WALTHAM, Mass. - February 03, 2003 - Lionbridge Technologies, Inc. (Nasdaq: LIOX), a provider of outsourced globalization, testing and development services, today announced financial results for the fourth quarter and year ended December 31, 2002.
Financial highlights for 2002 include:
- Revenue of $118.3 million, an increase of 17% compared to revenue of $101.2 million for the year ended December 31, 2001.
- Positive operating profit of $451,000 compared to an operating loss of $20.0 million for the prior year.
- A net loss of $4.8 million or $0.15 per share based on 31.6 million weighted average common shares outstanding. This compares to a net loss of $24.5 million or $0.83 per share for fiscal 2001, based on 29.5 million weighted average common shares outstanding.
"In addition to strong revenue and earnings expansion in 2002, we also reached the critical milestone of operating profitability, while diversifying our customer base into new industries and maintaining strong recurring revenue from our top customers," said Rory Cowan, CEO, Lionbridge. "Revenue for the fourth quarter continued to be strong year-over-year. We also experienced approximately $700,000 in non-cash foreign exchange charges during the quarter. Despite this, gross margin for the quarter grew to 41% and to 40% for the year, about 200 basis points higher than the prior year, and an all time high for the Company. This indicates the scalability of our global outsourcing operations."
For the fourth quarter ended December 31, 2002, the Company reported revenue of $30.0 million, an increase of 19% compared to revenue of $25.3 million in the fourth quarter of 2001. Lionbridge reported positive profit from operations of $328,000 for the quarter, which compares to an operating loss of $2.8 million in the fourth quarter of 2001.
Lionbridge reported a net loss of $1.3 million, or $0.04 per share, for the fourth quarter of 2002, based on 31.7 million weighted average common shares outstanding. This compares to a net loss of $3.6 million or $0.12 per share for the fourth quarter of 2001, based on 31.2 million weighted average common shares outstanding.
"All three of our businesses are performing well. Global organizations continue to rely on Lionbridge for outsourced globalization, testing and development services that reduce costs and speed adoption of global applications and content," continued Cowan. "With our established industry leadership, stability and highly efficient operations, we are effectively managing growth while improving earnings."
Lionbridge also confirmed its 2003 guidance of approximately $130 million in revenue and net income in the $4-8 million range.
The Company will host a conference call today at 4:00 pm ET regarding the content of this release as well as the Company's overall outlook going forward. The conference call will be carried live on the Internet. Instructions for listening to the call over the Internet are available on the Investor's page of the Lionbridge web site http://www.lionbridge.com/webcast/Feb3/. A replay will be available at this location for a week.
About Lionbridge
Lionbridge Technologies, Inc. provides globalization, testing and development services to Global 2000 organizations in the technology, consumer, industrial and life sciences industries. With worldwide resources and advanced language technologies, Lionbridge services enable clients to speed adoption and reduce maintenance costs of global applications and content. Based in Waltham, Mass., Lionbridge maintains facilities in Ireland, The Netherlands, France, Germany, China, South Korea, Japan, Brazil and the United States. To learn more, visit http://www.lionbridge.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including those statements relating to expected growth, net income, revenue, results and performance for the current fiscal year. 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 or customer; the size, timing and recognition of revenue from major clients; Lionbridge's ability to raise additional capital; 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 additional 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 November 14, 2002.
LIONBRIDGE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
(unaudited) (unaudited) (unaudited)
Revenue $30,036 $25,307 $118,319 $101,204
Cost of revenue 17,705 15,043 71,272 63,123
Gross profit 12,331 10,264 47,047 38,081
Operating expenses:
Sales and marketing 3,206 2,568 11,600 11,342
General and
administrative 8,277 7,731 32,423 34,382
Research and
development 227 479 1,194 2,297
Amortization of
acquisition-related
intangible assets 116 1,835 528 6,651
Merger, restructuring
and other charges --- 300 --- 2,853
Stock-based compensation 177 124 851 565
Total operating
expenses 12,002 13,037 46,596 58,090
Profit (loss) from
operations 328 (2,773) 451 (20,009)
Interest expense 998 930 3,764 3,165
Foreign exchange and
other expense, net 705 (72) 1,534 838
Loss before
income taxes (1,375) (3,631) (4,847) (24,012)
Provision for
(benefit from)
income taxes (76) 12 (62) 439
Net loss $(1,299) $(3,643) $(4,785) $(24,451)
Basic and diluted
net loss per share $(0.04) $(0.12) $(0.15) $(0.83)
Shares used in computing
basic and diluted net
loss per share 31,706 31,153 31,632 29,528
LIONBRIDGE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
2002 2001
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $10,916 $11,711
Restricted cash 352 539
Accounts receivable, net of allowances of
$425 and $932 at December 31, 2002 and 2001,
respectively 17,303 16,791
Work in process 6,062 4,286
Other current assets 2,054 1,336
Total current assets 36,687 34,663
Property and equipment, net 5,013 4,463
Goodwill and other intangible assets, net 15,693 14,969
Other assets 771 652
Total assets $58,164 $54,747
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion
of long-term debt $3,215 $9,600
Accounts payable 8,570 7,121
Accrued expenses and other current liabilities 14,415 12,641
Deferred revenue 3,753 3,053
Total current liabilities 29,953 32,415
Long-term debt, less current portion and net
of discount of $2,288 and $2,898 at
December 31, 2002 and 2001, respectively 24,728 17,318
Other long-term liabilities 1,769 1,566
Total stockholders' equity 1,714 3,448
Total liabilities and stockholders' equity $58,164 $54,747