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GlobalSCAPE, Inc. (GSB)


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4.48-0.04 (-0.88%)
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  • I am wondering if approaching the dividend date (May 23th) produced the increased price, and on May 24th we will see a reduced price or not.
  • Retracing a bit of the move up, I see. The Point & Figure chart and the Coppock Curve are both bullish for GSB and the retracement is in line with those. Volume more than double on the way up than the retracement down, according to P&F chart. And the price by volume chart of the P&F chart shows for trades over $4.30 that purchases outnumber sales by a 4 to 1 margin. So there aren't as many available shares in the $4.30-$4.91 range as there were before. Overall, the trend is for it to move up and consolidate and move up and consolidate, on a five year pattern, but with the new events with the Data Integration Platform coming on line and HPE partnership with Versatile partnership in that mix, and the conference call positive statements to long term and new shareholders about being finally rewarded, I'm going to say the angle of ascent is going to steepen, and that is some of what we are now seeing in the rise to $4.91. News ahead is expected to be very good and plenty of it, according to the conference call. Congrats to all and looking forward to the next couple of news items. It's going to be good and in line with the statements made to us on the call. Buckle in to your positions, guys. (And if you've got the spare cash, Tetra Bio-Pharma is going to have good news by June 5 on their phase I clinical trial. But do your due diligence and make your own decision on that. But I think you will find their alliances in order and good stead. If I may go off topic a second.)
  • Some nice buying going on.
    Globalscape President and CEO Matt Goulet is scheduled to present on Thursday, May 25 at 4:00 p.m. Pacific Time and will hold one-on-one meetings with institutional investors throughout the day at the Riley Investor Confrence...Lets go Matt OPEN some eyes and lets get this baby past $5.
  • Globalscape is doing well. Hence, new investments coming in and new alliances, new employees. Steady dividend now for 5 years and the longer that goes on with rising sales and rising earnings the likelihood of dividend increases .... increases. The story is solid and I look forward to the news in the coming next couple of weeks and months.

    One place the company could definitely look at is to come to the attention of some of the finer newsletter writers. I previously mentioned Tetra Bio Pharma as a very smart pick and long term buy in the medical cannabis industry and their CFO was recently in Ecuador at a major conference I believe to do with the mining industry, and he sat down with the founder of The National Investor, which according to Dick Davis Digest is a top newsletter with some of the best gains of any newsletter. Sabino sat down with him and mentioned he really ought to take a look at Tetra and when he did take that look, he recognized the value and he's just released an accumulation for it as his first pick in the cannabis space this past few days with a full report coming. Globalscape is the same sized company with a solid story that stands the testing and probing of sharp investors and fund managers, so a quality newsletter writer looking for the best opportunities in Globalscape's space would in my opinion also see the quality of this company, and that, my friends, would increase retail investor numbers.

    I'm going to guess that the Dallas group has a line of some good investment newsletters. With our CEO in California to present, let's hope he makes some good contact with some of the key investment newsletter writers who were invited to participate. Because a writer is not just a person but comes with a following of investors, so speaking to one writer, when they like your story and relay it to their network, is really speaking to their whole subscriber base. The National Investor is a paid subscriber service.

    Magnum, if you're out there, let's hear from you. Been too long and we'd like to know how you are doing. Come back, good buddy (as they say over the CB).
  • In 2016 we saw that each quarter showed an increase in sales, so the sales bar chart rises to the right each quarter. 2017 is looking the same and the expectation is continually rising coming quarters as we saw in 2016. That will come from internal and external sales and based on continued advancement of what has been selling plus adding the new Data Integration Platform, whose impact the company has advised us openly on the call that we are to expect sales boosts reminiscent of when they launched EFT's High Availability module. You probably recall if you were in the stock at that time that that launch included some very big F5 news. The Data Integration Platform is being launched with HPE in mind this time, so a great new major partner. HPE now has the fastest computer out there I was reading. They like Globalscape and one good reason is that Globalscape is in an area that is expected to grow more than other areas of IT. HPE is always wanting to boost their growth and some things for companies like them may begin to slow, so they look for what areas are going to move counter to that, and invest and integrate with them. Cloud computing, hybrid systems blending on-premises and cloud networks are expected to do well for HPE, and that's a big reason for them partnering with Globalscape. This is just the beginning as well for the HPE GSB partnership and they will be adding some other things, they said.

