WALTHAM, Mass., Feb. 5,
2015 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq:
LIOX), today announced financial results for the fourth quarter and
year ended December 31, 2014.
Financial highlights for FY 2014 include:
- Revenue of $490.6 million, an
increase of $1.4 million or 0.3% from
the year ended December 31, 2013. Excluding revenue from the
Company's largest client, FY 2014 revenue grew $18.0 million or 5% year-on-year.
- GAAP net income of $8.1 million
or $0.13 per share based on 63.0
million fully diluted shares outstanding. This compares to
GAAP net income of $11.6 million or
$0.19 per diluted share in the fourth
quarter of 2013.
- Non-GAAP adjusted earnings of $25.5
million or $0.41 per share.
The Company defines non-GAAP adjusted earnings as net income
excluding merger, restructuring and acquisition-related charges,
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 $20.5
million.
- Ending cash balance of $36.9
million.
- During the year, the Company acquired 1.1 million shares of its
common stock under its share repurchase program for an
aggregate purchase price of $5.9
million.
Business highlights for FY 2014 include:
- Secured more than 20 new engagements with world-leading brands
across industry sectors including eCommerce, consumer, consulting,
aerospace, automotive, gaming, technology and entertainment,
telecommunications and pharmaceutical industries.
- Secured a four-year agreement with a large pharmaceutical
company estimated to generate more than $80
million over the term of the four-year agreement.
- Announced the acquisition of CLS Communication, a market-leader
in translation solutions to clients in the financial services,
industrial and public sector end markets. Lionbridge
completed the purchase CLS Communication on January 7, 2015 for 71.8
million Swiss Francs, or 71.4 million
US Dollars. Lionbridge reiterated its expectation that
CLS will contribute approximately $80
million in revenue and approximately $0.10 in non-GAAP earnings in FY 2015, depending
on the timing of synergies and tax matters.
- Continued to successfully scale its global marketing offering
aimed at helping global marketing executives manage and optimize
digital marketing campaigns in international markets.
- Scaled Lionbridge onDemand, a new, online revenue and delivery
channel. Within its first year of operation, OnDemand exited
2014 at an annualized run rate of over $4
million with further acceleration expected in FY 2015.
"Despite a $17 million spend
reduction from our largest client, we continued to deliver solid
growth among most of our top clients, expand our new business
momentum, accelerate our vertical market expansion strategy, expand
gross margins and generate strong cash flows," said Rory Cowan, CEO of Lionbridge. "As we
enter 2015 it appears the pace of organic growth is
accelerating. Our largest account seems to have stabilized at
current revenue levels. Unlike most US companies, our
earnings model has a favorable strong US dollar bias. We are
well on path to recognize the planned synergies of the CLS
acquisition. As a result, we continue to expect organic
revenue, earnings and cash flow growth in 2015, as well as strong
revenue and earnings contribution from CLS."
Highlights for the fourth quarter ended December 31, 2014
include:
- Revenue of $119.7 million, a
decrease of $7.8 million, from the
fourth quarter of 2013, reflecting an $11.1
million decline from the Company's largest client
year-on-year.
- GAAP net loss of $1.2 million, or
$(0.02) per share, based on 59.8
million weighted average basic shares outstanding. This compares to
GAAP net income of $6.1 million or
$0.10 per diluted share in the fourth
quarter of 2013.
- Non-GAAP adjusted earnings of $6.1
million or $0.10 per share.
The Company provided an outlook for the first quarter of 2015 with
revenue of $132-140 million,
reflecting the current currency environment.
The Company also provided expectations for FY 2015 revenue
growth of approximately 18-20% and non-GAAP earnings growth of
approximately 50-60% year on year, depending on currency as well as
the timing of synergies and tax matters.
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
888-790-1711 and international callers can dial 517-308-9317.
The pass code for the call is Lionbridge. The conference call will
also be available on the financial events page of the investor
relations section of the Lionbridge website at
www.lionbridge.com.
