GlobalSCAPE Announces Second Quarter 2011 Financial Results
Revenue Up 28%; Net Income Jumps 251% in 2Q 2011
SAN ANTONIO - GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, today announced financial results for its second quarter of fiscal year 2011, ending June 30, 2011.
Revenue was $5.7 million for the second quarter of fiscal year 2011, an increase of 28 percent when compared with revenue of $4.5 million in the same quarter last year. Net income for the second quarter was $471,000, or $0.03 per diluted share, compared with net income of $134,000, or $0.01 per diluted share, in the same quarter last year, an increase of 251 percent. Cash grew to $12.6 million, representing a 38 percent increase from the second quarter of 2010 and a 14 percent improvement since the end of fiscal 2010.
Adjusted EBITDA for the second quarter of 2011 was $1.4 million, a 65 percent increase compared with the same quarter last year; and a 97 percent increase compared with the fourth quarter of 2010. The Adjusted EBITDA margin for the second quarter of 2011 was 25.0 percent, compared with 19.4 percent in the second quarter of 2010, and 11.9 percent in the first quarter of 2011.
"Our second quarter performance was very strong across the board," said Jim Morris, GlobalSCAPE president and CEO. "Revenue, earnings, and cash all increased significantly, so I regard this as a clean sweep," Morris continued. "While I do not expect these sorts of increases every quarter, I believe our second quarter performance provides continuing validation of our strategic direction and reinforces our prior expectations for another record-setting year."
GlobalSCAPE Second Quarter 2011 Financial Statements
During the second quarter, GlobalSCAPE announced continued international business growth, a new addition to the executive team, additional workplace recognition, and a new solution launch.
In April, GlobalSCAPE announced two additional customer deployments in the United Kingdom, at Enfield Council and Thomas Cook, a global travel operator. These UK customers reflect GlobalSCAPE's increasing European market share, which now includes over 2,000 European customers. During the six months ended June 30, 2011, approximately 32 percent of GlobalSCAPE's sales came from customers outside the United States.
During May, GlobalSCAPE appointed Randall Hawkins as Chief Financial Officer (CFO). Prior to joining GlobalSCAPE, Hawkins was Vice President of Finance with Keystone Directories LLC, a capital investment firm portfolio company. Previously, Hawkins served as CFO of Homann Tire, Ltd. from April 2005 through August 2007 and as CFO of Programming Concepts Inc. from August 2001 through April 2005. He served previously as International Finance Manager for Cooper Industries, Inc., a Fortune 100 multinational manufacturing conglomerate, and as Senior Business Systems Consultant for Arthur Andersen LLP.
In June, Computerworld Magazine named GlobalSCAPE as one of the "100 Best Places to Work in IT" for the second consecutive year. In its 18th year, Computerworld's annual ranking recognizes 100 companies that provide information technology professionals the best in work environment experience and job satisfaction. Using data collected from a combination of nominations and survey data, each company was selected based on their benefits, workplace diversity, career development, training opportunities, and employee retention. The Computerworld honor followed numerous other workplace awards received by GlobalSCAPE in recent years.
Also during June, GlobalSCAPE announced ongoing development of CuteBackup™, a data backup and recovery software solution for the consumer and SMB markets. CuteBackup is powered by Paragon Software Group's Backup and Recovery 10 Suite. The CuteBackup product became available for download and purchase in July 2011, as part of GlobalSCAPE's roadmap for developing and integrating solutions consistent with the Company's previously communicated Total Path Security framework.
Conference Call Thursday, August 11, 2011, at 4:30 p.m. ET
GlobalSCAPE management will hold a conference call Thursday, August 11 to discuss the second 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 #84655989. 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, 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.