Click here to close now.


Containers Expo Blog Authors: Carmen Gonzalez, Pat Romanski, Yeshim Deniz, Blue Box Blog, AppDynamics Blog

News Feed Item

Lionbridge Reports Q3 Revenue of $112.1 Million, GAAP EPS of $0.07 and Non-GAAP EPS of $0.11; Strong Quarterly Cash Flow From Operations of $13.0 Million

Announces $18 Million Share Repurchase Program and Provides Positive Outlook for Ongoing Revenue Growth and Operating Profit Acceleration in FY 2013

WALTHAM, Mass., Nov. 7, 2012 /PRNewswire/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the quarter ended September 30, 2012.  Financial and business highlights for the third quarter include:

  • Revenue of $112.1 million, an increase of $4.5 million or 4% from the quarter ended September 30, 2011.  In constant currency with Q3 of 2011, the Company's revenue grew $8.7 million or 8% year-on-year.
  • Q3 GAAP net income of $4.1 million, or $0.07 per share based on 61.5 million fully diluted weighted average common shares outstanding. 
  • Q3 Non-GAAP adjusted earnings of $6.5 million or $0.11 per diluted share.  The Company defines non-GAAP adjusted earnings as net income excluding merger, restructuring and 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 $13.0 million during the quarter.  
  • An ending cash balance of $27.7 million. During the quarter the Company paid down $4.0 million of debt.

Lionbridge recently secured several new client programs, including engagements with a global leader in entertainment technologies, a manufacturer of commercial vehicles and engines and a leading banking and payment services company.

For the first nine months ended September 30, 2012 the Company reported revenue of $343.4 million, an increase of $22.9 million or 7% from the first nine months of 2011.  In constant currency with the first nine months of FY 2011, the Company's revenue grew $32.2 million or 10% year-on-year. 

Year to date GAAP net income for the period ended September 30, 2012 was $8.3 million or $0.14 per diluted share, an increase of $9.6 million or $0.16 per diluted share from the first nine months of 2011.

"The third quarter marked another positive quarter of revenue and earnings momentum.  Our strategy for growth continues to show positive results despite pockets of uncertainty in the technology sector.  Our new offerings and new verticals are enabling us to expand our value across our clients' global customer experience," said Rory Cowan, CEO, Lionbridge.  "With our growing base of recurring revenue and our efficient cost platform we are growing our business and increasing profitability.  As a result, we are confident in our opportunities for revenue and profit expansion in 2013 and beyond."

Separately the Company announced today that its Board of Directors has authorized a share repurchase program allowing the Company to repurchase up to $18 million of the Company's common stock.

"The investments we've made during the past 12 months are enabling us to expand our business across end markets," continued Cowan. "The authorization of the share repurchase program underscores our confidence in our near and long-term opportunities for growth."  

The Company provided updated revenue expectations for the fourth quarter with estimated revenue of $112-$115 million.

The Company provided a preliminary outlook for FY 2013 with estimated revenue growth of 6-10% compared to expected FY 2012 and significant growth in income from operations.  

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 800-857-9821 and international callers can dial 210-234-0023.  The pass code 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. "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 adjusted earnings and adjusted earnings per share are net income and net income per share, respectively, and has provided a reconciliation of adjusted earnings and adjusted earnings per share to net income (loss) at the end of this release.

In addition, the Company presented revenue in constant currency terms, which excludes the effect of currency fluctuations between the U.S. dollar and the functional currency of the entity in which the revenue was transacted.  The effect of currency fluctuations is excluded by translating the applicable period's local currency revenue into U.S. dollars using the average local currency exchange rates that were in effect during the applicable prior period of comparison.  Constant currency revenue is a Non-GAAP financial measure and should not be viewed as alternative to GAAP revenue.  Management reviews and analyzes revenue excluding the effect of foreign currency translation because it believes this better represents the Company's underlying business trends.

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 26 countries. To learn more, visit

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including expected financial performance and expected revenue and operating profit (income from operations) growth and outlook, and the momentum, pace and strengthening of such growth, of Lionbridge in Q4 2012 and FY 2013. 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 acquisitions 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 ability of Lionbridge to integrate Productive Resources, LLC 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 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.  In addition, there are risks and uncertainties related to the share repurchase program, including the availability of sufficient shares at appropriate prices, the development of alternative uses for the Company's funds, and changes in market and other conditions.  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





(Amounts in thousands, except per share data)


Three Months Ended
September 30,

Nine months Ended
September 30,






$      112,070

$      107,574

$      343,355

$      320,471

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization included below)





Sales and marketing





General and administrative





Research and development





Depreciation and amortization





Amortization of acquisition-related intangible assets





Restructuring, impairment, and other charges





Total operating expenses





Income from operations





Interest expense:

Interest on outstanding debt





Amortization of deferred financing costs





Interest income





Other expense (income), net





Income (loss) before income taxes




(301 )

Provision for (Benefit from) income taxes





Net income (loss)

$          4,089

$          2,415

$          8,280

$         (1,309 )

Net income (loss) per share of common stock:


$            0.07

$            0.04

$            0.14

$           (0.02 )


$            0.07

$            0.04

$            0.14

$           (0.02 )

Weighted average number of common shares outstanding:














(Amounts in thousands, except share data)


September 30,

December 31,



Current assets:

Cash and cash equivalents

$         27,730

$            25,219

Accounts receivable, net of allowance of $500 at September 30, 2012 and December 31, 2011



Unbilled receivables



Other current assets



Total current assets



Property and equipment, net



Assets held for sale






Acquisition-related intangible assets, net



Other assets



Total assets

$       182,733

$          157,747


Current liabilities:

Accounts payable

$         19,965

$            19,347

Accrued compensation and benefits



Other accrued expenses and other current liabilities



Deferred revenue



Total current liabilities



Long-term debt



Deferred income taxes, long-term



Other long-term liabilities



Total stockholders' equity



Total liabilities and stockholders' equity

$       182,733

$          157,747




Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EPS (Unaudited)

Comparison to Three and Nine Months Ended September 30, 2011


Three Months Ended

Nine Months Ended

September 30,

September 30,





Net income (loss)

$          4,089

$          2,415

$          8,280

$         (1,309)

Amortization of acquisition-related intangible assets





Stock-based compensation





Restructuring and acquisition related charges





Asset impairment





Adjusted earnings

$     6,545

$     5,290

$      21,563

$      7,957

Fully diluted weighted average number of common shares outstanding





Adjusted EPS

$ 0.11

$ 0.09

$ 0.36

$ 0.13


Sara Buda
Lionbridge Technologies, Inc.                
(781) 434-6190                                                      
[email protected]

SOURCE Lionbridge Technologies, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, along with new ways to engage with users.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of, and Fred Yatzeck, principal architect leading product development at, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Valley. The program, to be aired during the peak viewership season of the year, will have a major impac...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...