GlobalSCAPE, Inc (GSB) has reported 1.52 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1.27 million, or $0.06 a share in the quarter, compared with $1.25 million, or $0.06 a share for the same period last year. Revenue during the quarter grew 6.52 percent to $9.03 million from $8.48 million in the previous year period. Gross margin for the quarter expanded 118 basis points over the previous year period to 82.21 percent. Total expenses were 78.81 percent of quarterly revenues, down from 81.85 percent for the same period last year. This has led to an improvement of 304 basis points in operating margin to 21.19 percent.
Operating income for the quarter was $1.91 million, compared with $1.54 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.23 million compared with $1.77 million in the prior year period. At the same time, adjusted EBITDA margin improved 377 basis points in the quarter to 24.65 percent from 20.88 percent in the last year period.
Matt Goulet, President and Chief Executive Officer at Globalscape“Data is the cornerstone of Globalscape’s business, and while we had another record-breaking revenue quarter, we realize that we have only scratched the surface when seeking to help businesses protect and secure their data. The commitment we made in the second half of 2016 to focus on our core EFT platform is propelling the product line forward to proactively address the future data management challenges of our customers. Our sustained focus on strengthening our technology ecosystem while investing in research and development, technology alliance partnerships and technology acquisition is critical to our long-term success and growth.”
Operating cash flow remains almost stable
GlobalSCAPE, Inc has generated cash of $7.07 million from operating activities during the year, up 0.64 percent or $0.04 million, when compared with the last year. The company has spent $13.88 million cash to meet investing activities during the year as against cash outgo of $2.12 million in the last year.
The company has spent $0.18 million cash to carry out financing activities during the year as against cash outgo of $0.38 million in the last year period.
Cash and cash equivalents stood at $8.90 million as on Dec. 31, 2016, down 44 percent or $6.99 million from $15.88 million on Dec. 31, 2015.
Working capital drops significantly
GlobalSCAPE, Inc has witnessed a decline in the working capital over the last year. It stood at $2.99 million as at Dec. 31, 2016, down 73.23 percent or $8.17 million from $11.16 million on Dec. 31, 2015. Current ratio was at 1.18 as on Dec. 31, 2016, down from 1.75 on Dec. 31, 2015.
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