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 these measures are net income and diluted net
income per share and has provided a reconciliation of GAAP net
income to adjusted earnings and adjusted earnings per share at the
end of this release.
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 28 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 anticipated customer demand for
the Company's services, expected financial performance, expected
revenue and profit growth, and the momentum, pace and strengthening
of such growth in FY 2015, the future revenue opportunities
associated with our recent four year agreement with a large
pharmaceutical company, the expected stabilization of revenue from
our largest client as well as the anticipated benefits of the CLS
acquisition. 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 affect Lionbridge's business; reorganization
or restructuring initiatives of one or more major clients or
customers, which may impact such customer's demand or requirements
for Lionbridge's services; Lionbridge's ability to expand its
relationships with existing clients, including by offering its
expanded range of services to existing customers; Lionbridge's
ability to broaden its client base; the Company's dependence on
clients' product releases, production schedules and procurement
strategies to generate revenues; the anticipated benefits of
expansion of global language workflow technologies; the anticipated
growth of its OnDemand, and digital marketing service offerings;
the impact of competing technologies and platforms on the Company's
existing customer relationships and ability to secure new
customers; the ability of Lionbridge to realize the expected
benefits of its technology initiatives and acquisitions, and the
timing of the realization of such benefits; errors, interruptions
or delays in cloud-based technology; breaches of security measures;
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 acquisitions,
including CLS, 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 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 resulting from its services or technologies; 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, 2013 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In thousands, except
per share amounts)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Revenue
|
$
|
119,678
|
|
|
$
|
127,472
|
|
|
$
|
490,612
|
|
|
$
|
489,196
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization included
below)
|
80,978
|
|
|
85,290
|
|
|
334,537
|
|
|
334,513
|
Sales and
marketing
|
10,861
|
|
|
9,219
|
|
|
40,230
|
|
|
36,216
|
General and
administrative
|
19,563
|
|
|
21,219
|
|
|
80,150
|
|
|
80,462
|
Research and
development
|
1,751
|
|
|
1,622
|
|
|
6,945
|
|
|
6,750
|
Depreciation and
amortization
|
2,080
|
|
|
1,861
|
|
|
7,851
|
|
|
7,374
|
Amortization of
acquisition-related intangible assets
|
864
|
|
|
867
|
|
|
3,317
|
|
|
3,351
|
Restructuring,
impairment and other charges
|
4,797
|
|
|
1,730
|
|
|
6,624
|
|
|
5,114
|
Total operating
expenses
|
120,894
|
|
|
121,808
|
|
|
479,654
|
|
|
473,780
|
(Loss) income from
operations
|
(1,216)
|
|
|
5,664
|
|
|
10,958
|
|
|
15,416
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Interest on
outstanding debt
|
134
|
|
|
115
|
|
|
547
|
|
|
775
|
Amortization of
deferred financing charges
|
21
|
|
|
116
|
|
|
100
|
|
|
191
|
Interest
income
|
16
|
|
|
12
|
|
|
75
|
|
|
92
|
Other (income)
expense, net
|
(944)
|
|
|
(72)
|
|
|
(1,097)
|
|
|
878
|
(Loss) income before
income taxes
|
(411)
