GlobalSCAPE, Inc. Announces Financial Results for the First Quarter 2016
Revenues Increase Eight Percent Over the Prior Year
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E-mailSAN ANTONIO, TX -- (Marketwired) -- 04/28/16 -- 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."
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.
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
========== ==========
INVESTOR RELATIONS CONTACT
Casey StegmanPhone Number:
(210) 801-8489Email: [email protected] CONTACTCiri HaughPhone Number: (210) 308-8267 Email: [email protected]
Source: Globalscape, Inc.
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