Sajan 2015 Revenues Grow

Sajan Reports Favorable Financial Results for Fourth  Quarter and Fiscal Year Ended December 31, 2015

 

Sajan, part of the McGowan Capital Group investment portfolio, is a language services provider based in Wisconsin.  

 

Financial Highlights for the Fourth Quarter

 

  • Revenues were $7,496,000 and net income was $263,000, both of which were the Company’s best quarterly results of the year.  Both figures were also the second highest in Company history, trailing only Q4 2014’s records of $7,614,000 and $266,000 respectively.
  • Revenue from new 2015 customers was $647,000, an increase of 19% over the fourth quarter of 2014.
  • Revenue from the Company’s Life Sciences clients grew 109% compared to the fourth quarter of 2014.
  • Adjusted EBITDA was $515,000 compared to $602,000 in the fourth quarter of 2014. This was also the Company’s best quarterly performance of 2015. Company CFO, Tom Skiba attributed the decline in EBITDA to “higher cost of sales payroll” as the company “builds staff” in anticipation of future growth. Gross margins for the year were 38%.

 

Financial Highlights for the Fiscal Year

 

  • Revenues grew 5% to $29,688,000 compared to $28,348,000 in 2014.
  • Revenue from new customers in 2015 was $1,982,000, an increase of 12% over revenue from new customers in 2014.
  • Revenue from the Company’s Life Sciences clients grew 52% over 2014.
  • Adjusted EBITDA was $1,386,000 compared to $1,521,000 in 2014.

Sajan CEO, Shannon Zimmerman Comments

 

Shannon Zimmerman, CEO of Sajan, commented on the Company’s fourth quarter financial results. “We were able to deliver our best revenue and profit quarter of 2015 despite experiencing spending delays with many of our larger customers similar to those that impacted our third quarter results. Although customer project delays are disappointing and frustrating, we believe it is more likely now a product of some larger macroecenomic caution, as I want to emphasize that our relationships with our customers are strong. We were able to offset revenue declines from some of our top customers with increased revenue from new clients in 2015 and from the growth in our Life Sciences clients. We also saw our revenue from IBM, our largest client, reach its highest level since the second quarter of 2014.”

 

Mr. Zimmerman continued, “Our full year 2015 revenue reflects aggregate growth of 68 percent in four of our prior year top ten clients which was offset by an aggregate decline of 22 percent in the remaining six of our prior year top ten clients, and includes revenue from new customers of almost $2,000,000. We are gaining traction with SiteSync, our web translation solution, and we have made investments in our operational staff, which has positioned us for future growth. Further, our balance sheet is in the strongest position in Company history. I am extremely excited about the Company’s position as we enter 2016.”

 

Full article from NASDAQ available here.

 

 

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