Sajan, Inc. Announces Financial Results for 1st Quarter 2014
06 Mai 2014 - 1:00PM
Marketwired
Sajan, Inc. Announces Financial Results for 1st Quarter 2014
Revenue Increases 11 Percent Over Prior Year Period
RIVER FALLS, WI--(Marketwired - May 6, 2014) - Sajan, Inc.
(OTCQB: SAJA), a leading provider of global language services and
translation management system technology, today reported financial
results for the first quarter ended March 31, 2014.
Revenues were $6,154,000, which represented an increase of 11%
over revenues for the quarter ended March 31, 2013 of
$5,524,000. This was the Company's 5th consecutive quarter of
double digit revenue growth. The Company reported a net loss of
$400,000, or $0.02 per share, for the quarter ended March 31, 2014
compared to net income of $16,000, or $0.00 per share for the
quarter ended March 31, 2013. Adjusted EBITDA was a loss of
$52,000 for the quarter ended March 31, 2014 compared to earnings
of $295,000 for the quarter ended March 31, 2013. See the
section entitled "Non-GAAP Financial Measures" below for a
reconciliation of Adjusted EBITDA to net income (loss).
During the quarter the Company made investments in operations
and research and development activities which are reflected in its
operating expenses. These included adding project coordinators and
other operating personnel to support anticipated revenue growth,
especially from new customers attained in late 2013, and resulted
in an increase in the Company's cost of sales both in dollars and
as a percentage of revenue. The Company also added new research and
development engineers early in the quarter. These were added to
accelerate enhancements to Transplicity, Sajan's proprietary
industry-leading translation management system technology.
"The quarter's results were in line with our expectations," said
Shannon Zimmerman, CEO of Sajan. "Our 5th consecutive quarter of
double digit revenue growth reflects our success in expanding our
customer base."
"In order to support our expected growth in business from
several of our new customers, we made investments in additional
operating personnel in the quarter. We are excited about the
opportunity these newer customers provide us. We also continue to
invest in our Transplicity Translation Management Platform that is
used by both our clients and our operations teams. Our R & D
efforts are designed to both further differentiate us from our
competitors and improve efficiency for our service
teams. Transplicity has and continues to be a key factor in
our new client wins over the last several quarters."
Non-GAAP
Financial Measures - Adjusted EBITDA |
|
Adjusted EBITDA |
|
Three months ended March 31, |
(in thousands) |
|
2014 |
|
|
2013 |
Net income (loss) |
|
$ |
(400 |
) |
|
$ |
16 |
Interest expense |
|
|
23 |
|
|
|
29 |
Income taxes |
|
|
20 |
|
|
|
13 |
Depreciation and amortization |
|
|
241 |
|
|
|
188 |
Stock-based compensation |
|
|
64 |
|
|
|
49 |
Adjusted EBITDA |
|
$ |
(52 |
) |
|
$ |
295 |
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 May 6, 2014. The Company
invites all those interested to join the call by dialing (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 May 13, 2014 by
dialing (866) 509-6763.
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, 2013 filed with the Securities
and Exchange Commission on March 21, 2014, 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 March 31, |
|
|
|
2014 |
|
|
|
2013 |
|
Revenues |
|
$ |
6,154 |
|
|
|
$ |
5,524 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
Cost
of revenues (exclusive of depreciation and amortization) |
|
|
3,939 |
|
|
|
|
3,413 |
|
Sales
and marketing |
|
|
774 |
|
|
|
|
745 |
|
Research and development |
|
|
460 |
|
|
|
|
172 |
|
General and administrative |
|
|
1,098 |
|
|
|
|
949 |
|
Depreciation and amortization |
|
|
241 |
|
|
|
|
188 |
|
Income (loss) from Operations |
|
|
(358 |
) |
|
|
|
57 |
|
Other
income (expense), net |
|
|
(22 |
) |
|
|
|
(28 |
) |
Income (loss) before income taxes |
|
|
(380 |
) |
|
|
|
29 |
|
Income tax expense |
|
|
20 |
|
|
|
|
13 |
|
Net
income (loss) |
|
$ |
(400 |
) |
|
|
$ |
16 |
|
Income (loss) per common share - basic |
|
$ |
(0.02 |
) |
|
|
$ |
0.00 |
|
Weighted average shares outstanding - basic |
|
|
16,268 |
|
|
|
|
16,268 |
|
Weighted average shares outstanding - diluted |
|
|
16,268 |
|
|
|
|
16,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sajan, Inc. and Subsidiaries |
CONDENSED CONSOLIDATED BALANCE SHEETS |
Amounts in thousands |
|
|
March 31, 2014 |
|
December 31, 2013 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,205 |
|
$ |
1,364 |
|
Accounts receivable, net of allowance |
|
|
3,926 |
|
|
3,810 |
|
Unbilled services |
|
|
1,203 |
|
|
1,197 |
|
Other current assets |
|
|
522 |
|
|
431 |
Total current assets |
|
|
6,856 |
|
|
6,802 |
|
Property and equipment, net |
|
|
969 |
|
|
1,000 |
Other assets, net |
|
|
757 |
|
|
856 |
|
|
Total Assets |
|
$ |
8,582 |
|
$ |
8,658 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payables |
|
$ |
2,988 |
|
$ |
2,555 |
|
Other current liabilities |
|
|
2,642 |
|
|
2,762 |
Total current liabilities |
|
|
5,630 |
|
|
5,317 |
Long-term liabilities |
|
|
796 |
|
|
843 |
|
|
|
Total
liabilities |
|
|
6,426 |
|
|
6,160 |
Stockholders' equity |
|
|
2,156 |
|
|
2,498 |
|
|
|
Total
Liabilities and Stockholders' Equity |
|
$ |
8,582 |
|
$ |
8,658 |
Contact: Tom Skiba Chief Financial Officer email:
tskiba@sajan.com phone: 715-426-9505
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