PRESS RELEASE August/12/2010  | For Immediate Release Contact: Tim Clayton Chief Financial Officer email: tclayton@sajan.com phone: 715-426-9505 |
Sajan, Inc. Announces Second Quarter 2010
Financial Results
Q2 Revenues grow 55% over prior year and 34% sequentially
RIVER FALLS, WI- August 12, 2010 - Sajan, Inc., (SAJA.PK) the leading provider of global language services and cloud-based translation management software, today reported financial results for quarter ended June 30, 2010.
Second Quarter Financial Results
Revenues for the quarter ended June 30, 2010 were $4.2 million, a record level for quarterly revenues for Sajan. This represented an increase of 55% over revenues for the quarter ended June 30, 2009 of $2.7 million. For the six months ended June 30, 2010, revenues were $7.3 million which represented an increase of 28% over revenues for the same period in 2009 of $5.7 million. The net loss attributable to Sajan for the second quarter of 2010 was approximately $543,000, or $0.03 per share, compared to net loss attributable to Sajan of approximately $362,000, or $0.06 per share for the same quarter last year. The net loss attributable to Sajan for the six months ended June 30, 2010 was approximately $2.0 million or $0.15 per share, compared to a net loss attributable to Sajan of $566,000 or $0.10 per share for the six month period ended June 30, 2009. Financial results included non-cash expenses related to stock based compensation of approximately $87,000 or $0.01 per share in the three months ended June 30, 2010 and approximately $457,000, or $0.03 per share in the six months ended June 30, 2010, compared to approximately $64,000 or $0.00 per share and $102,000 or $0.02 per share, in the prior year comparable periods. In addition, the results for the six months ended June 30, 2010 included approximately $540,000, or $0.04 per share of transaction related costs, including legal, accounting, filing and investment banking fees, associated with the February merger with MathStar, Inc.
“I am very pleased to report record revenues for the second quarter”, said Shannon Zimmerman, the Company’s Chief Executive Officer. “During the second quarter we refocused and reenergized our sales initiatives and it is very encouraging that the market has responded with such enthusiasm. We will maintain our emphasis on innovation and delivering high value to our clients. By offering the market high quality language translation services and industry leading technology, Sajan is able to provide customers with flexible, best in class globalization solutions,” concluded Zimmerman.
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. CT. The Company invites all those interested to join the call by dialing 888-469-2083 and entering access code 5201276. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and until 5:00 p.m. CT on August 18, 2010 by dialing 866-418-8387.
About Sajan
Sajan® is the leading provider of global language services and cloud-based translation management software. Through our two operating units, Sajan Global Language Services™ and Sajan Software™, we deliver people, process and technology to help enterprises mature their localization programs and global content lifecycle. At the center of Sajan’s offerings is the industry’s foremost translation management system, GCMS™, used by over 650 clients. Our spectrum of delivery models and nimble, entrepreneurial culture enable Sajan to be a partner for any size and shape of localization initiative, across any discipline and industry. Our website is http://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 Current Report on Form 8-K and Annual Report on Form 10-K for the year ended December 31, 2009 filed with the Securities and Exchange Commission on February 24, 2010 and March 31, 2010, respectively, 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.
CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | $ | 4,202,320 | $ | 2,708,931 | $ | 7,342,522 | $ | 5,726,971 | ||||||||
| Cost of revenues | 2,289,126 | 1,503,764 | 4,050,629 | 3,186,157 | ||||||||||||
| Gross margin | 1,913,194 | 1,205,167 | 3,291,893 | 2,540,814 | ||||||||||||
| Sales and marketing | 921,544 | 883,287 | 1,732,488 | 1,701,071 | ||||||||||||
| Research and development | 392,606 | 162,034 | 961,192 | 336,427 | ||||||||||||
| General and administrative | 927,895 | 341,218 | 2,177,584 | 754,234 | ||||||||||||
| Depreciation and amortization | 220,696 | 239,646 | 465,739 | 423,833 | ||||||||||||
| Operating Loss | (549,547 | ) | (421,018 | ) | (2,045,110 | ) | (674,751 | ) | ||||||||
| Other income (expense), net | 1,799 | (36,745 | ) | (58,239 | ) | (92,953 | ) | |||||||||
| Loss before income taxes and non-controlling interests | (547,748 | ) | (457,763 | ) | (2,103,349 | ) | (767,704 | ) | ||||||||
| Income tax benefit | - | 100,707 | 62,311 | 168,894 | ||||||||||||
| Non-controlling interests | 4,623 | (5,629 | ) | 2,704 | 32,605 | |||||||||||
| Net loss attributable to Sajan, Inc. | $ | (543,125 | ) | $ | (362,685 | ) | $ | (2,038,334 | ) | $ | (566,205 | ) | ||||
| Loss per common share – Basic and diluted | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.15 | ) | $ | (0.10 | ) | ||||
| Weighted average shares outstanding – Basic and diluted | 16,009,331 | 5,686,250 | 13,972,298 | 5,686,250 | ||||||||||||
Sajan, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2010 | ||||||||
(Unaudited) | December 31, 2009 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 2,595,071 | $ | 120,493 | ||||
Restricted cash | 1,000,000 | - | ||||||
Receivables, net | 2,768,352 | 2,871,005 | ||||||
Other current assets | 1,440,695 | 955,401 | ||||||
Total current assets | 7,804,118 | 3,946,899 | ||||||
Property and equipment, net | 751,603 | 3,349,556 | ||||||
Other assets, net | 951,554 | 1,238,394 | ||||||
Total assets | $ | 9,507,275 | $ | 8,534,849 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Payables | $ | 1,493,242 | $ | 901,213 | ||||
Notes Payable | 2,000,000 | 1,292,973 | ||||||
Other current liabilities | 1,784,097 | 1,841,349 | ||||||
Total current liabilities | 5,277,339 | 4,035,535 | ||||||
Long-term liabilities | 638,743 | 3,037,378 | ||||||
Total liabilities | 5,916,082 | 7,072,913 | ||||||
Stockholders' equity | 3,601,537 | 1,243,735 | ||||||
Non-controlling interest in subsidiary and affiliate | (10,344 | ) | 218,201 | |||||
Total equity | 3,591,193 | 1,461,936 | ||||||
Total liabilities and stockholders' equity | $ | 9,507,275 | $ | 8,534,849 | ||||
(1) MathStar and Sajan consolidated as of February 24, 2010, River Valley Business Center, LLC deconsolidated as of February 23, 2010, and Sajan India Software Private Limited consolidated as of June 1, 2009.
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