GlobalSCAPE Announces First Quarter 2012 Financial Results
Increases Revenue 16% Compared with Q1 Fiscal 2011
SAN ANTONIO - GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, today announced financial results for its first quarter of fiscal year 2012, ending March 31, 2012.
Revenue was $5.4 million for the first quarter of fiscal year 2012, an increase of 16 percent when compared with revenue of $4.6 million in the same quarter last year. The Company reported the increase in revenue was largely due to an increase in maintenance and support (M&S) contract renewal sales, an increase in EFT Server Enterprise license revenue, and an increased contribution from the Company's managed solutions business. The increase in M&S renewals resulted in a 19 percent increase in the Company's deferred revenue, to $7.8 million at the end of the first quarter of 2012, up from $6.5 million at the end of the first quarter of 2011.
The Company reported a loss of $253,000, or ($0.01) per diluted share, in the first quarter of 2012, compared with net income of $59,000, or $0.00 per diluted share, in the same quarter last year. In line with the decrease in net income, Adjusted EBITDA declined to $180,000 in the first quarter of 2012, from $555,000 in the same period last year.
Net cash (used in) provided by operating activities for the three months ended March 31, 2012 and 2011 was approximately ($663,000) and $374,000, respectively. The increase in net cash used in operating activities in the first quarter 2012 was due to the decrease in net income and decreases in accrued expenses of $448,000 and other long-term liabilities of $319,000. These decreases were somewhat offset by an increase in accounts receivable of $226,000.
"Our first quarter revenue performance reflects continued growth in our core business, plus the short-term effects of the TappIn acquisition," said Jim Morris, GlobalSCAPE Chief Executive Officer. "We increased sales of our enterprise solutions and significantly grew recurring revenue from our managed solutions line of business during the quarter," Morris continued. "Our net loss in the quarter was primarily the result of increased operating expenses associated with the TappIn acquisition. TappIn has established and is actively pursuing additional arrangements with original equipment manufacturers, known as OEMs, and other companies that will directly integrate TappIn into their hardware devices or participate in joint marketing and promotion activities," Morris said. "We expect to increase net income, particularly in the second half of 2012, as we recognize additional revenue from the TappIn OEM arrangements and potentially continue to increase our core revenue."
GlobalSCAPE First Quarter 2012 Financial Statements
During the first quarter, GlobalSCAPE announced a new addition to the Company's solution portfolio and gained additional industry recognitions.
In February, GlobalSCAPE announced development of a Secure Mobile Access™ module, combining TappIn, Inc.'s mobile file access with GlobalSCAPE's proven Enhanced File Transfer (EFT) Server™ solution. This new solution allows users to securely access their business files from any popular smartphone or mobile device. The Secure Mobile Access module also allows businesses and IT departments to respond to the rapidly growing "Bring Your Own Device" (BYOD) trend, in which employees increasingly desire to use the same devices to access personal and business data. The BYOD trend previously has been problematic for IT departments as they worked to resolve conflicting demands for security and convenience. The new module represents the first significant product integration with TappIn since it was acquired by GlobalSCAPE last December.
In March, GlobalSCAPE was recognized by Info Security Products Guide as a "Global Excellence Award" winner for the second consecutive year. GlobalSCAPE's Mail Express™ took top honors for 2012 in the "Email Management and Security" category. TappIn™ by GlobalSCAPE® also was recognized as a "Global Excellence Award" winner, taking top honors in the "Software as a Service (SaaS)/Cloud Solutions" category. This double award came one year after GlobalSCAPE's Managed Information Xchange solution captured the SaaS/Cloud Solution award in 2011. The Global Excellence Awards recognize excellence in all areas of information security including the industry's best products, people, and companies. A panel of more than 50 judges from a broad spectrum of industries around the world determines the finalists and winners. Winners this year were announced during an awards dinner and presentation on February 29, 2012 in San Francisco.
Conference Call May 8, 2012 At 4:30 p.m. ET
GlobalSCAPE management will hold a conference call Tuesday, May 8, 2012 to discuss the first quarter 2012 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 1-800-380-1061and use Conference ID # 76132578. 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 June 8, 2012.
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 2011 calendar year, filed with the Securities and Exchange Commission on March 29, 2012.