SOURCE: Sajan, Inc.

Sajan, Inc.

May 06, 2014 07:00 ET

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 Information

  • Contact:
    Tom Skiba
    Chief Financial Officer
    email: tskiba@sajan.com
    phone: 715-426-9505