|
|
|
5,517
|
|
|
11,483
|
|
|
13,664
|
Provision for
(benefit from) income taxes
|
796
|
|
|
(612)
|
|
|
3,376
|
|
|
2,024
|
Net (loss)
income
|
$
|
(1,207)
|
|
|
$
|
6,129
|
|
|
$
|
8,107
|
|
|
$
|
11,640
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share of common stock:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
|
$
|
0.10
|
|
|
$
|
0.13
|
|
|
$
|
0.19
|
Diluted
|
$
|
(0.02)
|
|
|
$
|
0.10
|
|
|
$
|
0.13
|
|
|
$
|
0.19
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
59,798
|
|
|
59,360
|
|
|
60,149
|
|
|
59,989
|
Diluted
|
59,798
|
|
|
62,443
|
|
|
63,040
|
|
|
62,003
|
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(In
thousands)
|
December 31,
2014
|
|
December 31,
2013
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
36,893
|
|
|
$
|
38,867
|
Accounts receivable,
net of allowance of $250 at December 31, 2014 and December 31,
2013
|
66,479
|
|
|
70,431
|
Unbilled
receivables
|
25,843
|
|
|
19,498
|
Other current
assets
|
12,090
|
|
|
12,938
|
Total current
assets
|
141,305
|
|
|
141,734
|
Property and
equipment, net
|
23,622
|
|
|
20,968
|
Goodwill
|
21,937
|
|
|
19,595
|
Acquisition-related
intangible assets, net
|
12,232
|
|
|
13,226
|
Other
assets
|
5,677
|
|
|
5,487
|
Total
assets
|
$
|
204,773
|
|
|
$
|
201,010
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
21,885
|
|
|
$
|
21,784
|
Accrued compensation
and benefits
|
17,249
|
|
|
18,183
|
Accrued
outsourcing
|
10,429
|
|
|
12,579
|
Accrued
restructuring
|
3,492
|
|
|
1,201
|
Income taxes
payable
|
2,123
|
|
|
2,047
|
Accrued expenses and
other current liabilities
|
10,485
|
|
|
11,155
|
Deferred
revenue
|
11,866
|
|
|
10,583
|
Total current
liabilities
|
77,529
|
|
|
77,532
|
Long-term
debt
|
27,000
|
|
|
27,000
|
Deferred income
taxes, long-term
|
477
|
|
|
913
|
Other long-term
liabilities
|
13,786
|
|
|
13,172
|
Total
liabilities
|
118,792
|
|
|
118,617
|
Commitments and
contingencies
|
—
|
|
|
—
|
Stockholders'
equity:
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
Common
stock
|
634
|
|
|
637
|
Additional paid-in
capital
|
272,252
|
|
|
273,411
|
Accumulated
deficit
|
(203,897)
|
|
|
(212,004)
|
Accumulated other
comprehensive income
|
16,992
|
|
|
20,349
|
Total stockholders'
equity
|
85,981
|
|
|
82,393
|
Total liabilities and
stockholders' equity
|
$
|
204,773
|
|
|
$
|
201,010
|
Reconciliation of
GAAP Net Income to Non-GAAP Adjusted Earnings
(Unaudited)
Comparison to
Three and Twelve Months Ended December 31, 2014 and
2013
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In thousands, except
per share amounts)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net (loss)
income
|
$
|
(1,207)
|
|
|
$
|
6,129
|
|
|
$
|
8,107
|
|
|
$
|
11,640
|
Amortization of
acquisition-related intangible assets
|
864
|
|
|
867
|
|
|
3,317
|
|
|
3,351
|
Stock-based
compensation
|
1,670
|
|
|
1,816
|
|
|
7,484
|
|
|
6,777
|
Restructuring,
impairment and other charges
|
4,797
|
|
|
1,730
|
|
|
6,624
|
|
|
5,114
|
Adjusted
earnings
|
$
|
6,124
|
|
|
$
|
10,542
|
|
|
$
|
25,532
|
|
|
$
|
26,882
|
Fully diluted
weighted-average number of common shares outstanding
|
62,485
|
|
|
62,443
|
|
|
63,040
|
|
|
62,003
|
Adjusted diluted
earnings per share
|
$
|
0.10
|
|
|
$
|
0.17
|
|
|
$
|
0.41
|
|
|
$
|
0.43
|
Contact:
Sara
Buda
Lionbridge Technologies
sara.buda@lionbridge.com
Tel. +1-978-964-1404
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionbridge-announces-fy-2014-results-with-revenue-of-4906-million-gaap-eps-of-013-and-non-gaap-eps-of-041-300031462.html
SOURCE Lionbridge Technologies, Inc.