WALTHAM, Mass., May 7, 2015 /PRNewswire/ -- Lionbridge
Technologies, Inc. (Nasdaq: LIOX), today announced financial
results for the quarter ended March 31, 2015. Financial
highlights for the quarter include:
- Record revenue of $136.8 million,
a year-on-year increase of $16.6
million or 14% compared to the first quarter of 2014.
- GAAP net income of $3.1 million,
or $0.05 per share based on 62.3
million fully diluted shares outstanding. This marks a year-on-year
increase of $1.2 million, or
$0.02 per share, compared to the
first quarter of 2014.
- Non-GAAP adjusted earnings of $8.8
million or $0.14 per share, a
year-on-year increase of $4.0 million
or $0.06 per share. The Company
defines non-GAAP adjusted earnings as net income excluding merger,
restructuring and acquisition-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.
- An ending cash balance of $25.2
million.
- During the quarter the Company paid down $6 million of bank debt related to the financing
of the Company's recent acquisition of CLS Communication.
- The Company acquired 254,000 shares of its common stock in Q1
for an aggregate purchase price of $1.4
million.
The company secured several new customer engagements in the
quarter, including a market leader in personal computing solutions,
a world leader in family entertainment, a leading brand in the
beverage industry, and a leader in defense, aerospace and security,
indicating a strong pace of new business beginning the year.
On January 7th, 2015,
Lionbridge completed the acquisition of CLS Communication, a
privately-held provider of translation solutions to clients in the
financial services, industrial, public sector and life sciences
markets with annual revenue of approximately $80 million.
"As we begin 2015 we are driving positive momentum in several
key areas. We are integrating our acquisition of CLS as planned
with ongoing opportunities for cost and revenue synergies.
Sequential revenue with our largest client was largely stable in Q1
as compared to the prior quarter. Our marketing services offerings
continue to accelerate. In fact, excluding revenue from our largest
client, standalone revenue grew 10% year-on-year in constant
currency excluding CLS," said Rory
Cowan, CEO, Lionbridge. "These positive trends, combined
with a favorable currency environment for earnings, suggest solid
financial performance in the second quarter and FY 2015."
Lionbridge provided an outlook for the second quarter of 2015
with revenue of $142-147 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, including
matters related to its future performance. To participate, callers
within the United States can dial
800-619-0332 and international callers can dial 210-234-0570. The
passcode for the call is Lionbridge. The conference call will also
be available live via the Internet 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 expected financial performance,
expected revenue and gross margin growth and outlook, the momentum,
pace and strengthening of such growth, of Lionbridge in Q2 2015 and
FY 2015, future business with Lionbridge's largest customer. 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 integrate
its acquisition of CLS Communication ("CLS") and the pace of such
integration actions; the timing of the realization of any synergies
associated with the acquisition of CLS; 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; its
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, including a sequential decline in business
with our largest customer; Lionbridge's ability to expand its
relationships with existing clients; 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 impact of competing
language technology 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 and expand its
customer relationships and the timing and success of such
activities; 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 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, 2014 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
