RIVER FALLS, Wis., May 18 /PRNewswire-FirstCall/ -- Sajan, Inc.,
(Pink Sheets: SAJA) a provider of global language services and
cloud-based translation management software, today reported
financial results for its 2010 first quarter ended March 31, 2010.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20080109/AQW007LOGO)
First Quarter Financial Results
First quarter 2010 sales increased 4 percent to $3.1 million, as compared to $3.0 million for the same period of 2010.
The net loss attributable to Sajan for the first quarter of
2010 was approximately $1.5 million,
or $0.13 per share, compared to net
loss attributable to Sajan of approximately $204,000, or $0.04
per share for the same quarter last year. First quarter 2010
financial results included approximately $371,000, or $0.03
per share, of non-cash expenses related to stock option expenses
compared to approximately $16,000, or
$0.00 per share, in the prior year
comparable period. More complete financial information and
analysis is contained in the Company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on
May 17, 2010.
On February 23, 2010, MathStar,
Inc., ("Mathstar") a Delaware
corporation and Sajan, Inc. ("Sajan") a Minnesota corporation completed the merger of
Sajan with and into a wholly-owned subsidiary of MathStar and
MathStar changed its name to "Sajan, Inc." For accounting
purposes, Sajan is treated as the continuing reporting entity that
acquired MathStar because Sajan obtained effective control of
MathStar as a result of the Merger. Thus, the historical
results in our press releases and SEC filings represent those of
Sajan. For ease of reference, we use "Sajan" to refer to the
historical operations of Sajan and the "Company" to refer to the
combined MathStar and Sajan. In the first quarter of fiscal
2010, we recorded approximately $540,000, or $0.05
per share of transaction related costs, including legal,
accounting, filing and investment banking fees, associated with the
February merger.
"All at Sajan are excited the merger and associated transition
to a public reporting entity is nearly completed and about the
growth opportunities in the near future," said Shannon Zimmerman, the Company's chief executive
officer, president and interim chief financial officer. "With
the merger activities substantially behind us, we anticipate an
increase in second quarter revenues and an improvement in second
quarter financial performance as compared to the 2010 first
quarter," concluded Zimmerman.
Balance Sheet
On March 31, 2010, the Company
maintained a strong balance sheet with approximately $10.1 million in assets, including $3.8 million in cash and cash equivalents.
At the end of the first quarter, the Company had a current
ratio of 1.6 to 1.0 and a book value of $0.25 per share.
Conference Call Details
The Company's investors will have the opportunity to listen to
management's discussion of its business operations, financial
results and growth strategies on a conference call at 3:30 p.m. CT on May 27,
2010. The Company invites all those interested to join the
call by dialing 800-779-8307 and entering access code 4891413.
For those who cannot listen to the live broadcast, a replay
will be available shortly after the call and until 5:00 p.m. CT on June 4,
2010 by dialing 866-420-4825.
About Sajan
Sajan® is the leading provider of global language services and
cloud-based translation management software. Through our two
operating units, Sajan Global Language Services™ and Sajan
Software™, we deliver people, process and technology to help
enterprises mature their localization programs and global content
lifecycle. At the center of Sajan's offerings is the
industry's foremost translation management system, GCMS™, used by
over 650 clients to date. Our spectrum of delivery models and
nimble, entrepreneurial culture enable Sajan to be a partner for
any size and shape of localization initiative, across any
discipline and industry. Our website is
http://www.sajan.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for certain forward-looking statements. The Company's
Annual Report on Form 10-K, its Quarterly Report on
Form 10-Q and other filings with the Securities and Exchange
Commission, the Company's press releases and oral statements made
with the approval of an authorized executive officer, contain
forward-looking statements that reflect the Company's current views
with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from historical results or those anticipated. The words "aim,"
"believe," "expect," "anticipate," "intend," "estimate" and other
expressions that indicate future events and trends identify
forward-looking statements. Actual future results and trends may
differ materially from historical results or those anticipated
depending on a variety of factors, including, but not limited to
those set forth in the Company's Current Report on Form 8-K and
Annual Report on Form 10-K for the year ended
December 31, 2009 filed with the Securities and Exchange
Commission on February 24, 2010 and
March 31, 2010, respectively, under the heading "Item 1A. Risk
Factors". The Company does not undertake any obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Sajan, Inc., Subsidiaries and Affiliate
(River Valley Business
Center, LLC) (1)
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
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Three months ended
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March 31, 2010
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March 31, 2009
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Revenues
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3,140,202
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3,018,040
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Cost of
revenues
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1,761,503
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1,682,393
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Gross
margin
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1,378,699
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1,335,647
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Selling, general
and administrative expenses
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2,305,676
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1,456,159
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Research and
development
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568,586
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133,221
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Operating
loss
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(1,495,563)
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(253,733)
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Interest expense,
net
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(60,038)
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(56,208)
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Loss before income
taxes and non-controlling interests in subsidiary and
affiliate
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(1,555,601)
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(309,941)
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Income tax
benefit
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(62,311)
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(68,187)
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Non-controlling
interest in subsidiary and affiliate
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(1,919)
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(38,234)
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Net loss
attributable to Sajan, Inc. and subsidiaries
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$
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(1,495,209)
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$
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(203,520)
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Loss per common
share – Basic and diluted
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$
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(0.13)
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$
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(0.04)
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Weighted average
shares outstanding – Basic and diluted
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11,912,631
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5,686,250
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(1)
MathStar and Sajan consolidated as of February 24, 2010, River
Valley Business Center, LLC deconsolidated as of
February 23, 2010, and Sajan India Software
Private Limited consolidated as of June 1, 2009.
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Sajan, Inc., Subsidiaries and Affiliate (River Valley
Business Center, LLC) (1)
CONDENSED
CONSOLIDATED BALANCE SHEETS
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March 31, 2010
(Unaudited)
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December 31, 2009
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Assets
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Current
assets
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Cash
and cash equivalents
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$
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3,834,618
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$
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120,493
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Restricted cash
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1,000,000
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-
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Receivables, net
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2,340,642
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2,871,005
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Other
current assets
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1,090,594
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955,401
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Total current
assets
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8,265,854
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3,946,899
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Property and
equipment, net
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747,036
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3,349,556
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Other assets,
net
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1,084,500
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1,238,394
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Total
assets
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$
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10,097,390
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$
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8,534,849
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Liabilities and
Stockholders' Equity
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Total current
liabilities
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5,331,580
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4,035,535
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Long-term
liabilities
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719,205
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3,037,378
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Total liabilities
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6,050,785
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7,072,913
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Stockholders'
equity
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4,052,326
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1,243,735
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Non-controlling
interest in subsidiary and affiliate
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(5,721)
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218,201
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Total equity
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4,046,605
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1,461,936
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Total liabilities and
stockholders' equity
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$
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10,097,390
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$
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8,534,849
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(1)
MathStar and Sajan consolidated as of February 24, 2010, River
Valley Business Center, LLC deconsolidated as of February 23, 2010,
and Sajan India Software Private Limited consolidated as of June 1,
2009.
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SOURCE Sajan, Inc.