Sajan, Inc. Announces Financial Results for Third Quarter 2013
12 November 2013 - 1:00PM
Marketwired
Sajan, Inc. Announces Financial Results for Third Quarter 2013
RIVER FALLS, WI--(Marketwired - Nov 12, 2013) - Sajan, Inc.,
(OTCQB: SAJA) a provider of global language services and
translation management software, today reported financial results
for the quarter ended September 30, 2013.
Revenues for the quarter ended September 30, 2013 were $5.7
million, which represented an increase of 11 percent over revenues
for the quarter ended September 30, 2012 of $5.2 million. The
Company reported a net loss for the third quarter of 2013 of
$163,155, or $0.01 per share, compared to a net loss of $42,790, or
$0.00 per share for the same quarter last year. Adjusted EBITDA in
the quarter ended September 30, 2013 was $157,511 compared to
$216,609 in the quarter ended September 30, 2012. See the
section entitled "Non-GAAP Financial Measures" below for a
reconciliation of Adjusted EBITDA to net loss.
Revenues for the nine months ended September 30, 2013 were $17.4
million, which represented an increase of 13 percent from revenues
for the same period in 2012 of $15.3 million. Net loss for the
nine months ended September 30, 2013 was $32, or $0.00 per share,
compared to net loss of $1,013,075 or $0.06 per share for the same
period last year. Adjusted EBITDA for the nine months ended
September 30, 2013 was $924,859 compared to ($197,659) for the nine
months ended September 30, 2012. See the section entitled
"Non-GAAP Financial Measures" below for a reconciliation of
Adjusted EBITDA to net loss.
"I am pleased with our double-digit percentage revenue growth in
what is often a seasonal quarter with our customer base," said
Shannon Zimmerman, CEO of Sajan. "Although this seasonality
contributed to the small net loss we incurred during the quarter,
we maintained very solid progress in a variety of categories and
have positioned ourselves for a strong fourth quarter for 2013.
While I am gratified by our year-to-date revenue growth of 13
percent, I am especially excited by the addition of several
meaningful new customers which will help strengthen Sajan in the
quarters to come. I am also pleased that our investments in
sales, marketing and Transplicity are positively influencing the
critical growth we seek. The company is advancing positively
and as planned in 2013."
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Non-GAAP Financial Measures - Adjusted
EBITDA |
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|
Three months ended September 30, |
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Nine months ended September 30, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(163,155 |
) |
|
$ |
(42,790 |
) |
|
$ |
(32 |
) |
|
$ |
(1,013,075 |
) |
Interest expense |
|
|
26,612 |
|
|
|
23,251 |
|
|
|
83,066 |
|
|
|
70,356 |
|
Income taxes |
|
|
6,011 |
|
|
|
33,575 |
|
|
|
25,285 |
|
|
|
33,575 |
|
Depreciation and amortization |
|
|
218,006 |
|
|
|
184,846 |
|
|
|
646,673 |
|
|
|
589,081 |
|
Stock-based compensation |
|
|
70,037 |
|
|
|
17,727 |
|
|
|
169,867 |
|
|
|
122,404 |
|
Adjusted EBITDA |
|
$ |
157,511 |
|
|
$ |
216,609 |
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$ |
924,859 |
|
|
$ |
(197,659 |
) |
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We calculate Adjusted EBITDA by taking net income (loss)
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 and for budgeting and planning purposes.
This measure is also used in 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 this non-GAAP measure 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 this non-GAAP financial
measure 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.
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, 2013. 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 11:59 p.m. CT on November 19, 2013
by dialing 1-888-451-8962.
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 -- Sajan Transplicity -- 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 in 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.
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, 2012 filed with the Securities
and Exchange Commission on March 29, 2013, 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.
