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
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We analyze the video streaming experience. We are gathering the user behavior in real time from the user devices and we analyze how users experience the video streaming," explained Eric Kim, Founder and CEO at Streamlyzer, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...