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GlobalSCAPE Announces Second Quarter Financial Results

Increases Revenue, Net Income, and Cash

SAN ANTONIO, Aug 12, 2009 (BUSINESS WIRE) -- GlobalSCAPE, Inc. (NYSE Amex: GSB),
a leading developer of secure file transfer solutions, today announced financial
results for its second quarter of fiscal year 2009, ended June 30, 2009.

Revenue was $4.7 million, an increase of 12 percent when compared with revenue of
$4.2 million in the same quarter last year. Net income for the second quarter was
$943,000, or $0.05 per diluted share. This is an increase of 223 percent compared
with net income of $292,000, or $0.02 per diluted share, in the same period a
year ago. Cash and short term investments grew to $9.1 million, from $6.2 million
at the end of the first quarter, a 46 percent increase.

"By all key measures, our second quarter results are extremely impressive," said
Jim Morris, GlobalSCAPE president and CEO. "We have increased revenue, earnings,
and cash, even during the economic downturn, while sustaining our strategic
investments. We also extended our relationship with the U.S. Army, established
additional strategic partnerships, and continued to enhance our solutions through
new product releases," Morris continued. "We are well positioned to continue
executing our business plan with our market momentum, current and planned
solution portfolio, leadership team, and substantial cash reserves."

Quarterly Highlights

In April, GlobalSCAPE announced another multi-million dollar order from the U.S.
Army. The $2.7 million order included new product licenses as well as 36 months
of associated maintenance and support services. GlobalSCAPE previously announced
substantial orders from the Army in September 2005 and May 2007. The Army has
deployed GlobalSCAPE's secure file transfer solutions since 2005 as part of the
Single Army Logistics Enterprise (SALE). SALE is an Army initiative focused on
upgrading the information technology that tracks personnel, equipment, munitions,
and other supplies for worldwide logistics.

The Army programs within SALE deliver a fully integrated IT environment that
establishes, sustains, and generates warfighting capability, including
integration with the other military branches. "Army requirements for secure
information exchange and interoperability are very similar to those of other
military branches and federal agencies," stated Morris. "We intend to increase
our support to Army warfighters while also working with partners to pursue other
similar opportunities within the Department of Defense and the broader national
security community, as previously announced."

During May, GlobalSCAPE announced a partnership with Intelligent Decisions, Inc.,
a $250 million IT solutions provider with headquarters in Ashburn, Virginia.
Under the terms of the agreement, Intelligent Decisions will resell and integrate
GlobalSCAPE's solutions within the federal government. The partnership with
Intelligent Decisions complements GlobalSCAPE's partnership with Carahsoft
Technology Corporation, announced in March 2009. "We have established
partnerships with highly capable leaders in the government sector," continued
Morris. "Partnering is a great way to increase our market footprint within the
government, where our growing reputation, certifications, and financial stability
already have positioned us well against the competition."

In June, GlobalSCAPE released the latest version of the Wide Area File Services
(WAFS) software. WAFS now includes support for the Autodesk(R) Revit(R)
Architecture construction and design application, along with broader enhancements
that improve data replication performance and collaboration capabilities.
Autodesk Revit Architecture is a market leading solution that provides design,
construction planning, and fabrication collaboration. WAFS facilitates design
collaboration across multiple offices or geographical locations by replicating
data intelligently across wide area networks.

"This new WAFS software release represents more than a year of development
effort," stated Morris. "We are continuing our previously announced campaign to
contact legacy WAFS customers, with offers to upgrade, while also aggressively
pursuing new customers, so we potentially can leverage the Obama administration's
economic stimulus package that includes more than $80 billion in funding for
infrastructure development projects."

Conference Call Today At 4:30 p.m. ET

GlobalSCAPE management will hold a conference call today to discuss the second
quarter fiscal 2009 financial results and other corporate matters at 4:30 p.m.
Eastern Time/3:30 p.m. Central Time. Those wishing to join should dial
1-800-380-1061 and use Conference ID # 19367659. A live webcast of the conference
call will also be available in the investor relations page of the company's
website at http://www.globalscape.com. A webcast replay of the conference call
will be available on the Company's website through September 12, 2009.

