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| 8-K - FORM 8-K - GLOBALSCAPE INC | d281461d8k.htm |
 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
$9,246
11.0%
Growth into Endpoint Security
Investment in CoreTrace
®
in
December 2009; Announced
ongoing development of
consumer security product
18 |
 Growth into Backup & Recovery
Launched CuteBackup
in June 2011 for consumers.
19
Market
Size
($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. |