3SOF

I wish he waited until after 4Q earnings release.

http://biz.yahoo.com/bw/080305/20080305006269.html?.v=1

fully agree with you buddjas1 !

GlobalSCAPE President to Retire
Wednesday, March 05, 2008 17:26ET

SAN ANTONIO, Mar 05, 2008 (BUSINESS WIRE) -- GlobalSCAPE, Inc. (AMEX: GSB) today announced the decision of Charles R. Poole to retire as President and CEO, and that he will remain with the Company as a consultant through the end of 2008 when his current employment contract expires. The Company also announced that it will conduct a search for a new President and that it would consider both internal and external candidates. The Company has appointed Kelly E. Simmons, the Company's CFO, as interim President until the search is concluded.

Thomas W. Brown, GlobalSCAPE's Chairman of the Board, stated, "GlobalSCAPE wishes to thank Randy Poole for his outstanding contributions since being named President in February 2004. Randy has helped us achieve profitability and growth in revenues from $4.9 million in 2003 to in excess of $18 million in 2007. Randy was also instrumental in building our sales organization which will continue to reflect his imprint for many years to come."

Mr. Poole stated, "My years with GlobalSCAPE have been a wonderful capstone to my 43 year business career and I look forward to my continuing role as a consultant and director."

I am a little concerned about Charles Poole's retirement, the timing seems odd. He was a driving force behind GSB.  I am very interested in David's opinion of the situation.

Quote from: eggman11 on March 06, 2008, 10:09:18 AM
I am a little concerned about Charles Poole's retirement, the timing seems odd. He was a driving force behind GSB.  I am very interested in David's opinion of the situation.

The following news ...

GlobalSCAPE President to Retire
Business Wire(Wed, Mar 5)

... is a negative surprise and a disappointment for me too.

Randy is that type of person who inspires people with his optimism, over promises and when the reality check is below expectations, he just walks away. He reminds me of someone else standing right here in my office.

The market reaction was awful, with GSB down 11.4% and I wish I had reacted yesterday so I could save some chips, but here it goes: I plan to sell GSB today!

I'm not worried about the 4th quarter results, but the future. Randy's exit and my change in the general market assessment just give me the incentive to consider some bearish facts about GSB:

1 - The company's consumer flagship product, Cute FTP, lost a lot of traction and revenues from this product declined to a fraction of what they used to be;

2 - GSB doesn't sell a recurrent product. Once they sell the software license for $5,000 or $7,000 or even $20,000, whatever, that's it. And it is possible that they have already sold their products to most potential costumers:

«GlobalSCAPE's products are used by mid-sized and large enterprise companies, including virtually all of the Fortune 100, leading technology, banking, healthcare, and public sector organizations.»

To whom are they going to sell now, especially in a recessionary economic environment?

I've been winning almost 100% holding GSB and now I'll sell for a 13% or so loss. You don't have to tell me how frustrating this is, I know!

If you decide to just keep holding I fully respect your decision and wish you the best of luck.

 

EVENT
In a press release issued after the close, GSB announced the retirement of the Company's President and CEO, Mr. Charles Poole. Kelly E. Simmons, the Company's CFO, who has been with the Company since September 6th, 2007 is the interim President and CEO. The Company also announced it has initiated a search for a CEO and will consider both internal and external candidates. Mr. Poole will remain as a consultant to GSB through 2008 when his contract
expires.

Key Points:
· Mr. Poole has been at the helm of GSB since 2004 and successfully guided the Company's listing from the OTC Bulletin Board (OTCBB) to the American Stock Exchange.
· Under Mr. Poole's leadership the Company's revenue grew from $4.9 million in 2005 to $18 million in 2007; a 54% CAGR.
· On January 15th, 2008, GSB announced it expected FY 2007 revenue to surpass $18.3 million, slightly above ours, $17.9 million, and the Street's consensus of $18 million.
· Mr. Kelly Simmons, interim President and CEO, is new to this industry sector. Prior to joining GSB, Mr. Simmons was CFO at US Long Distance (NASDAQ:USLD) and Billing Concepts (NASDAQ:BILL). While at BILL, Mr. Simmons held other positions within the Company, including
General Manager for a software organization.
· The Company's 4Q07 and FY 2007 earnings results are scheduled for March 26th, 2008. We will provide our updated valuations after the GSB earnings call.

