Nov. 5, 2009 (PR Newswire) -- WALTHAM, Mass., Nov. 5 /PRNewswire-FirstCall/ -- Lionbridge Technologies, Inc. (Nasdaq: LIOX) today announced financial results for the third quarter ended September 30, 2009. Financial and business highlights for the third quarter include:

--  Revenue of $97.8 million, reflecting the top end of previously provided
guidance of $93-98 million.
--  Income from operations of $2.2 million excluding restructuring expenses
outlined below, an improvement of $1.3 million compared to the third
quarter of 2008, despite the $16 million year-on-year revenue decline.
This reflects the benefits of the Company's ongoing cost management
initiatives which reduced SG&A expenses by $5.0 million as compared to
the third quarter of 2008.
--  Restructuring expense of $1.3 million, reflecting the Company's
continued implementation of its previously-announced cost reduction
program.
--  GAAP net loss of $1.0 million or ($0.02) per share based on 56.1 million
weighted average common shares outstanding.  GAAP net loss is in line
with current analyst consensus.
--  Excluding restructuring expenses, the Company's generated net income of
$325,000 or $0.01 per share.
--  Non-GAAP adjusted earnings of $2.4 million, or $0.04 per share. The
Company defines non-GAAP earnings as net income excluding merger,
restructuring and related 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.
--  Cash flow from operations of $806,000.
--  Ending cash balance of $24.2 million or $0.43 per share.
--  Lionbridge repaid $5.0 million of its long term debt during the quarter.
The Company has reduced its debt by $28 million from the third quarter
of 2008.  As a result, the Company's net debt is now $7.5 million, the
lowest since 2005.

--  The Company also secured several new, large client agreements including
a world-leading biotech company, a global manufacturer of wireless
devices and a provider of human capital management solutions.

In October, Lionbridge announced its Translation Workspace(TM), the translation industry's first Software-as-a-Service (SaaS)-based language technology platform. By making the Company's proven translation technology platform available to individual translators and agencies in a subscription-based licensing model, Lionbridge is expanding its market opportunities while bringing innovative technology solutions to market.

"The third quarter reinforced several positive trends. Our pipeline of new business in our core language segment is the strongest it has been in over seven quarters. Our existing customers are beginning to recover as they experience growth in global markets. And we are benefitting from our initial cost reduction efforts. Despite some currency headwinds during the quarter, the business seems to be strengthening on all fronts," said Rory Cowan, CEO, Lionbridge. "We expect a positive finish to a challenging year. Our pipeline is improving. We are expanding our market opportunities with a new technology platform. And we are continuing to reduce costs to enhance profitability. This indicates positive momentum for 2010."

The Company provided its outlook for the fourth quarter of 2009 with estimated revenue of $98 -$102 million.

For FY 2010 Lionbridge provided a preliminary outlook with estimated revenue growth of 5-10% and solid expansion of income as the Company realizes the benefits of a strengthening demand environment and its ongoing cost reductions.

The Company will host a conference call today at 9:00 am ET regarding the content of this release as well as the Company's overall outlook going forward and other matters. 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 http://www.lionbridge.com/webcast/nov5/ . A replay will be available at this location for one week.

Non-GAAP Financial Measures

In this release, the Company's non-GAAP Adjusted Earnings disclosures 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 or cash provided by operating activities. Adjusted Earnings represents GAAP net income excluding amortization of acquisition-related intangible assets, merger, restructuring and related costs and stock based compensation expenses. Adjusted Earnings are presented because management believes it provides additional information with respect to both the performance of our fundamental business activities as well as the Company's ability to meet future debt service and working capital requirements. Management believes the adjusted earnings information is useful to investors for these reasons. Management believes the most directly comparable GAAP financial measure is net income and has provided a reconciliation of Adjusted Earnings to net income at the end of this release.

About Lionbridge

Lionbridge Technologies, Inc. (Nasdaq: LIOX) is a provider of globalization and offshoring services.