GlobalSCAPE Announces Second Quarter Financial Results
SAN ANTONIO - GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure file transfer solutions, today announced financial results for its second quarter of fiscal year 2009, ended June 30, 2009.
Revenue was $4.7 million, an increase of 12 percent when compared with revenue of $4.2 million in the same quarter last year. Net income for the second quarter was $943,000, or $0.05 per diluted share. This is an increase of 223 percent compared with net income of $292,000, or $0.02 per diluted share, in the same period a year ago. Cash and short term investments grew to $9.1 million, from $6.2 million at the end of the first quarter, a 46 percent increase.
"By all key measures, our second quarter results are extremely impressive," said Jim Morris, GlobalSCAPE president and CEO. "We have increased revenue, earnings, and cash, even during the economic downturn, while sustaining our strategic investments. We also extended our relationship with the U.S. Army, established additional strategic partnerships, and continued to enhance our solutions through new product releases," Morris continued. "We are well positioned to continue executing our business plan with our market momentum, current and planned solution portfolio, leadership team, and substantial cash reserves."
In April, GlobalSCAPE announced another multi-million dollar order from the U.S. Army. The $2.7 million order included new product licenses as well as 36 months of associated maintenance and support services. GlobalSCAPE previously announced substantial orders from the Army in September 2005 and May 2007. The Army has deployed GlobalSCAPE's secure file transfer solutions since 2005 as part of the Single Army Logistics Enterprise (SALE). SALE is an Army initiative focused on upgrading the information technology that tracks personnel, equipment, munitions, and other supplies for worldwide logistics.
The Army programs within SALE deliver a fully integrated IT environment that establishes, sustains, and generates warfighting capability, including integration with the other military branches. "Army requirements for secure information exchange and interoperability are very similar to those of other military branches and federal agencies," stated Morris. "We intend to increase our support to Army warfighters while also working with partners to pursue other similar opportunities within the Department of Defense and the broader national security community, as previously announced."
During May, GlobalSCAPE announced a partnership with Intelligent Decisions, Inc., a $250 million IT solutions provider with headquarters in Ashburn, Virginia. Under the terms of the agreement, Intelligent Decisions will resell and integrate GlobalSCAPE's solutions within the federal government. The partnership with Intelligent Decisions complements GlobalSCAPE's partnership with Carahsoft Technology Corporation, announced in March 2009. "We have established partnerships with highly capable leaders in the government sector," continued Morris. "Partnering is a great way to increase our market footprint within the government, where our growing reputation, certifications, and financial stability already have positioned us well against the competition."
In June, GlobalSCAPE released the latest version of the Wide Area File Services (WAFS) software. WAFS now includes support for the Autodesk® Revit® Architecture construction and design application, along with broader enhancements that improve data replication performance and collaboration capabilities. Autodesk Revit Architecture is a market leading solution that provides design, construction planning, and fabrication collaboration. WAFS facilitates design collaboration across multiple offices or geographical locations by replicating data intelligently across wide area networks.
"This new WAFS software release represents more than a year of development effort," stated Morris. "We are continuing our previously announced campaign to contact legacy WAFS customers, with offers to upgrade, while also aggressively pursuing new customers, so we potentially can leverage the Obama administration's economic stimulus package that includes more than $80 billion in funding for infrastructure development projects."
Conference Call Today At 4:30 p.m. ET
GlobalSCAPE management will hold a conference call today to discuss the second quarter fiscal 2009 financial results and other corporate matters at 4:30 p.m. Eastern Time/3:30 p.m. Central Time. Those wishing to join should dial 1-800-380-1061 and use Conference ID # 19367659. 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 12, 2009.
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 with business partners. Since the release of Cute FTP 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.