· America's Take:
As we stated in our initiation report, we believe there is a growth trend in this market sector and that GSB is well-positioned based on its broad product portfolio. Additionally, GSB has been able to grow its top and bottom line over 60% in 2006 and 2007. We believe Q407 results would  be in-line with the pre-announcement on January 15th, 2008 and the underlying business is intact.
· Intrinsic Valuation (IV): Our valuation was arrived at via the discounted cash flow method. Our model yields an intrinsic equity value for GSB of $173.0 million, or $9.00 per diluted share. At our IV, GSB will trade at 21x FY09 EPS.

http://www.knobias.com/research.pdf?id=12813

very disappointing price action imo
cheers O.

http://biz.yahoo.com/bw/080326/20080326005983.html?.v=1

GlobalSCAPE Grows Revenue 67% and Net Income 100% in 2007

""While these results are outstanding by any measure, we have witnessed a slow down in our growth over recent months that requires us to speak with caution about 2008. We believe that revenue in our core business will remain steady in a range of $4.0 million to $4.5 million per quarter for the next three quarters. By the fourth quarter of this year, we will have introduced some new products that should bring us out of this cycle. We will speak to our progress as the year moves on and as we see this situation improving."

fyi:
cheers
Oliver
1.
Q4 Transcript:
http://seekingalpha.com/article/70076-globalscape-q4-2007-earnings-call-transcript?source=yahoo

2.
America's Take:
GSB reported its 4Q07 and FY07 results last night after the close. FY07 revenues of $18.4 million were in line with pre-release, and modestly above ours and the Street's estimates ($18 million), representing a YOY increase of 67%. FY07 pro-forma EPS was $0.23. In 4Q07 revenues of $4.4 million were in line with management's pre-release estimates and higher than ours and the Street's estimate of $3.9 million. Management has given
conservative guidance for 2008 but expects profitability each quarter. GSB has a strong core business providing EFT, SecureFTP, and CuteFTP Pro, up 79%, 21%, and 28% YOY in 4Q07 respectively.

Key Investment Highlights:

Over the past year on several earnings calls, GSB management discussed key OEM/reseller strategy opportunities in the pipeline. In last evening's earnings call, the management team (interim CEO) stated they are actively speaking to multiple resellers and partners. This is a significant change in tone and pace from previous conference calls where a large OEM partner
seemed imminent and expansion into Europe was most likely a 2008 event.

The Company has reorganized to a product unit focus with four separate product groups: CuteFTP, Servers, WAFS, and New Technology. This organization change was implemented to expedite products into the marketplace. The Company is focusing on execution and we believe this reorganization is a positive sign in this direction.

We have modeled our FY08 revenue at $18.8 million due to insufficient visibility into the sales pipeline. Additionally our channel checks suggest CIOs are spending less in the current macroeconomic environment.

Management Guidance: Revenue guidance for 1Q08 is forecasted at 10% YOY, and for 1Q08, 2Q08, and 3Q08, at a range of $4.0 - $4.5 million. We forecasted 1Q08 revenue at $4.0 million with Non-GAAP EPS at $0.05. FY08 forecasts come in at $18.8 million, down from a previous
forecast of $22.3 million in revenue, and $0.23 in pro-forma EPS, down from $0.27. We note that revenue contributions from the Army contract as well as additional license wins (the three large non-government deals pushed into 2008 from 3Q07) could dramatically improve these results.

Intrinsic Valuation Discussion: Our valuation was arrived at via the discounted cash flows method. Our model yields an intrinsic equity value for GSB of $56.6 million, or $3.00 per diluted share, 20% above the stock's current price. At our IV, GSB will trade at 11X FY09 EPS. Risks include a history of spotty execution on goals.

http://www.knobias.com/research.pdf?id=12926

chart:

New 52 weeks low ! 

GSB: New 52-Wk Low @ $1.820 dn 2.67%
Friday , April 11, 2008 09:46ET

This is the 2nd 52 WEEK LOW alert for GSB in the past 7 calendar days.

