Click here to close now.

Welcome!

Cloud Expo Authors: Leon Fayer, Carmen Gonzalez, AppDynamics Blog, Glenn Rossman, Liz McMillan

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 Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold 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 City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
DevOps tasked with driving success in the cloud need a solution to efficiently leverage multiple clouds while avoiding cloud lock-in. Flexiant today announces the commercial availability of Flexiant Concerto. With Flexiant Concerto, DevOps have cloud freedom to automate the build, deployment and operations of applications consistently across multiple clouds. Concerto is available through four disruptive pricing models aimed to deliver multi-cloud at a price point everyone can afford.
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Business as usual for IT is evolving into a “Make or Buy” decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud busi...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
WSM International has launched a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of the organization. According to a recent press release from Gartner, "By 2016, DevOps will evolve from a niche strategy employed by large cloud ...
SYS-CON Events announced today that Solgenia 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, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, 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. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, 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. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, 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. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make sm...
SYS-CON Events announced today that MangoApps 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., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...