GlobalSCAPE, Inc. Announces Financial Results for the Second Quarter 2016
GlobalSCAPE, Inc. (NYSE MKT: GSB), a pioneer and worldwide leader in the secure and reliable exchange of business information, today announced its financial results for the second quarter 2016, which ended June 30, 2016.
Second Quarter 2016 Financial Highlights:
- Revenue for the second quarter of 2016 was $8.3 million, an increase of five percent when compared with revenue of $7.9 million for the second quarter of 2015.
- Revenue for the first six months of 2016 was $15.7 million, a six percent increase over the same time period last year.
- For the second quarter of 2016, the Company’s net income was $954,000 compared with net income of $1.3 million for the second quarter of 2015, marking 15 consecutive quarters of profitability.
- Earnings per share was $0.05 for the second quarter of 2016 compared with $0.06 for the second quarter of 2015.
- Adjusted EBITDA for the second quarter of 2016 was $1.8 million compared with $2.1 million for the second quarter of 2015.
- The Company had cash, cash equivalents and short-term investments of $20.3 million at June 30, 2016. Other than liabilities for normal trade payables and taxes, the Company has no debt.
Recent Business Highlights:
- Leadership Changes: Globalscape had a number of leadership changes in the second quarter, including the appointment of Matt Goulet as President and CEO, along with the promotions of Adam Snider to Vice President of Operations and Dan Burke as Vice President of Worldwide Sales.
- Company Awards: Over the past quarter, Globalscape received a number of company awards including the CRN 5-Star Partner Program Guide rating and two channel team members selected for CRN’s Women of the Channel list, Best Place to Work from the San Antonio Business Journal, Best Place to Work in IT from Computerworld, and HR Employer of the Year and Excellence in Engagement Strategy in North America from the HRO Today Services and Technology Association.
- Product Awards: Globalscape received three Network Products Guide IT World Awards in BYOD Security (Gold Winner) for the Workspaces module, Compliance (Bronze Winner) for the EFT platform, and Email Security and Management (Bronze Winner) for Mail Express®.
Matt Goulet, President and Chief Executive Officer at Globalscape
“The secure management and movement of data is a significant challenge that a number of organizations face on a regular basis. It is also an issue that Globalscape confronts head on, and is a driver for our increasing growth along with the basis for the evolution of our products. As such, we saw a five percent increase in revenue in the second quarter of 2016 and a six percent increase in year to date revenue, compared to the same periods last year. The second quarter was also the first time in company history that we reported $8 million in revenue outside of the fourth quarter. We believe that our re-focused product strategy, which is concentrated on our core technology, our award-winning Enhanced File Transfer technology platform, will ultimately further our continued success and growth.”
Conference Call July 28, 2016 at 4:30 p.m. ET
Globalscape management will hold a conference call on July 28, 2016, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the second quarter 2016. Those wanting to join may call 888-539-3696 or 719-325-2495 and use Conference ID # 4393517. A live webcast of the conference call will also be available on the Investor Relations page of the company's website at www.globalscape.com. A webcast replay will be made available on the company's website shortly after the call is completed.
GlobalSCAPE, Inc. (NYSE MKT: GSB) is a pioneer in the reliable exchange of mission-critical business data and intellectual property. Globalscape’s leading enterprise suite of solutions delivers military-proven security for achieving best-in-class control and visibility of data across multiple locations. Founded in 1996, Globalscape’s software and services are trusted by tens of thousands of customers worldwide, including global enterprises, governments, and small and medium enterprises. 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," “expect,” 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 2015 fiscal year, filed with the Securities and Exchange Commission on March 3, 2016.
