SAN ANTONIO--(BUSINESS WIRE)--
GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, today announced its financial results for the three month period ended March 31, 2013.
Revenue for the three months ended March 31, 2013, was $5.9 million, a 9% increase over revenue of $5.4 million for the three months ended March 31, 2012.
The Company’s deferred revenue, which the Company believes can be an indicator of future revenue trends, grew to $9.8 million at March 31, 2013, compared to $7.8 million at March 31, 2012, a 26% increase.
For the three months ended March 31, 2013, the Company had net income of $517,000, or $0.03 per share compared to a net loss of $253,000, or ($0.01) per share, for the three months ended March 31, 2012.
Adjusted EBITDA Excluding Infrequent Items was $1.2 million for the three months ended March 31, 2013, compared to $180,000 for the three months ended March 31, 2012. Adjusted EBITDA Excluding Infrequent Items is not a measure of financial performance under GAAP and has limitations as an analytical tool and when assessing the Company’s operating performance. Adjusted EBITDA Excluding Infrequent Items should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP.
Net cash provided by operating activities was $1.0 million for the three months ended March 31, 2013. This cash flow performance allowed the Company to end the quarter with over $8 million of cash and $3 million of long term investments.
“Our first quarter results reflect our previously communicated focus on increasing earnings while continuing to grow the business,” said Craig Robinson, President and Chief Executive Officer of Globalscape. “We also have sustained high levels of customer satisfaction worldwide, which has allowed us to renew maintenance and support agreements consistently while also extending our presence in customer accounts.”
Conference Call May 14, 2013 at 4:30 p.m. ET
Globalscape management will hold a conference call Tuesday, May 14, 2013 to discuss financial results for the first quarter of 2013 as well as other corporate matters at 4:30 p.m. Eastern Time/3:30 p.m. Central Time. Those wanting to join should dial 1-877-941-1428 and use Conference ID # 4618941. 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 14, 2013.
About Globalscape
San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE MKT: GSB) is a leading provider of secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provision of associated services. The Company’s solution portfolio facilitates transmission of critical information such as financial data, medical records, customer files, vendor files, personnel files and other similar documents between diverse and geographically separated network infrastructures while supporting a range of information protection approaches to meet privacy and other security requirements. These products provide the ability to monitor these activities, as well as access the underlying data, securely and flexibly through a wide range of network-enabled, mobile devices, including tablets and smartphones. The Company has thousands of enterprise customers and more than one million individual consumers in over 150 countries. 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 2012 calendar year, filed with the Securities and Exchange Commission on March 28, 2013.
| Summary Financial Data | |||||||||||
| GlobalSCAPE, Inc. | |||||||||||
| Statements of Operations | |||||||||||
| (Unaudited) | |||||||||||
| (in thousands, except per share amounts) | |||||||||||
| Three months ended March 31, | |||||||||||
| 2013 | 2012 | ||||||||||
| Operating Revenues: | |||||||||||
| Software license | $ | 1,957 | $ | 2,343 | |||||||
| Maintenance and support | 3,283 | 2,640 | |||||||||
| Professional services | 399 | 329 | |||||||||
| Others | 240 | 81 | |||||||||
| Total Revenues | 5,879 | 5,393 | |||||||||
| Operating Expenses: | |||||||||||
| Cost of revenues | 263 | 318 | |||||||||
| Selling, general and administrative expenses | 3,850 | 4,152 | |||||||||
| Research and development expenses | 762 | 942 | |||||||||
| Depreciation and amortization | 257 | 316 | |||||||||
| Total operating expenses | 5,132 | 5,728 | |||||||||
| Income (loss) from operations | 747 | (335 | ) | ||||||||
| Other income (expense) | (47 | ) | (66 | ) | |||||||
| Income (loss) before income taxes | 700 | (401 | ) | ||||||||
| Provision (benefit) for income taxes | 183 | (148 | ) | ||||||||
| Net (loss) income | $ | 517 | $ | (253 | ) | ||||||
| Net income (loss) per common share - basic | $ | 0.03 | $ | (0.01 | ) | ||||||
| Net income (loss) per common share - diluted | $ | 0.03 | $ | (0.01 | ) | ||||||
| Average shares outstanding: | |||||||||||
| Basic | 18,444 | 18,288 | |||||||||
| Diluted | 18,982 | 18,288 | |||||||||
| GlobalSCAPE, Inc. | |||||||||||||
| Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| In thousands except per share amounts. | |||||||||||||
| March 31, | December 31, | ||||||||||||
| 2013 | 2012 | ||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 8,056 | $ | 8,079 | |||||||||
| Accounts receivable (net of allowance for doubtful accounts | |||||||||||||
| of $162 and $171 on March 31, 2013 and | |||||||||||||
| December 31, 2012 respectively) | 3,175 | 3,350 | |||||||||||
| Current deferred tax assets | 192 | 177 | |||||||||||
| Prepaid expenses | 417 | 426 | |||||||||||