    The 18th Annual B Riley conference in California is May 24 and 25.

    A clip from one of the pages B Riley has about the current conference:

    Leading Investment Opportunities
    Our award winning research analysts have strategically selected a line-up of presenting companies to showcase their stories.

    Targeted Audience
    Our team has sourced highly qualified institutional investors, high net worth individuals and industry professionals.

    (It's not just for matched institutions, but also includes high net worth persons and industry professionals. Then they matched them with all the top companies their analysts worked up into a best of the best list. The conference is basically matching the best investors with the best companies that fit them. Very targeted and pinpointed conference design. Obviously this is the best way to make success out of the meetings. Kind of an eHarmony dating event but for investments. -- Gee)

    Invitation Only.
  • Here we come 5 doll hairs!!!
  • IBD ranking of GSB pretty good. EPS ranks an 89 and SMR or (Sales Growth, Profit Margin and Return on Equity) currently ranks a B. Three year sales growth and quarterly sales growth at 13% and three year EPS growth rate is 16%. While that's all good, just wait till they see the Q2 results. It only gets better each quarter from here, guys. Gearing up for that news they said be on the lookout for. Got a fine bottle of champagne for celebrating the occasion.

    Oh, the way IBD ranks a stock, if they say 89 for EPS then that's better than 89% of all the other companies out there in the public stock market. If you have an IBD account too, share which of their ranks on GSB you like or that stand out to you. I would like to hear your take on IBD and GSB. Present and what you might expect after Q2 is announced.
  • Let's keep this going! Up, up, and away!
  • Over the last 2 years since May 15, 2015 Globalscape has risen to 30% gains four, maybe five times: November 1, 2015 area, December 1, 2015 area, (maybe) November 20, 2016 area, January 7-15, 2017 area and May 1-15, 2017 area. On the two year chart the Russell 2000 index which it is a part of rose to 10% for December 1, 2016 through today, May 15, 2017. The Russell 2000 never got above 10% by more than a few percentage points. The GSB line of Globalscape for the most part has always been above the Russell 2000 line on the comparison chart and when GSB has moved down, twice it hovered 5 to 20% above the Russell 2000 but four or five times it actually returned to the Russell 2000 line as an area of very strong support. That has continued the last six months as well as the Russell has risen to its strongest price level in two years that GSB has maintained itself well above the Russell level and was rising two or three times to the 30% increase level while the Russell 2000 maintained itself at the 10% increase level.

    That's very bullish for Globalscape stock since the very strong guidance we've been given in general terms by Globalscape's CFO, with expectations of finally richly rewarding long term shareholders after all these years as well as including our new major shareholders, will change this two year chart by an order of magnitude and my opinion is its stock will go so high up that using this chart would mean GSB puts so large a gap between itself and the Russell 2000 that at least with the starting point at May 15, 2015, GSB will never return to touch the Russell line. That is, I expect a very bullish jump. Later, after the jump in Globalscape stock pricing, you can still use the comparison charts but you need to use one with a starting date nearer to or after the GSB big price jump my opinion states is coming.

    But this chart has served its purpose well in showing the strength of Globalscape's stock how it is outperforming the Russell 2000 significantly from 5/15/15 to 5/15/17. (That's a lotta fives. Anybody got a ten? or twenty? ;)

    Another comparison chart between these two stocks is simply the one year chart. It is quite different in that the Russell 2000 has been performing better than GSB over the past year. That shows some consolidation of GSB while the Russell played catch up. But GSB has a history of jumping 10 to 35% higher compared to the Russell 2000 over the last two years, and with the strong news, comparing the new coming data integration PLATFORM that's integrated with EFT PLATFORM I expect to see at least another 35% price increase differential between GSB's rise and Russell 2000's rise.The 35% difference occurred about November 1, 2015. That's about when EFT's High Availability module came out and sales and earnings progressed.

