Sajan, Inc. Announces Record Revenue for Fourth Quarter and Fiscal Year 2013
26 Februar 2014 - 1:00PM
Sajan, Inc. (Pink Sheets:SAJA), a leading provider of global
language services and translation management system technology,
today reported financial results for the fourth quarter and fiscal
year ended December 31, 2013.
Highlights for the fourth quarter include the following:
- Revenues grew to $6,584,000 compared to $5,180,000 in the
fourth quarter of 2012.
- Gross margin was 41 percent, the company's best quarterly
performance of the year.
- Net income was $38,000 compared to a net loss of $39,000 in the
fourth quarter of 2012.
- Adjusted EBITDA was $442,000 compared to $253,000 in the fourth
quarter of 2012. Fourth quarter 2013 results include $119,000 of
expenses related to evaluating potential acquisition candidates
during the quarter. See the section entitled "Non-GAAP Financial
Measures" below for a reconciliation of Adjusted EBITDA to Net
Income.
Highlights for the fiscal year include the following:
- Revenues grew 17 percent to $23,961,000 compared to $20,511,000
in 2012.
- Gross margin grew 400 basis points to 39 percent compared to 35
percent in 2012.
- Adjusted EBITDA was a record $1,316,000 compared to $55,000 in
2012.
In 2013, the company took a series of actions that contributed
to the year-over-year financial performance, including:
- Launched Sajan Transplicity, Sajan's proprietary
industry-leading translation management system technology. The
release of Transplicity contributed to the company's 2013 revenue
growth and 400 basis point improvement in gross margin.
- Made several strategic staff additions, which contributed to
revenue growth from the company's international customers. In 2013
foreign revenue grew 24 percent compared to a decline of 7 percent
in 2012.
- Created operational efficiency gains that grew revenue without
substantially growing staff.
- Expanded the R & D team to further enhance Sajan
Transplicity for greater efficiencies, more margin improvements and
increased future sales opportunities.
"Our improved 2013 financial performance is reflective of the
progress the company is making towards its strategic objectives to
grow revenue and improve operating leverage," said Shannon
Zimmerman, CEO of Sajan. "Going forward we will focus on growing
revenue through strategic acquisitions, expanding the Sajan
footprint within existing and new clients and advancing our
technology capabilities, all while remaining lean and
efficient."
Non-GAAP Financial
Measures – Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31, |
Year ended
December 31, |
(in thousands) |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Net income (loss) |
$ 38 |
$ (39) |
$ 38 |
$ (1,052) |
Interest expense |
27 |
28 |
110 |
99 |
Income taxes |
71 |
24 |
96 |
57 |
Depreciation and amortization |
229 |
183 |
825 |
772 |
Stock-based compensation |
77 |
57 |
247 |
179 |
Adjusted EBITDA |
$ 442 |
$ 253 |
$ 1,316 |
$ 55 |
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 February 26, 2014. 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 March 5, 2014 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 Sajan's
solution is its industry-leading language translation management
system technology, Sajan Transplicity, which provides process
automation and innovative multilingual content reuse to ensure
schedule predictability, higher quality and cost efficiencies for
its clients. By working closely with its clients, Sajan's
experienced team of localization professionals develops tailored
solutions that lend flexibility to any large or small business that
truly desires to "think globally but act locally." Based in the
United States, Sajan also has offices in Ireland, Spain and
Singapore. Visit Sajan online 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.
Sajan, Inc. and
Subsidiaries |
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS (UNAUDITED) |
Amounts in thousands
except per share data |
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31, |
Years ended
December 31, |
|
2013 |
2012 |
2013 |
2012 |
Revenues |
$6,584 |
$5,180 |
$23,961 |
$20,511 |
Operating Costs: |
|
|
|
|
Cost of revenues (exclusive of depreciation
and amortization) |
3,896 |
3,352 |
14,577 |
13,299 |
Sales and marketing |
797 |
618 |
3,212 |
2,432 |
Research and development |
240 |
149 |
923 |
1,097 |
General and administrative |
1,275 |
946 |
4,168 |
3,868 |
Depreciation and amortization |
229 |
183 |
825 |
772 |
Income (loss) from
Operations |
147 |
(68) |
256 |
(957) |
Other income (expense), net |
(38) |
53 |
(122) |
(38) |
Income (loss) before income taxes |
109 |
(15) |
134 |
(995) |
Income tax expense |
(71) |
(24) |
(96) |
(57) |
Net income (loss) |
$38 |
$(39) |
$38 |
$(1,052) |
Income (loss) per common share – basic |
$0.00 |
$(0.00) |
$0.00 |
$(0.07) |
Weighted average shares outstanding –
basic |
16,268 |
16,202 |
16,268 |
16,202 |
Weighted average shares outstanding –
basic |
16,684 |
16,202 |
16,409 |
16,202 |
|
Sajan, Inc. and
Subsidiaries |
CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
Amounts in
thousands |
|
|
|
|
December 31,
2013 |
December 31,
2012 |
|
|
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 1,364 |
$ 893 |
Accounts receivable, net of
allowance |
3,810 |
3,192 |
Unbilled services |
1,197 |
1,016 |
Other current assets |
431 |
448 |
Total current assets |
6,802 |
5,549 |
Property and equipment,
net |
1,000 |
805 |
Other assets, net |
856 |
942 |
Total
Assets |
$ 8,658 |
$ 7,296 |
Liabilities and Stockholders'
Equity |
|
|
Current liabilities |
|
|
Accounts payables |
$ 2,555 |
$ 2,502 |
Line of credit |
-- |
400 |
Other current liabilities |
2,762 |
1,434 |
Total current liabilities |
5,317 |
4,336 |
Long-term liabilities |
843 |
757 |
Total liabilities |
6,160 |
5,093 |
Stockholders' equity |
2,498 |
2,203 |
Total Liabilities and
Stockholders' Equity |
$ 8,658 |
$ 7,296 |
CONTACT: Tom Skiba
Chief Financial Officer
email: tskiba@sajan.com
phone: 715-426-9505
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