GlobalSCAPE grows 3rd quarter revenue 50%
Company grows YTD revenue by 71% and Net Income 207%
SAN ANTONIO, Texas - GlobalSCAPE (AMEX:GSB), a leading provider of products that allow companies to move, store and share files securely over the Internet, announced its third quarter results today.
Revenue for the quarter ending September 30, 2007, grew to $3,900,300, or 50% over the $2,603,236 generated in the third quarter of 2006. Net Income increased by 31% to $702,875 or $.04 per share on a fully diluted basis for the quarter. For the nine months ended September 30, 2007, per share earnings were $.19 and $.18 for basic and fully diluted shares outstanding, respectively, on earnings of $3,290,967, or 24% of revenue of $13,941,472.
"We feel very good about our progress and our performance so far this year. While the Third Quarter would qualify as outstanding performance by virtually all yardsticks, it could have been better," commented Randy Poole, President and CEO. "The DOD has not completed its order with us per its original schedule, delaying $750,000 of revenue, and some other larger deals have also been delayed. While the third quarter revenue was up 50% and the fourth quarter outlook is also good, we expect to see variations in our growth from quarter to quarter like most software companies do. For the full year 2007, I expect we will have revenue of $17.5MM to $18MM, short of our $20MM prior guidance.
"We like our unique position in this marketplace and we are excited about our plans for 2008. GlobalSCAPE is spending an increasing amount of our engineering resources on improving the speed, security, and network optimization of file transfer over our customers' networks. Our unique WAFS product ensures bandwidth-efficient WAN utilization because only incremental changes to files are actually transferred over the network," added Poole. "We are also exploring several new product enhancements and partnerships involving all of our product offerings, where we feel the potential is large.
"I look forward to discussing our progress and plans in our call scheduled for 4:00pm CST today," concluded Poole.
The live conference call will be available via the Internet by accessing the GlobalSCAPE Web site at http://www.globalscape.com/company/ir.aspx. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary audio software. Please note that those interested in asking questions during the call should use the dial-in access and not the Webcast.
The call bridge can be accessed by dialing 800-380-1061 in the U.S. and Canada and 706-679-5282 internationally. Participants are asked to use the following Conference ID number when joining the call: 23649848. Those individuals who wish to access the call should do so 10 minutes prior to the beginning of the call. For those who would prefer to access the call via the Web, please visit http://audioevent.mshow.com/338768/.
GlobalSCAPE, a provider of Global Managed File Transfer (MFT) solutions and wide-area file services (WAFS) technologies, delivers a modular approach to solving the enterprise challenges of security, bandwidth, latency and regulatory compliance. GlobalSCAPE's products securely and efficiently move files such as financial data, medical records, customer files, intellectual property, and other sensitive documents of any size between supply chain partners and branch offices. GlobalSCAPE's products are used by mid-sized and large enterprise companies, including virtually all of the Fortune 100, leading technology, banking, healthcare, and public sector organizations. Headquartered in San Antonio, TX., GlobalSCAPE is also the developer of CuteFTP, the most popular file transfer protocol application on the market. For more information on our risk-free purchase options, visit www.globalscape.com or call 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. Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. 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 2006 calendar year, filed on March 22, 2007 with the Securities and Exchange Commission.