Sajan, Inc. (NASDAQ: SAJA), a leading provider of global language services and translation management system technology, reported financial results for the first quarter ended March 31, 2015.
Revenues were $7,481,000, which represented an increase of 22 percent over revenues for the quarter ended March 31, 2014, of $6,154,000. The company reported net income of $4,000 for the quarter ended March 31, 2015, compared to a net loss of $400,000 for the quarter ended March 31, 2014. Adjusted EBITDA was a positive $346,000 for the quarter ended March 31, 2015, compared to a negative $52,000 for the quarter ended March 31, 2014. See the section entitled “Non-GAAP Financial Measures” below for a reconciliation of adjusted EBITDA to net income (loss).
“I am extremely pleased with our continued revenue growth and improved profitability,” said Shannon Zimmerman, CEO of Sajan. “This was Sajan’s ninth consecutive quarter of double-digit revenue growth. Our increased revenue is being driven by a combination of new clients and higher revenue from our existing clients.”
Mr. Zimmerman continued: “In order to support our expected growth and achieve our strategic objectives during the rest of 2015, we will be making investments in additional operating personnel in the second and third quarters of this year. We also are planning to expand our sales and marketing activities related to SiteSync, our website translation solution, as well as enhancing its technological capabilities. We also remain focused on our acquisition strategy.”
In closing, he noted: “The spirit of the company remains very high, and we are aggressively fixated on our objectives. I could not be happier with the great work our global staff is delivering.”
|Adjusted EBITDA (in Thousands)||Three months ended March 31|
|Net income (loss)||$4||($400)|
|Depreciation and amortization||230||241|
We calculate Adjusted EBITDA by taking net income (loss) 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 and for budgeting and planning purposes. This measure is also used in 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 this non-GAAP measure 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 limitation, managment presents this non-GAAP financial measure 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.