GlobalSCAPE, Inc. Announces Financial Results for the Second Quarter 2016
Year to Date Revenues Up Over Six Percent Yielding the 15th Consecutive Profitable Quarter
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E-mailSAN ANTONIO, TX -- (Marketwired) -- 07/28/16 -- 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 second quarter 2016, which ended June 30, 2016.
Second Quarter 2016 Financial Highlights:
- Revenue for the second quarter of 2016 was $8.3 million, an increase of five percent when compared with revenue of $7.9 million for the second quarter of 2015.
- Revenue for the first six months of 2016 was $15.7 million, a six percent increase over the same time period last year.
- For the second quarter of 2016, the Company's net income was $954,000 compared with net income of $1.3 million for the second quarter of 2015, marking 15 consecutive quarters of profitability.
- Earnings per share was $0.05 for the second quarter of 2016 compared with $0.06 for the second quarter of 2015.
- Adjusted EBITDA for the second quarter of 2016 was $1.8 million compared with $2.1 million for the second quarter of 2015.
- The Company had cash, cash equivalents and short-term investments of $20.3 million at June 30, 2016. Other than liabilities for normal trade payables and taxes, the Company has no debt.
Recent Business Highlights:
- Leadership Changes: Globalscape had a number of leadership changes in the second quarter, including the appointment of Matt Goulet as President and CEO, along with the promotions of Adam Snider to Vice President of Operations and Dan Burke as Vice President of Worldwide Sales.
- Accelerate Module: Globalscape released the Accelerate Module for Enhanced File Transfer™ (EFT™) Enterprise which provides extreme file transfers and increases the speed, efficiency and reliability of data movement.
- Company Awards: Over the past quarter, Globalscape received a number of company awards including the CRN 5-Star Partner Program Guide rating and two channel team members selected for CRN's Women of the Channel list, Best Place to Work from the San Antonio Business Journal, Best Place to Work in IT from Computerworld, and HR Employer of the Year and Excellence in Engagement Strategy in North America from the HRO Today Services and Technology Association.
- Product Awards: Globalscape received three Network Products Guide IT World Awards in BYOD Security (Gold Winner) for the Workspaces module, Compliance (Bronze Winner) for the EFT platform, and Email Security and Management (Bronze Winner) for Mail Express®.
Supporting Quote:
Matt Goulet, President and Chief Executive Officer at Globalscape
"The secure management and movement of data is a significant challenge that a number of organizations face on a regular basis. It is also an issue that Globalscape confronts head on, and is a driver for our increasing growth along with the basis for the evolution of our products. As such, we saw a five percent increase in revenue in the second quarter of 2016 and a six percent increase in year to date revenue, compared to the same periods last year. The second quarter was also the first time in company history that we reported $8 million in revenue outside of the fourth quarter. We believe that our re-focused product strategy, which is concentrated on our core technology, our award-winning Enhanced File Transfer technology platform, will ultimately further our continued success and growth."
Conference Call July 28, 2016 at 4:30 p.m. ET
Globalscape management will hold a conference call on July 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 second quarter 2016. Those wanting to join may call 888-539-3696 or 719-325-2495 and use Conference ID # 4393517. 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," "expect," 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 fiscal year, filed with the Securities and Exchange Commission on March 3, 2016.
GlobalSCAPE, Inc.
