Click here to close now.

SYS-CON MEDIA Authors: Pat Romanski, SmartBear Blog, Bob Gourley, Mike Kavis, Elizabeth White

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
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
With IoT exploding, massive data will transform businesses with opportunities to monetize almost anything that can be measured. In this C-Level Roundtable Discussion at @ThingsExpo, Brendan O’Brien, Aria Systems Co-founder and Chief Evangelist, will lead an expert panel of consultants, thought leaders and practitioners who will look at these new monetization trends, discuss the implications, and detail lessons learned from their collective experience. Finally, the panel will point the way forw...
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
of cloud, colocation, managed services and disaster recovery solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. TierPoint, LLC, is a leading national provider of information technology and data center services, including cloud, colocation, disaster recovery and managed IT services, with corporate headquarters in St. Louis, MO. TierPoint was formed through the strategic combination of some of t...
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
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...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
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...
SYS-CON Media announced today that John Treadway’s blog has exceeded 475,000 page views. John Treadway, Vice President at Cloud Technology Partners, has surpassed 475,000 page views on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, Microservices Journal, and several others. His blog home page at SYS-CON can be found at JohnTreadway.SYS-CON.com.
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...