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GlobalSCAPE, Inc. Message Board

  • mike74356 mike74356 Nov 12, 2013 5:29 PM Flag

    Earnings report

    The latest 10 Q looks pretty good. 5 cent dividend and a growing backlog. Wonder why the stock price trended down??

    Sentiment: Buy

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    • Thanks to everyone for the insightful discussion.. Its refreshing to hear from savvy investors on a message board.

      Sentiment: Buy

    • One reason shares would be down is because revenue growth quarter over last year's quarter was a meager 3%. There was a strong increase in deferred revenue, yet revenues were essentially the same, this means something else underperformed or declined. Glad to see def revs saved the day, but will have to see the filing to review what slacked off versus last year. So while we're cheering the strong deferred growth, the other side of the coin is, something fell backwards, otherwise you'd have an increase over last year.

      They also admitted they haven't been reaching out properly using all available media, and that they are going to change that next year in 2014. Instills confidence in me.

      I was fairly disappointed with the reply to the TappIn question as to why they don't tell prospective subscribers you can invite all the people you want onto your TappIn network. It seems he wasn't aware of the import of that TappIn benefit. I did spring it on the CFO, what I have given much thought to, so he didn't have a chance to gather the import of being able to invite your whole Facebook friends to your home computer system. For mom and pop retirees that may not be a big deal but I assure you for the youth of today it is a very big deal and why FB is so hot a topic. That makes a very strong selling point because you are able to create your own giant group of friends and keep it outside of Facebook, totally personalized and much more private than Facebook. Yet they, the masters of TappIn, don't realize one of their own major benefits of it or don't know they should share that understanding. I searched the site high and low and it says NOWHERE how many people I can invite. I called Globalscape, they patched me to Andrew Tull who said, However many you want to invite. 10, 100, even 1000. Up to you. I said back, Then why don't you say it on the website anywhere. It completely changes what people conceive TappIn to be, to offer. 5000 friends can remote access your computer storage!

    • Shares down because of the market, the runup in shares over past couple weeks, and unknown about earnings.

      However, this was a blowout earnings announcement. Everything was very strong.

      Trailing twelve months EPS is now 26 cents/share - shares should immediately go $1 higher.

      Going forward, this 12 cents/quarter should be sustainable with the greatly reduced expense footprint. Let's be conservative and say they can do 40 cents/year EPS - shares should be something in $4 to $6 range.

      Bottom line - shares are wildly undervalued right now.

      • 3 Replies to o08o.ugh64w
      • Last 9 months is $2.205 million earnings. Add in $1 million for this quarter, probably higher than the previous two due to government spending cycle, and you have $3.205 million. Divide by 19.5 million shares approximately, gives you 16.436 cents a share with about a 4% growth rate for revs if you take this year at 24.4 million (assuming about $6.3 million Q4) and divide by 23.4 million in 2012 = 4% growth of revs. Maybe 5% if a little more.

        While the numbers will look good on their face, they need to admit where they have failed to address themselves and address it. Otherwise they won't grow and will be waiting for clueless TappIn users to clue them in on what they shouild clue the users about. And I believe in polling and surveying your customers, I really do. But I don't fail to showcase one of the biggest benefits of TappIn. Take "share" with friends ... could somebody on the site please define "share" for the marketplace as "grant remote access privileges to" one's friends? Lol.

        I'm picking on them. Glad after all these years they have finally addressed SEO in a serious, dedicated, professional, educated and informed manner utilizing one of the best in the industry to help them at it. (No I still won't divulge who it is. One of the biggest, though.)

        I do congratulate them on what they did do well. I just feel like picking on the negatives this evening. That's all. They have been too too complacent and self-confident (with 3% growth?) and even a bit arrogant. Yes, arrogant. They used to be arrogant about SEO. Listen, you want somebody at Globalscape and TappIn who can say, What the heck is the most importnat thing TappIn does for people? 1, 2, 3, 4, 5 top things. Then you list them ALL on the website and to heck with what ignorant users have to say about it. What puts an ignorant, new to the topic, userbase in the position to know what the top benefits are? They are new to it. Think BIG. "Create your own private network of thousands!" (Nowhere on the site!)

      • About the 12 cents, most of that was from the unearned Tappin payout of $1.3 million, which goes back to Globalscape coffers as earnings though it comes from different periods' savings etc and set aside for to payout if the payout was earned. The real earnings without that extraordinary event were about $1 million or 5 cents a share.

        While 5 cents compares well this quarter to -18 cents last year, remember that much of that negative last year was due to another extraordinary event, the appshield writeoff. Without that charge last year, without the TappIn earnout put back in the coffers, it's not so dramatic a turnaround.

        We do have some promises that things are going to change as far as how they reach out to compete but we have yet to see that implemented. Promises are good. But they need to be kept. I am disappointed in the flat revenues. I doubt the marketplace will be impressed by 3% or 5% growth.

        By the way, I did a poll about TappIn benefits, and users didn't know they could have unlimited invitees. Most presumed you can have only so many. Others were confused by bandwidth issues not realizing each invitee, friend has their own bandwidth through their own phones to use, so it's not an issue. Everyone ranked the ability to have unlimited friends remote access your TappIn storage network as higher than their own ability to remote access it due to many being more important than the one. I had one report by a student on TappIn for me, and it failed to find the unlimited users benefit. It's a fast world, many distractions. You must present it to them and not be passively waiting for them to tell you about your own technology. A great salesman pitches all the best benefits of his products and doesn't assume those are known, especially so for a new technology. So ... they have much more grunt work to do making TappIn's beneifts known to everybody. They should have a line on the site: put your whole Facebook on your Tappin network, but they don't. Grade that an F

      • Guess I was a little ambitious with those numbers missing the Tappin benefit.

        Still a great quarter and shares should go higher with the profit and special dividend.

    • Very pleased with Q3. License revenue picked up. Healthy profits even in the absence of Tappin tax benefit..Increased focus on Enterprise customers, stock under accumulation by someone with deep pockets... to name a few. Bottom line, the company has demonstrated consistent profits.

 
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