Welcome!

News Feed Item

Globalscape Announces Financial Results for the Second Quarter 2014

GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, announced today its financial results for the three and six month periods ended June 30, 2014.

Revenue for the three months ended June 30, 2014, was $6.7 million, which is the highest quarterly revenue in Globalscape’s history. This result is an increase of 13% when compared with revenue of $5.9 million for the three months ended June 30, 2013.

Revenue for the six months ended June 30, 2014, was $12.4 million, which is the highest combined first and second quarter revenue in Globalscape’s history. This result is an increase of 5% when compared with revenue of $11.8 million for the six months ended June 30, 2013.

Deferred revenue, which the Company believes can be an indicator of future revenue trends, was $12.1 million at June 30, 2014, compared with $10.9 million at June 30, 2013, or an increase of 11%.

For the three months ended June 30, 2014, the Company had net income of $488,000 compared with net income of $381,000 for the three months ended June 30, 2013. Earnings per share was $0.02 for both periods.

For the six months ended June 30, 2014, the Company had net income of $1.0 million compared with net income of $898,000 for the six months ended June 30, 2013. Earnings per share was $0.05 for both periods.

Adjusted EBITDA Excluding Infrequent Items was $975,000 for the three months ended June 30, 2014, compared with $808,000 for the three months ended June 30, 2013, and was $1.9 million for the six months ended June 30, 2014, compared with $1.8 million for the six months ended June 30, 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 $11.7 million at June 30, 2014, up from $9.5 million at December 31, 2013.

“I am pleased with our accomplishments during 2014. Our record revenue in the second quarter is a testament to the success of our recent and ongoing investment in sales, channel, demand generation and product development initiatives we discussed earlier this year. At the same time, we maintained profitability and consistent earnings per share,” said James Bindseil, Globalscape’s President and Chief Executive Officer. “While this quarter’s numbers are positive, we still have a lot of work ahead of us and recognize our results, while headed in an upward trajectory, will vary on a quarterly basis. However, we are confident in the plans we have in place and in our ability to achieve our long-term operational and financial objectives.”

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

Globalscape management will hold a conference call Wednesday, August 13, 2014 to discuss financial results for the second 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 888-576-4387 or 719-325-2455 and use Conference ID # 2278812. 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 September 12, 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 Globalscape, or subscribe to our Blog or 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.

GlobalSCAPE, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
                 
Three months ended June 30, Six months ended June 30,
2014 2013 2014 2013
 
Operating Revenues:
Software licenses $ 2,495 $ 1,905 $ 4,096 $ 3,863
Maintenance and support 3,697 3,367 7,265 6,650
Professional services 287 426 524 825
Other   207     227     528     467  
Total Revenues   6,686     5,925     12,413     11,805  
Operating Expenses:
Cost of revenues 197 269 401 533
Selling, general and administrative 4,850 3,796 8,897 7,646
Research and development 689 968 1,215 1,730
Depreciation and amortization   177     264     318     521  
Total operating expenses   5,913     5,297     10,831     10,430  
Income from operations 773 628 1,582 1,375
Other expense, net   (27 )   (43 )   (48 )   (90 )
Income before income taxes 746 585 1,534 1,285
Income tax expense   258     204     511     387  
Net income $ 488   $ 381   $ 1,023   $ 898  
Comprehensive income $ 488   $ 381   $ 1,023   $ 898  
 
Net income per common share -
Basic $ 0.02 $ 0.02 $ 0.05 $ 0.05
Diluted $ 0.02 $ 0.02 $ 0.05 $ 0.05
 
Weighted average shares outstanding:
Basic 20,071 18,502 19,789 18,473
Diluted 20,622 18,955 20,487 18,920
 
 
GlobalSCAPE, Inc.
Condensed Consolidated Balance Sheets
(in thousands except share amounts)
       
June 30, 2014     December 31, 2013
Assets
Current assets:
Cash and cash equivalents $ 11,693 $ 9,455

Accounts receivable (net of allowance for doubtful accounts of $394 and $154 in 2014 and 2013, respectively)

5,624 3,765
Federal income tax receivable 371 113
Current deferred tax asset 138 184
Prepaid expenses   415         349  
Total current assets 18,241 13,866
 
Long term investments 3,153 3,122
Capitalized software development costs, net 2,139 1,028
Deferred tax asset 824 1,476
Goodwill 12,712 12,712
Fixed assets, net 724 744
Other assets   93         144  
Total assets $ 37,886       $ 33,092  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 998 $ 655
Accrued expenses 1,691 898
Deferred revenue 9,493 9,092
Long term debt, current portion   1,429         1,397  
Total current liabilities 13,611 12,042
 
Deferred revenue, non-current portion 2,646 1,708
Long term debt, non-current portion 2,268 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, 20,837,727 and 19,592,117 shares issued at June 30, 2014 and December 31, 2013, respectively

21 20
Additional paid-in capital 17,822 15,834

Treasury stock, 403,581 shares, at cost, at June 30, 2014 and December 31, 2013

(1,452 ) (1,452 )
Retained earnings   2,914         1,891  
Total stockholders’ equity   19,305         16,293  
Total liabilities and stockholders’ equity $ 37,886       $ 33,092  
 
 
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
       
For the Six Months Ended June 30,
2014 2013
Operating Activities:
Net income $ 1,023 $ 898
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense 240 75
Depreciation and amortization 318 521
Stock-based compensation 256 297
Deferred taxes 697 81

Excess tax deficiency from share-based compensation

294 27
Changes in operating assets and liabilities:
Accounts receivable (2,099 ) (1,524 )
Prepaid expenses (66 ) 15
Income tax receivable and payable (551 ) (416 )
Other assets 51 (62 )
Accounts payable 342 160
Accrued expenses 793 (82 )
Deferred revenue 1,338 1,206
Other long-term liabilities   (2 )   (1 )
Net cash provided by operating activities   2,634     1,195  
Investing Activities:
Software development costs (1,284 ) (360 )
Purchase of property and equipment (124 ) (39 )
Purchase of TappIn, Inc. and earnout payments - (500 )
Interest on long term investments   (32 )   (31 )
Net cash (used in) investing activities   (1,440 )   (930 )
Financing Activities:
Proceeds from exercise of stock options 2,026 157
Tax deficiency (benefit) from stock-based compensation (294 ) (27 )
Notes payable principle payments   (688 )   (662 )
Net cash provided by (used in) financing activities   1,044     (532 )
Net increase (decrease) in cash 2,238 (267 )
Cash at beginning of period   9,455     8,079  
Cash at end of period $ 11,693   $ 7,812  
 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 93   $ 125  
Income taxes $ 379   $ 734  
 
 
GlobalSCAPE, Inc.
Adjusted EBITDA Before Infrequent Items
(in thousands)
 
    Three Months Ended       Six Months Ended
June 30, June 30,
2014     2013 2014     2013
Net income (loss) $ 488 $ 381 $ 1,023 $ 898
Add (subtract) items to determine adjusted EBITDA:
Income tax expense 258 204 511 387
Interest expense, net 27 43 47 90
Depreciation and amortization:
Total depreciation and amortization 177 264 318 521
Amortization of capitalized software development costs (105 ) (189 ) (173 ) (369 )
Stock-based compensation expense   130     105     256     297  
Adjusted EBITDA $ 975   $ 808   $ 1,982   $ 1,824  

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
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor 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. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that Pulzze Systems 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. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.