·
|
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.
|
·
|
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.
|
·
|
Accelerate Module: Globalscape released the Accelerate Module for Enhanced File TransferTM (EFTTM) Enterprise which provides extreme file transfers and increases the speed, efficiency and reliability of data movement.
|
·
|
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®.
|
GlobalSCAPE, Inc.
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands except share amounts)
|
||||||||
Unaudited
|
||||||||
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
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
|
||||||
Goodwill
|
12,712
|
12,712
|
||||||
Deferred tax asset
|
893
|
940
|
||||||
Other assets
|
31
|
60
|
||||||
Total assets
|
$
|
44,851
|
$
|
44,213
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
742
|
$
|
839
|
||||
Accrued expenses
|
1,478
|
1,893
|
||||||
Deferred revenue
|
11,344
|
12,000
|
||||||
Income taxes payable
|
-
|
127
|
||||||
Total current liabilities
|
13,564
|
14,859
|
||||||
Deferred revenue, non-current portion
|
3,825
|
3,612
|
||||||
Other long term liabilities
|
37
|
44
|
||||||
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, 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
|
)
|
||||
Retained earnings
|
8,276
|
7,546
|
||||||
Total stockholders’ equity
|
27,425
|
25,698
|
||||||
Total liabilities and stockholders’ equity
|
$
|
44,851
|
$
|
44,213
|
GlobalSCAPE, Inc.
|
||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Operating Revenues:
|
||||||||||||||||
Software licenses
|
$
|
2,893
|
$
|
3,280
|
$
|
5,192
|
$
|
5,738
|
||||||||
Maintenance and support
|
4,632
|
4,093
|
9,129
|
8,127
|
||||||||||||
Professional services
|
731
|
490
|
1,345
|
878
|
||||||||||||
Total Revenues
|
8,256
|
7,863
|
15,666
|
14,743
|
||||||||||||
Cost of revenues
|
||||||||||||||||
Software licenses
|
800
|
651
|
1,430
|
1,089
|
||||||||||||
Maintenance and support
|
387
|
391
|
781
|
716
|
||||||||||||
Professional services
|
587
|
335
|
1,156
|
652
|
||||||||||||
Total cost of revenues
|
1,774
|
1,377
|
3,367
|
2,457
|
||||||||||||
Gross profit
|
6,482
|
6,486
|
12,299
|
12,286
|
||||||||||||
Operating expenses
|
||||||||||||||||
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:
|
||||||||||||||||
Basic
|
21,105
|
20,804
|
21,056
|
20,726
|
||||||||||||
Diluted
|
21,689
|
21,324
|
21,655
|
21,201
|
||||||||||||
Cash dividends declared per share
|
$
|
0.015
|
$
|
0.015
|
$
|
0.030
|
$
|
0.015
|
GlobalSCAPE, Inc.
|
||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
(Unaudited)
|
||||||||
For the Six Months Ended June 30,
|
||||||||
2016
|
2015
|
|||||||
Operating Activities:
|
||||||||
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
|
||||||
Share-based compensation
|
500
|
315
|
||||||
Deferred taxes
|
47
|
(60
|
)
|
|||||
Excess tax benefit from share-based compensation
|
(12
|
)
|
(35
|
)
|
||||
Subtotal before changes in operating assets and liabilities
|
2,954
|
3,169
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
356
|
1,130
|
||||||
Prepaid expenses
|
(40
|
)
|
190
|
|||||
Deferred revenue
|
(443
|
)
|
(1,247
|
)
|
||||
Accounts payable
|
(108
|
)
|
(600
|
)
|
||||
Accrued expenses
|
(404
|
)
|
(292
|
)
|
||||
Other Assets
|
29
|
5
|
||||||
Other long-term liabilities
|
(7
|
)
|
(1
|
)
|
||||
Income tax receivable and payable
|
120
|
340
|
||||||
Net cash provided by operating activities
|
2,457
|
2,694
|
||||||
Investing Activities:
|
||||||||
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
|
)
|
||||
Financing Activities:
|
||||||||
Proceeds from exercise of stock options
|
259
|
307
|
||||||
Excess tax benefit from share-based compensation
|
12
|
35
|
||||||
Dividends paid
|
(631
|
)
|
(312
|
)
|
||||
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
|
GlobalSCAPE, Inc.
|
||||||||||||||||
Adjusted EBITDA
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
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
|