Globalscape (GSB) has reported 13.74 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1.40 million, or $0.06 a share in the quarter, compared with $1.23 million, or $0.06 a share for the same period last year. Revenue during the quarter grew 14.46 percent to $8.75 million from $7.65 million in the previous year period. Gross margin for the quarter contracted 50 basis points over the previous year period to 79.78 percent. Total expenses were 76.49 percent of quarterly revenues, down from 77.05 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 23.51 percent.
Operating income for the quarter was $2.06 million, compared with $1.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.34 million compared with $1.99 million in the prior year period. At the same time, adjusted EBITDA margin improved 75 basis points in the quarter to 26.76 percent from 26.01 percent in the last year period.
Matt Goulet, president and chief executive officer at Globalscape "No matter the industry, the amount of data that organizations need to collect, access, mine, store and share continues to grow. The need to handle that data in a secure and reliable manner makes Globalscapes products a trusted solution in enterprise-level sharing of mission-critical information. With the landscape becoming more complex and varied, we are continually improving our products to meet these changing needs. The third quarter of 2016 was the best quarter in company history, achieving an increase in revenues of 15 percent when compared with the third quarter of 2015. As we invest more in our core EFT platform, we expect to continue to see positive results for Globalscape and most importantly, for our current and future customers."
Operating cash flow improvesGlobalscape has generated cash of $3.67 million from operating activities during the nine month period, up 7.12 percent or $0.24 million, when compared with the last year period. The company has spent $1.52 million cash to meet investing activities during the nine month period as against cash outgo of $1.77 million in the last year period.
The company has spent $0.62 million cash to carry out financing activities during the nine month period as against cash outgo of $0.16 million in the last year period.
Cash and cash equivalents stood at $17.42 million as on Sep. 30, 2016, up 35.49 percent or $4.56 million from $12.86 million on Sep. 30, 2015.
Working capital increases sharply
Globalscape has recorded an increase in the working capital over the last year. It stood at $14.14 million as at Sep. 30, 2016, up 107.06 percent or $7.31 million from $6.83 million on Sep. 30, 2015. Current ratio was at 1.88 as on Sep. 30, 2016, up from 1.48 on Sep. 30, 2015.
Days sales outstanding went down to 72 days for the quarter compared with 73 days for the same period last year.
At the same time, days payable outstanding went up to 29 days for the quarter from 26 for the same period last year.
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