Lionbridge Technologies (LIOX) Tops Q3 EPS by 6c; Acquires Geotext Translations; Approves Stock Buyback

Lionbridge Technologies (NASDAQ: LIOX) reported Q3 EPS of $0.14, $0.06 better than the analyst estimate of $0.08. Revenue for the quarter came in at $138.6 million versus the consensus estimate of $146.44 million.

The company also announced that it has acquired New York-based Geotext Translations, Inc., a privately held provider of legal translation services. The addition of Geotext will enable Lionbridge to meet growing demand for integrated, high-quality legal translation solutions and access Geotext's long-standing relationships with clients in the legal industry.

"International transactions and commerce have fueled the need for specialized legal translation services, from patent translation, to support for eDiscovery in complex litigation, to translation of commercial contracts. As content in the legal market continues to grow, the demand for integrated, high-quality translation services is accelerating," said Rory Cowan, CEO, Lionbridge. "Geotext is the ideal partner for Lionbridge, with a proven track record of providing trusted legal translation services that offer clients unparalleled value, knowledge and experience. We will build upon Geotext's skills as we expand relationships with clients in this growing market sector."

"Geotext realizes significant benefits by becoming part of Lionbridge," said Joe Duncan, CEO of Geotext. "We gain a powerful worldwide sales channel and a proven global delivery platform to complement our New York, London and San Francisco operations. The relationship will increase our production capacity while expanding our footprint across diverse international legal markets such as Brazil, China, Germany, Korea and beyond. Our clients will benefit from Lionbridge's global team of experts in offices across 28 countries and cutting-edge technology solutions that can be applied to large-scale litigations and investigations around the world."

Geotext had unaudited trailing twelve months of revenue of approximately $17 million for the period ended September 30, 2015. Lionbridge is purchasing Geotext for a total estimated cash consideration of approximately $11 million and additional earn-out potential which would be payable in cash over three years, subject to the attainment of certain revenue metrics. The consideration is being satisfied using Lionbridge's existing cash resources. The Company expects the acquisition will contribute modestly to non-GAAP earnings in 2016, including minimal acquisition and integration costs.

Buyback Program:

Lionbridge also announced that its Board of Directors has authorized a share repurchase program allowing the Company to repurchase up to $50 million of the Company's common stock through the end of fiscal year 2018. The new authorization represents an increase of $32 million from the previous $18 million share repurchase program that was announced in November of 2012 and which has now expired.

"This new share repurchase program marks a significant increase from our previous buyback program, underscoring our ongoing confidence in the long-term financial success of Lionbridge and our commitment to increase shareholder value," said Rory Cowan, CEO of Lionbridge. "We will continue to use our capital to fund growth, both organically and by acquisitions. With recurring revenue streams across diverse end markets, increasing demand for our global crowd-in-the-cloud offerings, and our expectations for ongoing profit and cash flow expansion, we believe Lionbridge is well positioned to proceed with both acquisitions and share repurchases while maintaining our leverage at a reasonable level.

Under the program, the Company's common stock may be purchased through a combination of a 10b5-1 automatic trading plan and discretionary purchases on the open market, through block trades or in privately negotiated transactions as permitted under Securities Exchange Act of 1934 Rule 10b-18 . The amount of shares purchased and the timing of the purchases will depend on a number of factors, including trading price, trading volume and general market conditions, as well as on working capital requirements, general business conditions and other factors, including alternative investment opportunities.

For earnings history and earnings-related data on Lionbridge Technologies (LIOX) click here.

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