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GlobalSCAPE, Inc. (NYSEMKT:GSB)

Q4 2013 Results Earnings Conference Call

February 13, 2014 04:30 PM ET

Executives

Jim Albrecht - Chief Financial Officer

James Bindseil - President

Analysts

Ryan Downie - Sidoti & Company

Greg Newman - The Newman Agency

Operator

Welcome to the GlobalSCAPE’s 2013 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions). Thank you.

I would now like to turn the call over to our host, Mr. Jim Albrecht, GlobalSCAPE’s Chief Financial Officer. Sir, you may begin.

Jim Albrecht

Thank you, operator. Good afternoon and welcome to our earnings call. With me this afternoon is James Bindseil, GlobalSCAPE’s President.

Before we begin, just a reminder that today’s call including the question-and-answer session might include forward-looking statements regarding expected revenue, earnings per share, future plans, opportunities and expectations of the company. These estimates and plans and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied on the call.

These risks are detailed in our latest Form 10-K filed with the Securities and Exchange Commission on March 28, 2013 and in other statements made by the company. The statements made during this conference call are based upon information known to GlobalSCAPE as of the date and time of this call. GlobalSCAPE assumes no obligation to update the information that we present in this call. And with those Safe Harbor statements presented, I will move to summarizing our latest financial results.

For fiscal 2013 our revenue increased 4% to $24.3 million as compared to our revenue of $23.4 million for 2012. For Q4 ‘13 our revenue was $6.2 million, which equaled our revenue of $6.2 million also for the comparable order in 2012.

We believe our deferred revenue, which results primarily from advanced bookings of maintenance and support services to be provided in the future is the key indicator of our potential future revenue trends. We obtained these bookings when we sell software licenses to our customers which is an indicator of their front-end commitment to our products, as well as renewals of existing maintenance and support agreements, which is an indicator of our customers’ ongoing confidence and in satisfaction with our solutions and services based on their personal experience.

Our deferred revenue at December 31, 2013 was $10.8 million as compared to $9.8 million at December 31, 2012 which is an increase about over 10%. Our net income for 2013 as a whole was $3.8 million compared to our net loss of $1.8 million for 2012. Our earnings per share for 2013 was $0.21 per share primarily and $0.20 per share diluted.

Looking at the latest quarter, our net income for Q4 ‘13 was $655,000 or $0.03 per share. When comparing that result to earlier period, we believe a couple of things are worth noting. First our net income for Q3 ‘13, in nearly proceeding quarter was $2.3 million or $0.12 per share. As we discussed in the key business metrics section of our [came due] for that quarter that result included $1.3 million of non-operating, non-recurring income associated with the elimination of intangible assets and the elimination of an earnout liability both related to TappIn. Excluding those non-operating non-recurring items, our Q3 net income was $946,000 or $0.05 per share.

Second our net income for Q4 2012 the comparable quarter for that year was $1.3 million or $0.07 per share. That result included $1.3 million arising by the elimination of an earnout liability related to TappIn such that excluding that non-operating and non-recurring item our results for Q4 ‘12 were substantially breakeven.

So we believe our Q4 ‘13 net income of $655,000 or $0.03 per share is best compared to our result excluding non-operating and non-recurring items of $946,000 or $0.05 per share for Q3 ‘13 and breakeven results for Q4 ‘12. We feel from this perspective we believe our Q4 ‘13 net income was substantially consistent with our results for Q3 ‘13 and notably improved from our results from the comparable quarter of 2012.

Our adjusted EBITDA excluding infrequent items was $5.2 million for 2013 compared to $2.6 million for 2012 and was $1.2 million for Q4 ‘13 compared to $887,000 for Q4 ‘12. We believe these improved results are quite notable. Our 2013 cash flow from operations of $4.5 million has not only allowed us to pay a $0.05 per share dividends last December, but also to begin 2013 with a strong balance sheet that includes $12.6 million of cash and long term investments.

