WALTHAM, Mass. - January 17, 2002 - Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced, based on a preliminary review of its accounts, that it expects revenues of between $25.0 million and $25.6 million for its fourth quarter of 2001, which ended December 31, 2001. Preliminary indications are that the Company will materially exceed EBITDA guidance it previously provided, and now expects to achieve positive operating EBITDA for the quarter. The Company also expects to attain gross margins in the 40 percent range.
Based on these preliminary unaudited fourth quarter results for the year ended December 31, 2001, the company expects to report revenues in the range of $100.0 to $103.0 million compared to $115.1 million for the fiscal year ended December 31, 2000.
Management is also re-affirming its previous financial guidance for fiscal year 2002. The Company projects fiscal year 2002 revenue between $115.0 million and $125.0 million, which leads to positive net income in the early second half of 2002.
"We expect to achieve positive EBITDA for the quarter and to achieve gross margins in the 40 percent range, a level not seen for over a year. Exceeding expectations in this uncertain economic environment underscores the strength and discipline of our management team and the resilience of our business model," said Rory Cowan, chairman and CEO, Lionbridge. "We remain optimistic about our future and believe this marks a trend toward long term, sustainable profitability."
As previously scheduled, the Company will report full financial information for the fiscal 2001 fourth quarter on January 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 performance for the quarter and 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; Lionbridge's ability to raise additional capital; customer delays or postponements of services; the difficulties Lionbridge may encounter in the integration of operations of Data Dimensions; 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 Registration Statement on Form S-4 filed with the Securities and Exchange Commission on April 9, 2001, and its Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 2, 2001; its Registration Statement on Form S-4 filed with the Securities and Exchange Commission on April 9, 2001 and the amendment thereto filed on May 10, 2001and its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2001.