The company also finalized the acquisition of Indiana-based Productive Resources, LLC. Lionbridge expects that the recurring contracts with manufacturing and industrial clients will support Lionbridge’s diversification and address the demands for integrated solutions to enable organizations to create technical documentation.
“We are starting to see the benefits of our new offerings, new strategy and new cost platform. Our Global Marketing Operations offering is driving new growth opportunities. Our vertical market strategy is allowing us to effectively diversify our client base. Our SaaS offerings are beginning to scale. And we are completing the final stages of our previously-announced restructuring program,” said Rory Cowan, CEO of Lionbridge. “With this solid revenue and profit momentum, we expect our ongoing positive financial performance to continue in the second half of 2012 with continued expansion in 2013.”
A financial recap of the second quarter reported highlights includes:
A 5% revenue increase of $5.9M to $119.2M versus second quarter 2011
GAAP net income of $2.5 million or $0.04 per share based on 60.4 million weighted average fully diluted common shares outstanding
Non-GAAP adjusted earnings of $11.1 million or $0.18 per share, a year-on-year increase of $6.8 million or $0.11 per share from the second quarter of 2011 and the strongest non-GAAP earnings in the Company’s history
Cash flow from operations of $6.6 million.
An ending cash balance of $19.6 million
During the quarter the Company paid down $4.0 million of the $10.0 million debt related to its June 1 acquisition of Productive Resources
Total first-half reported financial highlights include:
Revenue of $231.3 million, an increase of $18.4 million or 9% compared to the first half of 2011.
GAAP net income of $4.2 million or $0.07 per share based on 59.9 million weighted average fully diluted common shares outstanding. This marks an increase of $7.9 million or $0.13 per share year-on-year compared to the first half of 2011.
Non-GAAP adjusted earnings of $15.0 million or $0.25 per share, a year-on-year increase of $12.4 million or $0.21 per share from the first half of 2011. The Company defines non-GAAP adjusted earnings as net income excluding merger, restructuring and 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 these measures to the comparable GAAP measure. Excluding a PRI acquisition-related tax benefit of $3.2 million, first half non-GAAP earnings were $11.8 million or $0.20 per share.
Looking ahead to the third quarter, Lionbridge expects revenue of$112-$115M, which reflects seasonality.
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