WALTHAM, Mass., Aug. 5, 2015 /PRNewswire/ -- Lionbridge
Technologies, Inc. (Nasdaq: LIOX), today announced revenue and
earnings for the second quarter ended June
30, 2015.
Financial highlights for the second quarter include:
- Record revenue of $143.8 million,
an increase of $13.2 million or 10%
compared to the second quarter of 2014 and a sequential increase of
$7.0 million, or 5%, compared to the
first quarter of 2015.
- GAAP net income of $5.5 million,
or $0.09 per share, based on 62.4
million weighted average fully diluted common shares outstanding.
GAAP net income increased $1.7
million, or $0.03 per share,
year-on-year compared to the second quarter of 2014 and increased
$2.4 million, or $0.04 per share, sequentially compared to the
first quarter of 2015.
- Record non-GAAP adjusted earnings of $11.8 million or $0.19 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.
The Company recently secured several significant new customer
engagements, including a global leader in medical devices, a
leading UK-based publishing company, a Fortune 150 industrial
electronics company, a market leader in robotics and a global
financial information firm.
"Our positive second quarter results indicate strengthening
demand across our business. While our largest client
continued to be down year-on-year, they grew notably sequentially
from Q1. And we expect growth from this client in the second
half. At the same time, we continue to diversify our business
across vertical markets, secure new wins in marketing services and
scale our new onDemand translation platform," said Rory Cowan, CEO of Lionbridge. "We enter
the second half of the year with confidence. Revenue momentum
continues to build. Revenue from our largest client is
returning. We are beginning to see the early synergies related to
our CLS acquisition. As a result, we expect a strong second
half of 2015 for both revenue and earnings with ongoing expansion
in 2016."
During the quarter the Company was recognized as one of
"America's 100 Most Trustworthy Companies" by Forbes for the second
consecutive year. The Company also recently was named as the
world's largest language services company by Common Sense Advisory
(CSA), an independent market research firm for the fourth
consecutive year.
Lionbridge provided outlook for the third quarter of 2015 with
estimated revenue of $145-147
million, which would reflect year-on-year growth of 21-22%
as compared to the third quarter of 2014.
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 800-369-1719 and international callers can
dial 517-308-9398. The pass code for the call is
"Lionbridge". The conference call will also be available live
via this link.
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.
This press release contains forward-looking statements that
involve risks and uncertainties, including expected financial
performance, expected revenue and profit growth, and the momentum,
pace and strengthening of such growth in Q3 2015, FY 2015 and FY
2016 as well as expected revenue from Lionbridge's largest customer
and synergies from Lionbridge's acquisition of CLS Communication
("CLS"). 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 fully
integrate 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; 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.
Contact:
Sara Buda
1-978-964-1404
sara.buda@lionbridge.com
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
$
|
143,761
|
|
|
$
|
130,538
|
|
|
$
|
280,568
|
|
|
$
|
250,743
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and
amortization included below)
|
94,298
|
|
|
89,871
|
|
|
184,848
|
|
|
172,951
|
|
Sales and
marketing
|
12,105
|
|
|
9,764
|
|
|
24,080
|
|
|
19,684
|
|
General and
administrative
|
23,268
|
|
|
20,373
|
|
|
47,136
|
|
|
40,719
|
|
Research and
development
|
2,142
|
|
|
1,757
|
|
|
4,157
|
|
|
3,496
|
|
Depreciation and
amortization
|
2,331
|
|
|
1,889
|
|
|
4,582
|
|
|
3,738
|
|
Amortization of
