GlobalSCAPE, Inc. Announces Financial Results for Fourth Quarter 2014 and Fiscal 2014
SAN ANTONIO — GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, announced today its financial results for the three months and fiscal year ended December 31, 2014, and the initiation of a quarterly dividend program.
Revenue for the fourth quarter of 2014 was $7.9 million, which is the highest quarterly revenue in Globalscape’s history. This result is an increase of 27 percent when compared with revenue of $6.2 million for the fourth quarter of 2013.
Revenue for the year ended December 31, 2014, was $26.8 million, which is the highest annual revenue in Globalscape’s history. This result is an increase of 10 percent when compared with revenue of $24.3 million for the year ended December 31, 2013.
Deferred revenue, which can be an indicator of future revenue trends, was $14.8 million at December 31, 2014, compared with $10.8 million at December 31, 2013, or an increase of 37 percent.
For the fourth quarter of 2014, the Company had net income of $1.2 million compared with net income of $655,000 for the fourth quarter of 2013. Earnings per share was $0.06 for the fourth quarter of 2014 compared with $0.03 for the fourth quarter of 2013.
For the year ended December 31, 2014, the Company had net income of $3.0 million compared with net income of $3.8 million for the year ended December 31, 2013. Earnings per share was $0.15 for the year ended December 31, 2014, compared with $0.21 for the year ended December 31, 2013.
Net income for the year ended December 31, 2013, included infrequent items resulting from the TappIn intangible impairment and earnout liability elimination which occurred in the third quarter of fiscal 2013. Net income excluding infrequent items for the year ended December 31, 2013, was $2.5 million. Basic and diluted earnings per share excluding infrequent items for the year ended December 31, 2013, was $0.13.
Adjusted EBITDA Excluding Infrequent Items was $5.4 million for the year ended December 31, 2014, compared with $5.2 million for the year ended December 31, 2013.
Net income excluding infrequent items and adjusted EBITDA excluding infrequent items are not measures of financial performance under GAAP and have limitations as analytical tools and when assessing the Company’s operating performance. These measures should not be considered in isolation from or as a substitute for net income or other income statement data prepared in accordance with GAAP.
Net cash provided by operating activities was $8.5 million for the year ended December 31, 2014, compared to $4.5 million for the year ended December 31, 2013. Cash, cash equivalents and long-term investments were $14.5 million at December 31, 2014. During the third quarter of 2014, the Company repaid all its notes payable and no longer has any notes payable or long term debt.
“We are pleased with the progress we made in 2014 that has helped establish a solid foundation for long-term growth,” said James Bindseil, Globalscape’s President and Chief Executive Officer. “I am confident that the plans we have in place will lead us to even higher returns in the future.”
Globalscape Fourth Quarter and Fiscal 2014 Financial Statements
- Financial Statements (PDF)
Conference Call February 5, 2015 at 4:30 p.m. ET
Globalscape management will hold a conference call Thursday, February 5, 2015, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the fourth quarter and fiscal 2014. Those wanting to join should call 888-430-8691 or 719-325-2452 and use Conference ID # 8818285. 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 for approximately 30 days after this call.
San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE MKT: GSB) ensures the reliability of mission-critical operations by securing sensitive data and intellectual property. Globalscape’s suite of solutions features the EFT platform, the industry-leading enterprise file transfer solution that delivers military-grade security and a customizable platform for achieving best-in-class control and visibility of data in motion or at rest, across multiple locations. Founded in 1996, Globalscape is a leading enterprise solution provider of secure information exchange software and services to thousands of customers, including global enterprises, governments, and small businesses. For more information, visit www.Globalscape.com or follow the blog and 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 2013 calendar year, filed with the Securities and Exchange Commission on March 27, 2014.