Click here to close now.



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
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
With microservices, SOA and distributed architectures becoming more popular, it is becoming increasingly harder to keep track of where time is spent in a distributed application when trying to diagnose performance problems. Distributed tracing systems attempt to address this problem by following application requests across service boundaries, persisting metadata along the way that provide context for fine-grained performance monitoring.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...