Lionbridge Technologies (LIOX) is a leading provider of globalization, testing and application development services that enable customers to create and manage technology applications and enterprise content in various languages. The company reported weaker-than-expected revenues and swung to a GAAP net profit in the third quarter due to cost reduction and currency hedging initiatives as well as lower taxes.

The company has embarked on a cost-cutting initiative by transitioning to a virtual workforce, working from home by reducing office space lease especially in Europe. We are reducing our revenue estimates while projecting marginal profit on a U.S. GAAP basis for the full year 2008. We rate LIOX a Hold.

We believe that there is not much downside to the stock after it has steadily sunk to the current level from April 2007, although we remain cautious about its growth prospects going forward. We now expect the stock to have a limited

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It was another whipsaw session on the Street as stocks staged a late-day rally to pare early losses and finish deep in the green. The Dow climbed 165 points to close at 11,434.

The big surge came in response to word that Lehman Brothers, Inc. (LEH), the beleaguered investment bank, had entered into conversations with possible suitors after Moody's Investors Services said the company needs to find a "stronger financial partner." Lehman has been aggressively pursuing additional capital support as the company suffers from a portfolio of deteriorating assets and mounting losses.

Adding to the gloomy macro-level economic picture was the Commerce Department's report that the national trade deficit grew to its highest level in 16 months in July, climbing 5.7% to $62.2 billion. The reading was worse than analyst projections of $58 billion, driving the deficit between imports and exports to its highest level since March

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