SOURCE: GlobalSCAPE, Inc.

Globalscape

October 29, 2015 16:15 ET

GlobalSCAPE, Inc. Announces Financial Results for the Third Quarter 2015

Revenues Increase 18 Percent Over the Prior Year

SAN ANTONIO, TX--(Marketwired - October 29, 2015) - GlobalSCAPE, Inc. (NYSE MKT: GSB), the secure information exchange company, today announced its financial results for the three and nine months ended September 30, 2015.

Revenue for the third quarter of 2015 was $7.6 million, an increase of 18 percent when compared with revenue of $6.5 million for the third quarter of 2014. Revenue for the first nine months of 2015 was $22.4 million compared with $18.9 million for the same period in 2014, an increase of 18 percent.

Deferred revenue, which can be an indicator of future revenue trends, was $15.3 million at September 30, 2015, compared with $14.2 million at September 30, 2014, or an increase of 8 percent.

For the third quarter of 2015, the Company's net income was $1.2 million compared with net income of $782,000 for the third quarter of 2014. Earnings per share was $0.06 for the third quarter of 2015 compared with $0.04 for the third quarter of 2014.

For the first nine months of 2015, net income was $3.4 million compared with $1.8 million for the same period in 2014. Earnings per share for the first nine months of 2015 was $0.16 per share compared with $0.09 per share for the same period in 2014.

Adjusted EBITDA Excluding Infrequent Items for the third quarter of 2015 was $1.9 million compared with $1.5 million for the third quarter of 2015 and was $5.6 million for the first nine months of 2015 compared with $3.4 million for the first nine months of 2014.

The Company had cash, cash equivalents and long-term investments of $16.1 million at September 30, 2015. Other than liabilities for normal trade payables and taxes, the Company has no debt.

Supporting Quote:

James L. Bindseil, President and Chief Executive Officer at Globalscape

"There has never been a more exciting time in Globlascape's recent history. We are very proud of the work that has been done that has resulted in double digit revenue growth. Seeing an 18 percent increase in revenue for both the third quarter and the year to date when compared with 2014 is incredibly rewarding. We remain confident in our sales, marketing and product development strategies. We are encouraged and eager about what the future holds for this organization. We look forward to continuing to execute on the plans we have in place for the remainder of 2015 while setting the stage for continued growth in 2016 and beyond."

Conference Call October 29, 2015 at 4:30 p.m. ET

Globalscape management will hold a conference call on October 29, 2015, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the third quarter 2015. Those wanting to join may call 888-500-6950 or 719-457-2648 and use Conference ID # 8767354. A live webcast of the conference call will also be available on the Investor Relations page of the company's website at www.globalscape.com. A webcast replay will be made available on the company's website shortly after the call is completed.

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 the EFT platform, 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 www.Globalscape.com or follow the blog and 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 2014 calendar year, filed with the Securities and Exchange Commission on March 30, 2015.

  
GlobalSCAPE, Inc.  
Condensed Consolidated Balance Sheets  
(in thousands except share amounts)  
Unaudited  
  
   September 30,   December 31,  
   2015   2014  
Assets           
Current assets:           
 Cash and cash equivalents  $12,858   $11,358  
 Accounts receivable (net of allowance for doubtful accounts of $500 and $511 in 2015 and 2014, respectively)   7,481    5,938  
 Current deferred tax asset   313    402  
 Prepaid expenses   334    488  
  Total current assets   20,986    18,186  
            
Fixed assets, net   520    616  
Long term investments   3,233    3,185  
Capitalized software development costs   3,999    3,298  
Goodwill   12,712    12,712  
Deferred tax asset   699    290  
Other assets   63    100  
  Total assets  $42,212   $38,387  
            
Liabilities and Stockholders' Equity           
Current liabilities:           
 Accounts payable  $354   $1,111  
 Accrued expenses   1,600    1,590  
 Deferred revenue   11,848    11,411  
 Income taxes payable   356    2  
  Total current liabilities   14,158    14,114  
            
Deferred revenue, non-current portion   3,487    3,393  
Other long term liabilities   47    52  
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, 21,318,967 and 20,989,267 shares issued at September 30, 2015, and December 31, 2014, respectively   21    21  
Additional paid-in capital   19,318    18,370  
Treasury stock, 403,581 shares, at cost, at September 30, 2015 and December 31, 2014   (1,452 )  (1,452 )
Retained earnings   6,633    3,889  
  Total stockholders' equity   24,520    20,828  
  Total liabilities and stockholders' equity  $42,212   $38,387  
           
           
  
GlobalSCAPE, Inc.  
Condensed Consolidated Statements of Operations and Comprehensive Income  
(In thousands, except per share amounts)  
(Unaudited)  
                
