WALTHAM, Mass., Nov. 9, 2015 /PRNewswire/ -- Lionbridge
Technologies, Inc. (Nasdaq: LIOX), today announced revenue and
earnings for the third quarter ended September 30, 2015.
Financial highlights for the third quarter include:
- Revenue of $138.6 million, an
increase of $18.4 million or 15%
compared to the third quarter of 2014.
- GAAP earnings of $2.7 million, or
$0.04 per diluted share, based on
62.6 million weighted average fully diluted common shares
outstanding. GAAP net income decreased $0.9
million, or $0.02 per diluted
share, compared to the third quarter of 2014, primarily due to a
$2.3 million increase in
restructuring and other charges.
- Non-GAAP adjusted earnings of $8.7
million or $0.14 per diluted
share, an increase of $1.6 million or
$0.03 per diluted share compared to
the third quarter of 2014. 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.
- Cash flow from operations of $7.9
million for the quarter.
The Company recently secured several significant new customer
engagements, including a Taiwanese manufacturer of smartphones, a
large US retailer and a British luxury automobile manufacturer.
For the nine months ended September 30, 2015 revenue
increased $48.2 million year-on-year,
GAAP net income increased $2.0
million or $0.03 per diluted
share and non-GAAP earnings increased $9.9
million or $0.16 per diluted
share as compared to the first nine months of 2014.
Separately, the Company announced the acquisition of Geotext
Translations, Inc., a New
York-based translation company that specializes in the legal
translation market. Geotext had unaudited trailing twelve months of
revenue of approximately $17 million
for the period ended September 30,
2015. Lionbridge is purchasing Geotext for a total estimated
cash consideration of approximately $11
million and additional earn-out potential which would be
payable in cash over three years, subject to the attainment of
certain revenue metrics. The consideration is being satisfied using
Lionbridge's existing cash resources. The Company expects the
acquisition will contribute modestly to non-GAAP earnings in 2016,
including minimal acquisition and integration
costs.
The Company also announced today that its Board of Directors has
authorized a share repurchase program allowing the Company to
repurchase up to $50 million of the
Company's common stock through fiscal year 2018. The new
authorization is almost three times as large as the previous
$18 million share repurchase program
that was announced in November of 2012 and which has now
expired.
"With our strong organic growth in verticals such as life
sciences and industrials and the ongoing successful integration of
CLS Communication, we are well on path to achieve our goals to
establish and grow recurring relationships with clients across
vertical markets," said Rory Cowan,
CEO of Lionbridge. "While Q3 revenue was behind expectations,
largely due to delays from certain technology clients, we continue
to generate solid year-on-year growth and cash flow remains strong.
We have firming demand across our business. The addition of Geotext
furthers our ongoing vertical market expansion. And the new,
accelerated buyback program underscores our confidence in the long
term profit and cash flow growth of the Company. We expect a strong
finish to 2015 and ongoing expansion in 2016."
Lionbridge provided outlook for the fourth quarter of 2015 with
estimated revenue of $140-143
million, which would reflect year-on-year growth of
approximately 18% as compared to the fourth quarter of 2014. The
Company also provided a preliminary outlook for FY 2016 with
estimated year-on-year revenue growth of 5-8%, and continued growth
in income from operations.
The Company is also announcing today that Donald Muir, Lionbridge's Chief Financial
Officer will retire from Lionbridge. Muir will remain with
the company through mid-January in support of the transition.
Muir will be succeeded by Marc Litz,
currently Lionbridge's Vice President, Finance and Corporate
Controller, who has been with the Company for three years.
"Don has been instrumental in shaping our financial strategy
over the past 8 years during a time of significant growth and
diversification for the Company. We appreciate his dedication
to the successful expansion of our business and to building a
world-class global finance organization. He leaves behind a strong
team and we thank Don for his many contributions," said
Rory Cowan, CEO.
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 888-390-1050 and international callers can
dial 312-470-7236. 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 growth in revenue, income from operations and
profit growth, and the momentum, pace and strengthening of such
growth in Q4 2015 and FY 2016 as well as expected benefit of the
Company's acquisition of Geotext Translations, and the success of
the integration of CLS Communication ("CLS"), which the Company
acquired in January of 2015. 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 Geotext Translations and
CLS and the pace of such integration actions; the timing of the
realization of any synergies associated with the acquisition of
Geotext Translations and 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 and within key industry
verticals; 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.
Media Contact
Sara Buda
Lionbridge Technologies, Inc.
