SOURCE: Sajan, Inc.

Sajan, Inc.

August 04, 2015 07:03 ET

Sajan, Inc. Announces Financial Results for Second Quarter and First Half of 2015

RIVER FALLS, WI--(Marketwired - Aug 4, 2015) - Sajan, Inc. (NASDAQ: SAJA), a leading provider of global language services and translation management system technology, today reported its financial results for the second quarter and six months ended June 30, 2015.

Revenues were $7,377,000 for the quarter ended June 30, 2015, which represented an increase of 2 percent over revenues of $7,240,000 for the quarter ended June 30, 2014. Sajan's reported net income was $3,000 for the quarter ended June 30, 2015, compared to net income of $184,000 for the quarter ended June 30, 2014. Adjusted EBITDA was $317,000 for the quarter ended June 30, 2015, compared to $522,000 for the quarter ended June 30, 2014. See the section entitled "Non-GAAP Financial Measures" below for a reconciliation of Adjusted EBITDA to net income (loss).

Revenues for the six months ended June 30, 2015, were $14,858,000 compared to $13,394,000 in the same period of 2014, an increase of 11 percent. Net income for the first six months of 2015 was $7,000 compared to a net loss of ($216,000) in the same period in 2014. Adjusted EBITDA was $663,000 in the first six months of 2015 compared to $470,000 in the same period of 2014.

Shannon Zimmerman, CEO of Sajan, commented: "Given current customer activity, we continue to believe we will achieve double digit year-over-year revenue growth in 2015."

Mr. Zimmerman continued: "During the second quarter we executed on several key initiatives, including:

  • The addition of Paul Rome as our new Chief Operating Officer, and the hiring of several other operating personnel that will contribute to meeting our expected 2015 revenue growth targets and strategic objectives;
  • The purchase of technology from Reverbeo, which has enhanced the capabilities of Site Sync, our website translation solution; and
  • Improvements we have made to Transplicity, our translation management system, that is contributing to our organizational efficiency.

We also have been actively evaluating companies as part of our acquisition strategy. Although we do not have anything to report, we are seeing an increase in the number of potential opportunities."

 
 
Non-GAAP Financial Measures - Adjusted EBITDA
 
    Three months ended June 30,   Six months ended June 30,  
EBITDA   2015   2014   2015   2014  
Net income (loss)   $ 3   $ 184   $ 7   $ (216 )
Interest expense     17     21     36     44  
Income taxes     -     14     10     34  
Depreciation and amortization     232     238     462     479  
Stock-based compensation     65     65     148     129  
Adjusted EBITDA   $ 317   $ 522   $ 663   $ 470  
                           
                           

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
Sajan'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 August 4, 2015. Sajan 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 August 12, 2015 by dialing (888) 566-0433.

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. Sajan's Annual Report on Form 10-K, its Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission, its press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect Sajan'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 Sajan's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission on March 23, 2015 under the heading "Item 1A. Risk Factors." Sajan 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,  
  2015   2014   2015   2014  
Revenues $ 7,377   $ 7,240   $ 14,858   $ 13,394  
Operating Costs:                        
Cost of revenues (exclusive of depreciation and amortization)   4,481     4,331     8,892     8,270  
Sales and marketing   886     863     1,806     1,637  
Research and development   475     372     908     832  
General and administrative   1,284     1,213     2,732     2,311  
Depreciation and amortization   232     238     462     479  
Income (loss) from Operations   19     223     58     (135 )
Other expense, net   16     25     41     47  
Income (loss) before income taxes   3     198     17     (182 )
Income tax expense   -     14     10     34  
Net income (loss) $ 3   $ 184   $ 7   $ (216 )
Income (loss) per common share - basic $ 0.00   $ 0.05   $ 0.00   $ (0.05 )
Income (loss) per common share - diluted $ 0.00   $ 0.04   $ 0.00   $ (0.05 )
Weighted average shares outstanding - basic   4,779     4,067     4,779     4,067  
Weighted average shares outstanding - diluted   4,867     4,077     4,833     4,067  
   
   
   
 
 
Sajan, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Amounts in thousands
       
  June 30, 2015   December 31, 2014
Assets          
Current assets          
  Cash and cash equivalents $ 4,091   $ 4,662
  Accounts receivable, net of allowance   5,104     3,999
  Unbilled services   1,197     1,024
  Other current assets   549     550
Total current assets   10,941     10,235
  Property and equipment, net   782     711
Other assets, net   312     491
    Total Assets $ 12,035   $ 11,437
Liabilities and Stockholders' Equity          
Current liabilities          
  Accounts payables $ 3,299   $ 3,076
  Other current liabilities   3,051     2,807
Total current liabilities   6,350     5,883
           
Stockholders' equity   5,685     5,554
    Total Liabilities and Stockholders' Equity $ 12,035   $ 11,437
               

Contact Information

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