Lionbridge Technologies Inc. Q1 2010 Earnings Call Transcript

I do want to underscore, we shouldn’t all be swinging from the chandelier, because of the economy. There is still a sort of double approval process where we win a program, and then the individual sponsor within the business goes back for approval for the specific project under the program. So it’s a double approval process, which is sort of how we run our business here, and how everyone else is still running their businesses. But nonetheless we are seeing strengthening, and we are beginning to see quite a lot of new business.

Second, I think our large accounts are growing, and in fact if you look at our top 10 customers this quarter, and compare them to a year ago, you will see about 20% or 22% growth on those accounts year-on-year, and Google of course is one of our second large. We are a second largest customer now, so it’s growing very nicely for us as we really evolve that partnership well. So in some we are clearly seeing growth return, and we expect revenue to further accelerate in Q2 and in the second half of 2010.

Turning to our profit growth; as I mentioned our $12 million of incremental revenue, growth drove about $5.5 million of incremental GAAP profit year-on-year. I think this proves once again that there is leverage in our business, and because of our diligent cost management we are beginning to see great conversion from every incremental revenue dollar.

So in sum, not a lot more to talk about during the quarter, but I am pleased with our results and momentum we see for 2010. Now lets talk about our partnership with IBM, which is really some very big news for us in 2011, 2012 and onwards.

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