Globalscape (GSB) 8-K Regulation FD Disclosure

WELCOME

2011 Annual GlobalSCAPE

Shareholders Meeting

June 2, 2011

Exhibit 99.1

This

presentation

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

2010

calendar

year,

as

filed

with

the

Security

Exchange

Commission

on

March

29,

2011.

Safe Harbor Statement

2

Today’s Discussion

Information security for consumers and companies

Market growth drivers

–

Security

–

Cloud

–

Big Data

GlobalSCAPE at a glance

Growth into adjacent markets

Gaining the edge on computer viruses

Recent financial highlights

3

Data loss incidents creating buzz

Source:  DataLossdb.org website, March 21, 2011.

4

Regulations and Compliance

Sarbanes-Oxley Act

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

Gramm–Leach–Bliley Act (GLBA)

EU Data Protection Directive

Payment Card Industry Data Security Standard (PCI DSS)

Federal Information Security Management Act (FISMA)

5

Expensive and under utilized data centers

“Pay as you go”

service instead of buying and supporting software,

hardware servers, power, patches, upgrades

Main benefit is cost reduction

–

Example –

Library of Congress data multiple times over

•

Buy hardware and equipment:  $1.7M *

•

Outsource the storage:  $130K *

Main concern is security

U.S. government “Cloud First”

policy

Moving to the cloud

* Source:  Investors Business Daily “How To Overcome The Data Tsunami”.  February 28, 2011.

6

Business relies on secure data transfers

Need to securely and efficiently exchange business data

with partners or customers on a global basis

Need data transfers automated to keep business moving

Need to send very large files via email to meet a deadline

Need to provide full compliance and auditing reporting

Need to seamlessly connect to existing backend systems

like procurement, fulfillment, accounting, customer,

inventory, and support

7

Company at a glance

Overview

We provide secure information exchange software and services for enterprises and consumers

Headquartered in San Antonio, Texas, with 87 employees

Founded 1996; publicly traded on NYSE Amex under ticker symbol ‘GSB’

Business Highlights

GlobalSCAPE has over 10,000 enterprise customers in over 150 countries; 2M licenses issued

for CuteFTP

®

; deployed by majority of Fortune 100

Recognized as leader and innovator in the Information Security and Managed File Transfer

Sectors by Gartner Group and others

Profitable

for

26

of

the

past

28

quarters

(as

of

3/31/2011);

CAGR

of

25+%

during

2005

–

2009

(resulting in Deloitte Technology Fast 500 recognition in 2009 and 2010); Named to Russell

Microcap

®

Index

92% maintenance and support renewals indicating high customer satisfaction in 2010

Outstanding company culture recognized by Computerworld and other publications

4 products introduced in last 12 months with additional product launches over next 6 months

8

Leadership Team

9

Awards, Recognition, and Media Coverage

10

Unequalled Solution Certifications

US

Army

Certificate

of

Networthiness*

Signifies successful completion of a stringent assessment to ensure  Army

Automated Information Systems are secure, supportable, sustainable, and

compatible with Army standards.

FIPS-140-2

Certified

The Federal Information Processing Standard (FIPS) Pub 140-2 specifies

the security requirements of cryptographic modules. The certification verifies

that a vendors product has met or exceeded the requirement.

AS/2

Drummond

Certified

Drummond certification is vendor-neutral operability testing and

certification that a vendor meets or exceeds the Applicability Statement

2 (AS/2) standard with their product.

These certifications represent a considerable barrier to entry that

significantly differentiates GlobalSCAPE from its competitors.

11

12

Select Customers

Customer Success

Thomson Reuters

–

Transfer over 800,000 files per day worldwide

–

Supports financial products and services

13

US Army Logistics

–

Transfer mission critical logistics data worldwide

–

Professional services for SAMS-E program (partner with MAT)

Broward County Sheriff’s Office

–

Transfer digital crime scene evidence to lab

–

Immediate processing of evidence

14

Dashboard Visibility (Examples)

•

Daily Sales

Licenses

Maintenance and Support

Services

•

Also Available

Sales Pipeline

Web Analytics

Custom Reports (Historical)

•

Customer Support

Open Cases

Responsiveness

Severity

Status

Secure File Transfer Leader

Recognized global leader

in the Managed File

Transfer market

15

Growth into Email Security

Launched email-based

secure file transfer in

August 2010

16

Growth into Cloud Services

Launched cloud-based

service for exchanging

business data in July 2010

17

Growth into Endpoint Security

Investment in CoreTrace

®

in

December 2009;  Announced new

consumer security product in

February 2011

18

Total Path Security™

19

appShield™

Announcement

Development underway, with targeted commercial release date in

summer 2011

Pioneering application whitelisting solution for consumers

High value for consumer and prosumers for their home computers

–

Immediately blocks all unauthorized programs from running

–

Offers always-on protection against known and unknown threats

–

Consumes minimal computer resources

Complements existing consumer antivirus products

20

21

Trended Financial Results

($ in thousands)

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Revenue

4,413

$     

4,466

$      

4,769

$      

4,917

$     

Gross Margin

4,311

4,322

4,627

4,704

Gross Margin

97.7%

96.8%

97.0%

95.7%

Operating Expenses

R&D

646

725

832

813

SG&A

2,909

3,213

3,326

3,367

Operating Income (Loss)

556

185

268

272

Net Income

364

134

233

150

Adjusted EBITDA *

1,020

607

744

778

Cash & Short Term Invstmt

8,455

9,132

10,141

11,087

* Excludes stock-based compensation

2010 Strategy Results

22

Continue to enhance and develop our solutions

Pursue strategic solution partnerships and acquisition

opportunities

Grow our sales capabilities

Increase our market visibility and recognition

2011 Strategy Focus

23

Enter and establish leadership in broader markets

Grow recurring revenue and annual contract value

Continue to enhance and develop our solutions

Extend our presence in the endpoint security market

Increase international and channel sales

Grow government sales across Federal, state, and local

Continue to grow our corporate brand