|Condensed Consolidated Balance Sheets|
|(in thousands except share amounts)|
|June 30,||December 31,|
|Cash and cash equivalents||$ 16,990||$ 15,885|
|Short term investments||3,287||3,254|
|Accounts receivable (net of allowance for doubtful accounts of $335 and $325 in 2016 and 2015, respectively)||5,673||6,081|
|Federal income tax receivable||55||290|
|Prepaid and other expenses||777||511|
|Total current assets||26,782||26,021|
|Fixed assets, net||473||498|
|Capitalized software development costs||3,960||3,982|
|Deferred tax asset||893||940|
|Total assets||$ 44,851||$ 44,213|
|Liabilities and Stockholders' Equity|
|Accounts payable||$ 742||$ 839|
|Income taxes payable||-||127|
Total current liabilities
|Deferred revenue, non-current portion||3,825||3,612|
|Other long term liabilities||37||44|
|Commitments and contingencies|
|Preferred stock, par value $0.001 per share, 10,000,000 authorized, no shares issued or outstanding||-||-|
|Common stock, par value $0.001 per share, 40,000,000 authorized, 21,584,582 and 21,383,467 shares issued at June 30, 2016, and December 31, 2015, respectively||21||21|
|Additional paid-in capital||20,580||19,583|
|Treasury stock, 403,581 shares, at cost, at|
|June 30, 2016 and December 31, 2015||(1,452)||(1,452)|
|Total stockholders' equity||27,425||25,698|
|Total liabilities and stockholders' equity||$ 44,851||$ 44,213|
|Condensed Consolidated Statements of Operations and Comprehensive Income|
|(In thousands, except per share amounts)|
|Three months ended June 30,||Six months ended June 30,|
|Software licenses||$ 2,893||$ 3,280||$ 5,192||$ 5,738|
|Maintenance and support||4,632||4,093||9,129||8,127|
|Cost of revenues|
|Maintenance and support||387||391||781||716|
|Total cost of revenues||1,774||1,377||3,367||2,457|
|Sales and marketing||2,792||2,476||5,693||4,771|
|General and administrative||1,712||1,457||3,445||3,180|
|Research and development||572||657||1,199||1,186|
|Total operating expenses||5,076||4,590||10,337||9,137|
|Income from operations||1,406||1,896||1,962||3,149|
|Other income (expense), net||27||23||60||34|
|Income before income taxes||1,433||1,919||2,022||3,183|
|Income tax expense||479||594||661||1,043|
|Net income||$ 954||$ 1,325||$ 1,361||$ 2,140|
|Comprehensive income||$ 954||$ 1,325||$ 1,361||$ 2,140|
|Net income per common share -|
|Basic||$ 0.05||$ 0.06||$ 0.07||$ 0.10|
|Diluted||$ 0.04||$ 0.06||$ 0.06||$ 0.10|
|Weighted average shares outstanding:|
|Cash dividends declared per share||$ 0.015||$ 0.015||$ 0.030||$ 0.015|
|Condensed Consolidated Statements of Cash Flows|
|For the Six Months Ended June 30,|
|Net income||$ 1,361||$ 2,140|
|Items not involving cash at the time they are recorded in the statement of operations:|
|Bad debt expense||52||127|
|Depreciation and amortization||1,006||682|
|Excess tax benefit from share-based|
|Subtotal before changes in operating assets and liabilities||2,954||3,169|
|Changes in operating assets and liabilities:|
|Other long-term liabilities||(7)||(1)|
|Income tax receivable and payable||120||340|
|Net cash provided by operating activities||2,457||2,694|
|Software development costs capitalized||(846)||(1,107)|
|Purchase of property and equipment||(113)||(90)|
|Interest reinvested in long term investments||(33)||(32)|
|Net cash (used in) investing activities||(992)||(1,229)|
|Proceeds from exercise of stock options||259||307|
|Excess tax benefit from share-based compensation||12||35|
|Net cash provided by (used in) financing activities||(360)||30|
|Net increase in cash||1,105||1,495|
|Cash at beginning of period||15,885||11,358|
|Cash at end of period||$ 16,990||$ 12,853|
|Supplemental disclosure of cash flow information:|
|Cash paid during the period for:|
|Interest||$ -||$ -|
|Income taxes||$ 468||$ 696|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Income from operations||$ 1,406||$ 1,896||$ 1,962||$ 3,149|
|Add (subtract) items to determine adjusted EBITDA:|
|Depreciation and amortization:|
|Total depreciation and amortization||511||394||1,006||682|
|Amortization of capitalized software development costs||(438)||(327)||(868)||(545)|
|Stock-based compensation expense||278||167||500||315|
|Adjusted EBITDA||$ 1,757||$ 2,130||$ 2,600||$ 3,601|