Click here to close now.


@CloudExpo Authors: Flint Brenton, Dana Gardner, Liz McMillan, Elizabeth White, John Basso

News Feed Item

Lionbridge Reports Q3 Revenue of $112.1 Million, GAAP EPS of $0.07 and Non-GAAP EPS of $0.11; Strong Quarterly Cash Flow From Operations of $13.0 Million

Announces $18 Million Share Repurchase Program and Provides Positive Outlook for Ongoing Revenue Growth and Operating Profit Acceleration in FY 2013

WALTHAM, Mass., Nov. 7, 2012 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the quarter ended September 30, 2012.  Financial and business highlights for the third quarter include:

  • Revenue of $112.1 million, an increase of $4.5 million or 4% from the quarter ended September 30, 2011.  In constant currency with Q3 of 2011, the Company's revenue grew $8.7 million or 8% year-on-year.
  • Q3 GAAP net income of $4.1 million, or $0.07 per share based on 61.5 million fully diluted weighted average common shares outstanding. 
  • Q3 Non-GAAP adjusted earnings of $6.5 million or $0.11 per diluted share.  The Company defines non-GAAP adjusted earnings as net income excluding merger, restructuring and related costs, asset impairment 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. 
  • Cash flow from operations of $13.0 million during the quarter.  
  • An ending cash balance of $27.7 million. During the quarter the Company paid down $4.0 million of debt.

Lionbridge recently secured several new client programs, including engagements with a global leader in entertainment technologies, a manufacturer of commercial vehicles and engines and a leading banking and payment services company.

For the first nine months ended September 30, 2012 the Company reported revenue of $343.4 million, an increase of $22.9 million or 7% from the first nine months of 2011.  In constant currency with the first nine months of FY 2011, the Company's revenue grew $32.2 million or 10% year-on-year. 

Year to date GAAP net income for the period ended September 30, 2012 was $8.3 million or $0.14 per diluted share, an increase of $9.6 million or $0.16 per diluted share from the first nine months of 2011.

"The third quarter marked another positive quarter of revenue and earnings momentum.  Our strategy for growth continues to show positive results despite pockets of uncertainty in the technology sector.  Our new offerings and new verticals are enabling us to expand our value across our clients' global customer experience," said Rory Cowan, CEO, Lionbridge.  "With our growing base of recurring revenue and our efficient cost platform we are growing our business and increasing profitability.  As a result, we are confident in our opportunities for revenue and profit expansion in 2013 and beyond."

Separately the Company announced today that its Board of Directors has authorized a share repurchase program allowing the Company to repurchase up to $18 million of the Company's common stock.

"The investments we've made during the past 12 months are enabling us to expand our business across end markets," continued Cowan. "The authorization of the share repurchase program underscores our confidence in our near and long-term opportunities for growth."  

The Company provided updated revenue expectations for the fourth quarter with estimated revenue of $112-$115 million.

The Company provided a preliminary outlook for FY 2013 with estimated revenue growth of 6-10% compared to expected FY 2012 and significant growth in income from operations.  

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, including matters related to its future performance. To participate, callers within the United States can dial 800-857-9821 and international callers can dial 210-234-0023.  The pass code 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. "Adjusted earnings" and "Adjusted Earnings Per Share (EPS)" 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 measure for adjusted earnings and adjusted earnings per share are net income and net income per share, respectively, and has provided a reconciliation of adjusted earnings and adjusted earnings per share to net income (loss) at the end of this release.

In addition, the Company presented revenue in constant currency terms, which excludes the effect of currency fluctuations between the U.S. dollar and the functional currency of the entity in which the revenue was transacted.  The effect of currency fluctuations is excluded by translating the applicable period's local currency revenue into U.S. dollars using the average local currency exchange rates that were in effect during the applicable prior period of comparison.  Constant currency revenue is a Non-GAAP financial measure and should not be viewed as alternative to GAAP revenue.  Management reviews and analyzes revenue excluding the effect of foreign currency translation because it believes this better represents the Company's underlying business trends.

About Lionbridge
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

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including expected financial performance and expected revenue and operating profit (income from operations) growth and outlook, and the momentum, pace and strengthening of such growth, of Lionbridge in Q4 2012 and FY 2013. 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 acquisitions 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 ability of Lionbridge to integrate Productive Resources, LLC and expand its customer relationships and the timing and success of such activities; 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.  In addition, there are risks and uncertainties related to the share repurchase program, including the availability of sufficient shares at appropriate prices, the development of alternative uses for the Company's funds, and changes in market and other conditions.  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





(Amounts in thousands, except per share data)


Three Months Ended
September 30,

Nine months Ended
September 30,






$      112,070

$      107,574

$      343,355

$      320,471

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization included below)





Sales and marketing





General and administrative





Research and development





Depreciation and amortization





Amortization of acquisition-related intangible assets





Restructuring, impairment, and other charges





Total operating expenses





Income from operations





Interest expense:

Interest on outstanding debt





Amortization of deferred financing costs





Interest income





Other expense (income), net





Income (loss) before income taxes




(301 )

Provision for (Benefit from) income taxes





Net income (loss)

$          4,089

$          2,415

$          8,280

$         (1,309 )

Net income (loss) per share of common stock:


$            0.07

$            0.04

$            0.14

$           (0.02 )


$            0.07

$            0.04

$            0.14

$           (0.02 )

Weighted average number of common shares outstanding:














(Amounts in thousands, except share data)


September 30,

December 31,



Current assets:

Cash and cash equivalents

$         27,730

$            25,219

Accounts receivable, net of allowance of $500 at September 30, 2012 and December 31, 2011



Unbilled receivables



Other current assets



Total current assets



Property and equipment, net



Assets held for sale






Acquisition-related intangible assets, net



Other assets



Total assets

$       182,733

$          157,747


Current liabilities:

Accounts payable

$         19,965

$            19,347

Accrued compensation and benefits



Other accrued expenses and other current liabilities



Deferred revenue



Total current liabilities



Long-term debt



Deferred income taxes, long-term



Other long-term liabilities



Total stockholders' equity



Total liabilities and stockholders' equity

$       182,733

$          157,747




Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EPS (Unaudited)

Comparison to Three and Nine Months Ended September 30, 2011


Three Months Ended

Nine Months Ended

September 30,

September 30,





Net income (loss)

$          4,089

$          2,415

$          8,280

$         (1,309)

Amortization of acquisition-related intangible assets





Stock-based compensation





Restructuring and acquisition related charges





Asset impairment





Adjusted earnings

$     6,545

$     5,290

$      21,563

$      7,957

Fully diluted weighted average number of common shares outstanding





Adjusted EPS

$ 0.11

$ 0.09

$ 0.36

$ 0.13


Sara Buda
Lionbridge Technologies, Inc.                
(781) 434-6190                                                      
[email protected]

SOURCE Lionbridge Technologies, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. ...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.