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
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., will focus on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. 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 Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Puppet Labs is pleased to share the findings from our 2015 State of DevOps Survey. We have deepened our understanding of how DevOps enables IT performance and organizational performance, based on responses from more than 20,000 technical professionals we’ve surveyed over the past four years. The 2015 State of DevOps Report reveals high-performing IT organizations deploy 30x more frequently with 200x shorter lead times. They have 60x fewer failures and recover 168x faster
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...