GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of
secure information exchange solutions, today announced financial
results for its first quarter of fiscal year 2011, ending March 31,
2011.
Revenue was $4.6 million for the first quarter of fiscal year
2011, an increase of five percent when compared with revenue of
$4.4 million in the same quarter last year. Net income for the
first quarter was $59,000, or $0.00 per diluted share, compared
with net income of $364,000, or $0.02 per diluted share, in the
same quarter last year. Cash grew to $11.4 million, representing a
25 percent increase from the first quarter of 2010 and a 2 percent
improvement since the end of fiscal 2010.
Adjusted EBITDA for the first quarter of 2011 was $0.5 million,
a 45 percent decrease compared with the same quarter last year, and
a 25 percent decrease compared with the fourth quarter of 2010. The
Adjusted EBITDA margin for the first quarter of 2011 was 11.9
percent, compared with 23.1 percent in the first quarter of 2010,
and 14.7 percent in the fourth quarter of 2010.
“Our first quarter performance continued our year-over-year
revenue growth,” said Jim Morris, GlobalSCAPE president and CEO.
“In particular, we have continued to increase recurring revenue
which was 48 percent of total revenue in the first quarter, up from
40 percent in the same period last year,” Morris continued.
Professional Services represented approximately $404,000 or
almost nine percent of GlobalSCAPE’s total revenue in the first
quarter, up from three percent in the same period last year. Morris
indicated that this record contribution from professional services
contributed to reduced operating margins during the quarter.
“Increased professional services give us a considerable performance
history and insight into our customers’ operational activities
which position us well for future businesses opportunities,” Morris
noted. “However, professional services typically have much lower
margins than software sales and this effect was evident in the
first quarter, especially with some software sales slipping into
the second quarter. As we close these software opportunities and
gain market traction with additional solutions, especially those
already accounted for in our current expense run rate, I expect
earnings to increase in line with the additional revenue.”
Quarterly Highlights
During the first quarter, GlobalSCAPE announced new additions to
the Company’s solution portfolio, greatly expanded delivery of
professional services, and gained additional industry
recognitions.
During February, GlobalSCAPE announced ongoing development of
appShield™, a consumer endpoint security solution to protect
computers against the rapid growth of viruses and other malicious
software. The appShield solution uses application whitelisting
technology to block execution of malicious software with much
greater effectiveness than traditional antivirus software. The
traditional approach to antivirus software operation is to develop
specific signatures for malware, detect the presence of files
matching those defined signatures, and then block or quarantine the
assessed malware. Application whitelisting inverts the traditional
approach by allowing the end user or an administrator to explicitly
designate which software applications will be allowed to run. The
resulting ‘whitelist’ then governs software execution privileges.
The appShield solution is the result of a joint development
agreement established with CoreTrace Corporation in December 2009.
GlobalSCAPE plans for appShield to be generally available in summer
2011.
Also in February, GlobalSCAPE announced general availability of
a Hosted Enhanced File Transfer Server™ service. This service
expands GlobalSCAPE’s cloud-based solution portfolio by integrating
a hosted version of the market-leading Enhanced File Transfer
Server solution with infrastructure from Rackspace Hosting. This
scalable and tiered service is structured for the small and
medium-sized business (“SMB”) market, and also allows customers of
all sizes to outsource all or part of their complex and demanding
secure information exchange needs. Through such outsourcing,
customers can greatly reduce costs, increase efficiencies, track
and audit transactions, and provide a greater level of security and
compliance, at affordable price points. The Hosted EFT Server
offering delivers these benefits while allowing direct customer
management of the Enhanced File Transfer Server solution (as
contrasted with the previously announced Managed Information
Xchange, or MIX, service which is fully managed by
GlobalSCAPE).
During March, GlobalSCAPE announced significant enhancements to
the Enhanced File Transfer Server and Mail Express™ software
solutions. The new version of Enhanced File Transfer Server
delivers additional security and visibility features, along with
improved workflow tools, to both enterprise and SMB customers. New
features in Enhanced File Transfer Server include industry-leading
two-factor authentication, real-time visibility into all ongoing
file transfers passing through the server, integration with
Microsoft® SharePoint® Server, improved worldwide scalability with
UTF-8 encoding, an enhanced user experience for browser-based
access, and simplified corporate branding and customization.
