SAN ANTONIO, Oct. 22, 2019 /PRNewswire/ -- GlobalSCAPE,
Inc. (NYSE American: GSB), a worldwide leader in the secure
movement and integration of data, today announced financial results
for its fiscal third quarter ended September
30, 2019.
Revenue for the third quarter of 2019 was $10.1 million, a 12.8% increase when compared
with revenue of $9 million for the
third quarter of 2018. The revenue increase is attributable to the
company-wide focus on our flagship EFT platform product. Gross
margin was $8.6 million, or 85% of
total revenue, compared to $7.5
million, or 83% of total revenue in the same quarter a year
ago.
Operating expenses for the third quarter of 2019 decreased 28%
to $4.4 million, compared to
$6.1 million in the same period a
year ago.
Net income for the third quarter of 2019 was $3.6 million compared to $1 million for the third quarter of 2018. Fully
diluted earnings per share were $0.19
for the third quarter of 2019 compared to $0.05 for the third quarter of 2018.
Adjusted EBITDA for the third quarter of 2019 was $5.2 million compared to $2.0 million for the third quarter of 2018.
The Company had no debt, and cash and cash equivalents totaled
$13.4 million, at September 30, 2019. The Company had 17,371,375
shares outstanding as of September 30,
2019.
"We are pleased to have achieved another $10 million revenue quarter," said Robert Alpert, Chairman of GlobalSCAPE's Board
of Directors and Interim CEO. "Revenue in the third quarter was up
12.8%. We generated $5.2 million in
adjusted EBITDA and $0.19 in earnings
per share on a fully diluted basis. The Company's balance sheet
remains strong with $13.4 million of
cash and we are confident in our ability to generate significant
free cash flow in future periods. Although we did not repurchase
shares in the third quarter, we will continue to monitor capital
markets for opportunities to repurchase shares and consider other
actions designed to enhance shareholder value."
About Globalscape
GlobalSCAPE, Inc. (NYSE American:
GSB) is a pioneer in securing and automating the movement and
integration of data seamlessly in, around and outside your
business, between applications, people and places, in and out of
the cloud. GlobalSCAPE provides cloud services that automate your
work, secure your data, and integrate your applications – while
giving visibility to those who need it. GlobalSCAPE makes business
flow brilliantly. Visit www.globalscape.com.
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," "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 the actual results of the operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to, the overall level of consumer spending on our
products; general economic conditions and other factors affecting
consumer confidence; disruption and volatility in the global
capital and credit markets; the Company's ability to protect
patents, trademarks and other intellectual property rights; any
breaches of, or interruptions in, our information systems; legal,
regulatory, political and economic risks in international markets;
the results of our reduction in force; the discovery of additional
information relevant to the internal investigation; the possibility
that additional errors relevant to the recently completed
restatement may be identified; pending litigation and other
proceedings and the possibility of further legal proceedings
adverse to the Company resulting from the restatement or related
matters; the costs associated with the restatement and the
investigation, pending litigation and other proceedings and
possible future legal proceedings; and our decreased "public float"
(the number of shares owned by non-affiliate stockholders and
available for trading in the securities markets) as a result of
share repurchases. More information on potential risks and other
factors that could affect the Company's financial results is
included from time to time in the Company's public reports filed
with the SEC, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release and speak only as of the date hereof.
Use of Non-GAAP Measures
The Company uses
Adjusted EBITDA (Earnings Before Interest, Taxes, Total Other
Income/Expense, Depreciation, Amortization, and Share-Based
Compensation Expense) to provide a view of income and expenses that
is supplemental and secondary to the primary assessment of net
income (loss) as presented in the condensed consolidated statement
of operations and comprehensive income.
Prior to 2018, we did not add back the amortization of
capitalized software development costs in our Adjusted EBITDA
computation. In 2018, after researching the methods used by other
software companies, we changed our method of computing Adjusted
EBITDA to include the amortization of capitalized software
development cost in order to enhance the comparability of the
computation to that of our peers. A reconciliation of Adjusted
EBITDA previously reported to the current presentation is provided
at the end of this release.
Adjusted EBITDA is not a measure of financial performance under
GAAP. It should not be considered as a substitute for net income
(loss) presented on our condensed consolidated statement of
operations and comprehensive income. Adjusted EBITDA has
limitations as an analytical tool and when assessing our operating
performance. Adjusted EBITDA should not be considered in isolation
or without a simultaneous reading and consideration of our
financial statements prepared in accordance with GAAP. A
reconciliation of net income to Adjusted EBITDA is provided at the
end of this release.
Adjusted
EBITDA
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
Income
|
$ 3,580
|
|
$
998
|
|
$
9,633
|
|
$
656
|
Add (subtract) items
to determine Adjusted EBITDA:
|
|
|
|
|
|
|
|
Income tax
expense
|
736
|
|
281
|
|
2,409
|
|
386
|
Interest (income)
expense, net
|
(29)
|
|
93
|
|
(83)
|
|
(63)
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
Total depreciation
and amortization
|
419
|
|
522
|
|
1,335
|
|
1,641
|
Share-based
compensation expense
|
536
|
|
110
|
|
1,985
|
|
972
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 5,242
|
|
$ 2,004
|
|
$ 15,279
|
|
$ 3,592
|
Previously Reported
EBITDA Reconciliation
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2018
|
Adjusted EBITDA as
previously reported
|
$
1,544
|
|
$
2,133
|
Amortization of
capitalized software development costs
|
460
|
|
1,459
|
Adjusted EBITDA as
now reported
|
$
2,004
|
|
$
3,592
|
GlobalSCAPE Investor Relations Contact:
ir@GlobalSCAPE.com
GlobalSCAPE Public Relations Contact:
Zintel Public Relations
Matthew Zintel
matthew.zintel@zintelpr.com
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SOURCE GlobalSCAPE, Inc.