Sajan, Inc. (SAJA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.16 million, or $ 0.03 a share in the quarter, against a net profit of $0.26 million, or $0.05 a share in the last year period.
Revenue during the quarter went up marginally by 2.15 percent to $7.66 million from $7.50 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 36.70 percent. Operating margin for the quarter stood at negative 2.13 percent as compared to a positive 3.55 percent for the previous year period.
Operating loss for the quarter was $0.16 million, compared with an operating income of $0.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.29 million compared with $0.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 308 basis points in the quarter to 3.79 percent from 6.87 percent in the last year period.
Shannon Zimmerman, chief executive officer of Sajan, commented on the Company's 4th quarter results: "I am pleased with our record performance and continued revenue growth in the 4th quarter. Our largest clients were the main contributors as we saw our top 20 accounts comprise 74% of our 4th quarter revenue. We also took a major step in improving our profitability outlook for 2017 in November by restructuring our business. The actions taken impacted operations, sales and marketing, research and development and administrative areas of the Company. Although painful, we expect our actions to save the Company approximately $1,200,000 of annual compensation costs while not impacting our ability to achieve our long term revenue growth objectives".
Working capital declines
Sajan, Inc. has witnessed a decline in the working capital over the last year. It stood at $4.75 million as at Dec. 31, 2016, down 7.24 percent or $0.37 million from $5.13 million on Dec. 31, 2015. Current ratio was at 1.91 as on Dec. 31, 2016, down from 2.03 on Dec. 31, 2015.
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