acquisition-related intangible assets
|
988
|
|
|
813
|
|
|
1,986
|
|
|
1,611
|
|
Restructuring and
other charges
|
3,464
|
|
|
882
|
|
|
6,402
|
|
|
1,216
|
|
Total operating
expenses
|
138,596
|
|
|
125,349
|
|
|
273,191
|
|
|
243,415
|
|
Income from
operations
|
5,165
|
|
|
5,189
|
|
|
7,377
|
|
|
7,328
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
outstanding debt
|
473
|
|
|
100
|
|
|
957
|
|
|
249
|
|
Amortization of
deferred financing charges
|
95
|
|
|
27
|
|
|
185
|
|
|
54
|
|
Interest
income
|
21
|
|
|
31
|
|
|
37
|
|
|
50
|
|
Other (income)
expense, net
|
(239)
|
|
|
237
|
|
|
(2,752)
|
|
|
(111)
|
|
Income before income
taxes
|
4,857
|
|
|
4,856
|
|
|
9,024
|
|
|
7,186
|
|
(Benefit from)
provision for income taxes
|
(646)
|
|
|
1,066
|
|
|
426
|
|
|
1,514
|
|
Net income
|
$
|
5,503
|
|
|
$
|
3,790
|
|
|
$
|
8,598
|
|
|
$
|
5,672
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.09
|
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
Diluted
|
$
|
0.09
|
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
60,584
|
|
|
60,523
|
|
|
60,447
|
|
|
60,372
|
|
Diluted
|
62,407
|
|
|
63,410
|
|
|
62,241
|
|
|
63,515
|
|
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
|
|
(In
thousands)
|
June 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
26,100
|
|
|
$
|
36,893
|
|
Accounts receivable,
net of allowance of $250 at June 30, 2015 and
December 31, 2014
|
87,721
|
|
|
66,479
|
|
Unbilled
receivables
|
27,148
|
|
|
25,843
|
|
Other current
assets
|
15,995
|
|
|
12,090
|
|
Total current
assets
|
156,964
|
|
|
141,305
|
|
Property and
equipment, net
|
26,296
|
|
|
23,622
|
|
Goodwill
|
61,787
|
|
|
21,937
|
|
Acquisition-related
intangible assets, net
|
45,347
|
|
|
12,232
|
|
Other
assets
|
7,129
|
|
|
5,677
|
|
Total
assets
|
$
|
297,523
|
|
|
$
|
204,773
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Debt, current
portion
|
$
|
2,844
|
|
|
$
|
—
|
|
Accounts
payable
|
28,110
|
|
|
21,885
|
|
Accrued compensation
and benefits
|
22,472
|
|
|
17,249
|
|
Accrued
outsourcing
|
11,689
|
|
|
10,429
|
|
Accrued
restructuring
|
3,047
|
|
|
3,492
|
|
Income taxes
payable
|
2,293
|
|
|
2,123
|
|
Accrued expenses and
other current liabilities
|
9,710
|
|
|
10,485
|
|
Deferred
revenue
|
10,132
|
|
|
11,866
|
|
Total current
liabilities
|
90,297
|
|
|
77,529
|
|
Long-term debt, net
of current portion
|
91,324
|
|
|
27,000
|
|
Deferred income
taxes, net of current portion
|
4,801
|
|
|
704
|
|
Other long-term
liabilities
|
20,958
|
|
|
13,786
|
|
Total
liabilities
|
207,380
|
|
|
119,019
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
645
|
|
|
635
|
|
Additional paid-in
capital
|
271,932
|
|
|
272,252
|
|
Accumulated
deficit
|
(195,299)
|
|
|
(203,897)
|
|
Accumulated other
comprehensive income
|
12,865
|
|
|
16,764
|
|
Total stockholders'
equity
|
90,143
|
|
|
85,754
|
|
Total liabilities and
stockholders' equity
|
$
|
297,523
|
|
|
$
|
204,773
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Adjusted Earnings
(Unaudited)
Comparison of
Three and Six Months Ended June 30, 2015 to
Three and Six
Months Ended June 30, 2014
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
|
$
|
5,503
|
|
|
$
|
3,790
|
|
|
$
|
8,598
|
|
|
$
|
5,672
|
|
Amortization of
acquisition-related intangible assets
|
988
|
|
|
813
|
|
|
1,986
|
|
|
1,611
|
|
Stock-based
compensation
|
1,866
|
|
|
1,992
|
|
|
3,656
|
|
|
3,806
|
|
Restructuring and
other charges
|
3,464
|
|
|
882
|
|
|
6,402
|
|
|
1,216
|
|
Adjusted
earnings
|
$
|
11,821
|
|
|
$
|
7,477
|
|
|
$
|
20,642
|
|
|
$
|
12,305
|
|
Fully diluted
weighted-average number of common
shares outstanding
|
62,407
|
|
|
63,410
|
|
|
62,241
|
|
|
63,515
|
|
Adjusted diluted
earnings per share
|
$
|
0.19
|
|
|
$
|
0.12
|
|
|
$
|
0.33
|
|
|
$
|
0.19
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionbridge-reports-q2-results-with-record-revenue-of-1438-million-gaap-eps-of-009-and-record-non-gaap-eps-of-019-300124006.html
SOURCE Lionbridge Technologies, Inc.