    Between the two charts, it's funny to note that while on the two year comparison chart GSB uses the Russell 2000 line as sort of a support, if you will call it that, and on the one year comparison chart GSB uses the Russell 2000 line as sort of a resistance level. Do I think that resistance level will hold? Well the dynamics have certainly changed in that we just had a whopper increase of 84.5% increase in GSB's quarterly earnings growth. They added staff, they continued improving their major product line, and they managed to basically double earnings over the prior year while doing that. So I would say, Yes, it's an old resistance level, but it's based on old facts, not new facts, and if you base your buying on that, well, it's not going to be a resistance level for long, even if you keep the same starting date as we go forward, as soon as the market realizes or becomes aware that Q2 is going to be very strong too, with its strongest sales and earnings ever probably, and that could be realized by those with thinking caps on BEFORE we get the Q2 announcement, of course, and the why for that is because the CFO clearly stated you better hold on to your seats because we are in for one heck of a ride up. And he did mention the new 15-20% investors out of Dallas, in general, "our new large shareholders" and that is also another reason I referred to the chart as old, outdated or soon to be. When you know it's going to be outdated by coming numbers, a smart person might just go ahead and call it outdated and not wait to do that.

    It feels good and I'm glad for all of us that I am able to finally come to write like this and know it's coming to pass. How high's the water mama? She said, 4 feet high and risin'. How high's the water, mama? She said, $6 feet high and rising. How high's the water, mama? She said 8 feet high and risin'. How high's the water, mama? She said, $10 feet high and risin'. I won't even try to put a top on it because the float is so tightly held and the future looks so bright and when the news really gets out, because frankly people with a lot of money to buy into a good thing when they hear it, usually have a lot of irons in the fire that keep their attention focused elsewhere. If you ever just managed a few stocks and then went to over a dozen stocks to track and study, you know what I'm talking about. You don't have to time to always read between the lines of conference calls of stocks you have on your watch list but don't yet own. So a big news item gets your attention and you adjust at that time and see what you might invest. Because people want to focus on where their money is invested today more than where it might be invested. Tracking a large portfolio takes a lot of time away from searching out about new investments even when you know a list of good prospects.

    The earnings boost is one way to get attention. IBD ranking is another way that is factored in, Yahoo statistics shows the growth rates but doesn't rate them. WSJ. Stock scans also. But some of those take weeks before they adjust their ranks and statistics while the news has already come out, so news is the best storyteller and the rest is kind of a net to catch the attention of the rest. Six one way, half a dozen the other.

    Good night and good luck to all. Happy Mother's Day to all your ladies.
  • Good viewing on CNBC this morning with FireEye talking about the challenges of bridging On-Premise security to the Cloud. (They are hoping to be profitable eventually.) Here we have GSB with no debt and continuous profits. None of the senior officers or board members are flashy wall street execs but rather conservative people making adjustments in a challenging field while making profits. The EFT industry is only growing 4 or 5% yet GSB is more than tripling that growth so they are doing something right.
  • http://wotc.crn.com/wotc2017-details.htm?w=54

    Women of the Channel 2017 Details - Page: 1 | Women of the Channel
    body { font-family: Arial,Helvetica,sans-serif; font-size: 12px; } h1 { font-weight: bold; font-size: 2em; color: #5E5247; line-height: 1.7em; } h2 { font-weight: bold; font-size: 1.5em; color: #5E5247; line-height: 1.4em; } .container { disp
    wotc.crn.com
  • Can't believe this stock isn't more popular.
  • Would be a record high except for about 4 or 5 days and a high of $7 back in 2007. Don't know what that was about, but I don't think it's going to take a dive lower that around the $4 mark, give or take a dime.
    I've noticed it does trade opposite to what the market and the big boys do, so maybe it's better known than we might think.
  • Globalscape's Data Integration Platform, iPaaS platform

