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 support | 3,367 | 2,611 | 6,650 | 5,251 | ||||||||||||||||
| Professional services | 426 | 411 | 825 | 739 | ||||||||||||||||
| Others | 227 | 139 | 467 | 220 | ||||||||||||||||
| Total Revenues | 5,925 | 5,702 | 11,805 | 11,095 | ||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||
| Cost of revenues | 269 | 313 | 533 | 631 | ||||||||||||||||
| Selling, general and administrative expenses | 3,796 | 4,243 | 7,646 | 8,395 | ||||||||||||||||
| Research and development expenses | 968 | 897 | 1,730 | 1,839 | ||||||||||||||||
| Depreciation and amortization | 264 | 321 | 521 | 637 | ||||||||||||||||
| Total operating expenses | 5,297 | 5,774 | 10,430 | 11,502 | ||||||||||||||||
| Income (loss) from operations | 628 | (72 | ) | 1,375 | (407 | ) | ||||||||||||||
| Other income (expense), net | (43 | ) | (61 | ) | (90 | ) | (127 | ) | ||||||||||||
| Income (loss) before income taxes | 585 | (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: | ||||||||||||||||||||
| Basic | 18,502 | 18,320 | 18,473 | 18,304 | ||||||||||||||||
| Diluted | 18,955 | 18,320 | 18,920 | 18,304 | ||||||||||||||||
| 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) | 4,799 | 3,350 | ||||||||
| Income tax receivable | 343 | - | ||||||||
| Current deferred tax assets | 194 | 177 | ||||||||
| Prepaid expenses | 411 | 426 | ||||||||
| Total current assets | 13,559 | 12,032 | ||||||||
| Fixed assets, net | 787 | 900 | ||||||||
| Investment in certificate of deposit | 3,091 | 3,060 | ||||||||
| Intangible assets, net | 4,299 | 4,308 | ||||||||
| Goodwill | 12,712 | 12,712 | ||||||||
| Deferred tax asset | 437 | 535 | ||||||||
| Other assets | 103 | 41 | ||||||||
| Total assets | $ | 34,988 | $ | 33,588 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 592 | $ | 432 | ||||||
| Accrued expenses | 1,271 | 1,353 | ||||||||
| Deferred revenue | 9,402 | 8,293 | ||||||||
| Income taxes payable | - | 46 | ||||||||
|
Tappin earn out, current portion |
- | 500 | ||||||||
| Long term debt, current portion | 1,366 | 1,335 | ||||||||
| Total current liabilities | 12,631 | 11,959 | ||||||||
| Deferred revenue, non-current portion | 1,577 | 1,480 | ||||||||
| TappIn earn out, non-current portion | 3,694 | 3,694 | ||||||||
| Long-term debt. non-current portion | 3,696 | 4,389 | ||||||||
| Other long term liabilities | 61 | 62 | ||||||||
| 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, 2012 | 19 | 19 | ||||||||
| Additional paid-in capital | 14,862 | 14,435 | ||||||||
|
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 amortization | 521 | 637 | ||||||||
| Stock-based compensation | 297 | 428 | ||||||||
| Deferred taxes | 81 | (172 | ) | |||||||
| Bad debt expense (recoveries) | 75 | (14 | ) | |||||||
|
Net tax effect of stock option and restricted stock activity |
27 | 5 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | (1,524 | ) | (891 | ) | ||||||
| CoreTrace receivable | - | (150 | ) | |||||||
| Prepaid expenses | 15 | 1 | ||||||||
| Income tax receivable and payable | (416 | ) | (242 | ) | ||||||
| Other assets | (62 | ) | (11 | ) | ||||||
| Accounts payable | 160 | (265 | ) | |||||||
| Accrued expenses | (82 | ) | (85 | ) | ||||||
| Deferred revenues | 1,206 | 404 | ||||||||
| 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 | ) | (190 | ) | ||||||
| Software development costs | (360 | ) | (178 | ) | ||||||
| TappIn, Inc, earnout liability paid | (500 | ) | - | |||||||
| Interest reinvested in certificate of deposit | (31 | ) | - | |||||||
| Net cash provided by (used for) investing activities | (930 | ) | (368 | ) | ||||||
| Financing Activities: | ||||||||||
| Proceeds from exercise of stock options | 157 | 19 | ||||||||
| Net tax effect of stock option and restricted stock activity | (27 | ) | (5 | ) | ||||||
| Notes payable principle payments | (662 | ) | (631 | ) | ||||||
| Net cash provided by (used for) financing activities | (532 | ) | (617 | ) | ||||||
| Net increase (decrease) in cash | (267 | ) | (1,729 | ) | ||||||
| Cash at beginning of period | 8,079 | 8,861 | ||||||||
| Cash at end of period | $ | 7,812 | $ | 7,132 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid during the period for: | ||||||||||
| Interest on notes payable | $ | 125 | $ | 154 | ||||||
| Income taxes | $ | 734 | $ | 271 | ||||||
| GlobalSCAPE, Inc. | ||||||||||||||||||
| Adjusted EBITDA Excluding Infrequent Items | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Net income (loss) | 381 | (140 | ) | 898 | (393 | ) | ||||||||||||
| Add (subtract) items to determine adjusted EBITDA excluding infrequent items: | ||||||||||||||||||
| Income tax expense | 204 | 7 | 387 | (141 | ) | |||||||||||||
| Other expense | 43 | 61 | 90 | 127 | ||||||||||||||
| Depreciation and amortization | 264 | 321 | 521 | 637 | ||||||||||||||
| Stock-based compensation expense | 105 | 229 | 297 | 428 | ||||||||||||||
| Adjusted EBITDA excluding infrequent items | $ | 997 | $ | 478 | $ | 2,193 | $ | 658 | ||||||||||
Adjusted EBITDA [Earnings before Interest, Taxes, Total Other Income (Expense), Depreciation, and Amortization (including amortized stock-based compensation expense)] Excluding Infrequent Items is not a measure of financial performance under generally accepted accounting principles and should not be considered a substitute for net income. Adjusted EBITDA Excluding Infrequent Items has limitations as an analytical tool and when assessing our 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 generally accepted accounting principles.
