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| 8-K - LIVE FILING - LIONBRIDGE TECHNOLOGIES INC /DE/ | htm_44985.htm |
LIONBRIDGE REPORTS Q1 REVENUE OF $112.1 MILLION AND GAAP EPS OF $0.03
Grows Revenue 12% Year-on-Year; $12.4 Million Revenue Growth Drives $7.2 Million Earnings
Expansion, Indicating Strong Momentum for FY 2012
WALTHAM, Mass. – May 08, 2012 — Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the quarter ended March 31, 2012. Financial highlights for the quarter include:
| • | Revenue of $112.1 million, an increase of $12.4 million compared to the first quarter of 2011, reflecting year-on-year growth of 12%. |
| • | GAAP net income of $1.7 million, or $0.03 per share based on 59.7 million weighted average fully diluted shares outstanding. This marks an increase of $7.2 million or $0.12 per share compared to the first quarter of 2011. |
| • | Non-GAAP adjusted earnings of $3.9 million or $0.06 per share, an increase of $5.6 million or $0.09 per share from the first quarter of 2011. The Company defines non-GAAP adjusted earnings as net income excluding restructuring and related 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. |
During the quarter, the Company secured several new customer engagements, including agreements with a large pharmaceutical company, a leading food and beverage retailer and a luxury retailer.
“Our strong first quarter results reflect positive momentum on all levels. As we bring new offerings to market and diversify our client base across industry sectors, we are scaling many large accounts and accelerating new business,” said Rory Cowan, CEO of Lionbridge. “Our ongoing revenue and profit momentum underscores our commitment to growing our recurring revenue streams, broadening our client base and establishing new opportunities across the lifecycle of our clients’ products and content.”
The Company also provided revenue expectations for the second quarter of 2012 with estimated revenue of $113-116 million.
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 and the Company’s expectations for future performance. To participate, callers within the United States can dial 800-857-9821 and international callers can dial 210-234-0023. The passcode 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. These measures 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 measures for adjusted earnings and adjusted earnings per
share are net income and net income per share and has provided a reconciliation of these measures
to net income (loss) at the end of this release.
About Lionbridge
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.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties,
including expected financial performance and expected revenue and earnings growth, and the
momentum, pace and strengthening of such growth, of Lionbridge in Q2 2012 and FY 2012. 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 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 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. 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 | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
Revenue................................................................................ |
$ | 112,096 | $ | 99,652 | ||||
Operating expenses: |
||||||||
Cost of revenue (excluding depreciation and amortization
shown separately below) ............................................ |
78,173 | 71,736 | ||||||
Sales and marketing................................................. |
8,509 | 8,278 | ||||||
General and administrative............................................ |
19,176 | 18,625 | ||||||
Research and development............................................ |
1,362 | 1,396 | ||||||
Depreciation and amortization............................................ |
1,645 | 1,291 | ||||||
Amortization of acquisition-related intangible assets............... |
480 | 583 | ||||||
Restructuring and other charges............................................ |
284 | 2,103 | ||||||
Total operating expenses............................................ |
109,629 | 104,012 | ||||||
Income (loss) from operations............................................ |
2,467 | (4,360 | ) | |||||
Interest expense: |
||||||||
Interest on outstanding debt ............................................ |
190 | 149 | ||||||
Amortization of deferred financing costs ............................. |
25 | 25 | ||||||
Interest income ................................................................. |
20 | 17 | ||||||
Other (income) expense, net .................................................. |
(31 | ) | 458 | |||||
Income (loss) before income taxes............................................. |
2,303 | (4,975 | ) | |||||
Provision for income taxes .................................................. |
582 | 471 | ||||||
Net income (loss).................................................................... |
$ | 1,721 | $ | (5,446 | ) | |||
Basic |
$ | 0.03 | $ | (0.09 | ) | |||
Diluted |
$ | 0.03 | $ | (0.09 | ) | |||
Weighted average number of common shares outstanding: |
||||||||
Basic |
58,557 | 57,523 | ||||||
Diluted |
59,662 | 57,523 | ||||||
LIONBRIDGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands)
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents............................................ |
$ | 19,932 | $ | 25,219 | ||||
Accounts receivable, net of allowances of $500 at March
31, 2012 and December 31, 2011............................................. |
62,961 | 58,413 | ||||||
Unbilled receivables................................................. |
27,825 | 20,665 | ||||||
Other current assets................................................. |
10,781 | 9,120 | ||||||
Total current assets............................................ |
121,499 | 113,417 | ||||||
Property and equipment, net............................................ |
21,935 | 21,725 | ||||||
Goodwill ................................................................ |
9,675 | 9,675 | ||||||
Other intangible assets, net............................................ |
6,776 | 7,256 | ||||||
Other assets.......................................................... |
5,562 | 5,674 | ||||||
Total assets.................................................. |
$ | 165,447 | $ | 157,747 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable.......................................................... |
$ | 21,257 | $ | 19,347 | ||||
Accrued compensation and benefits.................................... |
17,712 | 15,696 | ||||||
Other accrued expenses and current liabilities ......................... |
22,894 | 21,802 | ||||||
Deferred revenue.......................................................... |
11,353 | 11,057 | ||||||
Total current liabilities............................................ |
73,216 | 67,902 | ||||||
Long-term debt, less current portion............................................ |
24,700 | 24,700 | ||||||
Deferred income taxes, long-term............................................ |
641 | 641 | ||||||
Other long-term liabilities............................................ |
13,231 | 13,212 | ||||||
Total stockholders’ equity ............................................ |
53,659 | 51,292 | ||||||
Total liabilities and stockholders’ equity............... |
$ | 165,447 | $ | 157,747 | ||||
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EPS (Unaudited)
(Amounts in thousands, except per share data)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
Net income (loss) ............................................ |
$ | 1,721 | $ | (5,446 | ) | |||
Amortization of acquisition-related intangible assets................... |
480 | 583 | ||||||
Stock-based compensation............................................ |
1,385 | 1,091 | ||||||
Restructuring and other charges............................................ |
284 | 2,103 | ||||||
Adjusted earnings............................................ |
3,870 | (1,669 | ) | |||||
Fully diluted weighted average number of common shares outstanding |
59,662 | 57,523 | ||||||
Adjusted EPS |
$ | 0.06 | $ | (0.03 | ) | |||
Contact:
Sara Buda
Lionbridge
+1-781-434-6190
sara.buda@lionbridge.com