Condensed Consolidated Balance Sheets
(in thousands except share amounts)
Unaudited
June 30, December 31,
2016 2015
---------------------------
Assets
Current assets:
Cash and cash equivalents $ 16,990 $ 15,885
Short term investments 3,287 3,254
Accounts receivable (net of allowance for
doubtful accounts
of $335 and $325 in 2016 and 2015,
respectively) 5,673 6,081
Federal income tax receivable 55 290
Prepaid and other expenses 777 511
---------------------------
Total current assets 26,782 26,021
Fixed assets, net 473 498
Capitalized software development costs 3,960 3,982
Goodwill 12,712 12,712
Deferred tax asset 893 940
Other assets 31 60
---------------------------
Total assets $ 44,851 $ 44,213
===========================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 742 $ 839
Accrued expenses 1,478 1,893
Deferred revenue 11,344 12,000
Income taxes payable - 127
---------------------------
Total current liabilities 13,564 14,859
Deferred revenue, non-current portion 3,825 3,612
Other long term liabilities 37 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, 21,584,582 and
21,383,467 shares issued at June 30, 2016, and
December 31, 2015, respectively 21 21
Additional paid-in capital 20,580 19,583
Treasury stock, 403,581 shares, at cost, at
June 30, 2016 and December 31, 2015 (1,452) (1,452)
Retained earnings 8,276 7,546
---------------------------
Total stockholders' equity 27,425 25,698
---------------------------
Total liabilities and stockholders' equity $ 44,851 $ 44,213
===========================
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended June
June 30, 30,
--------------------- ---------------------
2016 2015 2016 2015
---------- ---------- ---------- ----------
Operating Revenues:
Software licenses $ 2,893 $ 3,280 $ 5,192 $ 5,738
Maintenance and support 4,632 4,093 9,129 8,127
Professional services 731 490 1,345 878
---------- ---------- ---------- ----------
Total Revenues 8,256 7,863 15,666 14,743
---------- ---------- ---------- ----------
Cost of revenues
Software licenses 800 651 1,430 1,089
Maintenance and support 387 391 781 716
Professional services 587 335 1,156 652
---------- ---------- ---------- ----------
Total cost of revenues 1,774 1,377 3,367 2,457
---------- ---------- ---------- ----------
Gross profit 6,482 6,486 12,299 12,286
Operating expenses
Sales and marketing 2,792 2,476 5,693 4,771
General and administrative 1,712 1,457 3,445 3,180
Research and development 572 657 1,199 1,186
---------- ---------- ---------- ----------
Total operating expenses 5,076 4,590 10,337 9,137
---------- ---------- ---------- ----------
Income from operations 1,406 1,896 1,962 3,149
Other income (expense), net 27 23 60 34
---------- ---------- ---------- ----------
Income before income taxes 1,433 1,919 2,022 3,183
Income tax expense 479 594 661 1,043
---------- ---------- ---------- ----------
Net income $ 954 $ 1,325 $ 1,361 $ 2,140
========== ========== ========== ==========
Comprehensive income $ 954 $ 1,325 $ 1,361 $ 2,140
========== ========== ========== ==========
Net income per common share -
Basic $ 0.05 $ 0.06 $ 0.07 $ 0.10
Diluted $ 0.04 $ 0.06 $ 0.06 $ 0.10
Weighted average shares
outstanding:
Basic 21,105 20,804 21,056 20,726
Diluted 21,689 21,324 21,655 21,201
Cash dividends declared per
share $ 0.015 $ 0.015 $ 0.030 $ 0.015
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
For the Six Months Ended
June 30,
--------------------------
2016 2015
------------ ------------
Operating Activities:
Net income $ 1,361 $ 2,140
Items not involving cash at the time they are
recorded in the statement of operations:
Bad debt expense 52 127
Depreciation and amortization 1,006 682
Share-based compensation 500 315
Deferred taxes 47 (60)
Excess tax benefit from share-based
compensation (12) (35)
------------ ------------
Subtotal before changes in operating assets
and liabilities 2,954 3,169
Changes in operating assets and liabilities:
Accounts receivable 356 1,130
Prepaid expenses (40) 190
Deferred revenue (443) (1,247)
Accounts payable (108) (600)
Accrued expenses (404) (292)
Other Assets 29 5
Other long-term liabilities (7) (1)
Income tax receivable and payable 120 340
------------ ------------
Net cash provided by operating activities 2,457 2,694
------------ ------------
Investing Activities:
Software development costs capitalized (846) (1,107)
Purchase of property and equipment (113) (90)
Interest reinvested in long term investments (33) (32)
------------ ------------
Net cash (used in) investing activities (992) (1,229)
------------ ------------
Financing Activities:
Proceeds from exercise of stock options 259 307
Excess tax benefit from share-based
compensation 12 35
Dividends paid (631) (312)
------------ ------------
Net cash provided by (used in) financing
activities (360) 30
------------ ------------
Net increase in cash 1,105 1,495
Cash at beginning of period 15,885 11,358
------------ ------------
Cash at end of period $ 16,990 $ 12,853
============ ============
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $ -
============ ============
Income taxes $ 468 $ 696
============ ============
GlobalSCAPE, Inc.
Adjusted EBITDA
(in thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2016 2015 2016 2015
---------- ---------- ---------- ----------
Income from operations $ 1,406 $ 1,896 $ 1,962 $ 3,149
Add (subtract) items to
determine adjusted EBITDA:
Depreciation and
amortization:
Total depreciation and
amortization 511 394 1,006 682
Amortization of
capitalized software
development costs (438) (327) (868) (545)
Stock-based compensation
expense 278 167 500 315
---------- ---------- ---------- ----------
Adjusted EBITDA $ 1,757 $ 2,130 $ 2,600 $ 3,601
========== ========== ========== ==========
INVESTOR RELATIONS CONTACTCasey Stegman(210) [email protected] CONTACTCiri Haugh(210) [email protected]
Source: Globalscape, Inc.
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