Common Sense Advisory Releases Ranking of Top 20 Translation and Localization Providers for 2006; Companies realize 24.5 percent average growth

(BOSTON, MA) - Common Sense Advisory has released its annual ranking of the top 20 translation and localization companies doing business in North America and Europe. The list, which is based on the 2006 fiscal year, includes SDL International (SDL), Moravia, L-3, and Hewlett-Packard ACG. Three new providers join the list this year, including Language Line which vaults onto the 2006 rankings in fourth position; while McNeil Multilingual drops off the list.

The total revenue accounted for by the Top 20 language service providers(LSPs) has grown steadily since 2004. From 2004 to 2005 these leading LSPs grew slightly faster than Common Sense Advisory’s estimate of 7.5 percent (see “Ranking of Top 20 Translation Companies,” Mar06). However, they leapt 36.7 percent from 2005 to 2006 – fully 4.8 times the sector growth rate. Adds COO and report analyst Renato Beninatto, “We attribute some of that increase to revenue consolidation and the big jump in language-related activities for Iraq, Afghanistan, Guantanamo, and other defense and intelligence needs.”

Overall, the language service providers in Common Sense Advisory’s Top 20 list averaged 24.5 percent growth over the previous year. Some grew by acquisition, others organically, and some others by virtue of foreign exchange. Five LSPs dramatically exceeded the average, with the top two – Moravia and L-3 – growing organically.

“Looking forward to next year, we expect more changes due to market consolidation, growth in rapidly developing countries, the economic pressures of outsourcing, business reversals, and contract losses. In the next year or two, we also expect to break out software revenue from companies like SDL as they reinvent themselves into technology companies,” explains president and chief research officer Don DePalma.

“Ranking of Top 20 Translation Companies for 2006” is an update to the 2004 and 2005 rankings and is available at http://www.commonsenseadvisory.com/members/res_cgi.php/070502_Q_Top_20.php. A webinar to review the findings is scheduled for Tuesday, May 8, 2007 at 9:00 a.m. (Eastern) for members of Common Sense Advisory’s research.

About Common Sense Advisory, Inc.

Common Sense Advisory, Inc. is a research and consulting firm committed to the objective analysis of the business practices, services, and technology driving translation, localization, and business globalization. Its analysts deliver in-depth reports on topics including: website and translation content management; translation services and best practices; product and website localization; software supporting international business; on- and off-line ethnic marketing and messaging; and more. The firm also provides hands-on consulting and training to global business teams. For more information, visit www.commonsenseadvisory.com.