Sajan, Inc., (OTCQB: SAJA) a provider of global language services
and translation management software, today reported financial
results for the three and nine months ended September 30, 2012.
Revenues for the quarter ended September 30, 2012 were $5.2
million, which represented approximately the same revenue as the
quarter ended September 30, 2011. The Company reported a net loss
for the third quarter of 2012 of $43,000, or $0.00 per share,
compared to net loss of $142,000 or $0.01 per share for the same
quarter last year. Financial results included non-cash expense
related to stock options of $17,000 in the three months ended
September 30, 2012 compared to $54,000 in the three months ended
September 30, 2011.
Revenues for the nine months ended September 30, 2012 were $15.3
million, which represented a decrease of 3% from revenues for the
same period in 2011 of $15.8 million. Net loss for the nine months
ended September 30, 2012 was $1,000,000, or $0.06 per share,
compared to net loss of $160,000 or $0.01 per share for the same
period last year. Financial results for the nine month periods
included non-cash expense related to stock options of $122,000 in
the nine months ended September 30, 2012 compared to $183,000 in
the nine months ended September 30, 2011.
In January 2012 the Company closed its software development
facility in India and restructured its research and development
operations at its headquarters with a focus on developing software
enhancements that are expected to improve internal operational
efficiency. In the third quarter of fiscal 2012 the Company
capitalized $139,000 of software development costs related to these
system enhancements. No software development costs were capitalized
in the prior year comparable period. The Company expects to
complete this system enhancement program early in 2013 and realize
operational efficiency improvements thereafter.
Adjusted EBITDA improved in the third quarter of 2012 as
compared to both the third quarter of 2011 and on a sequential
basis. For the quarter ended September 30, 2012 Adjusted EBITDA was
$216,000, which represented a 104% increase from Adjusted EBITDA in
the third quarter of 2011 of $106,000. Adjusted EBITDA for the
three months ended September 30, 2012 was 167% higher than Adjusted
EBITDA for the three months ended June 30, 2012 of $81,000. See the
Non-GAAP Financial Measures section below for a detail definition
of Adjusted EBITDA.
Three Months Ended Nine Months Ended
Adjusted EBITDA September 30, September 30, September 30, September 30,
2012 2011 2012 2011
------------- ------------- ------------- -------------
Net loss $ (43,000) $ (141,000) $ (1,013,000) $ (159,000)
Interest expense 23,000 19,000 70,000 54,000
Income taxes 34,000 - 34,000 -
Depreciation and
amortization 185,000 174,000 589,000 553,000
Stock-based
compensation 17,000 54,000 122,000 183,000
------------- ------------- ------------- -------------
Adjusted EBITDA $ 216,000 $ 106,000 $ (198,000) $ 631,000
"The current year started with an off quarter, but our
performance has progressively improved during the year as we have
improved our Adjusted EBITDA each quarter since. We plan to build
on this positive momentum during the fourth quarter of 2012," noted
Sajan CEO, Shannon Zimmerman.
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 10:30 a.m.
(Central time) on November 12, 2012. The company invites all those
interested to join the call by dialing 1-888-469-1336 and entering
access code 7540313. For those who cannot listen to the live
broadcast, a replay will be available shortly after the call and
until 5:30 p.m. CT on November 19, 2012 by dialing
1-888-566-0465.
About Sajan
Sajan is a leading provider of global language translation and
localization services, helping clients around the world expand
seamlessly into any global market. The foundation of our solution
is our industry-leading language translation management system
technology -- GCMS™ -- which provides process automation and
innovative multilingual content reuse to provide schedule
predictability, higher quality and cost efficiencies to our
clients. By working closely with our clients, Sajan's experienced
team of localization professionals develops tailored solutions,
which provide flexibility to any large or small business that truly
desires to "think globally, but act locally." Based out of the
United States, we also have offices in Ireland, Spain and
Singapore. Sajan is publicly traded under the symbol SAJA. Learn
more about Sajan at www.sajan.com.
