Recent Business Highlights Association for Corporate Growth – Austin Jim Morris, CEO, GlobalSCAPE January 11, 2012 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 Market growth drivers – Security and compliance – Cloud – Big data – Mobile file access and sharing GlobalSCAPE at a glance Growth into adjacent markets Recent financial highlights investment acquisition 3 |
Data loss incidents creating buzz 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 |
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 6 |
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: $130K * Main concern is security U.S. government “Cloud First” policy Moving to the cloud * Source: Investors Business Daily “How To Overcome The Data Tsunami”. February 28, 2011. 7 |
Mobile file access and sharing 8 Your personal and business life, in one place. |
Company at a glance Overview We provide secure information exchange software and services for enterprises and consumers Headquartered in San Antonio, Texas, with 94 full-time employees plus 14 paid consultants Founded 1996; publicly traded on NYSE Amex under ticker symbol ‘GSB’ Business Highlights GlobalSCAPE has over 15,000 enterprise customers in over 150 countries; 2M licenses issued for CuteFTP ® ; deployed by majority of Fortune 100 Recognized as leader and innovator in the Information Security and Managed File Transfer Sectors by Gartner Group and others Profitable for 28 of the past 30 quarters (as of 9/30/2011); CAGR of 25+% during 2005 – 2009 (resulting in Deloitte Technology Fast 500 recognition in 2009 and 2010); Named to Russell Microcap ® Index Outstanding company culture recognized by Computerworld and Texas publications as a Top 100 Workplace 9 |
10 Select Customers |
Broward County CSI 11 |
US Army 12 |
13 Trended Financial Results ($ in thousands) Q4 2010 Q1 2011 Q2 2011 Q3 2011 Revenue 4,917 $ 4,644 $ 5,710 $ 5,417 $ Gross Margin 4,704 4,275 5,181 4,966 Gross Margin 95.7% 92.1% 90.7% 91.7% Operating Expenses R&D 813 785 762 811 SG&A 3,367 3,194 3,511 3,450 Operating Income (Loss) 268 92 728 540 Net Income 150 59 471 611 Adjusted EBITDA * 778 555 1,166 980 Cash and Short Term Investments 11,087 11,413 12,615 13,404 * Excludes stock-based compensation |
Foundation Fueling Growth Optimized organizational construct Added seasoned key leadership Broadened market-driven product roadmap Expanded go-to-market model domestically/internationally Invested resources and capital for future growth Developed a culture and brand of excellence Our focus since 2008 has enabled organic growth and potential growth through the investment and acquisition. 14 |
Market Size ($mm) Growth Rate Representative Companies $554 23.0% Secure File Transfer Leader Recognized global leader in the Managed File Transfer market 15 |
Growth into Email Security Launched email-based secure file transfer in August 2010 16 Market Size ($mm) Growth Rate Representative Companies $1,929 17.8% |
Growth into Cloud Services Launched cloud-based services for exchanging business data in July 2010 and Feb. 2011 17 Market Size ($mm) Growth Rate Representative Companies $68,300 20.5% |
Market Size ($mm) Growth Rate Representative Companies $9,246 11.0% Growth into Endpoint Security Investment in CoreTrace ® in December 2009; Announced ongoing development of consumer security product 18 |
Growth into Backup & Recovery in June 2011 for consumers. 19 Market Size ($mm) Growth Rate Representative Companies $3,100 4.6% |
Market Size ($mm) Growth Rate Representative Companies $6,000 15.0% Growth into Content Mobility Acquired TappIn as subsidiary December 2011. 20 |
Secure Information Exchange 21 Continued Leverage and Integration in 2012 and Expanded Growth in 2013 Managed File Transfer Cloud Computing Mobile Content Access & Sharing Backup & Recovery Endpoint Security Email Security |
TappIn Acquisition – December 2011 TappIn is a wholly-owned GlobalSCAPE subsidiary Combining GlobalSCAPE’s leadership in secure information exchange with TappIn’s strength in secure digital content mobility Users are looking for a trusted solution for easily and securely sharing digital content We continue to remove barriers between users and their content, stored in multiple locations, while maintaining privacy and security regardless of the devices being used Explosive growth in tablet and smartphone market driving demand for TappIn 22 |
Personal and Professional Devices Cloud Computing Content is Everywhere 23 |
MORE STORAGE MORE APPS MORE MOBILE 5.3B mobile subscriptions in 2010. Equivalent to 77% of the world population More mobile Internet users than PC Internet users by 2014 March 2011, Facebook tops Google for weekly traffic in the U.S. MORE SOCIAL • 90% of the world has access to a mobile network; 70% of internet access through mobile devices • The amount of data shared globally each month will more than double between 2010 and 2014, from 5 exabytes/mo to 10+ • The world's data is more than doubling every 2 years-with a colossal 1.8 zettabytes to be created and replicated in 2012 Global Market Drivers Large and Growing Market Opportunity 24 Recently Apple surpassed 10 billion app downloads with billions more expected for Apple, Android and BlackBerry ® Personal Content in the average home storing nearly nine terabytes of content by 2013 |
TappIn Connects Content and People 25 |
Convenient and Simple Access 26 |
• Must upload anything you want in order to access • Have to decide what to upload • Always a subset of your content • Security & Trust issues • Just another place to store content • Pay based on volume of content • Computer does not need to be on Cloud Storage with Proprietary Software Upload Large File Transfer • Must upload anything you want to share • Adequate security • No computer access and run programs • No storage to buy • Pay for each file sent • Mobile phone use is difficult • Computer does not to be on • No sharing capabilities • Adequate security • Full computer access and run programs • No storage to buy • Pay for each computer accessed • Mobile phone use is difficult • Computer must be on (always) Computer Remote Control Upload Competitive Landscape 27 |
Going Forward 28 Thanks for your time today. |