Welcome!

News Feed Item

Globalscape® Announces Financial Results for the First Quarter 2014

GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, today announced its financial results for the three month period ended March 31, 2014.

Revenue for the three months ended March 31, 2014, was $5.7 million compared to revenue of $5.9 million for the three months ended March 31, 2013.

The Company’s deferred revenue, which the Company believes can be an indicator of future revenue trends, was $10.7 million at March 31, 2014, compared to $9.8 million at March 31, 2013, a 9% increase.

For the three months ended March 31, 2014, the Company had net income of $534,000 or $0.03 per share, compared to a net income of $517,000, or $0.03 per share, for the three months ended March 31, 2013.

Adjusted EBITDA Excluding Infrequent Items was $1 million for the three months ended March 31, 2014, compared to $1.2 million for the three months ended March 31, 2013. Adjusted EBITDA Excluding Infrequent Items is not a measure of financial performance under GAAP and has limitations as an analytical tool and when assessing the Company’s operating performance. Adjusted EBITDA Excluding Infrequent Items should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP.

Cash and cash equivalents were $10.7 million at March 31, 2014, up from $9.5 million at December 31, 2013.

“Our bottom line performance in the first quarter was solid with earnings per share and positive Adjusted EBITDA essentially matching the year ago period in spite of slightly weaker revenue. In addition, our cash balances at the end of the first quarter grew by about $1.2 million from the end of the prior quarter,” said James Bindseil, President and Chief Executive Officer of Globalscape. “During the fourth quarter of 2013, we began making several improvements to our sales and engineering organizations, sales and marketing programs and product development initiatives and timelines designed to drive long-term revenue growth. We are confident the sales leadership we have in place, the enhanced sales and marketing programs they are pursuing, and the new product features and functionality we will introduce during 2014 will deliver improved financial results in future quarters.”

Conference Call May 13, 2014 at 4:30 p.m. ET

Globalscape management will hold a conference call Tuesday, May 13, 2014 to discuss financial results for the first quarter of 2014 and other corporate matters at 4:30 p.m. Eastern Time/3:30 p.m. Central Time. Those wanting to join should dial 1-877-941-4775 and use Conference ID # 4682884. A live webcast of the conference call will also be available in the investor relations page of the company's website at www.Globalscape.com. A webcast replay of the conference call will be available on the Company’s website through June 13, 2014.

About Globalscape

San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE MKT: GSB) ensures the reliability of mission-critical operations by securing sensitive data and intellectual property. Globalscape’s suite of solutions features EFT, the industry-leading enterprise file transfer solution that delivers military-grade security and a customizable platform for achieving best-in-class control and visibility of data in motion or at rest, across multiple locations. Founded in 1996, Globalscape is a leading enterprise solution provider of secure information exchange software and services to thousands of customers, including global enterprises, governments, and small businesses. For more information, visit www.globalscape.com or follow the blog and Twitter updates.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "would," "exceed," "should," "anticipates," "believe," "steady," "dramatic," and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s Annual Report on Form 10-K for the 2013 calendar year, filed with the Securities and Exchange Commission on March 27, 2014.

       
Summary Financial Data
 
GlobalSCAPE, Inc.
Statements of Operations
(Unaudited)

(In thousands, except per share amounts)

 
Three months ended March 31,
2014 2013
 
Operating Revenues:
Software license $ 1,545 $ 1,957
Maintenance and support 3,568 3,283
Professional services 237 399
Others   378     240  
Total Revenues 5,728 5,879
Operating Expenses:
Cost of revenues 204 263
Selling, general and administrative 4,049 3,850
Research and development 527 762
Depreciation and amortization   141     257  
Total operating expenses   4,921     5,132  
Income from operations 807 747
Other expense, net   (20 )   (47 )
Income before income taxes 787 700
Income tax expense   253     183  
Net income $ 534   $ 517  
Comprehensive income $ 534   $ 517  
 
Net income per common share - basic $ 0.03 $ 0.03
Net income per common share - diluted $ 0.03 $ 0.03
Average shares outstanding:
Basic 19,534 18,444
Diluted 20,394 18,982
 
       
GlobalSCAPE, Inc.
Balance Sheets
(Unaudited)

(In thousands except per share amounts)

 
March 31, December 31,
2014     2013
 
Assets
Current assets:
Cash and cash equivalents $ 10,687 $ 9,455

Accounts receivable (net of allowance for doubtful accounts of $257 and $154 in 2014 and 2013, respectively)