The new version of Mail Express, GlobalSCAPE’s email-based file
transfer solution for business customers, now supports
communication through the GlobalSCAPE DMZ Gateway™, which allows
customers to implement Mail Express behind a DMZ firewall. This
implementation approach provides an added layer of protection for
data storage and retrieval, user authentication, and firewall
traversal. To ensure customers have complete email attachment
management and security in diverse user environments, the latest
version also includes the Mail Express Internal Web Portal. The
portal provides full Mail Express functionality via a standard web
browser to customer employees who may not use Microsoft Outlook as
their primary mail client. The portal also allows approved partners
to send large files back to Mail Express users, ensuring the files
and data remain secure at all times. Other key features of this new
version of Mail Express include support for Microsoft Outlook and
Exchange 2010, improved performance and optimization when
interacting with anti-virus software, and increased capacity and
number of users per Mail Express Server, supporting the growing
demands of larger enterprises.
At the end of March, GlobalSCAPE announced that the Company had
increased its engineering support as a subcontractor on the McLane
Advanced Technologies (“MAT”) industry team that won the $52.3
million re-compete contract for the US Army Standard Army
Maintenance System - Enhanced (“SAMS-E”) in September 2010.
GlobalSCAPE has provided more than a dozen engineers to work onsite
at MAT facilities in Temple, Texas, and is now under contract to
deliver more than $1 million of professional services support to
the SAMS-E program during the government fiscal year 2011. This
SAMS-E support represents the largest professional services
engagement in GlobalSCAPE’s 15-year history. Under the contract
terms, GlobalSCAPE is providing professional services to sustain
integration of the Company’s Secure FTP Server™ and CuteFTP®
solutions within the SAMS-E environment. In addition to the
contracted services, GlobalSCAPE may deliver enhanced software
solutions for SAMS-E under the subcontractor agreement.
During the first quarter, GlobalSCAPE also received additional
workplace and solution recognitions. In January, GlobalSCAPE was
named by one of the 2011 "Best Companies to Work for in Texas."
This awards program, created in 2006, is a project of Texas
Monthly, the Texas Association of Business (“TAB”), the Texas State
Council of the Society for Human Resource Management, and Best
Companies Group. The statewide survey and awards program
identifies, recognizes, and honors the best places of employment in
Texas. Companies from across the state competed to be named to the
2011 "Best Companies to Work for in Texas" list. One hundred
companies were selected, all identified as benefiting the state's
economy, its workforce, and businesses.
In addition, Info Security Products Guide recognized MIX as the
winner of the 2011 Global Excellence Award in the Cloud category.
The Info Security Products Guide, a leading information security
advisory guide, honored the global award winners for their
ground-breaking advancements in information security at an awards
gala held in San Francisco during February. This year's Global
Excellence Awards attracted entries from all over the world, and
more than 50 judges from a broad spectrum of industries determined
the winners. This award for MIX continues GlobalSCAPE's tradition
of solution excellence. Enhanced File Transfer Server, the solution
on which the MIX service is based, won Network Products Guide's
2010 Product Innovation Award for Managed File Transfer. The
Product Innovation Award recognized Enhanced File Transfer Server
for bringing innovative and essential capabilities to the
information technology market.
Conference Call May 12, 2011 At 4:30 p.m. ET
GlobalSCAPE management will hold a conference call Thursday, May
12 to discuss the first quarter 2011 financial results and other
corporate matters at 4:30 p.m. Eastern Time/3:30 p.m. Central Time.
Those wishing to join should dial 1-800-380-1061 and use Conference
ID # 62309027. 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 12,
2011.
About GlobalSCAPE
GlobalSCAPE, Inc. (NYSE Amex: GSB), headquartered in San
Antonio, TX, is a global provider of managed file transfer (MFT)
and wide area file services (WAFS) solutions for securely
exchanging critical information over the Internet, within an
enterprise, and with business partners. Since the release of Cute
FTP in 1996, GlobalSCAPE's solutions have continued to evolve to
meet the business and technology needs of an increasingly
interconnected global marketplace. For more information about
GlobalSCAPE's products, visit www.globalscape.com or the Company’s
Secure Info Exchange blog.
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," "possibly,"
"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 2010 calendar year,
filed with the Securities and Exchange Commission on March 29,
2011.
