News Column

Sajan, Inc. Announces Financial Results for Fourth Quarter and Full Year 2012

Feb 28 2013 12:00AM



RIVER FALLS, WI -- (Marketwire) -- 02/28/13 -- Sajan, Inc. (OTCQB: SAJA), a provider of global language services and translation management software, today reported financial results for the quarter and fiscal year ended December 31, 2012.

Revenues for the quarter ended December 31, 2012 were $5.2 million, which represented a slight increase of 2 percent over revenues for the quarter ended December 31, 2011 of $5.1 million. The Company reported a net loss for the fourth quarter of 2012 of approximately $39,000, or $0.00 per share, compared to net income of approximately $226,000, or $0.01 per share, for the same quarter last year. Financial results included non-cash expense related to stock options of approximately $57,000, or $0.00 per share, in the three months ended December 31, 2012 compared to approximately $59,000, or $0.00 per share, in the three months ended December 31, 2011.

Revenues for the year ended December 31, 2012 were $20.5 million, which represented a decrease of 2 percent from revenues for the same period in 2011 of $20.9 million. Net loss for the year ended December 31, 2012 was approximately $1,000,000, or $0.07 per share, compared to net income of approximately $67,000, or $0.01 per share, for the same period last year. Financial results for the year included non-cash expense related to stock options of approximately $179,000, or $0.02 per share, in the year ended December 31, 2012 compared to approximately $221,000, or $0.01 per share, in the year ended December 31, 2011.

The results for the fourth quarter and year ended December 31, 2011 included a gain on the sale of patents of approximately $550,000 and approximately $95,000 of non-recurring costs associated with the acquisition and integration of New Global.

"Sajan has enjoyed very nice annual growth for many years until the first quarter of 2012, which started with some unforeseen challenges and a Q1 loss. I could not be happier with our team's ability to grow positive adjusted EBITDA each quarter thereafter and close the year with positive adjusted EBITDA of $306,000 for the fourth quarter of fiscal 2012 and $109,000 for full fiscal 2012. Based on our progress we have a very optimistic outlook for the year ahead," noted Sajan CEO Shannon Zimmerman. See the Non-GAAP Financial Measures section below for detail on the calculation of Adjusted EBITDA.

Three Months Ended Twelve Months EndedAdjusted EBITDA December December December December 31, 31 31, 31 2012 2011 2012 2011 ---------- ---------- ----------- ----------Net loss $ (39,000) $ 226,000 $(1,052,000) $ 67,000Interest expense 28,000 18,000 99,000 73,000Income taxes 24,000 12,000 58,000 12,000Depreciation and amortization 236,000 195,000 825,000 748,000Stock-based compensation 57,000 59,000 179,000 242,000 ---------- ---------- ----------- ----------Adjusted EBITDA $ 306,000 $ 510,000 $ 109,000 $1,142,000

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 February 28, 2013. 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 March 8, 2013 by dialing 1-866-431-2792.

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 our solution is our industry-leading language translation management system technology, GCMS™, which provides process automation and innovative multilingual content reuse to deliver schedule predictability, higher quality and cost efficiencies to our clients. By working closely with our clients, Sajan's experienced teams of localization professionals develop tailored solutions which provide flexibility to any large or small business that truly desires to "think globally, but act locally." Based in the United States, we also have offices in Ireland, Spain and Singapore. Sajan is publicly traded under the symbol SAJA. Learn more about Sajan at

Non-GAAP Financial Measure
We calculate Adjusted EBITDA by taking net income 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, for purposes of determining management incentive compensation, and for budgeting and planning purposes. This measure is used in monthly 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 these non-GAAP measures 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 non-GAAP financial measures 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.

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, 2011 filed with the Securities and Exchange Commission on March 30, 2012, 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) Three months ended December 31, Year ended December 31, ------------------------ ------------------------ 2012 2011 2012 2011 ----------- ----------- ----------- -----------Revenues $ 5,179,557 $ 5,087,868 $20,511,176 $20,904,311Operating Costs:Cost of revenues (exclusive of depreciation and amortization) 3,351,900 3,116,819 13,298,987 12,467,302Sales and marketing 601,293 636,601 2,415,436 2,545,309Research and development 145,259 386,815 1,093,582 1,622,564General and administrative 913,666 1,054,057 3,837,265 3,944,530Depreciation and amortization 236,011 194,719 825,092 747,672 ----------- ----------- ----------- -----------Loss from Operations (68,572) (301,144) (959,186) (423,066)Other income (expense), net 53,261 538,671 (35,625) 502,053 ----------- ----------- ----------- ----------- (15,311) 237,527 (994,811) 78,987Income (loss) before income taxesIncome tax expense (23,928) (12,000) (57,503) (12,000) ----------- ----------- ----------- -----------Net income (loss) $ (39,239) $ 225,527 $(1,052,314) $ 66,987 =========== =========== =========== ===========Income (loss) per common share - basic & diluted $ 0.00 $ 0.01 $ (0.06) $ 0.00 ----------- ----------- ----------- -----------Weighted average shares outstanding - basic 16,255,546 16,144,944 16,201,587 16,051,529 =========== =========== =========== ===========Weighted average shares outstanding - diluted 16,255,546 16,434,755 16,201,587 16,341,340 =========== =========== =========== =========== Sajan, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, December 31, 2012 2011 ---------------- ----------------AssetsCurrent assets Cash and cash equivalents $ 892,939 $ 1,763,249 Accounts receivables, net of allowance of $15,000 3,192,337 3,501,898 Unbilled revenue 1,015,429 823,617 Other current assets 492,854 469,974 ---------------- ----------------Total current assets 5,593,559 6,558,738 Property and equipment, net 805,284 758,440Other assets, net 897,534 1,100,614 ---------------- ---------------- Total assets $ 7,296,377 $ 8,417,792 ================ ================Liabilities and Stockholders' EquityCurrent liabilities Payables $ 2,501,772 $ 2,507,490 Note payable - related party 750,000 750,000 Line of credit 400,000 0 Other current liabilities 1,434,229 1,366,333 ---------------- ----------------Total current liabilities 5,086,001 4,623,823Long-term liabilities 7,549 788,528 ---------------- ---------------- Total liabilities 5,093,550 5,412,351 ---------------- ----------------Stockholders' equity 2,202,827 3,005,441 ---------------- ---------------- Total liabilities and stockholders' equity $ 7,296,377 $ 8,417,792 ================ ================

Shannon Zimmerman
Chief Executive Officer/Chief Financial Officer
phone: 715-426-9505

Source: Marketwire

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