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Form 8-K GLOBALSCAPE INC For: Apr 28

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April 28, 2016 4:30 PM EDT
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
April 28, 2016
Date of Report (Date of earliest event reported)
 
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):
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o 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 April 28, 2016, GlobalSCAPE, Inc. (“Globalscape” or the “Company”) issued a press release announcing financial results for the Company’s first quarter of 2016. 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 April 28, 2016.
 
 
 
 
 
 
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/ James W. Albrecht, Jr.
 
 
 
James W. Albrecht, Jr., Chief Financial Officer
 
 
 
Dated: April 28, 2016
 
 
 
 
 
 
 
 
 
 
 
 
EXHIBIT INDEX
 
Exhibit Number
 
Document Description
99.1 
 
Press release dated April 28, 2016 announcing Globalscape’s 2016 first quarter financial results.
 
 

 
 
 
 
 
 


 
 
Exhibit 99.1
 

 
GlobalSCAPE, Inc. Announces Financial Results for the First Quarter 2016

Revenues Increase Eight Percent Over the Prior Year

SAN ANTONIO — April 28, 2016 — GlobalSCAPE, Inc. (NYSE MKT: GSB), a pioneer and worldwide leader in the secure and reliable exchange of business information, today announced its financial results for the three months ended March 31, 2016.

Revenue for the first quarter of 2016 was $7.4 million, an increase of eight percent when compared with revenue of $6.9 million for the first quarter of 2015.

Deferred revenue, which can be an indicator of future revenue trends, was $15.4 million at March 31, 2016, compared with $14.3 million at March 31, 2015, which is an increase of eight percent.

For the first quarter of 2016, the Company’s net income was $407,000 compared with net income of $815,000 for the first quarter of 2015. Earnings per share was $0.02 for the first quarter of 2016 compared with $0.04 for the first quarter of 2015.

Adjusted EBITDA Excluding Infrequent Items for the first quarter of 2016 was $849,000 compared with $1.5 million for the first quarter of 2015.

The Company had cash, cash equivalents and short-term investments of $19.6 million at March 31, 2016. 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
“The first quarter of 2016 helped lay a solid foundation for continuing the growth that Globalscape has established over the past two years. Revenue continued to climb, achieving eight percent growth year over year when compared to Q1 2015.  Additionally, we saw a 22.5 percent increase in bookings year over year. We view this as an incredibly positive indicator to the health and growth of our business. The first quarter investments made in the Sales and Channel teams continue to put the pieces in place for our growth that is in line with expectations for the following quarters in the year. We remain confident in our sales, marketing and product development strategies and look forward to continuing to execute on the plans we have in place for the remainder of 2016.”
 
Globalscape First Quarter 2016 Financial Statements
·
Financial Statements (PDF)
 
 

 
Conference Call April 28, 2016 at 4:30 p.m. ET
Globalscape management will hold a conference call on April 28, 2016, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the first quarter 2016. Those wanting to join may call 888-523-1225 or 719-325-2484 and use Conference ID # 9715704. 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
GlobalSCAPE, Inc. (NYSE MKT: GSB) is a pioneer in the reliable exchange of mission-critical business data and intellectual property. GlobalSCAPE’s leading enterprise suite of solutions delivers military-proven security for achieving best-in-class control and visibility of data across multiple locations. Founded in 1996, GlobalSCAPE’s software and services are trusted by tens of thousands of customers worldwide, including global enterprises, governments, and small and medium enterprises. 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 2015 calendar year, filed with the Securities and Exchange Commission on March 3, 2016.


INVESTOR RELATIONS CONTACT
Contact: Casey Stegman
Phone Number: (210) 801-8489

PRESS CONTACT
Contact: Ciri Haugh
Phone Number: (210) 308-8267
Email: [email protected]


 
GlobalSCAPE, Inc. 
Condensed Consolidated Balance Sheets 
(in thousands except share amounts) 
Unaudited 
   
March 31,
    
December 31,
  
   
2016
    
2015
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
16,324
    
$
15,885
  
Short term investments
    
3,270
      
3,254
  
Accounts receivable (net of allowance for doubtful accounts
      of $356 and $325 in 2016 and 2015, respectively)
    
5,340
      
6,081
  
Federal income tax receivable
    
35
      
290
  
Prepaid expenses
    
477
      
511
  
Total current assets
    
25,446
      
26,021
  
                 
Fixed assets, net
    
517
      
498
  
Capitalized software development costs
    
4,040
      
3,982
  
Goodwill
    
12,712
      
12,712
  
Deferred tax asset
    
959
      
940
  
Other assets
    
38
      
60
  
Total assets
  
$
43,712
    
$
44,213
  
                 
 Liabilities and Stockholders’ Equity
                
Current liabilities:
                
Accounts payable
  
$
489
    
$
839
  
Accrued expenses
    
1,621
      
1,893
  
Deferred revenue
    
11,672
      
12,000
  
Income taxes payable
    
34
      
127
  
Total current liabilities
    
13,816
      
14,859
  
                 
Deferred revenue, non-current portion
    
3,718
      
3,612
  
Other long term liabilities
    
41
      
44
  
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, 21,435,277 and 21,383,467 shares issued
at March 31, 2016, and December 31, 2015, respectively
    
21
      
21
  
Additional paid-in capital
    
19,930
      
19,583
  
Treasury stock, 403,581 shares, at cost, at
March 31, 2016 and December 31, 2015
    
(1,452
)
    
(1,452
)
Retained earnings
    
7,638
      
7,546
  
Total stockholders’ equity
    
26,137
      
25,698
  
Total liabilities and stockholders’ equity
  
$
43,712
    
$
44,213
  


GlobalSCAPE, Inc.
  
