Cloud-Based Language Technology and Offshore Delivery Model Enhance
Efficiencies
WALTHAM, Mass., March 24 /PRNewswire-FirstCall/ -- Lionbridge (Nasdaq:
LIOX) today announced a global restructuring plan that will consolidate and
streamline several of its global operations and reduce overhead functions.
These actions complement Lionbridge's previous cost management activities and
will further optimize the Company's operating model, rationalize its
operations and improve profitability. The Company estimates the plan will
result in $18-20 million of total annualized cost savings and expects to
achieve $6-9 million of the cost savings in 2009.
As part of the restructuring plan, Lionbridge will reduce approximately
325 employees which comprise approximately 8% of the Company's total full time
workforce. The Company will also consolidate offices to streamline the
Company's global footprint and reduce fixed costs.
"Our technology investments over the past four years are enabling us to
increase quality and maximize efficiency. As a result, we are accelerating our
customer service and quality and reducing our global expenses," said Rory
Cowan, CEO, Lionbridge. "This plan enables us to adapt our Company to the
current demand levels and preserves our ability to invest in strategic
initiatives such as our cloud-based language platform and global sourcing and
search capabilities. We are moving forward as a leaner company while
maintaining our focus on innovation and customer quality."
To implement the restructuring plan, the Company expects restructuring
expenses of $13-15 million, the majority of which is expected to occur in FY
2009.
"After a challenging start to the year we are beginning to see our
traditional second quarter strengthening in select geographies," continued
Cowan. "These cost management actions reflect our strategy of combining
advanced language technology and offshore delivery to drive long-term growth
and profitability while providing superior value to clients."
About Lionbridge
Lionbridge Technologies, Inc. (Nasdaq: LIOX) is a leading provider of
translation, development and testing services with FY 2008 revenue of $461
million. Lionbridge combines global resources with proven program management
methodologies to serve as an outsource partner throughout a client's product
and content lifecycle -- from development to translation, testing and
maintenance. Global organizations rely on Lionbridge services to increase
international market share, speed adoption of global products and content, and
enhance their return on enterprise applications and IT system investments.
Based in Waltham, Mass., Lionbridge maintains solution centers in 26 countries
and provides services under the Lionbridge(R) and VeriTest(R) brands. To learn
more, visit http://www.lionbridge.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks
and uncertainties, including expected cost savings and improvements to
profitability, financial performance and the timing of such activities,
savings and improvements. These statements are not historical facts, but
instead represent only the Company's expectations, estimates and projections
regarding future events. These statements are not guarantees of future
performance or results and involve certain risks and uncertainties that are
difficult to predict. Lionbridge's actual experiences, actions, cost savings,
financial and operating results may differ materially from those discussed in
the forward-looking statements. Factors that might cause such a difference
include costs associated with restructuring of certain operations in Europe
and other locations, the timing of actions and any anticipated benefits and
the ability to realize such benefits; the duration and outcome of
negotiations with works councils with respect to the timing of restructuring
and the details of proposed actions; reduced demand for the Company's
services that adversely impacts Lionbridge's future revenues, cash flows,
results of operations and financial condition and the Company's continued
compliance with the financial and other restrictive covenants under its
revolving credit agreement; the impact of foreign currency fluctuations on
restructuring actions, revenue, margins, costs, operating results and
profitability; political, economic and business fluctuations as well as risks
of additional downturns in conditions generally, and in the information
technology and software industries specifically, and risks associated with
competition; Lionbridge's ability to forecast cash flow, customer demand and
operating results; Lionbridge's ability to perform services in lower cost
operational locations and the timing of its transfer of service execution to
such locations, and customer acceptance of service execution in such
locations; the timing and speed of customer and user acceptance of
Lionbridge's language technology; the impact of competing language technology
on the Company's existing customer relationships and ability to secure new
customers; customer delays or postponements of services; changes in customer
procurement strategies. For a more detailed description of the risk factors
associated with Lionbridge, please refer to the Company's most recent Annual
Report on Form 10-K and subsequent filings with the SEC (copies of which may
be accessed through the SEC's website at http://www.sec.gov).
Contact: Sara Buda
781-434-6190
sara.buda@lionbridge.com
SOURCE Lionbridge Technologies, Inc.