3,406 3,765
Income tax receivable 97 113
Current deferred tax assets 109 184
Prepaid expenses   274         349  
Total current assets 14,573 13,866
 
Fixed assets, net 734 744
Investment in certificate of deposit 3,138 3,122
Capitalized software development costs, net 1,711 1,028
Goodwill 12,712 12,712
Deferred tax asset 1,137 1,476
Other assets   144         144  
Total assets $ 34,149       $ 33,092  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 693 $ 655
Accrued expenses 940 898
Deferred revenue 8,718 9,092
Income taxes payable - -
TappIn earn out, current portion - -
Long term debt, current portion   1,298         1,397  
Total current liabilities 11,649 12,042
 
Deferred revenue, non-current portion 1,998 1,708
TappIn earn out, non-current portion - -

Long-term debt, non-current portion

2,747 2,989
Other long term liabilities 56 60
 
Commitments and contingencies - -
 
Stockholders’ equity:

Preferred stock, par value $0.001 per share, 10,000,000 authorized, no shares issued or outstanding

- -

Common stock, par value $0.001 per share, 40,000,000 authorized, 19,645,236 and 19,592,117 issued March 31, 2014 and December 31, 2013

20 20
Additional paid-in capital 16,706 15,834

Treasury stock, 403,581 shares, at cost, at March 31, 2014 and December 31, 2013.

(1,452 ) (1,452 )
Retained earnings   2,425         1,891  
Total stockholders’ equity   17,699         16,293  
Total liabilities and stockholders’ equity $ 34,149       $ 33,092  
 
       
GlobalSCAPE, Inc.
Statements of Cash Flows
(Unaudited)

(In thousands)

For the three months ended March 31,
2014 2013
Operating Activities:
Net income $ 534 $ 517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 141 257
Stock-based compensation 126 192
Deferred taxes 414 (47 )
Bad debt expense (recoveries) 108 36

Excess tax deficiency from share-based compensation

  173     -  
Subtotal before changes in operating assets and liabilities 1,496 955
Changes in operating assets and liabilities:
Accounts receivable 251 139
Prepaid expenses 75 9
Income tax payable (157 ) 84
Accounts payable 38 115
Accrued expenses 42 (353 )
Deferred revenue - M&S (84 ) 59
Other long-term liabilities   (4 )   (1 )
Net cash provided by (used for) operating activities   1,657     1,007  
Investing Activities:
Purchase of property and equipment (63 ) (18 )
Software development costs (751 ) (171 )
Purchase of Tappin, Inc. and earnout payments - (500 )
Interest reinvested in certificate of deposit   (16 )   (16 )
Net cash provided by (used for) investing activities (830 ) (705 )
Financing Activities:
Proceeds from exercise of stock options 919 4
Net tax effect of stock option and restricted stock activity (173 ) -
Notes payable principle payments   (341 )   (329 )
Net cash provided by (used for) financing activities 405 (325 )
Net increase (decrease) in cash 1,232 (23 )
Cash at beginning of period   9,455     8,079  
Cash at end of period $ 10,687   $ 8,056  
 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest on notes payable $ 49   $ 64  
Income taxes $ 45   $ 160  
 
 
GlobalSCAPE, Inc.
Adjusted EBITDA Excluding Infrequent Items
(Unaudited)
(In thousands)
 
    Three Months Ended
March 31,
2014     2013
Net income (loss) 534 517
Add (subtract) items to determine adjusted EBITDA excluding infrequent items:
Income tax expense 253 183
Other expense 20 47
Depreciation and amortization
Total depreciation and amortization 141 257

Amortization of capitalized software development costs

(68 ) (34 )
Stock-based compensation expense 126 192
Infrequent item:
   
Adjusted EBITDA excluding infrequent items $ 1,006   $ 1,162  
 

Adjusted EBITDA [Earnings before Interest, Taxes, Total Other Income (Expense), Depreciation, and Amortization (including amortized stock-based compensation expense)] Excluding Infrequent Items is not a measure of financial performance under generally accepted accounting principles and should not be considered a substitute for net income. Adjusted EBITDA Excluding Infrequent Items has limitations as an analytical tool and when assessing our operating performance. Adjusted EBITDA Excluding Infrequent Items should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with generally accepted accounting principles.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.