    I just posted yesterday this comment on it from the Globalscape conference call we just had:
    "And finally, and PERHAPS MOST EXCITING, IN THE NEAR FUTURE, we are PLANNING TO LAUNCH A CLOUD DATA-INTEGRATION PLATFORM AS A SERVICE OFFERING, also known in the industry as iPaaS. We view this subscription-based technology as A FORWARD-LOOKING, NEXT-GENERATION, DATA MANAGEMENT OFFERING! Data integration is an adjacent market to MFT, but we believe this solution will be a natural extension and enhancement to our core MFT offering. Integrating and innovating new technologies like iPaaS enables us to grow or expand more quickly and efficiently, benefitting not only Globalscape but our growing customer base who can decrease their costs associated with deployment, setup, configuration and training. IT'S IMPORTANT TO NOTE that OUR UPCOMING PRODUCT RELEASES WILL BE THE MOST IMPACTFUL WE'VE DELIVERED SINCE THE MID-2014 LAUNCH OF EFT WITH HIGH AVAILABILITY, and we're NOT stopping with these product releases!! Globalscape will continue to research adjacent markets to determine strategic ways to extend our portfolio with complementary technologies."

    Here's what I researched this morning on this topic for us:

    Current Job Listings 17 Total Job(s).

    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space." (Data Integration is what they talked about on the conference call about iPaaS or Integrated Platform as a Service.) All of the channel sales manager positions, all nine of them they just listed on their careers page, have this exact wording that they are to handle the new Globalscape Data Integration Platform that they said on the call is the biggest deal they've had since High Availability came out in 2014.

    When they said iPaaS platform would have the biggest impact likened unto the strong sales achieved when they introduced High Availability in 2014, they were specifically talking about sales revenue increases for both. ONE look at the latest job openings confirms this; you see about ten positions open for Channel Sales Managers each in a different city across the United States. Boston MA, Atlanta GA, Chicago IL, Dallas TX, Seattle WA, Phoenix AZ, Denver CO, New York NY and Washington DC. NINE new channel sales managers across the United States each dedicated to the new Data Integration Platform.

    I pulled up every single one of the new channel sales manager positions' job descriptions and they are all the same thing, same wording, I don't think any of the shareholders on the call realized the full extent of what the CEO and CFO were saying. I already posted on my opinion that this was the strongest conference call with the strongest outlook given in the company's history. Given that, I awoke this morning and decided to see if those statements had meat on their bones in their hiring office, via their Careers link on their website. What I found was a ton of meat.

    Below is a list of the current openings with our company. Click on the job title to learn more about the opening.

    Application Analyst II
    000622 - Customer ServiceSan Antonio, TX, USAFull Time

    Channel Sales Manager
    000451 - Channel SalesBoston, MA, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesAtlanta, GA, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesChicago, IL, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesDallas, TX, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesSeattle, WA, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesPhoenix, AZ, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesDenver, CO, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesNew York, NY, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Channel Sales Manager
    000451 - Channel SalesWashington, DC, DC, USAFull Time
    "The Channel Sales Manager (CSM) is responsible for new and incremental revenue growth via partner-initiated opportunities focused in the Data Integration space."

    Enterprise Sales Manager
    000450 - Corporate SalesBoston, MA, USAFull Time

    General Application
    000155 - Human ResourcesSan Antonio, TX, USAFull Time

    Marketing Operations Manager
    000300 - MarketingBoston, MA, USAFull Time

    Mid-Market Sales Manager
    000450 - Corporate SalesSan Antonio, TX, USAFull Time
    "up selling existing and new product lines to new and existing customers, selling newly released GlobalSCAPE products to an existing customer base."

    Senior Consultant
    000616 - ConsultingSan Antonio, TX, USAFull Time

    Senior Software Engineer
    000600 - Engineering ManagementSan Antonio, TX, USAFull Time

    Technical Account Manager
    000622 - Customer ServiceSan Antonio, TX, USAFull Time

    CAN YOU BELIEVE THIS?! LOL. HIRING TEN SALES MANAGERS ACROSS THE COUNTRY? TEN DIFFERENT CITIES INCLUDING ONE MIDMARKET MANAGER FOR SAN ANTONE? This is BIGGER than we thought, this iPaaS deal. And it's based on customer feedback, so upselling to current customers ensures a good launch plus add all the ones waiting for this before becoming customers. Globalscape never had data integration before. They sure do NOW! Cannot WAIT for the news release. Definitely they are gearing the sales force up for a nationwide launch. This is what Matt Goulet, CEO, was known for at Kaspersky in North America. He's now ready to do the same rollout and launch with Globalscape. This is just about unbelievable! But it's for real! Every positive statement I posted from the CFO from the conference call, this explains what he knew as he said those things.
  • Why they bought up over 15%-20% of the company this year?

