WALTHAM, Mass. – November 03, 2011 -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the quarter ended September 30, 2011. Financial and business highlights for the third quarter include:
The Company also announced two updates to its GeoFluent real-time translation technology:
“In the third quarter we continued to demonstrate momentum in a number of important areas. Most significantly, our multi-quarter investments in sales and marketing across end markets are starting to pay off. This is seen by our total 8% year-on-year revenue growth and 12% growth excluding revenue related to a large technology client. As we expand relationships with our established clients and secure new client programs across industry sectors, our proven cost management is allowing us to show solid margin and profit growth,” said Rory Cowan, CEO of Lionbridge. “With this positive revenue and earnings growth in our services businesses and building market demand for our emerging technology solutions, we are well positioned for earnings acceleration in 2012 and beyond.”
The Company provided revenue expectations for the fourth quarter with estimated revenue of $108-$111 million, which would reflect approximately 8-11% year-on-year growth for the quarter.
The Company also provided a preliminary outlook for FY 2012 with expected revenue growth of 5-10% year-on-year and gross margin improvement of approximately 100 basis points year-on-year in constant currency.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 or on the financial events page of the investor relations section of the Lionbridge website at http://investors.lionbridge.com
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 and has provided a reconciliation of adjusted earnings and adjusted earnings per share to net income (loss) at the end of this release.
Lionbridge Technologies, Inc. (NASDAQ: LIOX) is a provider of translation, development and testing solutions. Lionbridge combines global resources with proven program management methodologies to serve as an outsource partner throughout a client's product and content lifecycle - from development to translation, testing and maintenance. Global organizations rely on Lionbridge services to increase international market share, speed adoption of global products and content, and enhance their return on enterprise applications and IT system investments. Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries and provides services under the Lionbridge and VeriTest brands. To learn more, visit http://www.lionbridge.com.
This press release contains forward-looking statements that involve risks and uncertainties, including expected financial performance, anticipated customer demand for the Company’s solutions, profitability, and expected revenue and earnings growth of Lionbridge in the fourth quarter of 2011, FY 2012 and beyond. 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 the timing or scope of services procured by Lionbridge customers; given that a substantial portion of Lionbridge’s revenue is generated from a limited number of customers, the loss of or reduction in demand from one or more major client or customer would materially reduce revenue and cash flow and adversely affect Lionbridge’s business; the termination of customer contracts or engagements prior to the end of their term; the size, timing and recognition of revenue from clients; 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 cost, complexity, timing and speed of development and commercialization activities associated with GeoFluent real-time machine translation technology initiatives and customer and user acceptance of such technologies; Lionbridge's ability to provide and maintain high quality services at a competitive price and related customer satisfaction with such service delivery; reduced demand for the Company’s services that adversely impacts Lionbridge’s future revenues, cash flows, results of operations and financial condition; the ability of Lionbridge to realize the expected benefits of its technology initiatives and the timing of the realization of such benefits; global economic conditions that may affect the demand for Lionbridge’s services by customers and prospective customers; market acceptance of and customer demand for the Company’s SaaS-based technology offerings; errors, interruptions or delays in SaaS-based technology or Web hosting; breaches of security measures; the success of Lionbridge’s partnership with IBM; risks associated with the financial aspects of the subscription model utilized in connection with the Translation Workspace and GeoFluent; risks associated with conducting business outside of the United States[, including compliance with changing and potentially conflicting laws and regulations, restrictions on downsizing operations in Europe and other jurisdictions (i.e. regulatory or works council restrictions) and expenses and delays associated with any such activities; longer collection cycles and deeper impact of any global economic downturn in particular jurisdictions; risks associated with competition; costs associated with restructuring, the timing of actions and any anticipated benefits and the ability to realize such benefits; the duration and outcome of negotiations with works councils with respect to the timing of restructuring and the details of proposed actions; 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; 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; Lionbridge's ability to further develop and deploy its translation technologies, including Translation Workspace and GeoFluent; 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. 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, 2010 and subsequent filings with the SEC (copies of which may be accessed through the SEC's website at http://www.sec.gov).
Contact: Sara Buda Lionbridge Technologies, Inc. (781) 434-6190 sara.buda@lionbridge.com
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