GlobalSCAPE, Inc. (GSB) has reported a 91.58 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $0.75 million, or $0.03 a share in the quarter, compared with $0.39 million, or $0.02 a share for the same period last year. Revenue during the quarter grew 12.60 percent to $8.32 million from $7.39 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 81.67 percent. Total expenses were 87.94 percent of quarterly revenues, down from 92.78 percent for the same period last year. This has led to an improvement of 484 basis points in operating margin to 12.06 percent.
Operating income for the quarter was $1 million, compared with $0.53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.39 million compared with $0.83 million in the prior year period. At the same time, adjusted EBITDA margin improved 558 basis points in the quarter to 16.76 percent from 11.18 percent in the last year period.
Matt Goulet, president and chief executive officer of Globalscape "Q1 was yet another strong quarter for Globalscape both financially and operationally. Despite the expected seasonality during this period, revenue increased 13 percent to $8.3 million, which is the highest Q1 revenue ever achieved in our company history. Supplementing this record achievement was the encouraging growth seen across all of our major revenue streams when compared to the same time period in 2016. Most notably, revenue from our EFT platform grew 16 percent compared to the first quarter of 2016. To add to our strong topline growth, we achieved our 18th consecutive quarter of profitability, with earnings per share of $0.03, which was up 50 percent year-over-year for the quarter."
Operating cash flow improves significantly
GlobalSCAPE, Inc. has generated cash of $2.39 million from operating activities during the quarter, up 97.93 percent or $1.18 million, when compared with the last year period. The company has spent $0.65 million cash to meet investing activities during the quarter as against cash outgo of $0.58 million in the last year period.
The company has spent $0.23 million cash to carry out financing activities during the quarter as against cash outgo of $0.19 million in the last year period.
Cash and cash equivalents stood at $10.40 million as on Mar. 31, 2017, down 36.29 percent or $5.92 million from $16.32 million on Mar. 31, 2016.
Working capital drops significantly
GlobalSCAPE, Inc. has witnessed a decline in the working capital over the last year. It stood at $3.39 million as at Mar. 31, 2017, down 70.88 percent or $8.24 million from $11.63 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.84 on Mar. 31, 2016.
Days sales outstanding went down to 64 days for the quarter compared with 72 days for the same period last year.
At the same time, days payable outstanding went up to 44 days for the quarter from 42 for the same period last year.
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