Nov 14th, 2006
SAN ANTONIO, TEXAS, -- GlobalSCAPE (GSCP:OB), a leading developer of secure server and Enhanced File Transfer (EFT) Management solutions, and Wide Area File Systems (WAFS) and Continuous Data Protection (CDP) today released financial results for the third quarter. Revenue for the quarter ending September 30, 2006 was $2,603,236, up $879,551 or 51% from the third quarter of 2005. Had the revenue from our newly acquired subsidiary, Availl, been counted for the entire quarter, the growth would have amounted to 92%. The nine month revenue of $7,463,486 was an increase of 50%.
Net Income before taxes was $832,640, an increase of 108% over third quarter of 2005. For the nine months ending September 30, 2006, net before taxes was $2,401,233, an increase of $1,311,257 from 2005. After taxes, net income for this quarter was $538,085 and $1,587,072 for the past nine months. Comparisons for 2005 were $393,728 and $1,077,911, respectively.
"We are delighted with our third quarter and year-to-date numbers," said Randy Poole, GlobalSCAPE's President and CEO. "Our widely-accepted secure server/EFT revenues grew from $1,915,980 in the first nine months of 2005, to $4,718,600 in the first nine months of 2006. We expect to continue to grow this business rapidly and to understand and grow the WAFS and CDP business from Availl as well. The acceptance we are gaining with enterprises around the world and security conscious government entities at home give us reason for much optimism about our future. The Availl product lines only add to our growing reputation as the company to go to for security in moving, replicating, or collaborating on critical files."
GlobalSCAPE provides secure file management software that enables companies to safely send data over the Internet. GlobalSCAPE's products guarantee the privacy of critical information such as the transfer of financial data, medical records, customer files, intellectual property, and other sensitive documents. GlobalSCAPE's file management software ensures compliance with government regulations on protecting information and allows enterprises to reduce IT costs, increase efficiency, track and audit transactions, and automate processes. GlobalSCAPE's products are used by leading technology, banking, healthcare, and public sector organizations and can be customized to fit various customer needs, creating a variety of solutions. Founded in 1996, GlobalSCAPE is the developer of CuteFTP, the most popular file transfer protocol application on the market. GlobalSCAPE is headquartered in San Antonio, TX. For more information, please visit http://www.globalscape.com or call GlobalSCAPE toll-free at 800-290-5054 (US) or 210-308-8267 (international).
Based in Andover, Mass., and acquired by GlobalSCAPE last month for stock and cash totaling $9,650,000, Availl is the market leader in real time wide area file systems (WAFS) and Continuous Data Protection software. With the most advanced acceleration and true mirrored/coherent multi-directional Distributed File System, Availl's enterprise solutions are used by 14 of the Fortune 100 companies, and thousands of sites of all sizes around the globe. Availl's customers have both efficient and transparent WAFS, as well as consolidated and continuous data and database protection in real time, and on any scale. The Availl solution allows truly distributed organizations to function transparently across any distance. For more information, please visit Availl at http://www.availl.com.
For corporate information, please visit http://www.globalscape.com or call GlobalSCAPE toll-free at 800-290-5054 (US) or 210-308-8267 (international).
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 "believe," "expect," "should," "intend," "estimate," and "projects," 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/A Number 1 for the 2005 calendar year, filed on May 3, 2006 with the Securities and Exchange Commission.