Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, AppDynamics Blog, tru welu, Blue Box Blog, Kevin Jackson

News Feed Item

Sajan, Inc. Announces Financial Results for 1st Quarter 2014

Revenue Increases 11 Percent Over Prior Year Period

RIVER FALLS, WI -- (Marketwired) -- 05/06/14 -- 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
                                         ================= =================

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
Andi Mann has been serving as Conference Chair of the DevOps Summit since its inception. He is one of the world's recognized leaders in DevOps, and continues to be one of its most articulate advocates. Here are some recent thoughts of his in an interview we conducted in the run-up to the DevOps Summit to be held June 9-11 at the Javits Center in New York City. When did you first start thinking about DevOps and its potential impact on enterprise IT? Andi: I first started thinking about DevOps b...
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgentha...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
The speed of product development has increased massively in the past 10 years. At the same time our formal secure development and SDL methodologies have fallen behind. This forces product developers to choose between rapid release times and security. In his session at DevOps Summit, Michael Murray, Director of Cyber Security Consulting and Assessment at GE Healthcare, examined the problems and presented some solutions for moving security into the DevOps lifecycle to ensure that we get fast AND ...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database. In his session at 16th Cloud...
How does one bridge the gap between traditional enterprise storage infrastructures and the private, hybrid, and public cloud? In his session at 15th Cloud Expo, Dan Pollack, Chief Architect of Storage Operations at AOL Inc., examed the workload differences and required changes to reuse existing knowledge and components when building and using a cloud infrastructure. He also looked into the operational considerations, tool requirements, and behavioral changes required for private cloud storage s...