EX-99.1 2 d579847dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

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.