GlobalSCAPE Announces Fourth Quarter and 2010 Fiscal Year Financial Results
Reports Record Annual Revenue of $18.6 Million
Revenue for fiscal 2010 was $18.6 million, an increase of 13 percent when compared with revenue of $16.5 million last year, and the highest revenue in the Company's history. Net income for fiscal 2010 was approximately $0.9 million, or $0.05 per diluted share, compared with net income of $1.4 million, or $0.08 per diluted share in 2009. Cash and short term investments grew to $11.1 million, a 35 percent increase from 2009.
Revenue for the fourth quarter was $4.9 million, an increase of 18 percent compared to the fourth quarter of 2009. "Setting a new high water mark for revenue in 2010 is a significant milestone for GlobalSCAPE," said Jim Morris, GlobalSCAPE president and CEO. "We grew revenue every quarter while achieving record revenue for the fiscal year. During 2011 we are continuing our transition toward generating additional recurring revenue in the form of subscription services like our Managed Information Xchange solution. This subscription revenue potentially provides us with a growing revenue stream visible into future periods, but will require a transition that I expect to run through the later part of 2011."
Adjusted EBITDA for the fourth quarter was $723,000, a 15 percent increase compared with the fourth quarter of 2009. For the full year, Adjusted EBITDA was $3.1 million, a decrease of 11 percent relative to 2009. The Adjusted EBITDA margin for the fourth quarter was 14.7 percent, marginally down from 15.2 percent in the fourth quarter of 2009. For the full year, the Adjusted EBITDA margin was 16.9 percent, down from 21.5 percent in 2009. 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. "In 2010, cash balances grew and we remained profitable during a period when we continued to invest in our operations to further increase our top-line performance," Morris continued. "With our new product launches and with increasing subscription revenue, we believe 2011, especially the second half of the year, can take us to new heights."
GlobalSCAPE Fourth Quarter and 2010 Fiscal Year Financial Statements
Conference Call March 29, 2011 at 5:00 p.m. ET
GlobalSCAPE management will hold a conference call Tuesday, March 29 to discuss the fourth quarter and fiscal year 2010 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 #41318117. 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, 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 www.globalscape.com, 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.