, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, today announced financial results for its first quarter of fiscal year 2012, ending March 31, 2012.
Revenue was $5.4 million for the first quarter of fiscal year 2012, an increase of 16 percent when compared with revenue of $4.6 million in the same quarter last year. The Company reported the increase in revenue was largely due to an increase in maintenance and support (M&S) contract renewal sales, an increase in EFT Server Enterprise license revenue, and an increased contribution from the Company’s managed solutions business. The increase in M&S renewals resulted in a 19 percent increase in the Company’s deferred revenue, to $7.8 million at the end of the first quarter of 2012, up from $6.5 million at the end of the first quarter of 2011.
The Company reported a loss of $253,000, or ($0.01) per diluted share, in the first quarter of 2012, compared with net income of $59,000, or $0.00 per diluted share, in the same quarter last year. In line with the decrease in net income, Adjusted EBITDA declined to $180,000 in the first quarter of 2012, from $555,000 in the same period last year.
Net cash (used in) provided by operating activities for the three months ended March 31, 2012 and 2011 was approximately ($663,000) and $374,000, respectively. The increase in net cash used in operating activities in the first quarter 2012 was due to the decrease in net income and decreases in accrued expenses of $448,000 and other long-term liabilities of $319,000. These decreases were somewhat offset by an increase in accounts receivable of $226,000.
“Our first quarter revenue performance reflects continued growth in our core business, plus the short-term effects of the TappIn acquisition,” said Jim Morris, GlobalSCAPE Chief Executive Officer. “We increased sales of our enterprise solutions and significantly grew recurring revenue from our managed solutions line of business during the quarter,” Morris continued.