Condensed Consolidated Statements of Operations and Comprehensive Income
  
(In thousands, except per share amounts)
  
(Unaudited)
  
             
   
Three months ended March 31,
  
   
2016
    
2015
  
Operating Revenues:
            
Software licenses
  
$
2,299
    
$
2,458
  
Maintenance and support
    
4,497
      
4,034
  
Professional services
    
614
      
388
  
Total Revenues
    
7,410
      
6,880
  
Cost of revenues
                
Software licenses
    
630
      
438
  
Maintenance and support
    
394
      
325
  
Professional services
    
569
      
317
  
Total cost of revenues
    
1,593
      
1,080
  
Gross profit
    
5,817
      
5,800
  
Operating expenses
                
Sales and marketing
    
2,901
      
2,295
  
General and administrative
    
1,733
      
1,723
  
Research and development
    
627
      
529
  
Total operating expenses
    
5,261
      
4,547
  
Income from operations
    
556
      
1,253
  
Other income (expense), net
    
33
      
11
  
Income before income taxes
    
589
      
1,264
  
Income tax expense
    
182
      
449
  
Net income
  
$
407
    
$
815
  
Comprehensive income
  
$
407
    
$
815
  
                 
Net income per common share -
                
Basic
  
$
0.02
    
$
0.04
  
Diluted
  
$
0.02
    
$
0.04
  
                 
Weighted average shares outstanding:
                
Basic
    
21,032
      
20,647
  
Diluted
    
21,650
      
21,099
  
                 
Cash dividends declared per share
  
$
0.015
    
$
0.015
  


GlobalSCAPE, Inc.
  
Condensed Consolidated Statements of Cash Flows
  
(in thousands)
  
(Unaudited)
  
   
For the Three Months Ended March 31,
  
   
2016
    
2015
  
Operating Activities:
            
Net income
  
$
407
    
$
815
  
Items not involving cash at the time they are recorded in the statement of operations:
                
Bad debt expense
    
43
      
87
  
Depreciation and amortization
    
501
      
288
  
Share-based compensation
    
222
      
148
  
Deferred taxes
    
(19
)
    
78
  
Excess tax benefit from share-based compensation
    
(3
)
    
(9
)
Subtotal before changes in operating assets and liabilities
    
1,151
      
1,407
  
Changes in operating assets and liabilities:
                
Accounts receivable
    
698
      
1,136
  
Prepaid expenses
    
34
      
110
  
Deferred revenue
    
(222
)
    
(532
)
Accounts payable
    
(350
)
    
(556
)
Accrued expenses
    
(272
)
    
(306
)
Other Assets
    
22
      
-
  
Other long-term liabilities
    
(3
)
    
(1
)
Income tax receivable and payable
    
165
      
189
  
Net cash provided by operating activities
    
1,223
      
1,447
  
Investing Activities:
                
Software development costs capitalized
    
(488
)
    
(691
)
Purchase of property and equipment
    
(90
)
    
(52
)
Interest reinvested in long term investments
    
(16
)
    
(16
)
Net cash (used in) investing activities
    
(594
)
    
(759
)
Financing Activities:
                
Proceeds from exercise of stock options
    
122
      
290
  
Excess tax benefit from share-based compensation
    
3
      
9
  
Dividends paid
    
(315
)
    
-
  
Net cash (used in) financing activities
    
(190
)
    
299
  
                 
Net increase in cash
    
439
      
987
  
Cash at beginning of period
    
15,885
      
11,358
  
Cash at end of period
  
$
16,324
    
$
12,345
  
                 
Supplemental disclosure of cash flow information:
                
Cash paid during the period for:
                
Interest
  
$
-
    
$
-
  
Income taxes
  
$
22
    
$
174
  


GlobalSCAPE, Inc.
  
Adjusted EBITDA Excluding Infrequent Items
  
(in thousands)
  
(Unaudited)
  
             
   
Three Months Ended
  
   
March 31,
  
   
2016
    
2015
  
Income from operations
  
$
556
    
$
1,253
  
Add (subtract) items to determine adjusted EBITDA excluding infrequent items:
                
Depreciation and amortization:
                
Total depreciation and amortization
    
501
      
288
  
Amortization of capitalized software development costs
    
(430
)
    
(218
)
Stock-based compensation expense
    
222
      
148
  
Adjusted EBITDA excluding infrequent items
  
$
849
    
$
1,471
  


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