WALTHAM, Mass. - May 30, 2002 - At its annual shareholder meeting today, Rory Cowan, CEO of Lionbridge Technologies, Inc. (Nasdaq: LIOX) provided updated guidance for its second quarter ending June 30, 2002, with revenue estimated to exceed $28.0 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) projected to exceed $1.0 million, approaching breakeven net income on a GAAP basis. The Company also offered an outlook for 2002 and 2003.
"With new customer growth and solid recurring revenue, 2002 is proving to be a strong year for Lionbridge. Based on current indications, we continue to anticipate positive net income in the second half of the year," said Rory Cowan, CEO of Lionbridge. "With steady growth and our effective operating model, we expect to continue this trajectory through 2003. This suggests 2003 revenues in the $130.0 million range, which would yield approximately $5.0 million positive net income, or about $12.0 million of EBITDA. We firmly believe that we have achieved the scale and customer quality metrics necessary to successfully execute and that Lionbridge will flourish in the coming quarters."
At the meeting, the Company also announced that it has extended its financing arrangements with Capital Resource Partners, and has renewed key financing agreements with its primary bank, Silicon Valley Bank.
"Lionbridge is in a positive position as they perform and grow in this challenging economy," said Steve Jenks, General Partner, Capital Resource Partners. "Lionbridge has a stable and focused management team that knows how to effectively manage through economic downturns. They put the right initiatives in place last year and as a result, the Company is well positioned for growth in 2002 and 2003."
The Company also introduced a new member of its board of directors. Douglas Kingsley, managing director of Advent International, has joined the Lionbridge Board of Directors and will replace Marcia Hooper.
About Lionbridge
Lionbridge Technologies, Inc. provides solutions for worldwide deployment of technology and content to global 2000 companies in the technology, life sciences and financial services industries. Lionbridge testing and compatibility services, globalization solutions and multilingual content management technologies help clients reduce cost, speed time to market and ensure the integrity of global brands. Based in Waltham, Mass., Lionbridge maintains facilities in England, Ireland, The Netherlands, France, Germany, China, South Korea, Japan, Taiwan, Brazil and the United States. To learn more, visit www.lionbridge.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including those statements relating to expected results and performance for the second quarter, and statements relating to growth, expected revenue and net income for the second quarter and expected performance for the current fiscal year and 2003. Lionbridge's actual experience may differ materially from those discussed in the forward-looking statements. Factors that might cause such a difference include the termination of customer contracts prior to the end of their term; Lionbridge's dependence on clients' product releases to generate revenues; the loss of a major client; the size, timing and recognition of revenue from major clients; customer delays or postponements of services; the impact of foreign currency fluctuations on its operating results and revenue growth; risks associated with management of growth; market acceptance of new service offerings; the failure to keep pace with the rapidly changing requirements of its clients; Lionbridge's ability to attract and retain key personnel; Lionbridge being held liable for defects or errors in its solutions; one or more of Lionbridge's multi-year outsourcing relationships may be unprofitable; political, economic and business fluctuations in international markets; as well as risks of downturns in conditions generally, and in the information technology and software industries specifically, and risks associated with competition and competitive pricing pressures; and Lionbridge's ability to forecast revenue and operating results. For a more detailed description of the risk factors associated with Lionbridge, please refer to Lionbridge's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 1, 2002 and the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 15, 2002.