Lionbridge reports Q2 results with record revenue of $143.8 million, GAAP EPS of $0.09 and record non-GAAP EPS of $0.19
August 5, 2015 -
Delivers 10% Revenue Growth and 58% non-GAAP Earnings Growth Year-on-Year; Provides Positive Outlook for Q3 with Expected Revenue Growth of More Than 20% Year-on-Year
WALTHAM, Mass. – August 05, 2015 – Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced revenue and earnings for the second quarter ended June 30, 2015. Financial highlights for the second quarter include:
- Record revenue of $143.8 million, an increase of $13.2 million or 10% compared to the second quarter of 2014 and a sequential increase of $7.0 million, or 5%, compared to the first quarter of 2015.
- GAAP net income of $5.5 million, or $0.09 per share, based on 62.4 million weighted average fully diluted common shares outstanding. GAAP net income increased $1.7 million, or $0.03 per share, year-on-year compared to the second quarter of 2014 and increased $2.4 million, or $0.04 per share, sequentially compared to the first quarter of 2015.
- Record non-GAAP adjusted earnings of $11.8 million or $0.19 per share. The Company defines non-GAAP adjusted earnings as net income excluding merger, restructuring and acquisition-related costs, asset impairment costs, stock-based compensation, and amortization of acquisition-related intangible assets. Please see the section of this release entitled “Non-GAAP Financial Measures” and the attached table for details and reconciliations of this measure to the comparable GAAP measure.
The Company recently secured several significant new customer engagements, including a global leader in medical devices, a leading UK-based publishing company, a Fortune 150 industrial electronics company, a market leader in robotics and a global financial information firm.
“Our positive second quarter results indicate strengthening demand across our business. While our largest client continued to be down year-on-year, they grew notably sequentially from Q1. And we expect growth from this client in the second half. At the same time, we continue to diversify our business across vertical markets, secure new wins in marketing services and scale our new onDemand translation platform,” said Rory Cowan, CEO of Lionbridge. “We enter the second half of the year with confidence. Revenue momentum continues to build. Revenue from our largest client is returning. We are beginning to see the early synergies related to our CLS acquisition. As a result, we expect a strong second half of 2015 for both revenue and earnings with ongoing expansion in 2016.”
During the quarter the Company was recognized as one of “America’s 100 Most Trustworthy Companies” by Forbes for the second consecutive year. The Company also recently was named as the world’s largest language services company by Common Sense Advisory (CSA), an independent market research firm for the fourth consecutive year.
Lionbridge provided outlook for the third quarter of 2015 with estimated revenue of $145-147 million, which would reflect year-on-year growth of 21-22% as compared to the third quarter of 2014.
Lionbridge management will conduct a conference call at 9:00 a.m. ET this morning to discuss financial performance for the quarter and other matters, including matters related to its future performance. To participate, callers within the United States can dial 800-369-1719 and international callers can dial 517-308-9398. The pass code for the call is “Lionbridge”. The conference call will also be available live via this link.
Non-GAAP Financial Measures
In this release, the Company’s adjusted earnings and adjusted earnings per share are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. These measures are presented because management believes they provide additional information to investors with respect to the performance of our fundamental business activities. “Adjusted earnings” and “Adjusted Earnings per Share (EPS)” are Non-GAAP financial measures and should not be viewed as alternatives to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure for these measures are net income and diluted net income per share and has provided a reconciliation of GAAP net income to adjusted earnings and adjusted earnings per share at the end of this release.
Lionbridge enables more than 800 world-leading brands to increase international market share, speed adoption of products and effectively engage their customers in local markets worldwide. Using our innovative cloud technology platforms and our global crowd of more than 100,000 professional cloud workers, we provide translation, online marketing, global content management and application testing solutions that ensure global brand consistency, local relevancy and technical usability across all touch points of the customer lifecycle. Based in Waltham, Mass., Lionbridge maintains solution centers in 28 countries. To learn more, visit http://www.lionbridge.com.