978-964-1404
sara.buda@lionbridge.com
LIONBRIDGE
TECHNOLOGIES, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
$
|
138,604
|
|
|
$
|
120,191
|
|
|
$
|
419,172
|
|
|
$
|
370,934
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and
amortization included below)
|
92,977
|
|
|
80,608
|
|
|
277,825
|
|
|
253,559
|
|
Sales and
marketing
|
11,083
|
|
|
9,685
|
|
|
35,163
|
|
|
29,369
|
|
General and
administrative
|
21,888
|
|
|
19,868
|
|
|
69,024
|
|
|
60,587
|
|
Research and
development
|
1,903
|
|
|
1,698
|
|
|
6,060
|
|
|
5,194
|
|
Depreciation and
amortization
|
2,340
|
|
|
2,033
|
|
|
6,922
|
|
|
5,771
|
|
Amortization of
acquisition-related intangible assets
|
993
|
|
|
842
|
|
|
2,979
|
|
|
2,453
|
|
Restructuring and
other charges
|
2,957
|
|
|
611
|
|
|
9,359
|
|
|
1,827
|
|
Total operating
expenses
|
134,141
|
|
|
115,345
|
|
|
407,332
|
|
|
358,760
|
|
Income from
operations
|
4,463
|
|
|
4,846
|
|
|
11,840
|
|
|
12,174
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
outstanding debt
|
482
|
|
|
164
|
|
|
1,439
|
|
|
413
|
|
Amortization of
deferred financing charges
|
94
|
|
|
25
|
|
|
279
|
|
|
79
|
|
Interest
income
|
13
|
|
|
9
|
|
|
50
|
|
|
59
|
|
Other expense
(income), net
|
417
|
|
|
(42)
|
|
|
(2,335)
|
|
|
(153)
|
|
Income before income
taxes
|
3,483
|
|
|
4,708
|
|
|
12,507
|
|
|
11,894
|
|
Provision for income
taxes
|
755
|
|
|
1,066
|
|
|
1,181
|
|
|
2,580
|
|
Net income
|
$
|
2,728
|
|
|
$
|
3,642
|
|
|
$
|
11,326
|
|
|
$
|
9,314
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.04
|
|
|
$
|
0.06
|
|
|
$
|
0.19
|
|
|
$
|
0.15
|
|
Diluted
|
$
|
0.04
|
|
|
$
|
0.06
|
|
|
$
|
0.18
|
|
|
$
|
0.15
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
60,683
|
|
|
60,012
|
|
|
60,558
|
|
|
60,263
|
|
Diluted
|
62,623
|
|
|
62,646
|
|
|
62,528
|
|
|
63,070
|
|
LIONBRIDGE
TECHNOLOGIES, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
(In
thousands)
|
September 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
30,926
|
|
|
$
|
36,893
|
|
Accounts receivable,
net of allowance of $250 at September 30, 2015 and
December 31, 2014
|
86,966
|
|
|
66,479
|
|
Unbilled
receivables
|
27,321
|
|
|
25,843
|
|
Other current
assets
|
14,780
|
|
|
12,090
|
|
Total current
assets
|
159,993
|
|
|
141,305
|
|
Property and
equipment, net
|
26,193
|
|
|
23,622
|
|
Goodwill
|
62,031
|
|
|
21,937
|
|
Acquisition-related
intangible assets, net
|
44,556
|
|
|
12,232
|
|
Other
assets
|
6,906
|
|
|
5,677
|
|
Total
assets
|
$
|
299,679
|
|
|
$
|
204,773
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Debt, current
portion
|
$
|
3,719
|
|
|
$
|
—
|
|
Accounts
payable
|
27,004
|
|
|
21,885
|
|
Accrued compensation
and benefits
|
23,465
|
|
|
17,249
|
|
Accrued
outsourcing
|
11,448
|
|
|
10,429
|
|
Accrued
restructuring
|
2,228
|
|
|
3,492
|
|
Income taxes
payable
|
2,357
|
|
|
2,123
|
|
Accrued expenses and
other current liabilities
|
10,070
|
|
|
10,485
|
|
Deferred
revenue
|
8,619
|
|
|
11,866
|
|
Total current
liabilities
|
88,910
|
|
|
77,529
|
|
Long-term debt, net
of current portion
|
90,427
|
|
|
27,000
|
|
Deferred income
taxes, net of current portion
|
4,827
|
|
|
704
|
|
Other long-term
liabilities
|
20,823
|
|
|
13,786
|
|
Total
liabilities
|
204,987
|
|
|
119,019
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
645
|
|
|
635
|
|
Additional paid-in
capital
|
273,818
|
|
|
272,252
|
|
Accumulated
deficit
|
(192,571)
|
|
|
(203,897)
|
|
Accumulated other
comprehensive income
|
12,800
|
|
|
16,764
|
|
Total stockholders'
equity
|
94,692
|
|
|
85,754
|
|
Total liabilities and
stockholders' equity
|
$
|
299,679
|
|
|
$
|
204,773
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Adjusted Earnings
(Unaudited)
|
Comparison of
Three and Nine Months Ended September 30, 2015 to
|
Three and Nine
Months Ended September 30, 2014
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
|
$
|
2,728
|
|
|
$
|
3,642
|
|
|
$
|
11,326
|
|
|
$
|
9,314
|
|
Amortization of
acquisition-related intangible assets
|
993
|
|
|
842
|
|
|
2,979
|
|
|
2,453
|
|
Stock-based
compensation
|
2,007
|
|
|
2,008
|
|
|
5,663
|
|
|
5,814
|
|
Restructuring and
other charges
|
2,957
|
|
|
611
|
|
|
9,359
|
|
|
1,827
|
|
Adjusted
earnings
|
$
|
8,685
|
|
|
$
|
7,103
|
|
|
$
|
29,327
|
|
|
$
|
19,408
|
|
Fully diluted
weighted-average number of common shares outstanding
|
62,623
|
|
|
62,646
|
|
|
62,528
|
|
|
63,070
|
|
Adjusted diluted
earnings per share
|
$
|
0.14
|
|
|
$
|
0.11
|
|
|
$
|
0.47
|
|
|
$
|
0.31
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionbridge-reports-q3-results-with-revenue-of-1386-million-gaap-eps-of-004-and-non-gaap-eps-of-014-300174687.html
SOURCE Lionbridge Technologies