Tuesday, March 31, 2009
GlobalSCAPE Announces 2008 Financial Results
SAN ANTONIO--GlobalSCAPE, Inc. (NYSE Amex:
GSB), a leading developer of file transfer solutions, today announced that
it increased cash on hand by 21 percent during 2008 while taking a non-cash write-down
of approximately $9 million.
Cash on hand at the end of 2008 grew to $6.3 million with revenue of $15.8 million
in 2008, versus $5.7 million of cash and $18.4 million of revenue in 2007. Excluding
a $2.8 million non-recurring sale in 2007, revenues increased 2 percent in 2008
mainly due to higher earned maintenance and support revenues. GlobalSCAPE's sales
of maintenance and support services continued to increase in 2008, as evidenced
by the company's 24 percent higher deferred revenue balance, which will provide
for steady revenue in 2009. "Given the general economic downturn during 2008 as
well as our executive management changes, the improvement in our baseline revenue
is particularly noteworthy and I am pleased with our year end results," stated Jim
Morris, GlobalSCAPE CEO.
GlobalSCAPE's write-down during 2008 is related to goodwill and long-lived assets
associated with the company's 2006 acquisition of Availl. GlobalSCAPE recorded a
goodwill impairment of $5.7 million and a $3.2 million impairment of long-lived
assets following an annual goodwill impairment test as required by generally accepted
accounting principles. With the write-downs and other non-recurring charges taken
during the fourth quarter, GlobalSCAPE reported a net loss of $7.66 million for
2008, breaking a string of 18 consecutive quarters of net income. The impairments
recorded in 2008 are non-cash in nature and do not affect GlobalSCAPE's liquidity
or cash flow. "Although a write-down of this magnitude results in a negative EPS
of $0.44 per share, basic and diluted, this impairment is a non-event from a cash
perspective and puts us in a solid financial position for 2009 and beyond," Morris
continued. "We are pleased to have increased our cash on hand and baseline revenue
during 2008, while continuing to operate with no long-term debt, and increasing
our investments in accordance with our business strategy."
Morris, who joined GlobalSCAPE in August 2008, points out that the company continues
to increase its focus on research and development, industry certifications, selling
and technology partnerships, and brand development. "Our strong financial position
will allow us to extend our leadership position in the file transfer market while
making the strategic investments that potentially will allow us to enter other lucrative
markets that require trusted and secure exchange of information."
GlobalSCAPE, Inc. (NYSE Amex: GSB), headquartered in San Antonio, TX, is a global
provider of managed file transfer (MFT) solutions for securely exchanging critical
information over the Internet, within an enterprise, or to business partners. Since
the release of CuteFTP in 1996, GlobalSCAPE's solutions have continued to evolve
to meet the business and technology needs of an increasingly interconnected global
marketplace. For more information about GlobalSCAPE's products, visit www.globalscape.com.
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 2008 calendar year, filed with the
Securities and Exchange Commission on March 31, 2009.