Sajan, Inc. Announces Record Revenue for Second Quarter
23 Juli 2014 - 1:01PM
Sajan, Inc. (OTC:SAJA), a leading provider of global language
services and translation management system technology, today
reported financial results for the quarter and six months ended
June 30, 2014.
Highlights for the second quarter include the following:
- Revenues grew to a record $7,240,000 compared to $6,133,000 in
the second quarter of 2013, an increase of 18%. This was the
company's sixth consecutive quarter of double-digit revenue
growth.
- Revenue came in above the range of $6,800,000 to $7,100,000
previously announced in a press release on June 17, 2014.
- Gross margin in the second quarter was 40% compared to 39% in
the second quarter of 2013 and 36% in the first quarter of
2014.
- Net income was $184,000 compared to $147,000 in the second
quarter of 2013, an increase of 25%.
- Adjusted EBITDA was $522,000 compared to $435,000 in the second
quarter of 2013, an increase of 20%. See the section entitled
"Non-GAAP Financial Measures" below for a reconciliation of
Adjusted EBITDA to Net Income.
The record revenue is a result of continued expansion of the
company's customer base. The improved gross margin and net income
are a direct result of leveraging the project coordinators and
operating personnel added in the first quarter of 2014 to support
revenue growth from customers attained in late 2013. The results
for the quarter also reflect continued investment in research and
development as Sajan further accelerates enhancements to
Transplicity, the company's proprietary industry-leading
translation management system technology.
Revenues for the six months ended June 30, 2014, were
$13,394,000 compared to $11,657,000 in the same period of 2013, an
increase of 15%. Net loss for the first six months of 2014 was
$216,000 compared to net income of $163,000 in the same period in
2013. Adjusted EBITDA was $470,000 in the first six months of 2014
compared to $731,000 in the same period of 2013.
"I am very pleased with our record revenue in the second quarter
and our sixth consecutive quarter of double-digit revenue growth,"
said Sajan CEO, Shannon Zimmerman. "In the first quarter of the
year we anticipated that we would need additional operating
personnel to support our expected revenue growth. These additional
resources paid off for us in the second quarter, as they greatly
contributed to the quarter's record revenue and improved
profitability. Our relentless focus on improvement and innovation
for our customers is helping us to grow consistently. We are also
continuing to expend research and development efforts in
Transplicity, which is used by our client and operations staff and
represents a key differentiator for Sajan in our quest for greater
growth."
Non-GAAP Financial
Measures – Adjusted EBITDA |
|
|
|
|
|
|
Three months
ended June 30, |
Six months ended
June 30, |
EBITDA |
2014 |
2013 |
2014 |
2013 |
Net income (loss) |
$184 |
$147 |
($216) |
$163 |
Interest expense |
21 |
27 |
44 |
56 |
Income taxes |
14 |
6 |
34 |
19 |
Depreciation and amortization |
238 |
204 |
479 |
393 |
Stock-based compensation |
65 |
51 |
129 |
100 |
Adjusted EBITDA |
$522 |
$435 |
$470 |
$731 |
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 July 23, 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 July 30, 2014, by dialing
1-800-308-7855.
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" and its other filings with the Securities
and Exchange Commission. 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 June 30, |
Six months ended
June 30, |
|
2014 |
2013 |
2014 |
2013 |
Revenues |
$7,240 |
$6,133 |
$13,394 |
$11,657 |
Operating Costs: |
|
|
|
|
Cost of revenues (exclusive of depreciation
and amortization) |
4,331 |
3,743 |
8,270 |
7,156 |
Sales and marketing |
863 |
839 |
1637 |
1,585 |
Research and development |
372 |
214 |
832 |
385 |
General and administrative |
1,213 |
949 |
2,311 |
1,897 |
Depreciation and amortization |
238 |
204 |
479 |
393 |
Income (loss) from
Operations |
223 |
184 |
(135) |
241 |
Other expense |
25 |
31 |
47 |
59 |
Income (loss) before income taxes |
198 |
153 |
(182) |
182 |
Income tax expense |
14 |
6 |
34 |
19 |
Net income (loss) |
$184 |
$147 |
($216) |
$163 |
Income (loss) per common share – basic |
$0.05 |
$0.04 |
($0.05) |
$0.04 |
Income (loss) per common share – diluted |
$0.04 |
$0.04 |
($0.05) |
$0.04 |
Weighted average shares outstanding –
basic |
4,067 |
4,067 |
4,067 |
4,067 |
Weighted average shares outstanding –
diluted |
4,170 |
4,077 |
4,067 |
4,077 |
|
Sajan, Inc. and
Subsidiaries |
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS |
Amounts in
thousands |
|
|
|
|
June 30, 2014 |
December 31, 2013 |
|
(unaudited) |
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$1,578 |
$1,364 |
Accounts receivable, net of
allowance |
4,753 |
3,810 |
Unbilled services |
1,013 |
1,197 |
Other current assets |
555 |
431 |
Total current assets |
7,899 |
6,802 |
Property and equipment, net |
858 |
1,000 |
Other assets, net |
888 |
856 |
Total Assets |
$9,645 |
$8,658 |
Liabilities and Stockholders'
Equity |
|
|
Current liabilities |
|
|
Accounts payables |
$3,193 |
$2,555 |
Other current liabilities |
3,288 |
2,762 |
Total current liabilities |
6,481 |
5,317 |
Long-term liabilities |
763 |
843 |
Total liabilities |
7,244 |
6,160 |
Stockholders' equity |
2,401 |
2,498 |
Total Liabilities and
Stockholders' Equity |
$9,645 |
$8,658 |
CONTACT: Tom Skiba
Chief Financial Officer
email: tskiba@sajan.com
phone: 715-426-9505
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