SAN ANTONIO, July 30, 2020 /PRNewswire/
-- GlobalSCAPE, Inc. (NYSE American: GSB), a
worldwide leader in the secure movement and integration of data,
today announced unaudited financial results for its fiscal second
quarter ended June 30, 2020.
Revenue for the second quarter of 2020 was $10.0 million, a 2% decrease when compared with
revenue of $10.3 million for the
second quarter of 2019. Gross margin was $8.4 million, or 84% of total revenue, compared
to $8.7 million, or 85% of total
revenue in the same quarter a year ago.
Operating expenses for the second quarter of 2020 increased 4%
to $4.3 million, compared to
$4.2 million in the same period a
year ago.
Net income for the second quarter of 2020 decreased 4% to
$3.5 million compared to $3.6 million in the same quarter a year ago.
Fully diluted earnings per share were $0.18 for the second quarter of 2020 compared to
$0.20 for the second quarter of 2019.
These amounts are inclusive of a tax benefit resulting from the
dissolution of a wholly-owned subsidiary during the quarter.
Adjusted EBITDA for the second quarter of 2020 was $5.0 million compared to $5.6 million for the second quarter of 2019.
The Company had cash and cash equivalents totaling $12.5 million at June 30,
2020. As of June 30, 2020,
there were 18,782,318 shares of common stock outstanding.
"In the second quarter, our revenue was impacted by COVID-19 as
organizations continued to deal with the uncertainty related to the
pandemic," said Robert Alpert,
Chairman of GlobalSCAPE's Board of Directors and CEO. "Despite the
headwinds, our teams performed well as they continue to provide
world-class sales and support from remote locations."
On July 20, 2020, GlobalSCAPE and
and HelpSystems, LLC jointly announced they had signed a definitive
merger agreement under which HelpSystems will acquire all
outstanding shares of GlobalSCAPE for $9.50 per share in cash. The transaction is
structured as a tender offer followed by a merger (the
"Transaction"). HelpSystems, LLC intends to fund the transaction
with cash on hand and new debt.
Additional Information:
The tender offer referenced in this press release has not yet
commenced. This press release is for informational purposes only
and is neither an offer to purchase nor a solicitation of an offer
to sell any securities. When the tender offer is commenced,
HelpSystems, LLC will file with the Securities and Exchange
Commission ("SEC") a Tender Offer Statement on Schedule TO and
GlobalSCAPE will file a Solicitation/Recommendation Statement
on Schedule 14D-9 with respect to the tender offer. GlobalSCAPE's
stockholders and other investors are strongly advised to read the
tender offer materials (including the Offer to Purchase, the
related Letter of Transmittal and certain other tender offer
documents that have yet to be filed) and the Solicitation /
Recommendation Statement because they will contain important
information, which should be read carefully before any decision is
made with respect to the tender offer. The Tender Offer Statement
and the Solicitation / Recommendation Statement will be available
for free at the SEC's website at www.sec.gov. In addition, copies
of these materials and other tender offer documents will be made
available for free by the information agent for the tender
offer.
About Globalscape
GlobalSCAPE, Inc. (NYSE American:
GSB) is a pioneer in securing and automating the movement and
integration of data seamlessly in, around and outside your
business, between applications, people and places, in and out of
the cloud. GlobalSCAPE provides cloud services that automate your
work, secure your data, and integrate your applications – while
giving visibility to those who need it. GlobalSCAPE makes business
flow brilliantly. Visit www.globalscape.com.
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," "expect," 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 the actual results of the operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to, the failure of the Transaction to close; overall
level of consumer spending on our products; general economic
conditions and other factors affecting consumer confidence;
disruption and volatility in the global capital and credit markets;
the Company's ability to protect patents, trademarks and other
intellectual property rights; any breaches of, or interruptions in,
our information systems; legal, regulatory, political and economic
risks in international markets and global public health crises that
reduce economic activity (including the recent coronavirus COVID-19
outbreak); the results of our reduction in force; the discovery of
additional information relevant to the internal investigation; the
possibility that additional errors relevant to the recently
completed restatement may be identified; pending litigation and
other proceedings and the possibility of further legal proceedings
adverse to the Company resulting from the restatement or related
matters; the costs associated with the restatement and the
investigation, pending litigation and other proceedings and
possible future legal proceedings; and our decreased "public float"
(the number of shares owned by non-affiliate stockholders and
available for trading in the securities markets) as a result of
share repurchases. More information on potential risks and other
factors that could affect the Company's financial results is
included from time to time in the Company's public reports filed
with the SEC, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release and speak only as of the date hereof.
Use of Non-GAAP Measures
The Company uses
Adjusted EBITDA (Earnings Before Interest, Taxes, Total Other
Income/Expense, Depreciation, Amortization, and Share-Based
Compensation Expense) to provide a view of income and expenses that
is supplemental and secondary to the primary assessment of net
income (loss) as presented in the condensed consolidated statement
of operations and comprehensive income.
Adjusted EBITDA is not a measure of financial performance under
GAAP. It should not be considered as a substitute for net income
(loss) presented on our condensed consolidated statement of
operations and comprehensive income. Adjusted EBITDA has
limitations as an analytical tool and when assessing our operating
performance. Adjusted EBITDA should not be considered in isolation
or without a simultaneous reading and consideration of our
financial statements prepared in accordance with GAAP. A
reconciliation of net income to Adjusted EBITDA is provided at the
end of this release.
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net Income
|
$
3,501
|
|
$
3,633
|
|
$
5,870
|
|
$
6,053
|
Add (subtract) items
to determine Adjusted EBITDA:
|
|
|
|
|
|
|
|
Income tax
expense
|
(31)
|
|
926
|
|
430
|
|
1,673
|
Interest (income)
expense, net
|
628
|
|
(30)
|
|
1,402
|
|
(54)
|
Depreciation and
amortization
|
476
|
|
506
|
|
917
|
|
916
|
Stock-based
compensation expense
|
412
|
|
574
|
|
909
|
|
1,449
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
4,986
|
|
$
5,609
|
|
$
9,528
|
|
$
10,037
|
GlobalSCAPE Investor Relations Contact:
ir@GlobalSCAPE.com
GlobalSCAPE Public Relations Contact:
Zintel Public Relations
Matthew Zintel
matthew.zintel@zintelpr.com
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SOURCE GlobalSCAPE, Inc.