GlobalSCAPE, Inc. Reports Fiscal Second Quarter 2020 Financial Results
SAN ANTONIO, July 30, 2020 /PRNewswire/ -- GlobalSCAPE, Inc. (NYSE American: GSB), a worldwide leader in the secure movement and integration of data, today announced unaudited financial results for its fiscal second quarter ended June 30, 2020.
Revenue for the second quarter of 2020 was $10.0 million, a 2% decrease when compared with revenue of $10.3 million for the second quarter of 2019. Gross margin was $8.4 million, or 84% of total revenue, compared to $8.7 million, or 85% of total revenue in the same quarter a year ago.
Operating expenses for the second quarter of 2020 increased 4% to $4.3 million, compared to $4.2 million in the same period a year ago.
Net income for the second quarter of 2020 decreased 4% to $3.5 million compared to $3.6 million in the same quarter a year ago. Fully diluted earnings per share were $0.18 for the second quarter of 2020 compared to $0.20 for the second quarter of 2019. These amounts are inclusive of a tax benefit resulting from the dissolution of a wholly-owned subsidiary during the quarter.
Adjusted EBITDA for the second quarter of 2020 was $5.0 million compared to $5.6 million for the second quarter of 2019.
The Company had cash and cash equivalents totaling $12.5 million at June 30, 2020. As of June 30, 2020, there were 18,782,318 shares of common stock outstanding.
"In the second quarter, our revenue was impacted by COVID-19 as organizations continued to deal with the uncertainty related to the pandemic," said Robert Alpert, Chairman of GlobalSCAPE's Board of Directors and CEO. "Despite the headwinds, our teams performed well as they continue to provide world-class sales and support from remote locations."
On July 20, 2020, GlobalSCAPE and and HelpSystems, LLC jointly announced they had signed a definitive merger agreement under which HelpSystems will acquire all outstanding shares of GlobalSCAPE for $9.50 per share in cash. The transaction is structured as a tender offer followed by a merger (the "Transaction"). HelpSystems, LLC intends to fund the transaction with cash on hand and new debt.
The tender offer referenced in this press release has not yet commenced. This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any securities. When the tender offer is commenced, HelpSystems, LLC will file with the Securities and Exchange Commission ("SEC") a Tender Offer Statement on Schedule TO and GlobalSCAPE will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer. GlobalSCAPE's stockholders and other investors are strongly advised to read the tender offer materials (including the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents that have yet to be filed) and the Solicitation / Recommendation Statement because they will contain important information, which should be read carefully before any decision is made with respect to the tender offer. The Tender Offer Statement and the Solicitation / Recommendation Statement will be available for free at the SEC's website at www.sec.gov. In addition, copies of these materials and other tender offer documents will be made available for free by the information agent for the tender offer.
Safe Harbor Statement
Use of Non-GAAP Measures
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.
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SOURCE GlobalSCAPE, Inc.
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