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Lionbridge Technologies' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Let’s talk a little about our demand environment and our strategy for continued long-term growth. First, we have a lot of new offerings, particularly our GMO or global marketing operations solution. Second, we’re reconfiguring our go-to-market strategy around new vertical market expansions; and third, we’re getting some strong growth from many of our large existing clients, and this is that recurring revenue model that we focus on here so much.

Let’s go into some detail on each of these. Our GMO, or global marketing operations – and as a reminder, with GMO we create, deploy, and manage digital marketing programs across all geographies and technical platforms. So it really is technical knowledge and content knowledge in a global deployment to maintain everything from advertising campaigns to general websites for people. We launched GMO last year as we saw a growing demand from marketing executives who struggled with the complexity of managing campaigns globally.

The other unique thing about GMO is that we’re moving from a product-oriented decision maker in large organizations to a market-oriented decision maker in large organizations. The value proposition for GMO is much broader than a traditional translation solution and involves a variety of global capabilities. GMO is now on track to generate more than $10 million of incremental revenue in 2012 over 2011, and clearly it’s one of our strongest growth areas. And with GMO we can command a value-based pricing as we accelerate our client time to market and reduce their total costs.

So it’s getting significant traction in 2012 and should drive further growth in 2013. I think GMO is another example about how Lionbridge really excels in all aspects of the global digital publishing lifecycle. We do this for websites, we do this for advertising campaigns, and as products and websites merge our product knowledge and our web knowledge and our globalization knowledge are coming together for the newly-architected global products as well.

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