Globalscape Announces Financial Results for the Second Quarter 2013

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Globalscape Announces Financial Results for the Second Quarter 2013

Reports Strong Earnings Growth Driven by Increased Revenue Combined with Lower Operating Expenses

SAN ANTONIO--(BUSINESS WIRE)-- 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 second 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$4,885
Maintenance and support3,3672,6116,6505,251
Professional services426411825739
Others 227  139  467  220 
Total Revenues5,9255,70211,80511,095
Operating Expenses:
Cost of revenues269313533631
Selling, general and administrative expenses3,7964,2437,6468,395
Research and development expenses9688971,7301,839
Depreciation and amortization 264  321  521  637 
Total operating expenses 5,297  5,774  10,430  11,502 
Income (loss) from operations628(72)1,375(407)
Other income (expense), net (43) (61) (90) (127)
Income (loss) before income taxes585(133)1,285(534)
Provision (benefit) for income taxes 204  7  387  (141)
Net income (loss)$

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:
Basic18,50218,32018,47318,304
Diluted18,95518,32018,92018,304
 
 
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)4,7993,350
Income tax receivable343-
Current deferred tax assets194177
Prepaid expenses 411    426 
Total current assets13,55912,032
 
Fixed assets, net787900
Investment in certificate of deposit3,0913,060
Intangible assets, net4,2994,308
Goodwill12,71212,712
Deferred tax asset437535
Other assets 103    41 
Total assets$34,988   $33,588 
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$592$432
Accrued expenses1,2711,353
Deferred revenue9,4028,293
Income taxes payable-46

Tappin earn out, current portion

-500
Long term debt, current portion 1,366  1,335 
Total current liabilities12,63111,959
 
Deferred revenue, non-current portion1,5771,480
TappIn earn out, non-current portion3,6943,694
Long-term debt. non-current portion3,6964,389
Other long term liabilities6162
 
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, 20121919
Additional paid-in capital14,86214,435

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 amortization521637
Stock-based compensation297428
Deferred taxes81(172)
Bad debt expense (recoveries)75(14)

Net tax effect of stock option and restricted stock activity

275
Changes in operating assets and liabilities:
Accounts receivable(1,524)(891)
CoreTrace receivable-(150)
Prepaid expenses151
Income tax receivable and payable(416)(242)
Other assets(62)(11)
Accounts payable160(265)
Accrued expenses(82)(85)
Deferred revenues1,206404
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) Read Full Story

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