    Nobody here expected or mentioned a 13% increase in revenues for Q1. Nobody on this board expected a $1MM add to revenue either. Coming off of a year with sub-10% growth, but very good compared to peers, 13% growth is strong. This is a very good company and if they do 13% in Q2, that would add over $1MM to last year's Q2 revenues, bring it to $9.33MM, the highest producing quarter of all time. Hard to perceive that as a bad thing. And with the new tax code to be done by year end, and most reads say if they can't get everything they want, they will for sure have the 15% tax for corporations in it. 15/35 is about a 60% cut in taxes. Close to 57% cut, actually. Imagine what the earnings would have been this past year with that in place. You would have 2.333 times the ebitda we had. However you get that, that implies a stock price 2X, actually 2.333X, what it is today on last year's results. Add 13% to that as an estimate of the increase over last year and you have 2.333X + 13% = 2.633X the price. Using $4, then 2.633 X $4.00 = $10.53. But remember, they have the new iPaas product coming out in the short-mid term, per the call. You better figure better than 13% growth for the quarters that is selling. Remember, and they have this from 'surveying' the channel partners and customers who have given that feedback on features desired, that this iPaaS solution, platform, it's effect and result they are likening to the big boost they got from the introduction of EFT's High Availability module. Now that was the biggest development the had in the last few years, so I believe this is why they spoke so large about the coming share price rewarding all the long-term investors who have held to this point. That was a serious assessment and statement to shareholders on the call and not in any way to be taken as fluff. It was the closest they would give to guidance, and for those who still do not get it, this is something the Dallas group has been privy to its development as part of disclosure on the private placement, if you are wondering besides what you know about that they would like, what else there might be? iPaaS and HPE are very big reasons they have come in so strongly.
  • We have a new IR group ... Liolios Group out of California.
    On the investor presentation for Q1 17 you will find the IR contact info for a Matt Glover, who I was able to find info on at their website:

    Matt Glover
    Managing Director (One of 4 managing directors)
    http://liolios.com/team-member/matt-glover/
    Since joining Liolios in 2007, he has successfully managed more than 40 client campaigns and scheduled 200 investor marketing events. Matt has provided strategic communications counsel to clients on more than 30 M&A transactions and $500 million in equity capital raises.

    Najim Mostamand
    Senior Analyst (no other senior analysts)
    http://liolios.com/team-member/najim-mostamand/
    Najim is a senior analyst at Liolios, mainly responsible for interfacing with clients in the technology vertical and ensuring their strategic messaging is consistent with investor expectations.

    http://liolios.com/about-liolios/
    Our team of finance executives, strategic thinkers and creative professionals are passionate about helping clients effectively navigate the capital markets and maximize shareholder value.

    These are only clips of special interest I have selected from each page. Visit the linked pages for full detailed information.

  • I received a good reply on Tappin inside EFT from Globalscape's CEO Matt Goulet this morning. He explained everything about all their mobile technology quickly, briefly, to my satisfaction. For those of us wondering if Tappin is incorporated into other Globalscape technology, the answer is yes and no. He discusses MTC (mobile transfer client), WTC (web transfer client) and EFT. They are using Tappin technology in R&D efforts so it can be integrated into EFT. They see an area of good return on investment to do that or they wouldn't bother with it. So it's good to know the Tappin technology is and will be making a contribution and enhancement to the #1 product at Globalscape, EFT. He mentioned Tappin is a consumer product, but how they are going to deploy it through EFT he did not say. If someone with an idea of what that might be, please comment for us. My guess, if it is a consumer type integrated feature, in Enterprise EFT that might be a way for some type of consumer activities that are all involved with some large enterprise that uses EFT, so that could enable their consumer customers to do something via Tappin features integrated into their EFT. My belief is Peter Merkulov and Greg Hoffer would have scaled, overall tech industry insight that led to their wanting to continue with Tappin by incorporating it into EFT. And since we know they want to focus their resources on what's making money, as they said, that's basically EFT, it's not likely they are trying to save face on the Tappin purchase by justifying it with an EFT integration that doesn't work, which flies in the face of all they have lately been saying and doing. No, they see something of value or it would be laying in the dustbin with appShield. So though we have no timeline or potential use case for it yet, this is good news. What's most important is they make the best use of their R&D resources, that is, people and funds, and nobody wants to work on a project that makes no sense or provides no financial reward to the company, they wouldn't be happy doing that. So I take this as good news. Is it bigger than iPaas or EFT Insight? Not at this time, I wouldn't think, since iPaas and Insight solutions are in final phases just about ready to come out and start earning money for us. I will remind here by excerpting the two paragraphs by Mr. Goulet on the call about the iPaas and Insight solutions soon to be launched.

