Lionbridge Technologies (LIOX) has reported 2.42 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2.66 million, or $0.05 a share in the quarter, compared with $2.73 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.69 million, or $0.13 a share compared with $8.68 million or $0.14 a share, a year ago.
Revenue during the quarter went down marginally by 2.47 percent to $135.18 million from $138.60 million in the previous year period. Gross margin for the quarter expanded 80 basis points over the previous year period to 33.72 percent. Total expenses were 95.91 percent of quarterly revenues, down from 96.78 percent for the same period last year. This has led to an improvement of 87 basis points in operating margin to 4.09 percent.
Operating income for the quarter was $5.53 million, compared with $4.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.05 million compared with $12.76 million in the prior year period. At the same time, adjusted EBITDA margin improved 45 basis points in the quarter to 9.66 percent from 9.21 percent in the last year period.
"2016 has been a year of transformation. Our reconfiguration into business units is proving to be the right decision. Our leaders are focused and energized. Our new business momentum is returning. We are seeing larger, longer-term contracts. We are reducing our SG&A expenses to maximize profitability. And, despite some lumpiness in the quarter, we are starting to see new growth opportunities in some of our largest accounts," said Rory Cowan, chief executive officer, Lionbridge. "With our organizational transformation complete, we expect to return to revenue growth in 2017 with ongoing earnings expansion."
For the fourth-quarter, Lionbridge Technologies forecasts revenue to be in the range of $134 million to $138 million.
Working capital decreases marginallyLionbridge Technologies has witnessed a decline in the working capital over the last year. It stood at $69.53 million as at Sep. 30, 2016, down 2.19 percent or $1.56 million from $71.08 million on Sep. 30, 2015. Current ratio was at 1.88 as on Sep. 30, 2016, up from 1.80 on Sep. 30, 2015. Days sales outstanding were almost stable at 76 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt moves upLionbridge Technologies has witnessed an increase in total debt over the last one year. It stood at $103 million as on Sep. 30, 2016, up 9.41 percent or $8.86 million from $94.15 million on Sep. 30, 2015. Total debt was 34.97 percent of total assets as on Sep. 30, 2016, compared with 31.42 percent on Sep. 30, 2015. Debt to equity ratio was at 1.16 as on Sep. 30, 2016, up from 0.99 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