Summary Financial Data
GlobalSCAPE, Inc. Statements of Operations
(Unaudited) Three Months Ended March
31, (In thousands, except per share data)
2011
2010 OPERATING REVENUE: Licenses $ 1,981 $
2,462 Maintenance and support 2,220 1,775 All others 443
176 Total revenue 4,644 4,413 OPERATING EXPENSES:
Cost of revenues 369 102 SG&A expenses 3,194 2,909 R&D
expenses 785 646 Depreciation and amortization 204
200 Total operating expenses 4,552 3,857
OPERATING INCOME 92 556 Other income - 1
INCOME BEFORE INCOME TAXES 92 557 PROVISION FOR
INCOME TAXES 33 193 NET INCOME $ 59 $ 364 Net
income per common share - basic 0.00 0.02 Net income per common
share – diluted 0.00 0.02 Weighted average shares
outstanding: Basic 17,943 17,283 Diluted 18,699 17,876
GlobalSCAPE, Inc. Balance Sheets (In
thousands, except share and per share data)
March 31,
2011
December 31,
2010
(Unaudited) Assets Cash and cash equivalents $ 11,413
$ 11,087 Accounts receivable (net of allowance for doubtful
accounts of $167 and $237 on March 31, 2011 and December 31, 2010,
respectively) 2,512 3,124 CoreTrace receivable 596 298 Federal
income tax receivable - 94 Current deferred tax assets 902 881
Prepaid expenses 343 319 Total current
assets 15,766 15,803 Fixed assets, net 1,187 1,286
Investment in CoreTrace 2,278 2,278 Intangible assets, net 455 531
Goodwill 619 619 Deferred tax assets 20 - Other assets 37
30 Total assets $ 20,362 $
20,547
Liabilities and Stockholders’ Equity
Current liabilities: Accounts payable $ 540 $ 250 Accrued expenses
809 1,392 Income tax payable 5 - Deferred revenue 5,442
5,554 Total current liabilities 6,796 7,196
Deferred tax liabilities - 7 Other long term liabilities
1,109 1,185 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,
18,346,982 issued at March 31, 2011 and December 31, 2010. 18 18
Additional paid-in capital 12,376 12,137 Treasury stock, 403,581
shares, at cost, at March 31, 2011 and December 31, 2010 (1,452 )
(1,452 ) Retained earnings 1,515 1,456
Total stockholders’ equity 12,457 12,159
Total liabilities and stockholders’ equity $
20,362 $ 20,547
GlobalSCAPE,
Inc. Statements of Cash Flows (Unaudited)
Three Months Ended March 31, (In thousands)
2011 2010
Operating Activities: Net income $ 59 $ 364 Adjustments to
reconcile net income to net cash provided by operating activities:
Bad debt recoveries (79 ) (137 ) Depreciation and amortization 204
200 Stock-based compensation 258 263 Tax deficiency from
stock-based compensation 19 - Deferred taxes (48 ) (407 ) Changes
in operating assets and liabilities: Accounts receivable 691 72
CoreTrace receivable (298 ) - Prepaid expenses (24 ) (62 ) Federal
income tax receivable 80 594 Other assets (7 ) (1 ) Accounts
payable 290 60 Accrued expenses (583 ) (167 ) Deferred revenues
(112 ) 113 Other long-term liabilities (76 ) 4
Net cash provided by operating activities 374
896
Investing Activities: Purchase of property and
equipment (29 ) (22 ) Purchase of short-term investments - (350 )
Redemption of short-term investments - 905
Net cash provided by (used in) investing activities (29 )
533
Financing Activities: Tax deficiency from stock-based
compensation (19 ) - Net cash used in financing activities
(19 ) - Net increase (decrease) in cash 326 1,429
Cash at beginning of period 11,087 7,026
Cash at end of period $ 11,413 $ 8,455
Non-GAAP Financial Measures
Adjusted EBITDA(In thousands)
We define Adjusted EBITDA as Net Income, plus Income Taxes,
Total Other Income (Expense), Depreciation and Amortization, and
non-cash charges for share-based compensation and asset
impairments.
Adjusted EBITDA is a metric that is used in our industry by the
investment community for comparative and valuation purposes. We
disclose this metric in order to support and facilitate the
dialogue with research analysts and investors.
Note that Adjusted EBITDA is not a measure of financial
performance under accounting principles generally accepted in the
United States (“GAAP”) and should not be considered a substitute
for net income. Adjusted EBITDA has limitations as an analytical
tool, and when assessing our operating performance, you should not
consider Adjusted EBITDA in isolation, or as a substitute for net
income or other income statement data prepared in accordance with
GAAP. Other companies may calculate Adjusted EBITDA differently
than we do, limiting its usefulness as a comparative measure. See
our Adjusted EBITDA to net income reconciliations in the table
below.
Three Months Ended (Unaudited) March
31, March 31, 2011 2010 Net
Revenue $ 4,644 $ 4,413 Income from operations $ 92 $ 556
Net income: $ 59 $ 364 Plus: Income taxes 33 193 Plus: Total
other (income) expense 0 (1 ) Plus: Depreciation and amortization
204 200 Plus: Share-based compensation expense 258
263 Adjusted EBITDA $ 554 $ 1,019
Operating income margin 2.0 % 12.6 % Adjusted EBITDA
margin 11.9 % 23.1 %
Globalscape (AMEX:GSB)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Globalscape (AMEX:GSB)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024