Thursday, March 22, 2012
GlobalSCAPE Announces Fourth Quarter and 2011 Fiscal Year Financial Results
Reports Record Annual Revenue of $20.9 Million
SAN ANTONIO - GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, today announced financial results for its fourth quarter and 2011 fiscal year end.
Revenue for fiscal 2011 was $20.9 million, an increase of 13 percent when compared with revenue of $18.6 million last year, and the highest revenue in the Company’s history. Net income for fiscal 2011 was approximately $0.6 million, or $0.03 per diluted share, compared with net income of $0.9 million, or $0.05 per diluted share in 2010. Excluding non-recurring expenses related to the Company’s acquisition of TappIn, Inc. in December 2011, the Company’s net income would have been $1.1 million or $0.06 per diluted share in 2011. Cash and short term investments declined to $8.9 million in 2011 from $11.1 million in December 2010, largely attributable to the Company’s acquisition of TappIn which also required investment of $3 million in a long-term certificate of deposit.
Revenue for the fourth quarter was $5.1 million, an increase of 4 percent compared to the fourth quarter of 2010. “We are very pleased to sustain our growth and set another revenue record in 2011,” said Jim Morris, GlobalSCAPE CEO. “We entered 2011 expecting some changes to our quarterly revenue growth trends as we transitioned to more subscription-based revenue. Setting a new revenue record and maintaining 13 percent annual revenue growth in the midst of this transition is a further indicator of our momentum. With our entry into the growing market for secure content mobility, through the acquisition of TappIn, I believe we are poised for additional long-term success.”
Adjusted EBITDA for the fourth quarter was ($115,000), a 116 percent decrease compared with the fourth quarter of 2010. For the full year, Adjusted EBITDA was $2.6 million, a decrease of 18 percent relative to 2010. The Adjusted EBITDA margin for the fourth quarter was (2.3) percent, down from 14.7 percent in the fourth quarter of 2010. For the full year, the Adjusted EBITDA margin was 12.4 percent, down from 16.9 percent in 2010. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See the accompanying table for a reconciliation of net income/loss to Adjusted EBITDA and Adjusted EBITDA margin. The decreases in the Company’s adjusted EBITDA and adjusted EBITDA margin for 2011 and for the fourth quarter were mainly due to the TappIn acquisition costs.
GlobalSCAPE Fourth Quarter and 2011 Fiscal Year Financial Statements
Conference Call March 22, 2012 at 5:00 p.m. ET
GlobalSCAPE management will hold a conference call Thursday, March 22 to discuss the fourth quarter and fiscal year 2011 financial results and other corporate matters at 5:00 p.m. Eastern Time/4:00 p.m. Central Time. Those wishing to join should dial 1-800-380-1061 and use Conference ID # 58717945. 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 April 30, 2012.
San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE Amex:GSB) is a leading provider of software and services that enable customers to access and share information quickly, securely, and reliably. Beginning in 1996 with its CuteFTP(R) product, GlobalSCAPE has been helping businesses and consumers -- including 15,000 companies in more than 150 countries -- facilitate cost-effective, secure information exchange. With its 2011 acquisition of Seattle-based TappIn, Inc., GlobalSCAPE also offers customers the ability to access and share documents, pictures, videos, and music -- anytime, from anywhere -- easily and securely, without the need for uploading, syncing, or paying for cloud storage. 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 2011 calendar year, to be filed with the Securities and Exchange Commission on March 29, 2012.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as Net Income, plus Income Taxes, Total Other Income (Expense), Depreciation and Amortization, and non-cash charges for share-based compensation and asset impairments.
Adjusted EBITDA and Adjusted EBITDA Margin are metrics that are used in our industry by the investment community for comparative and valuation purposes. We disclose this metric in order to support and facilitate the dialogue with research analysts and investors.
Note that Adjusted EBITDA and Adjusted EBITDA Margin are not measures of financial performance under accounting principles generally accepted in the United States ("GAAP") and should not be considered a substitute for net income. Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and when assessing our operating performance, you should not consider Adjusted EBITDA and Adjusted EBITDA Margin in isolation, or as a substitute for net income or other income statement data prepared in accordance with GAAP. Other companies may calculate Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, limiting their usefulness as a comparative measure.