8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 7, 2013

GlobalSCAPE, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-33601	74-2785449
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4500 Lockhill Selma Road, Suite 150

San Antonio, Texas 78249

(210) 308-8267

(Address of principal executive offices and Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On August 7, 2013, GlobalSCAPE, Inc (“GlobalSCAPE” or the “Company”) issued a press release announcing financial results for the Company’s second quarter of fiscal year 2013. A copy of the press release is furnished with this report as Exhibit 99.1. Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibit

99.1 Press Release dated August 7, 2013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GLOBALSCAPE, INC.
By:	/s/ Jim Albrecht
	Jim Albrecht, Chief Financial Officer
Dated: August 7, 2013

EXHIBIT INDEX

Exhibit Number	Document Description
99.1	Press release dated August 7, 2013 announcing GlobalSCAPE’s 2013 second quarter financial results.

EX-99.1

Exhibit 99.1

NEWS RELEASE Contact: Jim Albrecht, Chief Financial Officer Email: ir@Globalscape.com   Contact: Jim Fanucchi, Darrow Associates, Inc. Phone number: (408) 404-5400 Email: ir@Globalscape.com

Globalscape Announces Financial Results for the Second Quarter 2013

Reports Strong Earnings Growth Driven by Increased Revenue Combined With Lower Operating Expenses

SAN ANTONIO, Texas — August 7, 2013 — GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, today announced its financial results for the three and six month periods ended June 30, 2013.

Revenue for the three months ended June 30, 2013, was $5.9 million, a 4% increase over revenue of $5.7 million for the three months ended June 30, 2012. Revenue for the six months ended June 30, 2013 was $11.8 million, a 6% increase over revenue of $11.1 million for the six months ended June 30, 2012.

The Company’s deferred revenue, which the Company believes can be an indicator of future revenue trends, grew to $11.0 million at June 30, 2013, compared to $8.0 million at June 30, 2012, a 37.5% increase.

For the three months ended June 30, 2013, the Company had net income of $381,000, or $0.02 per share, compared to a net loss of $140,000, or ($0.01) per share, for the three months ended June 30, 2012. For the six months ended June 30, 2013, the Company had net income of $898,000, or $0.05 per share, compared to a net loss of $393,000, or ($0.02) per share for the six months ended June 30, 2012.

Adjusted EBITDA Excluding Infrequent Items was $997,000 for the three months ended June 30, 2013, compared to $478,000 for the three months ended June 30, 2012, and was $2.2 million for the six months ended June 30, 2013, compared to $658,000 for the six months ended June 30, 2012. Adjusted EBITDA Excluding Infrequent Items is not a measure of financial performance under GAAP and has limitations as an analytical tools 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.

Net cash provided by operating activities was $1.2 million for the six months ended June 30, 2013. This cash flow performance allowed the Company to end the quarter with over $7.8 million of cash and $3.1 million of long term investments.

“Our second quarter results underline our return to profitability and position us for further growth,” said Craig Robinson, President and Chief Executive Officer of Globalscape. “Our revenue and deferred revenue have continued their consistent pattern of growth between comparable periods, which reflects ongoing customer satisfaction with our solutions. We have confidence in our ability to continue driving the business forward for the benefit of our shareholders.”

Conference Call August 7, 2013 at 4:30 p.m. ET

Globalscape management will hold a conference call Wednesday, August 7, 2013 to discuss financial results for the first quarter of 2013 and other corporate matters at 4:30 p.m. Eastern Time/3:30 p.m. Central Time. Those wanting to join should dial 1-888-846-5003 and use Conference ID # 4634013. 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 9, 2013.

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 2012 calendar year, filed with the Securities and Exchange Commission on March 28, 2013.

Summary Financial Data

GlobalSCAPE, Inc.

Statements of Operations

(Unaudited)

(in thousands, except per share amounts)

	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Operating Revenues:
Software license	$	1,905		$	2,541		$	3,863		$	4,885
Maintenance and support		3,367			2,611			6,650			5,251
Professional services		426			411			825			739
Others		227			139			467			220
Total Revenues		5,925			5,702			11,805			11,095
Operating Expenses:
Cost of revenues		269			313			533			631
Selling, general and administrative expenses		3,796			4,243			7,646			8,395
Research and development expenses		968			897			1,730			1,839
Depreciation and amortization		264			321			521			637
Total operating expenses		5,297			5,774			10,430			11,502
Income (loss) from operations		628			(72	)		1,375			(407	)
Other income (expense), net		(43	)		(61	)		(90	)		(127	)
Income (loss) before income taxes		585			(133	)		1,285			(534	)
Provision (benefit) for income taxes		204			7			387			(141	)
Net income (loss)	$	381		$	(140	)	$	898		$	(393	)
Comprehensive income (loss)	$	381		$	(140	)	$	898		$	(393	)
Net income (loss) per common share—basic	$	0.02		$	(0.01	)	$	0.05		$	(0.02	)
Net income (loss) per common share—diluted	$	0.02		$	(0.01	)	$	0.05		$	(0.02	)
Average shares outstanding:
Basic		18,502			18,320			18,473			18,304
Diluted		18,955			18,320			18,920			18,304

GlobalSCAPE, Inc.