    First, our CEO's communique:
    Greg,

    Thank you for your question.

    As you know, the TappIn technology was a consumer-grade file sharing solution targeting consumers. As we’ve discussed in many of our earnings calls, we are focusing on our core EFT product line, targeting enterprise-level users. Features from Tappin are being integrated into EFT, however this development is ongoing.

    While WTC works on mobile browsers, it has rich functionality that makes it the best fit for desktop use. MTC on the other hand offers more of a native mobile platform experience, as most of the mobile users are expecting to be using an app as opposed to a browser. For most of the use cases MTC is the best option on a mobile device. In its current format MTC is not a “specialized version” of Tappin.

    We appreciate your continued support.

    Regards,

    Matt Goulet, CEO, Globalscape

    And now, the conference call excerpt from last week: (pardon me if I leave the caps in which were for my own benefit)

    The 2nd product I WILL SOON BE LAUNCHING is an ANALYTICS BUSINESS-INTELLIGENCE PLATFORM called EFT INSIGHT! EFT Insight was conceived and is being developing BASED ON REQUESTS MADE BY OUR CUSTOMERS. We're currently FINALIZING the beta program with a handful of those customers. The product has been very well-received by the participants, who have given us a lot of great feedback and will lead to the continued evolution of EFT Insight! As we wrap up the beta program WE EXPECT TO MAKE EFT INSIGHT GENERALLY AVAILABLE IN Q2. (That's April May June, guys! Can you say revenue and earnings booster?!)

    And finally, and PERHAPS MOST EXCITING, IN THE NEAR FUTURE, we are planning a cloud data-integration platform as a service offering, also known in the industry as iPaaS. We view this subscription-based technology as THE FORWARD-LOOKING, NEXT-GENERATION DATA MANAGEMENT OFFERING! Data integration is an adjacent market to MFT, but we believe this solution will be a natural extension and enhancement to our core MFT offering. Integrating and innovating new technologies like iPaaS enables us to grow or expand more quickly and efficiently, benefitting not only Globalscape but our growing customer base who can decrease their costs associated with deployment, setup, configuration and training. IT'S IMPORTANT TO NOTE that OUR UPCOMING PRODUCT RELEASES WILL BE THE MOST IMPACTFUL WE'VE DELIVERED SINCE THE MID-2014 LAUNCH OF EFT WITH HIGH AVAILABILITY, and we're NOT stopping with these product releases!! Globalscape will continue to research adjacent markets to determine strategic ways to extend our portfolio with complementary technologies.
  • Powerful Transcript Excerpt: Get ready for a revenue & earnings boost

    During the 4th quarter 2016, Globalscape joined the Hewlett Packard Partner Ready for OEM Program, and although the program was only recently launched during Q1, we announced the availability of a unified communications backup appliance which is focused on the management of corporate data flow. This appliance supplies our award-winning EFT SMB platform on an HPE Proliant Server! The combination of our EFT platform and HPE's Proliant Server provides mid-size businesses with an opportunity to quickly implement a secure file transfer solution WITHOUT THE NEED FOR ADDITIONAL IT OR FINANCIAL RESOURCES! (Impressive, guys!) Ultimately this appliance will minimize data loss, monitor for compliance issues and securely send and transfer company information WITHOUT STRETCHING IT RESOURCES!

