Sajan, part of the McGowan Capital Group portfolio, recently reported financial results for first quarter ended March 31, 2016.
Revenues were $6,777,000, which represented a decrease of 9% compared to revenues of $7,481,000 for the quarter ended March 31, 2015. The Company reported a net loss of $200,000 for the quarter ended March 31, 2016 compared to net income of $4,000 for the same period last year. Adjusted EBITDA was $27,000 for the quarter ended March 31, 2016 compared to $346,000 for the quarter ended March 31, 2015.
Shannon Zimmerman, CEO of Sajan commented, “Our first quarter is typically impacted by slower translation spending by our customers. This year we saw this seasonality manifest itself in the pattern displayed by last year’s first quarter top 10 customers. Seven of these top 10 customers had an aggregate 30% decrease in revenue. This pattern was repeated with many of our customers during the quarter, and although we benefited from new business and current customers with increased spending in the quarter, the overall impact was a 9% decline in total revenue. I would like to emphasize that our relationships with our customers are strong and that we are well positioned to see revenue growth during the rest of the year.”
Mr. Zimmerman continued, “During the quarter we made numerous sales and operational improvements including the following:
The Company also announced that its Board of Directors has approved the repurchase of up to $300,000 of the Company’s common stock. “Our Board of Directors and senior management strongly believe that Sajan’s growth prospects and long-term strategy are not reflected by the current stock price,” said Zimmerman. He continued, “The stock repurchase program underscores the strength of our balance sheet and the confidence we have in our business, and demonstrates our commitment to maximizing value for our shareholders.”
Under the stock repurchase program, Sajan may repurchase shares in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which Sajan repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by Sajan’s management team. The repurchase program may be suspended or discontinued at any time.
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