Balance Sheets

(Unaudited)

In thousands except per share amounts.

	June 30,			December 31,
	2013			2012
Assets
Current assets:
Cash and cash equivalents	$	7,812		$	8,079
Accounts receivable (net of allowance for doubtful accounts of $201 and $171 on June 30, 2013 and December 31, 2012 respectively)		4,799			3,350
Income tax receivable		343			—
Current deferred tax assets		194			177
Prepaid expenses		411			426
Total current assets		13,559			12,032
Fixed assets, net		787			900
Investment in certificate of deposit		3,091			3,060
Intangible assets, net		4,299			4,308
Goodwill		12,712			12,712
Deferred tax asset		437			535
Other assets		103			41
Total assets	$	34,988		$	33,588
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	592		$	432
Accrued expenses		1,271			1,353
Deferred revenue		9,402			8,293
Income taxes payable		—			46
TappIn earn out, current portion		—			500
Long term debt, current portion		1,366			1,335
Total current liabilities		12,631			11,959
Deferred revenue, non-current portion		1,577			1,480
TappIn earn out, non-current portion		3,694			3,694
Long-term debt. non-current portion		3,696			4,389
Other long term liabilities		61			62
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, 19,123,297 and 18,846,547 issued June 30, 2013 and December 31, 2012		19			19
Additional paid-in capital		14,862			14,435
Treasury stock, 403,581 shares, at cost, at June 30, 2013 and December 31, 2012.		(1,452	)		(1,452	)
Retained earnings		(100	)		(998	)
Total stockholders’ equity		13,329			12,004
Total liabilities and stockholders’ equity	$	34,988		$	33,588

GlobalSCAPE, Inc.

Statements of Cash Flows

(Unaudited)

(in thousands)

	For the six months ended June 30,
	2013			2012
Operating Activities:
Net income (loss)	$	898		$	(393	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		521			637
Stock-based compensation		297			428
Deferred taxes		81			(172	)
Bad debt expense (recoveries)		75			(14	)
Net tax effect of stock option and restricted stock activity		27			5
Changes in operating assets and liabilities:
Accounts receivable		(1,524	)		(891	)
CoreTrace receivable		—			(150	)
Prepaid expenses		15			1
Income tax receivable and payable		(416	)		(242	)
Other assets		(62	)		(11	)
Accounts payable		160			(265	)
Accrued expenses		(82	)		(85	)
Deferred revenues		1,206			404
Other long-term liabilities		(1	)		4
Net cash provided by (used for) operating activities		1,195			(744	)
Investing Activities:
Purchase of property and equipment		(39	)		(190	)
Software development costs		(360	)		(178	)
TappIn, Inc, earnout liability paid		(500	)		—
Interest reinvested in certificate of deposit		(31	)		—
Net cash provided by (used for) investing activities		(930	)		(368	)
Financing Activities:
Proceeds from exercise of stock options		157			19
Net tax effect of stock option and restricted stock activity		(27	)		(5	)
Notes payable principle payments		(662	)		(631	)
Net cash provided by (used for) financing activities		(532	)		(617	)
Net increase (decrease) in cash		(267	)		(1,729	)
Cash at beginning of period		8,079			8,861
Cash at end of period	$	7,812		$	7,132
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest on notes payable	$	125		$	154
Income taxes	$	734		$	271

GlobalSCAPE, Inc.

Adjusted EBITDA Excluding Infrequent Items

(Unaudited)

(In thousands)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Net income (loss)		381		(140	)		898		(393	)
Add (subtract) items to determine adjusted EBITDA excluding infrequent items:
Income tax expense		204		7			387		(141	)
Other expense		43		61			90		127
Depreciation and amortization		264		321			521		637
Stock-based compensation expense		105		229			297		428
Adjusted EBITDA excluding infrequent items	$	997	$	478		$	2,193	$	658

Adjusted EBITDA [Earnings before Interest, Taxes, Total Other Income (Expense), Depreciation, and Amortization (including amortized stock-based compensation expense)] Excluding Infrequent Items is not a measure of financial performance under generally accepted accounting principles and should not be considered a substitute for net income. Adjusted EBITDA Excluding Infrequent Items has limitations as an analytical tool and when assessing our 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 generally accepted accounting principles.