    As we've talked about on prior calls, a large portion of our revenue is derived from enterprise customers and we think that mid-sized businesses HAVE BEEN UNDERSERVED AND ARE RIPE for our combined offering!

    Our 3rd STRATEGIC GROWTH INITIATIVE is focused on developing or acquiring technologies that broaden our EFT platform capabilities and EXPAND OUR OVERALL TOTAL ADDRESSABLE MARKET. WE'VE MADE SIGNIFICANT PROGRESS ON THIS KEY initiative over THE LAST COUPLE OF QUARTERS and I would like to provide A HIGH-LEVEL ORDERED REVIEW OF THREE EXCITING PRODUCTS we are CURRENTLY DEVELOPING! (So THAT's what you guys have been doing over the in R&D. I see!)

    First, we are working on making several enhancements to our cloud-based MFT offering, which reflects our increasing focus on the future, including continued support for both the Microsoft Azure platform and Amazon Web Services. These leading vendors enable our customers to deploy a scalable data-exchange solution. These platforms, coupled with our enhancements to our cloud-based offerings, will allow Globalscape to offer our customers a consumption-based product which is A KEY ELEMENT OF OUR FORWARD LOOKING APPROACH.

    The 2nd product I WILL SOON BE LAUNCHING is an ANALYTICS BUSINESS-INTELLIGENCE PLATFORM called EFT INSIGHT! EFT Insight was conceived and is being developing BASED ON REQUESTS MADE BY OUR CUSTOMERS. We're currently FINALIZING the beta program with a handful of those customers. The product has been very well-received by the participants, who have given us a lot of great feedback and will lead to the continued evolution of EFT Insight! As we wrap up the beta program WE EXPECT TO MAKE EFT INSIGHT GENERALLY AVAILABLE IN Q2. (That's April May June, guys! Can you say revenue and earnings booster?!)

    And finally ... (I'll get this shortly for everyone)
  • New Corporate Income Tax to be 15%. Let's discuss the impact of that on Globalscape!

    I will start with the obvious that it will more than double their earnings, since they pay OVER 30% income tax now. You can verify that with their SEC filings. That will imply doubling their ability to add cash to the bank account, doubling the rate at which they add.

    It also would allow them to double the dividend and still add more cash than prior years to their Cash balance.

    The effect on doubling your earnings by 100%+ is the same effect, so to speak, as doubling your revenues but keeping the income tax at twice the rate higher. So if they had twice as much revenue, today, with the same percentage going to earnings, we'd have a stock of $8.50 and a PE of 20. By the same token, then, if we have the same revenues we've had and instead of 33% paid 15% taxes on earnings, we'd have a $8.50 stock and a PE of 20. And nobody mentioned the corporate tax going to 15%. I did Star 1 at the end, but she didn't realize who she was talking to, so just gave me my one followup. How DARE she!

    Okay, that's it. I got other things to do, and I look forward to your comments and replies.
    Except for Albin.

    Just kidding Alvin. Just kidding. Keep your shirt on.
  • Read the transcript if it's out there on SA yet. Or listen to the call once again. The new product iPaaS solution is very big. They have had great success with their EFT HA with landing major sales like all the Subway offices, locations worldwide, and with F5 integration. Now HPE. When they say iPaaS is a big deal like High Availability, that's what they are talking about. Read the iPaaS reports from informatica, from Gartner and you will see why Globalscape leadership is excited about it. On that point of leadership,

    we just saw Mnuchin revise his estimate of the time to sign the new tax plan from August to the end of this year. That's 50% more time than he calculated, and he's very good in finance. Things can take a little longer than originally expected. If any were expecting an iPaaS solution out before now, I don't think that's realistic, but they said keep watching over the next several months. My strong opinion is that this iPaaS solution is something the CEO, an expert in SMB/SME sales, has been looking to bring about to boost the sales of the company geometrically, exponentially. My research on this from before and now after this call, points to this being a game changer for the company. So they will have two solutions, very powerful platforms.

    On the quarter, they put up very good numbers. While nobody tried to guess revenue this time, they added a million dollars to the top line and doubled the bottom line. I have no criticism to make or point out. If you find something wrong with the Q1 performance, get new glasses.

    mo