Sajan, Inc. Announces Financial Results for First Quarter 2015
Marketwired
RIVER FALLS, WI--(Marketwired - May 7, 2015) - Sajan, Inc. (NASDAQ: SAJA), a leading provider of global language services and translation management system technology, today reported financial results for the first quarter ended March 31, 2015.
Revenues were $7,481,000, which represented an increase of 22 percent over revenues for the quarter ended March 31, 2014, of $6,154,000. The company reported net income of $4,000 for the quarter ended March 31, 2015, compared to a net loss of $400,000 for the quarter ended March 31, 2014. Adjusted EBITDA was a positive $346,000 for the quarter ended March 31, 2015, compared to a negative $52,000 for the quarter ended March 31, 2014. See the section entitled, "Non-GAAP Financial Measures" below for a reconciliation of adjusted EBITDA to net income (loss).
"I am extremely pleased with our continued revenue growth and improved profitability," said Shannon Zimmerman, CEO of Sajan. "This was Sajan's ninth consecutive quarter of double-digit revenue growth. Our increased revenue is being driven by a combination of new clients and higher revenue from our existing clients."
Mr. Zimmerman continued: "In order to support our expected growth and achieve our strategic objectives during the rest of 2015, we will be making investments in additional operating personnel in the second and third quarters of this year. We also are planning to expand our sales and marketing activities related to SiteSync, our website translation solution, as well as enhancing its technological capabilities. We also remain focused on our acquisition strategy."
In closing, he noted: "The spirit of the company remains very high, and we are aggressively fixated on our objectives. I could not be happier with the great work our global staff is delivering."
Non-GAAP Financial Measures -- Adjusted EBITDA
Adjusted EBITDA
Three months ended March 31,
(in thousands)
2015
2014
Net income (loss)
$
4
$
(400
)
Interest expense
19
23
Income taxes
10
20
Depreciation and amortization
230
241
Stock-based compensation
83
64
Adjusted EBITDA
$
346
$
(52
)
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 7, 2015. 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 15, 2015, by dialing (800) 234-5713.
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, 2014 filed with the Securities and Exchange Commission on March 23, 2015, 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,
2015
2014
Revenues
$
7,481
$
6,154
Operating Expenses:
Cost of revenues (exclusive of depreciation and amortization)
4,411
3,939
Sales and marketing
920
774
Research and development
433
460
General and administrative
1,448
1,098
Depreciation and amortization
230
241
Income (loss) from Operations
39
(358
)
Other expense, net
25
22
Income (loss) before income taxes
14
(380
)
Income tax expense
10
20
Net income (loss)
$
4
$
(400
)
Income (loss) per common share -- basic & diluted
$
0.00
$
(0.10
)
Weighted average shares outstanding -- basic
4,775
4,067
Weighted average shares outstanding -- diluted
4,869
4,067
Sajan, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) Amounts in thousands