Revenue for fiscal 2011 was $20.9 million, an increase of 13 percent when compared with revenue of $18.6 million last year, and the highest revenue in the Company’s history. Net income for fiscal 2011 was approximately $0.6 million, or $0.03 per diluted share, compared with net income of $0.9 million, or $0.05 per diluted share in 2010. Excluding non-recurring expenses related to the Company’s acquisition of TappIn, Inc. in December 2011, the Company’s net income would have been $1.1 million or $0.06 per diluted share in 2011. Cash and short term investments declined to $8.9 million in 2011 from $11.1 million in December 2010, largely attributable to the Company’s acquisition of TappIn which also required investment of $3 million in a long-term certificate of deposit.
Revenue for the fourth quarter was $5.1 million, an increase of 4 percent compared to the fourth quarter of 2010. “We are very pleased to sustain our growth and set another revenue record in 2011,” said Jim Morris, GlobalSCAPE CEO. “We entered 2011 expecting some changes to our quarterly revenue growth trends as we transitioned to more subscription-based revenue. Setting a new revenue record and maintaining 13 percent annual revenue growth in the midst of this transition is a further indicator of our momentum. With our entry into the growing market for secure content mobility, through the acquisition of TappIn, I believe we are poised for additional long-term success.”
Adjusted EBITDA for the fourth quarter was ($115,000), a 116 percent decrease compared with the fourth quarter of 2010. For the full year, Adjusted EBITDA was $2.6 million, a decrease of 18 percent relative to 2010. The Adjusted EBITDA margin for the fourth quarter was (2.3) percent, down from 14.7 percent in the fourth quarter of 2010. For the full year, the Adjusted EBITDA margin was 12.4 percent, down from 16.9 percent in 2010. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. See the accompanying table for a reconciliation of net income/loss to Adjusted EBITDA and Adjusted EBITDA margin. The decreases in the Company’s adjusted EBITDA and adjusted EBITDA margin for 2011 and for the fourth quarter were mainly due to the TappIn acquisition costs.