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Sajan, Inc. and Subsidiaries |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED) |
|
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2013 |
|
|
2012 |
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|
2013 |
|
|
2012 |
|
Revenues |
|
$ |
5,719,811 |
|
|
$ |
5,155,120 |
|
|
$ |
17,377,021 |
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$ |
15,331,619 |
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Operating Costs: |
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Cost
of revenues (exclusive of depreciation and amortization) |
|
|
3,524,757 |
|
|
|
3,303,260 |
|
|
|
10,680,944 |
|
|
|
9,947,087 |
|
Sales
and marketing |
|
|
824,369 |
|
|
|
571,371 |
|
|
|
2,398,043 |
|
|
|
1,814,143 |
|
Research and development |
|
|
289,041 |
|
|
|
182,517 |
|
|
|
657,825 |
|
|
|
948,323 |
|
General and administrative |
|
|
990,825 |
|
|
|
893,267 |
|
|
|
2,884,351 |
|
|
|
2,843,486 |
|
Loss
on subsidiary closure |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
80,113 |
|
Depreciation and amortization |
|
|
218,006 |
|
|
|
184,846 |
|
|
|
646,673 |
|
|
|
589,081 |
|
Income (loss) from Operations |
|
|
(127,187 |
) |
|
|
19,859 |
|
|
|
109,185 |
|
|
|
(890,614 |
) |
Other
income (expense), net |
|
|
(29,957 |
) |
|
|
(29,074 |
) |
|
|
(83,932 |
) |
|
|
(88,886 |
) |
Income (loss) before income taxes |
|
|
(157,144 |
) |
|
|
(9,215 |
) |
|
|
25,253 |
|
|
|
(979,500 |
) |
Income tax (expense) benefit |
|
|
(6,011 |
) |
|
|
(33,575 |
) |
|
|
(25,285 |
) |
|
|
(33,575 |
) |
Net
loss |
|
$ |
(163,155 |
) |
|
$ |
(42,790 |
) |
|
$ |
(32 |
) |
|
$ |
(1,013,075 |
) |
Loss
per common share - basic & diluted |
|
$ |
(0.01 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.06 |
) |
Weighted average shares outstanding - basic & diluted |
|
|
16,268,393 |
|
|
|
16,185,804 |
|
|
|
16,268,393 |
|
|
|
16,183,600 |
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Sajan, Inc. and Subsidiaries |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
September 30, 2013 |
|
December 31, 2012 |
|
|
(Unaudited) |
|
|
|
|
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Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,479,206 |
|
$ |
892,939 |
|
Accounts receivable, net of allowance of $15,000 |
|
|
3,610,444 |
|
|
3,192,337 |
|
Unbilled services |
|
|
1,099,477 |
|
|
1,015,429 |
|
Other current assets |
|
|
445,545 |
|
|
492,854 |
Total current assets |
|
|
6,634,672 |
|
|
5,593,559 |
|
Property and equipment, net |
|
|
965,607 |
|
|
805,284 |
Other assets, net |
|
|
891,431 |
|
|
897,534 |
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|
Total
Assets |
|
$ |
8,491,710 |
|
$ |
7,296,377 |
|
|
|
|
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|
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Liabilities and Stockholders' Equity |
|
|
|
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|
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Current liabilities |
|
|
|
|
|
|
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Accounts payables |
|
$ |
2,360,881 |
|
$ |
2,501,772 |
|
Line of credit |
|
|
200,000 |
|
|
400,000 |
|
Other current liabilities |
|
|
2,719,339 |
|
|
1,434,229 |
Total current liabilities |
|
|
5,280,220 |
|
|
4,336,001 |
Long-term liabilities |
|
|
838,401 |
|
|
757,549 |
|
Total liabilities |
|
|
6,118,621 |
|
|
5,093,550 |
Stockholders' equity |
|
|
2,373,089 |
|
|
2,202,827 |
|
|
Total
Liabilities and Stockholders' Equity |
|
$ |
8,491,710 |
|
$ |
7,296,377 |
|
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Contact: Thomas Skiba Chief Financial Officer email:
tskiba@sajan.com phone: 715-426-9505
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