multilingual e-support a priority, primarily because of its dramatic
 cost savings over call center support.  Second, testing is becoming more and
 more tightly integrated with global deployment projects.  Software quality
 assurance and certification testing pays for itself many times over through
 the elimination of remediation expenses and increased customer satisfaction.
 The third trend is the continued growth in the demand for translation and
 China Connect services in the Asian market."
     The Company will host a conference call today at 5:00 pm EDT regarding the
 content of this release. The conference call will be carried live on the
 Internet.  Instructions for listening to the call over the Internet are
 available on the Investors page of the Lionbridge website
 atwww.lionbridge.com.  A replay will be available at this location for two
 weeks.
 
     About Lionbridge
     Lionbridge Technologies, Inc. provides solutions for worldwide deployment
 of technology and content to the IT, telecommunications, life sciences and
 financial services industries.  Lionbridge's integrated globalization
 technologies and services enable global businesses to create and maintain
 their products and dynamic databases in multiple languages and cultural
 formats.  Based in Waltham, Mass., Lionbridge maintains facilities in Canada,
 Ireland, the Netherlands, France, Germany, China, South Korea, Japan, Taiwan,
 Brazil and the United States.  To learn more, visit www.lionbridge.com.
 
     Forward Looking Statements
     This press release contains forward-looking statements that involve risks
 and uncertainties, including statements regarding the timing and effect of the
 proposed Data Dimensions acquisition, and expected business trends affecting
 Lionbridge's sales in 2001 identified under "Business Outlook".  Lionbridge's
 actual experience may differ materially from those discussed in the forward-
 looking statements.  Factors that might cause such a difference include the
 termination of customer contracts prior to the end of their term; Lionbridge's
 dependence on clients' product releases to generate revenues; the loss of a
 major client; the size, timing and recognition of revenue from major clients;
 Lionbridge's ability to raise additional capital; customer delays or
 postponements of services; the costs and expenses associated with the expected
 acquisition of Data Dimensions and the difficulties Lionbridge may encounter
 in the integration of operations of Data Dimensions; the impact of foreign
 currency fluctuations (particularly with respect to the Euro) on its operating
 results and revenue growth; risks associated with management of growth; market
 acceptance of new service offerings; the failure to keep pace with the rapidly
 changing requirements of its clients; Lionbridge's ability to attract and
 retain key personnel; Lionbridge being held liable for defects or errors in
 its solutions; one or more of Lionbridge's multi-year outsourcing
 relationships may be unprofitable; political, economic and business
 fluctuations in international markets; as well as risks of downturns in
 conditions generally, and in the information technology and software
 industries specifically, and risks associated with competition and competitive
 pricing pressures.  For a more detailed description of the risk factors
 associated with Lionbridge, please refer to Lionbridge's Registration
 Statement on Form S-4 filed with the Securities and Exchange Commission on
 April 9, 2001, and its Annual Report on Form 10-K filed with the Securities
 and Exchange Commission on April 2, 2001.
 
                          Financial Statements Follow
 
 
                         LIONBRIDGE TECHNOLOGIES, INC.
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                             (Amounts in thousands)
 
                                                       Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Revenue                                         $ 27,280       $ 28,196
     Cost of revenue                                   17,065         19,502
     Gross profit                                      10,215          8,694
 
     Operating expenses:
     Sales and marketing                                3,126          2,874
     General and administrative                         8,931          8,073
     Research and development                             644            774
     Amortization of acquisition-related
      intangible assets                                 1,670          1,605
     Merger, restructuring and other charges              125            ---
     Stock-based compensation                             148            217
     Total operating expenses                          14,644         13,543
 
     Loss from operations                             (4,429)        (4,849)
 
     Interest expense                                     542            698
     Other expense, net                                   418            225
 
     Loss before income taxes                         (5,389)        (5,772)
     Provision for income taxes                           143            204
 
     Net loss                                         (5,532)        (5,976)
     Accrued dividends on preferred stock                 ---          2,274
 
     Net loss attributable to common stockholders    $(5,532)       $(8,250)
 
     Basic and diluted net loss per
      share attributable to common stockholders       $(0.20)        $(0.39)
 
     Shares used in computing basic and
      diluted net loss per share
      attributable to common stockholders              27,826         21,334
 
 
                         LIONBRIDGE TECHNOLOGIES, INC.
 
                          CONSOLIDATED BALANCE SHEETS
                             (Amounts in thousands)
 
                                                     March 31,    December 31,
                                                         2001           2000
                                                     (unaudited)
     ASSETS
     Current assets:
     Cash and cash equivalents                         $9,982        $16,741
     Accounts receivable, net of allowances
      of $709 and $699 at March 31, 2001
      and December 31, 2000, respectively              17,232         16,355
     Work in process                                    6,125          6,710
     Other current assets                               1,661          1,795
 
     Total current assets                              35,000         41,601
 
     Property and equipment, net                        4,568          4,932
     Goodwill and other intangible assets, net         13,593         14,865
     Other assets                                         646            648
 
     Total assets                                    $ 53,807        $62,046
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
     Short-term debt and current portion
      of long-term debt                              $ 15,568       $ 11,337
     Current portion of capital lease obligations         183            255
     Accounts payable                                   7,187          6,669
     Accrued expenses                                  13,689         15,303
     Deferred revenue                                   2,909          3,578
     Deferred income taxes                                224            224
 
     Total current liabilities                         39,760         37,366
 
     Long-term debt, less current portion               7,210         13,265
 
     Capital lease obligations, less current portion      100            114
     Other long-term liabilities                          303            117
 
     Stockholders' equity                               6,434         11,184
 
     Total liabilities and stockholders' equity      $ 53,807       $ 62,046
 
 
           Contact:
           Cathy Maloney                           Tom Walsh
           Investor Relations Officer              Senior Account Executive
           Lionbridge Technologies                 Marenghi Public Relations
           cathy_maloney@lionbridge.com            twalsh@marenghi.com
           781-434-6010                            781-915-5021
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X18154409
 
 SOURCE  Lionbridge Technologies, Inc.