PRESS RELEASE August 9, 2011  | For Immediate Release Contact: Tim Clayton Chief Financial Officer email: tclayton@sajan.com phone: 715-426-9505 |
Sajan, Inc. Announces Second Quarter 2011
Financial Results
Q2 Revenues grow 29% to $5.4 Million; Positive Earnings
RIVER FALLS, WI- August 9, 2011- Sajan, Inc., (SAJA.OB) a provider of global language services and translation management software, today reported financial results for the quarter ended June 30, 2011.
Revenues for the quarter ended June 30, 2011 were $5.4 million, which represented an increase of 29% over revenues for the quarter ended June 30, 2010 of $4.2 million. Net income for the second quarter of 2011 was approximately $43,000, or $0.00 per share, compared to net loss of approximately $548,000 or $0.03 per share for the same quarter last year. Financial results included non-cash expense related to stock options of approximately $54,000 or $0.00 per share in the three months ended June 30, 2011 compared to approximately $87,000 or $0.01 per share in the three month period ended June 30, 2010.
Revenues for the six months ended June 30, 2011 were $10.6 million, which represented an increase of 45% over revenues for the same period in 2010 of $7.3 million. Net loss for the six months ended June 30, 2011 was approximately $17,000, or $0.00 per share, compared to net loss of approximately $2.0 million or $0.15 per share for the same period last year. Financial results for the six month periods included non-cash expense related to stock options of approximately $107,000 or $0.01 per share in the six months ended June 30, 2011 compared to approximately $457,000 or $0.03 per share in the six months ended June 30, 2010.
The results for the six months ended June 30, 2010 included legal, accounting and investment banking fees, associated with the February, 2010 merger with MathStar, Inc.
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 today at 10:30 a.m. CT. 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 5:00 p.m. CST on August 16, 2011 by dialing 888-446-2528.
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 – GCMSTM – which provides process automation and innovative multilingual content reuse to provide schedule predictability, higher quality and cost efficiencies to our clients. By working closely with our clients, Sajan’s experienced team of localization professionals develop tailored solutions which provide flexibility to any large or small business who truly desire to “think globally, but act locally.” Based out of the United States, we also have offices in Ireland, Spain and India. Sajan is publicly traded under the symbol SAJA.OB. Learn more about Sajan 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, 2010 filed with the Securities and Exchange Commission on March 30, 2011, 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 June 30, | Six months ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 5,417,026 | $ | 4,202,320 | $ | 10,630,686 | $ | 7,342,522 | ||||||||
| Operating Costs: | ||||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization) | 3,250,618 | 2,289,126 | 6,296,611 | 4,050,629 | ||||||||||||
| Sales and marketing | 661,363 | 921,544 | 1,261,231 | 1,732,488 | ||||||||||||
| Research and development | 372,587 | 392,606 | 792,141 | 961,192 | ||||||||||||
| General and administrative | 891,736 | 927,895 | 1,904,048 | 2,177,584 | ||||||||||||
| Depreciation and amortization | 183,781 | 220,696 | 379,207 | 465,739 | ||||||||||||
| Income (loss) from Operations | 56,941 | (549,547 | ) | (2,552 | ) | (2,045,110 | ) | |||||||||
| Other income (expense), net | (13,970 | ) | 1,799 | (14,822 | ) | (58,239 | ) | |||||||||
| Income (loss) before income taxes | 42,971 | (547,748 | ) | (17,374 | ) | (2,103,349 | ) | |||||||||
| Income tax benefit | - | - | - | (62,311 | ) | |||||||||||
| Net income (loss) | 42,971 | (547,748 | ) | (17,374 | ) | (2,041,038 | ) | |||||||||
| Income (loss) per common share – basic & diluted | 0.00 | (0.03 | ) | (0.00 | ) | (0.15 | ) | |||||||||
| Weighted average shares outstanding – basic | 16,020,899 | 16,009,331 | 16,015,179 | 13,972,298 | ||||||||||||
| Weighted average shares outstanding – diluted | 16,325,185 | 16,009,331 | 16,015,179 | 13,972,298 | ||||||||||||
| Sajan, Inc. and Subsidiaries | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
June 30, 2011 (Unaudited) | December 31, 2010 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 1,694,271 | $ | 1,903,229 | ||||
| Restricted cash | - | 1,000,000 | ||||||
| Accounts receivables, net of allowance of $15,000 | 3,694,208 | 3,267,120 | ||||||
| Other current assets | 1,135,104 | 818,821 | ||||||
| Total current assets | 6,523,583 | 6,989,170 | ||||||
| Property and equipment, net | 851,271 | 747,540 | ||||||
| Other assets, net | 403,931 | 667,495 | ||||||
| Total assets | $ | 7,778,785 | $ | 8,404,205 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Payables | $ | 2,171,432 | $ | 1,969,094 | ||||
| Notes Payable | - | 1,250,000 | ||||||
| Other current liabilities | 1,977,139 | 1,701,307 | ||||||
| Total current liabilities | 4,148,571 | 4,920,401 | ||||||
| Long-term liabilities | 799,532 | 750,000 | ||||||
| Total liabilities | 4,948,103 | 5,670,401 | ||||||
| Stockholders' equity | 2,830,682 | 2,733,804 | ||||||
| Total liabilities and stockholders' equity | $ | 7,778,785 | $ | 8,404,205 | ||||
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