GlobalSCAPE, Inc. Reports Fiscal Second Quarter 2019 Financial Results
GlobalSCAPE, Inc. Reports Fiscal Second Quarter 2019 Financial Results Company achieves first $10 million revenue quarter with record profitability |
[25-July-2019] |
SAN ANTONIO, July 25, 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 second quarter ended June 30, 2019.
Revenue for the second quarter of 2019 was $10.3 million, a 21% increase when compared with revenue of $8.5 million for the second quarter of 2018. The revenue increase is attributable to the company-wide focus on our flagship EFT platform product. Gross margin was $8.7 million, or 84% of total revenue, compared to $6.9 million, or 81% of total revenue in the same quarter a year ago. Operating expenses for the second quarter of 2019 decreased 30% to $4.2 million, compared to $6 million in the same period a year ago. Net income for the second quarter of 2019 was $3.6 million compared to $593,000 for the second quarter of 2018. Earnings per share were $0.21 for the second quarter of 2019 compared to $0.03 for the second quarter of 2018. Adjusted EBITDA for the second quarter of 2019 was $5.6 million compared to $1.6 million for the second quarter of 2018. The Company had no debt, and cash and cash equivalents totaled $10 million, at June 30, 2019. On May 27, 2019, the Company paid a special dividend of $0.50 per share of common stock totaling $8.7 million. The Company had 17,314,369 shares outstanding as of June 30, 2019. The Company also announced a dividend of $0.015 per share of common stock. The dividend is payable August 20, 2019 to shareholders of record at the close of business at 5 p.m. Eastern Time on August 6, 2019. "The momentum in our business continued in the second quarter and we are gratified with the results," said Robert Alpert, Chairman of GlobalSCAPE's Board of Directors and Interim CEO. "We drove exceptional financial performance and achieved record revenue and our first $10 million revenue quarter. Gross margins improved to 84% and we generated $5.6 million in adjusted EBITDA. The strength of our customer relationships can be seen in the 25% year over year increase in our maintenance and support revenue. We continue to benefit from a loyal customer base that values our evolving product platform and world-class support service offering." "As a demonstration of our financial strength, confidence in our operating model, and ability to generate significant free cash flow, we paid a special dividend to shareholders on May 27, 2019 of $0.50 per share totaling $8.7 million. Although we did not repurchase shares in the quarter, we will continue to monitor capital markets for opportunities to repurchase shares and consider other actions designed to enhance shareholder value." About Globalscape Safe Harbor Statement Use of Non-GAAP Measures 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 (loss) to Adjusted EBITDA is provided at the end of this release.
GlobalSCAPE Investor Relations Contact: GlobalSCAPE Public Relations Contact:
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Company Codes: AMEX:GSB |
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