March 31,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
Revenue
|
$
|
136,807
|
|
|
$
|
120,205
|
|
Operating
expenses:
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization included
below)
|
90,550
|
|
|
83,079
|
|
Sales and
marketing
|
11,975
|
|
|
9,920
|
|
General and
administrative
|
23,868
|
|
|
20,346
|
|
Research and
development
|
2,015
|
|
|
1,739
|
|
Depreciation and
amortization
|
2,251
|
|
|
1,849
|
|
Amortization of
acquisition-related intangible assets
|
998
|
|
|
798
|
|
Restructuring and
other charges
|
2,938
|
|
|
335
|
|
Total operating
expenses
|
134,595
|
|
|
118,066
|
|
Income from
operations
|
2,212
|
|
|
2,139
|
|
Interest
expense:
|
|
|
|
Interest on
outstanding debt
|
484
|
|
|
149
|
|
Amortization of
deferred financing charges
|
90
|
|
|
27
|
|
Interest
income
|
16
|
|
|
19
|
|
Other income,
net
|
(2,513)
|
|
|
(348)
|
|
Income before income
taxes
|
4,167
|
|
|
2,330
|
|
Provision for income
taxes
|
1,072
|
|
|
448
|
|
Net income
|
$
|
3,095
|
|
|
$
|
1,882
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
Basic
|
$
|
0.05
|
|
|
$
|
0.03
|
|
Diluted
|
$
|
0.05
|
|
|
$
|
0.03
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
60,415
|
|
|
60,208
|
|
Diluted
|
62,324
|
|
|
63,506
|
|
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(In
thousands)
|
March 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
25,225
|
|
|
$
|
36,893
|
|
Accounts receivable,
net of allowance of $250 at March 31, 2015 and December 31,
2014
|
77,563
|
|
|
66,479
|
|
Unbilled
receivables
|
27,986
|
|
|
25,843
|
|
Other current
assets
|
17,338
|
|
|
12,090
|
|
Total current
assets
|
148,112
|
|
|
141,305
|
|
Property and
equipment, net
|
25,750
|
|
|
23,622
|
|
Goodwill
|
61,589
|
|
|
21,937
|
|
Acquisition-related
intangible assets, net
|
45,566
|
|
|
12,232
|
|
Other
assets
|
7,288
|
|
|
5,677
|
|
Total
assets
|
$
|
288,305
|
|
|
$
|
204,773
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
2,407
|
|
|
$
|
—
|
|
Accounts
payable
|
25,593
|
|
|
21,885
|
|
Accrued compensation
and benefits
|
21,451
|
|
|
17,249
|
|
Accrued
outsourcing
|
10,489
|
|
|
10,429
|
|
Accrued
restructuring
|
3,587
|
|
|
3,492
|
|
Income taxes
payable
|
3,794
|
|
|
2,123
|
|
Accrued expenses and
other current liabilities
|
10,914
|
|
|
10,485
|
|
Deferred
revenue
|
10,667
|
|
|
11,866
|
|
Total current
liabilities
|
88,902
|
|
|
77,529
|
|
Long-term debt, net
of current portion
|
90,672
|
|
|
27,000
|
|
Deferred income
taxes, long-term
|
4,710
|
|
|
704
|
|
Other long-term
liabilities
|
21,367
|
|
|
13,786
|
|
Total
liabilities
|
205,651
|
|
|
119,019
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
644
|
|
|
635
|
|
Additional paid-in
capital
|
269,862
|
|
|
272,252
|
|
Accumulated
deficit
|
(200,802)
|
|
|
(203,897)
|
|
Accumulated other
comprehensive income
|
12,950
|
|
|
16,764
|
|
Total stockholders'
equity
|
82,654
|
|
|
85,754
|
|
Total liabilities and
stockholders' equity
|
$
|
288,305
|
|
|
$
|
204,773
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Adjusted Earnings
(Unaudited)
Comparison of
Three Months Ended March 31, 2015 to Three Months Ended March 31,
2014
|
|
|
Three Months
Ended
March 31,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
Net income
|
$
|
3,095
|
|
|
$
|
1,882
|
|
Amortization of
acquisition-related intangible assets
|
998
|
|
|
798
|
|
Stock-based
compensation
|
1,790
|
|
|
1,814
|
|
Restructuring and
other charges
|
2,938
|
|
|
335
|
|
Adjusted
earnings
|
$
|
8,821
|
|
|
$
|
4,829
|
|
Fully diluted
weighted-average number of common shares outstanding
|
62,324
|
|
|
63,506
|
|
Adjusted diluted
earnings per share
|
$
|
0.14
|
|
|
$
|
0.08
|
|
Contact: Sara Buda,
1-978-964-1404, sara.buda@lionbridge.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionbridge-reports-first-quarter-results-with-record-revenue-of-1368-million-gaap-eps-of-005-and-non-gaap-eps-of-014-300079490.html
SOURCE Lionbridge Technologies, Inc.