Sajan, Inc. (SAJA) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.11 million, or $ 0.02 a share in the quarter, against a net loss of $0.13 million, or $0.03 a share in the last year period. Revenue during the quarter went up marginally by 2.58 percent to $7.52 million from $7.33 million in the previous year period. Gross margin for the quarter expanded 131 basis points over the previous year period to 37.13 percent. Operating margin for the quarter period stood at positive 1.56 percent as compared to a negative 1.55 percent for the previous year period.
Operating income for the quarter was $0.12 million, compared with an operating loss of $0.11 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.33 million compared with $0.21 million in the prior year period. At the same time, adjusted EBITDA margin improved 150 basis points in the quarter to 4.39 percent from 2.89 percent in the last year period.
Shannon Zimmerman, chief executive officer of Sajan, commented on the Company’s 3rd quarter results: "We are excited to hit our goals of improved revenue growth and Adjusted EBITDA during the quarter. Our largest clients led the way as we saw aggregate revenue growth of 15% in this quarter’s top 10 accounts. Further, we continue to expand our reach and customer base as we experienced healthy new client additions during the quarter. Technology improvements and good supply chain management resulted in lower translator costs during the quarter and are the main reasons for our improved earnings. We expect these trends to continue in the future as we focus on driving higher profitability."
Working capital increases marginally
Sajan, Inc. has recorded an increase in the working capital over the last year. It stood at $4.79 million as at Sep. 30, 2016, up 2.46 percent or $0.12 million from $4.67 million on Sep. 30, 2015. Current ratio was at 1.97 as on Sep. 30, 2016, up from 1.88 on Sep. 30, 2015. Days sales outstanding went down to 72 days for the quarter compared with 77 days for the same period last year.
At the same time, days payable outstanding went up to 67 days for the quarter from 66 for the same period last year.
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