About GlobalSCAPE

GlobalSCAPE, Inc. (NYSE Amex: GSB), headquartered in San Antonio, TX, is a global
provider of managed file transfer (MFT) solutions for securely exchanging
critical information over the Internet, within an enterprise, or with business
partners. Since the release of CuteFTP in 1996, GlobalSCAPE's secure file
transfer solutions have continued to evolve to meet the business and technology
needs of an increasingly interconnected global marketplace. For more information
about GlobalSCAPE's products and services, visit http://www.globalscape.com.

Safe Harbor Statement

This press release 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 2008 calendar year, filed with the Securities
and Exchange Commission on March 31, 2009.
Summary Financial Data
GlobalSCAPE, Inc.
Statements of Operations
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,June 30,June 30,
2009200820092008
OPERATING REVENUE:
Software product revenues$ 3,217,803$3,010,929$5,164,951$5,899,992
Maintenance and support revenues1,527,1871,202,1372,820,4322,368,893
Total revenue4,744,9904,213,0667,985,3838,268,885
OPERATING EXPENSES:
Cost of revenues75,48645,170127,40375,176
SG&A expenses2,845,9162,672,7355,429,0505,654,564
R&D expenses689,985785,9381,365,1771,329,207
Depreciation and amortization177,832184,626349,871358,645
Total operating expenses3,789,2193,688,4697,271,5017,417,592
OPERATING INCOME955,771524,597713,882851,293
Other income (expense)(51,839)22,726(41,420)53,036
INCOME BEFORE INCOME TAXES903,932547,323672,462904,329
PROVISION FOR INCOME TAXES(39,326)255,004(26,354)460,076
NET INCOME$ 943,258$ 292,319698,816444,253
Net income per common share - basic$ 0.05$ 0.02$0.04$0.03
Net income per common share - diluted$ 0.05$ 0.02$0.04$0.02
Weighted average shares outstanding:
Basic17,232,64217,195,80217,230,00717,258,901
Diluted17,712,19017,804,46417,683,36117,901,229

GlobalSCAPE, Inc.
Balance Sheet
June 30, 2009December 31,
(Unaudited)2008
Assets
Cash and cash equivalents$7,684,973$6,318,604
Short term investments1,405,000-
Accounts receivable (net of allowance for doubtful accounts of1,836,1802,021,293
$272,367 and $330,916 on June 30, 2009 and December 31, 2008,
respectively)
Federal income tax receivable-19,244
Current deferred tax asset163,680-
Prepaid expenses109,100120,162
Total current assets11,198,9338,479,303
Fixed assets, net1,845,4611,642,776
Intangible assets, net983,2361,134,000
Goodwill619,065619,065
Deferred tax asset-297,183
Other assets51,32647,581
Total assets$14,698,021$12,219,908
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$298,987$512,256
Accrued expenses634,898560,889
Federal income tax payable39,091-
Deferred revenue3,570,7542,755,698
Deferred compensation-215,858
Total current liabilities4,543,7304,044,701
Deferred tax liability127,712545,169
Other long term liabilities1,301,995151,497
Commitments and contingencies--
Stockholders' equity:
Preferred stock, par value $0.001 per share, 10,000,000 authorized,--
no shares issued or outstanding
Common stock, par value $0.001 per share, 40,000,000 authorized,17,65017,631
17,649,752 and 17,630,952 issued at June 30, 2009 and December 31,
2008, respectively
Additional paid-in capital10,284,5889,737,380
Treasury stock, 403,581 shares, at cost, at June 30, 2009 and(1,451,805)(1,451,805)
December 31, 2008
Retained deficit(125,849)(824,665)
Total stockholders' equity8,724,5847,478,541
Total liabilities and stockholders' equity$14,698,021$12,219,908


SOURCE: GlobalSCAPE, Inc.

GlobalSCAPE, Inc.
Mendy Marsh, CFO, 210-308-8267
or
Summit IR Group, Inc.
Jim Fanucchi, 408-404-5400
[e-mail]


Copyright Business Wire 2009