Welcome!

Cloud Expo Authors: Gilad Parann-Nissany, Tom Leyden, Lori MacVittie, Elizabeth White, Trevor Parsons

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 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 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 http://www.sec.gov

 

LIONBRIDGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands, except per share data)

 







Three Months Ended
September 30,

Nine months Ended
September 30,


2012

2011

2012

2011

Revenue

$      112,070

$      107,574

$      343,355

$      320,471

Operating expenses:





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

76,176

73,662

234,922

224,206

Sales and marketing

7,913

7,976

25,052

24,955

General and administrative

18,990

19,438

57,670

56,720

Research and development

1,358

1,383

4,106

4,297

Depreciation and amortization

1,588

1,615

4,921

4,341

Amortization of acquisition-related intangible assets

675

583

1,700

1,749

Restructuring, impairment, and other charges

241

556

7,244

3,302






Total operating expenses

106,941

105,213

335,615

319,570






Income from operations

5,129

2,361

7,740

901

Interest expense:





Interest on outstanding debt

171

192

543

526

Amortization of deferred financing costs

24

25

74

75

Interest income

20

17

58

49

Other expense (income), net

165

(231)

805

650






Income (loss) before income taxes

4,789

2,392

6,376

(301 )

Provision for (Benefit from) income taxes

700

(23)

(1,904)

1,008






Net income (loss)

$          4,089

$          2,415

$          8,280

$         (1,309 )






Net income (loss) per share of common stock:





Basic

$            0.07

$            0.04

$            0.14

$           (0.02 )

Diluted

$            0.07

$            0.04

$            0.14

$           (0.02 )

Weighted average number of common shares outstanding:





Basic

59,336

58,012

58,934

57,791

Diluted

61,537

59,585

60,596

57,791


 

LIONBRIDGE TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 





September 30,
2012

December 31,
2011


(unaudited)


ASSETS



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

63,223

58,413

Unbilled receivables

24,596

20,665

Other current assets

11,795

9,120




Total current assets

127,344

113,417

Property and equipment, net

18,052

21,725

Assets held for sale

664

0

Goodwill

15,209

9,675

Acquisition-related intangible assets, net

13,056

7,256

Other assets

8,408

5,674




Total assets

$       182,733

$          157,747




LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



Accounts payable

$         19,965

$            19,347

Accrued compensation and benefits

19,822

15,696

Other accrued expenses and other current liabilities

25,946

21,802

Deferred revenue

8,597

11,057




Total current liabilities

74,330

67,902




Long-term debt

26,700

24,700

Deferred income taxes, long-term

3,814

641

Other long-term liabilities

13,771

13,212




Total stockholders' equity

64,118

51,292




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,


2012

2011


2012

2011







Net income (loss)

$          4,089

$          2,415


$          8,280

$         (1,309)







Amortization of acquisition-related intangible assets

675

583


1,700

1,749

Stock-based compensation

1,540

1,736


4,339

4,215

Restructuring and acquisition related charges

171

556


3,007

3,302

Asset impairment

70

0


4,237

0

Adjusted earnings

$     6,545

$     5,290


$      21,563

$      7,957







Fully diluted weighted average number of common shares outstanding

61,537

59,585


60,596

59,534

Adjusted EPS

$ 0.11

$ 0.09


$ 0.36

$ 0.13

 

Contact: 
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
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.