SAN ANTONIO--GlobalSCAPE, Inc. (AMEX:GSB), a leading developer of file-centric solutions for the internet, today
reported revenues of $3.7 million and net income of $227,000 for the third quarter
2008. The respective revenue and net income for the third quarter 2007 were $3.9 million
and $703,000. Earnings per diluted share for the third quarter ended September 30, 2008
and 2007 were $.01 and $.04, respectively. The decrease in third quarter net income,
compared to the same period in 2007, is the result of increased research and development
(R&D) as well as the amortization of intangibles related to the 2006 acquisition of Availl.
The increase in R&D expenses is due largely to the Company’s development of new products and
delivery of additional product upgrades in 2008. Contacted for comment, James R. Morris,
GlobalSCAPE President and CEO stated, “As previously discussed in our second quarter press
release and earnings call, GlobalSCAPE has made a strategic decision to make investments
in our current and future solutions to maintain our global leadership position in the consumer
and enterprise markets. We are very pleased to have sustained these strategic investments in
today’s economic environment. We continue to be cash flow positive, have no long term debt, and
maintain a healthy cash balance. We plan to continue our strategic investments for growth and
deeper penetration in existing and adjacent market spaces while conserving our cash position.”
Quarterly Highlights
In July, GlobalSCAPE announced that it had been positioned in the Leader’s Quadrant of the Gartner
Magic Quadrant for the Managed File Transfer (MFT) market. The Magic Quadrant, and associated Gartner
report, help companies evaluate MFT vendors based on their ability to execute, and completeness of
vision. GlobalSCAPE also launched CuteSendIt™, a GlobalSCAPE-hosted Software as a Service (SaaS)
solution that allows customers to easily send large files without using email attachments. CuteSendIt
is available at www.cutesendit.com. Also in July, GlobalSCAPE released version 5.2 of the EFT Server,
adding a module to support the Applicability Statement 2 (AS2) protocol. The AS2 module for EFT Server
allows organizations to securely and reliably exchange Electronic Data Interchange messages with their
trading partners.
In August, GlobalSCAPE delivered the initial release of CuteFTP Lite®, adding an entry-level file transfer
protocol (FTP) product to the GlobalSCAPE portfolio. CuteFTP Lite, developed from GlobalSCAPE’s CuteFTP®
software code base, has a very simple user interface for customers who may not need the more advanced
features of CuteFTP Home® and CuteFTP Pro®.
In September, GlobalSCAPE made all versions of CuteFTP available in five additional languages
(Spanish, German, French, Portuguese and Turkish). GlobalSCAPE also released version 3.5.2 of the
Wide Area File Services (WAFS) product, adding support for 64-bit systems.
During September, GlobalSCAPE also announced the selection of Mr. Morris as President and CEO, and the
promotion of Mendy Marsh to Chief Financial Officer. The appointment of Mr. Morris filled the CEO position
which had been vacant since the company announced the retirement of Charles R. Poole in March 2008.
About the Magic Quadrant
The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant
is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's
analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner
does not endorse any vendor, product, or service depicted in the Magic Quadrant, and does not advise technology
users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a
research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or
implied, with respect to this research, including any warranties of merchantability or fitness for a particular
purpose.
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,”“steady,”“dramatic,” 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
actual results to differ significantly from those expressed or implied by such forward-looking statements are
risks that are detailed in the Company’s Annual Report on Form 10-K for the 2007 calendar year, as amended by
Form 10-K/A Number 1 filed with the Securities and Exchange Commission on August 28, 2008.