Non-GAAP Financial Measure
We calculate Adjusted EBITDA by taking net income calculated in
accordance with GAAP, and adding interest expense, income taxes,
depreciation and amortization, and stock-based compensation. We
believe that this non-GAAP measure of financial results provides
useful information to management and investors regarding certain
financial and business trends relating to our financial condition
and results of operations. Our management uses this non-GAAP
measure to compare our performance to that of prior periods for
trend analyses, for purposes of determining management incentive
compensation, and for budgeting and planning purposes. This measure
is used in monthly financial reports prepared for management and
our board of directors. We believe that the use of this non-GAAP
financial measure provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
our financial measures with other companies, many of which present
similar non-GAAP financial measures to investors.
Our management does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of this non-GAAP
financial measure is that it excludes significant expenses and
income that are required by GAAP to be recorded in our consolidated
financial statements. In addition, it is subject to inherent
limitations as it reflects the exercise of judgments by management
about which expenses and income are excluded or included in
determining this non-GAAP financial measure. In order to compensate
for these limitations, management presents non-GAAP financial
measures in connection with GAAP results. We urge investors to
review the reconciliation of our non-GAAP financial measures to the
comparable GAAP financial measures and not to rely on any single
financial measure to evaluate our business.
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 Annual Report on Form 10-K for the year ended December
31, 2011 filed with the Securities and Exchange Commission on March
30, 2012, 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. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues $ 5,155,120 $ 5,185,758 $15,331,619 $15,816,444
Operating Costs:
Cost of revenues
(exclusive of
depreciation and
amortization) 3,303,260 3,053,872 9,947,087 9,350,483
Sales and marketing 571,371 647,477 1,814,143 1,908,708
Research and development 182,517 443,608 948,323 1,235,749
General and
administrative 893,267 986,425 2,843,486 2,890,473
Loss on subsidiary
closure - - 80,113 -
Depreciation and
amortization 184,846 173,746 589,081 552,953
----------- ----------- ----------- -----------
Income (loss) from
Operations 19,859 (119,370) (890,614) (121,922)
Other income (expense),
net (29,074) (21,797) (88,886) (36,619)
----------- ----------- ----------- -----------
(9,215) (141,167) (979,500) (158,541)
Loss before income taxes
Income tax expense 33,575 - 33,575 -
----------- ----------- ----------- -----------
Net loss $ (42,790) $ (141,167) $(1,013,075) $ (158,541)
=========== =========== =========== ===========
Loss per common share -
basic & diluted $ (0.00) $ (0.01) $ (0.06) $ (0.01)
----------- ----------- ----------- -----------
Weighted average shares
outstanding - basic &
diluted 16,185,804 16,027,799 16,183,600 16,019,386
=========== =========== =========== ===========
Sajan, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
30-Sept-12
(Unaudited) 31-Dec-11
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 660,702 $ 1,763,249
Accounts receivables, net of allowance of
$15,000 3,144,274 3,501,898
Other current assets 1,656,871 1,293,591
------------- -------------
Total current assets 5,461,847 6,558,738
Property and equipment, net 853,669 758,440
Other assets, net 785,719 1,100,614
------------- -------------
Total assets $ 7,101,235 $ 8,417,792
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Payables $ 2,568,521 $ 2,507,490
Other current liabilities 1,621,789 2,116,333
------------- -------------
Total current liabilities 4,190,310 4,623,823
Long-term liabilities 765,805 788,528
------------- -------------
Total liabilities 4,956,115 5,412,351
------------- -------------
Stockholders' equity 2,145,120 3,005,441
------------- -------------
Total liabilities and stockholders' equity $ 7,101,235 $ 8,417,792
============= =============
Contact: Shannon Zimmerman Chief Executive Officer/Chief
Financial Officer email: szimmerman@sajan.com phone:
715-426-9505
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