The share price for GlobalSCAPE, Inc (AMEX: GSB) reached a new 52-week low today, trading at $1.820, down $-0.050 (-2.67%) from its previous close of $1.870. The Company's previous 52-week low of $1.840 was set yesterday on April 10, 2008.  One year ago, the Company's shares closed at $2.890. The price has declined more than 37 percent since then.
At the time of this alert, the stock had traded 6,500 shares via 4 trades, 94.59% below it's 20day average of 120,115 shares.

This new 52-week low currently puts the stock:

16.01% below its 20day Moving Average of $2.167
39.51% below its 50day Moving Average of $3.009
54.34% below its 100day Moving Average of $3.986

&

Removed from naked short list:
GlobalSCAPE Inc (AMEX: GSB) together with its subsidiaries, develops and distributes file management software for individuals and business users to send data over the Internet, and wide-area file system collaboration and continuous data protection products. It offers file transfer protocol (FTP) client programs, including CuteFTP, which permits corporate information technology professionals and individual Web site operators to request a file from or send a file to an FTP server or host computer; and CuteFTP Pro, a program that incorporates encrypted transfers using SSL, HTTP, and SSH2, as well as S/KEY password encryption. The company also provides file transfer servers, such as Secure FTP Server, which enables encrypted transfers, as well as facilitates system administrators to create, sign, import, export, and add digital certificates; and Enhanced File Transfer Server, a file server for enterprise-level solutions that offers repository encryption, additional protocol support, SSH security, data offload capabilities, and automated notification. In addition, it offers data replication products that consist of Wide Area File System that delivers a file access system, instant file-sharing, and server-to-server mirroring; continuous backup software that delivers continuous data protection; continuous database backup/disaster recovery software that delivers disaster preparedness for database information; and Enterprise product that delivers WAFS or multi-directional mirroring, and backup. Further, GlobalSCAPE provides Web content management products comprising Cascade Server, a solution for maintaining current information on a Web site, such as bottlenecks in the information technology department, lack of control and accountability, and miscommunication between content authors and Web developers; and various software products for purchase and downloading through its Web site. The company was founded in 1996 and is based in San Antonio, Texas. With 17.32 million shares outstanding and 95,900 shares declared short as of March 2008, there is no longer a failure to deliver in shares of GSB. According to quarterly data provided by the SEC, there were still 16,018 shares of GSB that were failing-to-deliver as of September 18, 2007.

Chart & GSB insider update:

GSB: Holds off on Buyback As Revenues Stagnate on Customer IT Project Delays
Monday , April 14, 2008 14:59ET

By Michael Cavallaro, [email protected]

Trading on GlobalSCAPE, Inc (AMEX: GSB) was down 5.747% following a new 52 week low in which the stock dropped to 1.64000 per share. As of March 2008, roughly 17.32M shares were outstanding and 95,900 shares declared short. According to quarterly data provided by the SEC, there were still 16,018 shares of GSB that were failing-to-deliver as of September 18, 2007.

During the company's March 26, 2008 conference call, investors questioned whether the company had any intention of executing a buyback in the midst of the current economic slowdown, as about $1.5M remains. But since the company's aggressive buying activity in January and February didn't impact the stock, it was annonced that "the Board will continue to leave its options opened and see what happens."

The company's stock decline may be a direct reflect of management's omission that revenues are not growing. Said CFO Kelly Simmons, "Our sales department still has a healthy pipeline of potential sales, but we are seeing some customers postponing the implementation of IT projects and some customers using more caution in their cost evaluation and selection of more expensive and advanced features."

Part of GlobalSCAPE's effort going forward will be to improve translations with non-English speaking countries in relation to its shopping cart. Said Simmons, "We believe that by making simple changes to CuteFTP, we'll get another $1M-$2M per year with very little additional cost. More importantly we are doing this as a marketing vehicle, a force through sales of our server products to other countries, just like we have done with U.S and Europe. So this is important to us and we are going to reinvest in it by improving our translations industry to India, Brazil, Mexico and Russia and by locating more born resellers in these areas."