   Three months ended September 30,   Nine months ended September 30,  
   2015  2014   2015  2014  
                    
Operating Revenues:                   
 Software licenses  $2,852  $2,291   $8,590  $6,789  
 Maintenance and support   4,142   3,790    12,269   11,181  
 Professional services   653   409    1,531   933  
  Total Revenues   7,647   6,490    22,390   18,903  
Operating Expenses:                   
 Cost of revenues   458   277    1,066   679  
 Selling, general and administrative   4,355   4,173    13,472   13,077  
 Research and development   646   513    1,832   1,722  
 Depreciation and amortization   433   263    1,116   580  
  Total operating expenses   5,892   5,226    17,486   16,058  
Income from operations   1,755   1,264    4,904   2,845  
Other income (expense), net   17   (11 )  51   (58 )
Income before income taxes   1,772   1,253    4,955   2,787  
Income tax expense   542   471    1,585   982  
Net income  $1,230  $782   $3,370  $1,805  
Comprehensive income  $1,230  $782   $3,370  $1,805  
                    
Net income per common share -                   
 Basic  $0.06  $0.04   $0.16  $0.09  
 Diluted  $0.06  $0.04   $0.16  $0.09  
                    
Weighted average shares outstanding:                   
 Basic   20,892   20,487    20,782   20,024  
 Diluted   21,440   20,890    21,294   20,624  
                    
Cash dividends declared per share  $0.015   -   $0.030   -  
               
               
  
GlobalSCAPE, Inc.  
Condensed Consolidated Statements of Cash Flows  
(in thousands)  
(Unaudited)  
   For the Nine Months Ended September 30,  
   2015   2014  
Operating Activities:           
Net income  $3,370   $1,805  
 Adjustments to reconcile net income to net cash provided by operating activities:           
  Bad debt expense   147    318  
  Depreciation and amortization   1,116    580  
  Stock-based compensation   482    380  
  Deferred taxes   (320 )  740  
  Excess tax benefit from share-based compensation   (49 )  212  
 Subtotal before changes in operating assets and liabilities   4,746    4,035  
 Changes in operating assets and liabilities:           
  Accounts receivable   (1,690 )  (3,275 )
  Prepaid expenses   154    85  
  Other assets   37    10  
  Deferred revenue   531    3,405  
  Accounts payable   (757 )  (24 )
  Accrued expenses   10    398  
  Other long-term liabilities   (5 )  (6 )
  Income tax receivable and payable   403    (132 )
Net cash provided by operating activities   3,429    4,496  
Investing Activities:           
 Software development costs capitalized   (1,613 )  (2,028 )
 Purchase of property and equipment   (108 )  (215 )
 Interest reinvested in long term investments   (48 )  (47 )
Net cash (used in) investing activities   (1,769 )  (2,290 )
 Financing Activities:           
 Proceeds from exercise of stock options   417    2,201  
 Excess tax benefit from share-based compensation   49    (212 )
 Notes payable principal payments   -    (4,385 )
 Dividends paid   (626 )  -  
Net cash (used in) financing activities   (160 )  (2,396 )
Net increase in cash   1,500    (190 )
Cash at beginning of period   11,358    9,455  
Cash at end of period  $12,858   $9,265  
            
Supplemental disclosure of cash flow information:           
Cash paid during the period for:           
Interest  $-   $117  
Income taxes  $1,341   $642  
         
         
  
GlobalSCAPE, Inc.  
EBITDA Excluding Infrequent items  
(in thousands)  
              
  Three Months Ended  Nine Months Ended  
  September 30,  September 30,  
  2015  2014  2015  2014  
Net income (loss) $1,230  $782  $3,370  $1,805  
Add (subtract) items to determine adjusted EBITDA excluding infrequent items:                 
 Income tax expense  542   471   1,587   982  
 Interest (income) expense, net  (16 ) 12   (50 ) 59  
 Depreciation and amortization:                 
  Total depreciation and amortization  432   263   1,114   580  
  Amortization of capitalized software development costs  (366 ) (186 ) (911 ) (359 )
 Stock-based compensation expense  167   120   482   380  
 Infrequent items      -   -   -  
  Adjusted EBITDA excluding infrequent items $1,989  $1,462  $5,592  $3,447  

Contact Information

  • INVESTOR RELATIONS CONTACT
    Contact: Casey Stegman
    Phone Number: (214) 987-4121
    Email: ir@globalscape.com

    PRESS CONTACT

    Contact: Ciri Haugh
    Phone Number: (210) 308-8267
    Email: PR@globalscape.com