WALTHAM, Mass. - April 15, 2002 - Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced, based on a preliminary review of its accounts, that it expects to meet revenue and earnings guidance it previously provided for the first quarter 2002. Based on these preliminary, unaudited results, the Company expects revenues of between $25.0 million and $25.3 million for its quarter ended March 31, 2002.
Lionbridge also provided guidance for the second quarter 2002, stating that it expects to see revenues in the $28.0 million range, which exceeds previous expectations and represents a 12% sequential quarterly growth rate. In addition, the Company reiterated that it expects to achieve positive net income in late 2002.
"Meeting guidance we provided in our last earnings call, preliminary indications suggest that Q1 revenues will be flat with Q4. We are pleased with these results, given the continued challenging economic climate, the negative sentiment surrounding our technology customer segment, and the Q1 'cautions' issued by some of our competitors," said Rory Cowan, chairman and CEO, Lionbridge. "We had a large number of new customer programs begin in the first quarter. Our sales pipeline, backlog, and work in process all indicate a stronger second quarter that should meet, or exceed, previous guidance."
"Our sales expansion into new vertical segments, consistent service to existing customers, and clear organizational execution all appear to be paying off," added Cowan.
As previously scheduled, the Company will report full financial information for the first quarter on April 29, 2002, and will conduct its quarterly conference call at 5:00 p.m. (Eastern) that same day.
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 preliminary results and expected performance for the first quarter, and statements relating to sales pipeline, backlog and work in process and expected revenue for the second quarter and expected 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; 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.