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

(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

(In thousands except per share amounts)

March 31, December 31,
2014     2013
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

(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
(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
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide 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 will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
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 @...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.