GlobalSCAPE Announces Third Quarter 2011 Financial Results
Revenue Up 14%; Net Income Leaps 162% in 3Q 2011
SAN ANTONIO - GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, today announced financial results for its third quarter of fiscal year 2011, ending September 30, 2011.
Revenue was $5.4 million for the third quarter of fiscal year 2011, an increase of 14 percent when compared with revenue of $4.8 million in the same quarter last year. Net income for the second quarter was $611,000, or $0.03 per diluted share, compared with net income of $233,000, or $0.01 per diluted share, in the same quarter last year, an increase of 162 percent. Cash grew to $13.4 million, representing a 32 percent increase from the third quarter of 2010 and a 21 percent improvement since the end of fiscal 2010.
Adjusted EBITDA for the third quarter of 2011 was $980,000, a 32 percent increase compared with the same quarter last year. The Adjusted EBITDA margin for the third quarter of 2011 was 18.1 percent, compared with 15.6 percent in the third quarter of 2010.
"We continued to deliver strong financial results in the third quarter," said Jim Morris, GlobalSCAPE president and CEO. "As in the prior quarter, revenue, earnings, and cash all increased as compared to the same period a year ago. I remain very pleased with our sustained operational excellence and look forward to concluding a record-setting year."
GlobalSCAPE Third Quarter 2011 Financial Statements
During the third quarter, GlobalSCAPE announced an additional solution deployment, a major new release of the Wide Area File Services (WAFS™) software, and the Company's inclusion in Software Magazine's Software 500 ranking of the world's largest software and service providers.
In July, GlobalSCAPE announced the successful deployment of its Managed Information Xchange™ (MIX) service at AVI-SPL, the largest global integrator of audio and video communications systems and services. Tampa-based AVI-SPL is recognized as an innovative leader in the collaboration and AV industry, the result of a 2008 merger between Audio Visual Innovations (AVI) and Signal Perfection Ltd (SPL). A longtime user of GlobalSCAPE's Enhanced File Transfer Server™ (EFT Server™), AVI-SPL looked to GlobalSCAPE for a cloud-based file transfer solution when a planned implementation of an Electronic Data Interchange system put a strain on its existing infrastructure.
Launched in July 2010, MIX integrates GlobalSCAPE's market-leading EFT Server solution with infrastructure from the world's leader in the hosting and cloud computing industry. MIX enables companies of any size to outsource all or part of its information exchange functions to reduce costs, increase efficiencies, track and audit transactions, and provide greater levels of security and compliance. GlobalSCAPE's deployment at AVI-SPL adds to the many businesses worldwide who use the award-winning MIX service.
During September, GlobalSCAPE released WAFS version 4.0. This new release features improved support for all current Windows operating systems, a redesigned and intuitive user interface, and enhanced international support with full compatibility for Unicode character sets. The WAFS 4.0 release also includes Local Sync, a new feature that allows users to rapidly synchronize data while also simplifying implementation.
First released in 2004, WAFS replicates files across different locations around the globe, providing secure, near real-time data access by multiple remote users. As files are modified, the system instantly mirrors all changes using intelligent byte-level differencing technology. This method minimizes the impact on network bandwidth, transferring only the changes to the file, rather than the entire file. Also, file locking ensures that you never overwrite files that another user has open.
Also in September, GlobalSCAPE announced Software Magazine's Software 500 recognition. The Software 500 is a revenue-based ranking of software and services suppliers targeting medium to large enterprises, their IT professionals, software developers, and business managers involved in software and services purchasing. The ranking is based on total worldwide software and services revenue for 2010, including revenue from software licenses, maintenance and support, training and software-related services and consulting. GlobalSCAPE experienced record revenues in 2010 and remained profitable despite making significant investments into its operations to further increase top-line performance.
Conference Call Thursday, November 10, 2011, at 4:30 p.m. ET
GlobalSCAPE management will hold a conference call Thursday, November 10th to discuss the third quarter 2011 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 #22261069. 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 December 11, 2011.
GlobalSCAPE, Inc. (NYSE Amex: GSB), headquartered in San Antonio, TX, is a leading provider of secure information exchange solutions. 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. Serving a customer base that spans more than 150 countries and includes the majority of Fortune 100 companies, GlobalSCAPE's primary focus is providing customers with intuitive and efficient managed file transfer (MFT) solutions while also ensuring end-to-end security. 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 2010 calendar year, filed with the Securities and Exchange Commission on March 29, 2011.