GlobalSCAPE currently does not have plans to acclerate its marketing programs. Towards the end of the year, it will start to ramp up marketing again as some of its new products are scheduled to be released.

some life back in GSB 
David, any comment from your side?
cheers
Oliver

GSB: Volume Spike; 21% > 20-adsv, Stock +14.01%
Wednesday, April 23, 2008 12:30ET

This is the 1st VOLUME alert for GSB in the past 7 calendar days.

Trading for GlobalSCAPE, Inc (AMEX: GSB) has been heavier than usual in today's session. By 12:30 ET, the stock had already traded 134,307 shares via 254 trades. The cumulative volume is 20.80% above its 20-day average of 111,183. Normally the stock experiences around 210 individual trades per session.

So far, today's volume surge has caused a net rise in GSB's stock price. At the time of this alert, the stock was trading at $2.360, up $0.290 (+14.01%).

One year ago, the Company's shares closed at $2.750. The price has declined more than 14 percent since then.

Over the last 10 trading session GSB has traded in a range between $1.600 and $2.200 and is currently trading 75.79% below its 52-week high of $9.750 set on August 17,2007 and 47.50% above its 52-week low of $1.600 from April 14,2008.

In the previous 3 sessions, GSB trading has displayed a positive trend. Closing results have been as follows:

April 22, 2008 --- closed at $2.070 up $0.140 (+7.25%) on 108,100 shares
April 21, 2008 --- closed at $1.930 up $0.078 (+4.21%) on 89,670 shares
April 18, 2008 --- closed at $1.852 up $0.082 (+4.63%) on 86,040 shares

 

just an update from my side.
cheers
Oliver

complete annual stockholder meeting presentation:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=5984317-5906-14991&type=sect&TabIndex=2&companyid=76115&ppu=%252fdefault.aspx%253fcik%253d1112920

best of slides incl. chart update:

update (thx Ket):
GlobalSCAPE Is Cited as a Leader by Gartner
Tuesday , July 08, 2008 09:00ET

SAN ANTONIO, Jul 08, 2008 (BUSINESS WIRE) -- GlobalSCAPE, Inc. (AMEX: GSB) a leading developer of file transfer software for the Internet, announced today that Gartner, Inc. has positioned GlobalSCAPE as a "Leader" in its Magic Quadrant for Managed File Transfer report.

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. This particular report helps companies evaluate Managed File Transfer ("MFT") vendors based on their annual revenues, ability to execute, and completeness of vision. The quadrants include the definitions of Leaders, Challengers, Visionaries, and Niche Players. According to the report, "Leaders are the most likely to have high revenue and commitment to the market, high market share and installed bases, and products that are of interest to a large audience. Additionally, leaders have presented domain expertise and compelling messages that have penetrated the market."

According to Gartner, the demand for MFT products and services is approximately $450 million per year, and is growing at a rate of 21% to 26% year over year. Gartner arrives at this growth rate from their belief that it's not just the overall market for MFT solutions that is growing at a healthy rate, but that the overall pool of enterprises needing MFT solutions is growing even faster.

Kelly E. Simmons, CFO of GlobalSCAPE, said, "We are always pleased to be cited by Gartner in their reports. We are also enthusiastic that Gartner is highlighting the hosted large file services and email attachment offloading solutions. Gartner's report is a strong validation of our recent introduction of CuteSendIt, our hosted big file transfer solution for email. Before the end of this year, we will also introduce a stand-alone file transfer software product for email servers. Our vision is to continue to make our secure file transfer technology available in many venues and in many languages, and the Gartner report helps to confirm this direction."

charts looks promising now, lots of bullish signs imho (see below), tomorrow we need confirmation

looks like a solid double bottom to me.....GSB was restisten the last months despite market turbulencens...good risk reward from here....could test 2.60 the next 2-4 weeks.

in 1.86 (stop loss around probably 1.75-1.79)

GSB: Appointment of James R. Morris as CEO
Wednesday, August 27, 2008 08:11ET


GlobalSCAPE, Inc. (GSB) announced James R. Morris as their new Chief Executive Officer. Mr. Morris has served in military intelligence, the civil service, and in senior executive positions for leading companies including General Dynamics (VP), Veridian (VP), Veritect (EVP), Trident Data Systems (SVP), SecureInfo (EVP/GM)and Synteras (VP).