WALTHAM, Mass., April 29 -- Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced financial results for the quarter ended March 31, 2002. The Company reported total revenues of $24.9 million for the quarter, compared to revenue of $27.3 million for the first quarter of 2001.
Lionbridge reported a net loss of $1.9 million or $0.06 per share for the quarter, based on 31.5 million weighted average common shares outstanding. This compares to a net loss of $5.5 million or $0.20 per share for the first quarter of 2001.
On a "cash EPS" basis (which excludes amortization of acquisition-related intangible assets and merger and restructuring expenses), the manner in which Lionbridge is carried by First Call, the Company reported a loss of $0.05 per share for the first quarter of 2002, consistent with previously-communicated expectations. This compares to a cash EPS loss of $0.13 per share for the first quarter of 2001.
At the end of the first quarter, the Company's cash position was $10.3 million, compared to $11.7 million for fourth quarter 2001. The Company also reduced its total debt by $1.8 million during the quarter. Positive cash flow from operations was in excess of $650,000.
"At a time when IT companies are facing a continued depressed economic environment, Lionbridge is staying the course with steady financial results from quarter to quarter," said Rory Cowan, Chairman and CEO, Lionbridge. "We are seeing the results of our broadened customer mix, strong recurring revenue and customer loyalty. With continued focus on top-line growth, cost control and organizational stability, we are look forward to a strong second quarter and positive net income occurring during the second half of the year."
In the core localization business and in VeriTest, Lionbridge continued to broaden its customer base with new activity in the life sciences, financial and consumer goods industries. Lionbridge also benefited by the high recurring revenue nature of its business model and its loyal and satisfied customer base. About 70% of Lionbridge revenue for the quarter came from customers that have consistently done business with the Company within each of the past eight consecutive quarters.
"Lionbridge continues to deliver high quality services to clients, while shedding excess costs. Many new customer projects began in the first quarter and our sales activity looks strong. This, combined with significant work in process, suggests a strong Q2 and the likelihood of meeting or exceeding previously communicated targets. These results demonstrate just how well Lionbridge is executing in this challenging economic climate," continued Cowan.
Highlights for the quarter included:
- Premier localization customer wins. In the first quarter, Lionbridge
secured multi-million dollar contracts with British Telecom, Microsoft
(Digital Media Division and Windows Update Division) and the Lexmark
consumer printer division.
- Testing and certification programs expand. VeriTest, the testing
division of Lionbridge, expanded its Microsoft certification programs
with the addition of Pocket PC 2002 and Smartphone 2002 certification
programs. VeriTest also secured a win at Blue Cross Blue Shield of
Massachusetts and was selected as the company's primary testing
partner.
- Operational Efficiencies: Lionbridge continued to reduce its Sales and
Marketing and G&A expenses both quarter on quarter and year on year,
confirming the Company's continued focus on fixed expense reduction.
The Company will host a conference call today at 5:00 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 at www.lionbridge.com/webcast/Apr29/. A replay will be available at this location for one week.
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 performance for future periods, 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.
LIONBRIDGE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Amounts in thousands, except per share data)
Three Months Ended
March 31,
2002 2001
Revenue $ 24,890 $ 27,280
Cost of revenue 15,391 17,065
Gross profit 9,499 10,215
Operating expenses:
Sales and marketing 2,440 3,126
General and administrative 7,298 8,931
Research and development 418 644
Amortization of acquisition-related
intangible assets 182 1,670
Merger, restructuring and other charges --- 125
Stock-based compensation 225 148
Total operating expenses 10,563 14,644
Loss from operations (1,064) (4,429)
Interest expense, net 870 542
Other expense, net 206 418
Loss before income taxes (2,140) (5,389)
Provision for (benefit from) income taxes (255) 143
Net loss $(1,885) $(5,532)
Basic and diluted net loss per share $(0.06) $(0.20)
Shares used in computing basic and diluted
net loss per share 31,521 27,826
LIONBRIDGE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
2002 2001
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $10,281 $11,711
Accounts receivable, net of allowances of
$682 and $932 at March 31, 2002
and December 31, 2001, respectively 13,166 16,791
Work in process 5,902 4,286
Other current assets 1,716 1,336
Total current assets 31,065 34,124
Property and equipment, net 3,900 4,463
Goodwill, net 14,050 13,890
Other intangible assets, net 897 1,079
Other assets 1,615 1,191
Total assets $51,527 $54,747
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion
of long-term debt $9,638 $9,600
Accounts payable 7,613 7,121
Accrued expenses 13,464 12,641
Deferred revenue 1,751 3,053
Total current liabilities 32,466 32,415
Long-term debt, less current portion and
net of discount of $2,746 and $2,898
at March 31, 2002 and
December 31, 2001, respectively 15,519 17,318
Other long-term liabilities 1,412 1,566
Total stockholders' equity 2,130 3,448
Total liabilities and stockholders' equity $51,527 $54,747