Lionbridge Secures New Multi-Year Agreements Estimated to Generate $70-90 Million in Revenue
Seven New Programs Expected to Drive $25-30 Million in FY 2009; Reflects Positive Trends as Companies Increase Outsourcing to Reduce Costs
WALTHAM, Mass. (January 27, 2009) – Lionbridge Technologies, Inc. (Nasdaq: LIOX), today announced that it has secured several new, multi-year, multi-million dollar relationships with leading organizations in the aerospace, technology, life sciences and services industries. Lionbridge estimates the value of the new programs will total $25-30 million per year. The new programs include:
• A new, five year, $40 million contract with a leading provider of power systems and services for use on land, at sea and in the air. With this agreement, Lionbridge will be the preferred provider of technical authoring and illustration and will manage the program across its solution centers in the US, UK, Germany and India.
• A new, three-year relationship with a leading supplier of manufacturing process optimization software. Lionbridge estimates the program will generate more than $8 million over the term of the agreement as Lionbridge provides a complete outsourced solution for the internationalization, localization and maintenance of 71 products across nine languages.
• A one year, renewable contract expansion with an existing client that specializes in printing, personal computing, software, services and IT infrastructure. Lionbridge estimates this new program will generate an incremental $10 million in revenue in FY 2009. With the agreement Lionbridge will be the dedicated outsourcing partner for planning, development and testing of printers, sub-systems and components.
• A new three year, $7 million contract with a large broadband communications provider. As the sole provider of a comprehensive competitive analysis program, Lionbridge will deliver a nationwide competitive data and video performance measurement program and a diagnostic testing system.
• A one year program with one of the largest rehabilitation companies in the United States. As the client’s selected provider for curriculum development and application development, Lionbridge estimates the program will generate $2.5 million in FY 2009 with potential extensions into 2010 and beyond based on certain performance metrics.
• A master services agreement with a leading global online employment provider. Lionbridge was recently selected as a primary translation partner, a program that Lionbridge estimates will generate at least one million dollars per year starting in FY 2009.
“In today’s challenging economic environment, organizations are turning to outsourcing to optimize their business for long-term efficiency. In addition, many companies derive more than half of their revenue from international markets with continued growth in emerging economies. As the market leader, Lionbridge is becoming the outsourcing partner of choice as companies seek a partner with financial strength and stability and a proven track record of quality,” said Rory Cowan, CEO, Lionbridge. “In the past few months we have seen our new business opportunities accelerate. This puts us on firm footing as these programs ramp up in 2009.”
Lionbridge Technologies, Inc. (NASDAQ: LIOX) is a leading provider of globalization, development and testing services. Lionbridge combines global onshore, near shore and offshore resources with proven program management methodologies to serve as an outsource partner throughout a client’s product and content lifecycle - from development to globalization, testing and maintenance. Global organizations in all industries 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® and VeriTest® brands. To learn more, visit http://www.lionbridge.com.
This press release contains express or implied forward-looking statements, including statements relating to estimated revenues associated with customer engagements and expected customer demand for the Company’s services. Lionbridge's actual experiences and results may differ materially from those discussed in the forward-looking statements. Factors that might cause such a difference include; the termination of customer contracts or engagements prior to the end of their term; the size, timing and recognition of revenue; continued uncertainty, volatility or deterioration in global economic conditions that could negatively affect demand for the Company’s services; continued fluctuations in political, economic and business conditions, and additional downturns in worldwide economic conditions generally, and in the information technology and software industries specifically; Lionbridge’s ability to forecast revenue, profitability and customer demand; Lionbridge’s ability to perform services in lower cost operational locations; and customer delays or postponements of services. For a more detailed description of the risk factors associated with Lionbridge, Please refer to Lionbridge’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2008.