| Total current assets | 11,840 | 12,032 | |||||||||||
| Fixed assets, net | 840 | 900 | |||||||||||
| Investment in certificate of deposit | 3,076 | 3,060 | |||||||||||
| Intangible assets, net | 4,300 | 4,308 | |||||||||||
| Goodwill | 12,712 | 12,712 | |||||||||||
| Deferred tax asset | 567 | 535 | |||||||||||
| Other assets | 41 | 41 | |||||||||||
| Total assets | $ | 33,376 | $ | 33,588 | |||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 547 | $ | 432 | |||||||||
| Accrued expenses | 1,000 | 1,353 | |||||||||||
| Deferred revenue | 8,225 | 8,293 | |||||||||||
| Income taxes payable | 130 | 46 | |||||||||||
|
TappIn earn out, current portion |
- | 500 | |||||||||||
| Long term debt, current portion | 1,350 | 1,335 | |||||||||||
| Total current liabilities | 11,252 | 11,959 | |||||||||||
| Deferred revenue, non-current portion | 1,607 | 1,480 | |||||||||||
| TappIn earn out, non-current portion | 3,694 | 3,694 | |||||||||||
|
Long-term debt, non-current portion |
4,045 | 4,389 | |||||||||||
| Other long term liabilities | 61 | 62 | |||||||||||
| Commitments and contingencies | - | - | |||||||||||
| Stockholders’ equity: | |||||||||||||
| 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, 18,849,097 and 18,846,547 issued March 31, 2013 | |||||||||||||
| and December 31, 2012 | 19 | 19 | |||||||||||
| Additional paid-in capital | 14,631 | 14,435 | |||||||||||
| Treasury stock, 403,581 shares, at cost, at March 31, 2013 | |||||||||||||
|
and December 31, 2012 |
(1,452 | ) | (1,452 | ) | |||||||||
| Retained earnings | (481 | ) | (998 | ) | |||||||||
| Total stockholders’ equity | 12,717 | 12,004 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 33,376 | $ | 33,588 | |||||||||
| GlobalSCAPE, Inc. | |||||||||||
| Statements of Cash Flows | |||||||||||
| (Unaudited) | |||||||||||
| (in thousands) | |||||||||||
| For the year ended March 31, | |||||||||||
| 2013 | 2012 | ||||||||||
| Operating Activities: | |||||||||||
| Net (loss) income | $ | 517 | $ | (253 | ) | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Bad debt expense | 36 | 11 | |||||||||
| Depreciation and amortization | 257 | 316 | |||||||||
| Stock-based compensation | 192 | 199 | |||||||||
| Deferred taxes | (47 | ) | (120 | ) | |||||||
| Excess tax deficiency (benefit) from | |||||||||||
| exercise of share based compensation | - | 7 | |||||||||
| Other | - | 10 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 139 | (226 | ) | ||||||||
| CoreTrace receivable | - | (150 | ) | ||||||||
| Prepaid expenses | 9 | (45 | ) | ||||||||
| Federal income tax | 84 | (30 | ) | ||||||||
| Other assets | - | (11 | ) | ||||||||
| Accounts payable | 115 | (76 | ) | ||||||||
| Accrued expenses | (353 | ) | (448 | ) | |||||||
| Deferred revenues | 59 | 151 | |||||||||
| Other long-term liabilities | (1 | ) | 2 | ||||||||
| Net cash provided by (used for) operating activities | 1,007 | (663 | ) | ||||||||
| Investing Activities: | |||||||||||
| Software development costs | (171 | ) | (80 | ) | |||||||
| Purchase of property and equipment | (18 | ) | (50 | ) | |||||||
| Purchase of TappIn, Inc. | (500 | ) | - | ||||||||
| Interest reinvested in long term investments | (16 | ) | - | ||||||||
| Net cash provided by (used in) investing activities | (705 | ) | (130 | ) | |||||||
| Financing Activities: | |||||||||||
| Proceeds from exercise of stock options | 4 | - | |||||||||
| Tax deficiency (benefit) from share-based compensation | - | (7 | ) | ||||||||
| Notes payable principle payments | (329 | ) | (315 | ) | |||||||
| Net cash provided by (used in) financing activities | (325 | ) | (322 | ) | |||||||
| Net (decrease) increase in cash | (23 | ) | (1,115 | ) | |||||||
| Cash at beginning of period | 8,079 | 8,861 | |||||||||
| Cash at end of period | $ | 8,056 | $ | 7,746 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid during the period for: | |||||||||||
| Interest on notes payable | $ | 64 | $ | 76 | |||||||
| Income taxes | $ | 160 | $ | - | |||||||
| GlobalSCAPE, Inc. | ||||||||||
| Adjusted EBITDA Excluding Infrequent Items | ||||||||||
| (Unaudited) | ||||||||||
| (In thousands) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| Net income (loss) | 517 | (253 | ) | |||||||
| Add (subtract) items to determine adjusted EBITDA excluding infrequent items: | ||||||||||
| Income tax expense | 183 | (148 | ) | |||||||
| Other expense | 47 | 66 | ||||||||
| Depreciation and amortization | 257 | 316 | ||||||||
| Stock-based compensation expense | 192 | 199 | ||||||||
| Adjusted EBITDA excluding infrequent items | $ | 1,196 | $ | 180 | ||||||
Adjusted EBITDA [Earnings before Interest, Taxes, Total Other Income (Expense), Depreciation, and Amortization (including amortized stock-based compensation expense)] Excluding Infrequent Items is not a measure of financial performance under generally accepted accounting principles and should not be considered a substitute for net income. Adjusted EBITDA Excluding Infrequent Items has limitations as an analytical tool and when assessing our operating performance. Adjusted EBITDA Excluding Infrequent Items should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with generally accepted accounting principles.
Jim Albrecht, Chief Financial Officer
ir@Globalscape.com
or
Summit IR Group, Inc.
Jim Fanucchi, 408-404-5400
ir@Globalscape.com