Overall, we believe these are solid financial results that illustrate the continued strength of business and of our financial position. They provide a firm foundation upon which to build for 2014.

I will now turn the call over to James Bindseil.

James Bindseil

Thanks Jim. Good afternoon everyone. And thank you for joining the call today. I would like to specially thank the new shareholders and analysts to assort a greater interest in GlobalSCAPE over the last few months. Before I begin with my remarks; I would like to explain for everyone why we moved up the earnings call six weeks from the previous year.

There has been speculation regarding that and I would like to make it clear that in this purely based on increased efficiencies that have been introduced by Jim Albrecht and the finance and accounting organization for GlobalSCAPE over the last year. The team is doing a great job and as always we will continue to look for ways to improve our performance and responsiveness to the investor community as we move forward.

As Jim just outlined we are very excited that even in the midst of the economic uncertainties surrounding 2013 with sequestration of all the government and the unknown impact of the Affordable Healthcare Act of private business that’s two examples. GlobalSCAPE was able to increase revenue and (inaudible) for 2013 as a whole compared to 2012.

Weekly increased revenue combined with diligent expense management on behalf of the company, we were able to reverse the negative trend of earnings per share and even with long time events produce a solid EPS for the year. (Inaudible) being key to our performance is our maintenance and support revenue which rose to approximately $13.7 million up approximately 17% over 2012. As has been the case over the last several years, customer satisfaction remains a necessary ingredient for sustaining and increasing our revenue growth.

We have very strong renewal rates for our maintenance and support licenses in the 90% range. And we still find it likely that this revenue line will continue to grow at a faster pace than our software license revenue in the foreseeable future as our growing installed base generates additional maintenance and support contracts.

As we disclosed last year, the work that we were performing as a sub-contractors to McLane Advanced Technologies or MAT for the U.S. Army was successfully completed in September. We have been building however, other non-MAT professional services revenues such that we would be able to absorb the end of this contract without material drop in our overall professional services revenue.

Our non-MAT professional services grew by more than 19% compared to 2012, exceeding $1 million for the second time in our company's history. This strong in growth reflects on increasing focus within enterprise customers and our greater (inaudible) established strategic relationship equipment.

I would like to reiterate that the U.S. Army is still one of our largest clients and we continue to provide software and support services to them as we have for the last several years. We anticipate that we will continue to do business with the Army and other federal agencies as we move forward.

Before we move on to the futures revenue , I will give a brief overview of the product portfolio and how the products progress on 2013. Our ESP [group] continues to perform very well and accounted for 79% of our total revenue which is roughly the same percentages in year's cost though with greater revenue. In addition for each of the last [two] years, we have achieved one of the highest ratings and the latest managed file transfer Vendor Landscape report group Info-Tech Research Group. In both years, the report designated GlobalSCAPE a Champion and its Vendor Landscape metric. Info-Tech Research Group evaluated criteria such as strategy, viability, sales and support reach, and channel partner programs.

EFT Enterprise addition was commended for its ability to meet advance material requirements, its flexible deployment option and our responsive customer support. Even with these accomplishments, we fully recognize that EFT being the largest portion of our revenue needs to continue to grow and acquire more clients.

What happened is still not material from the revenue perspective we are continuing to move forward with enhancing the existing partnerships that we have as well as adding additional ones. While specific questions regarding the relationship between [needed] capacity must be directed to CJ, it is in the public domain that [traffic] is now available across three different product lines at CJ. We are very excited to be partnered with companies such as CJ and look forward to even more exciting partner relationships in the future.

The larger long term opportunity (inaudible) remains in enterprise markets where we know companies struggle to deal with premier (inaudible) or BYOD trend. As disclosed in the previous earnings call, we will continue to drive our strategy and our execution towards making this happen in the future.

As was released in our recent survey results, 63% of employees have used remote storage devices like USB drives and mobile phones to transfer confidential work files which puts the company and the individual at risk of fraud (inaudible). Products such as EFT (inaudible) and Mail Express enable companies to provide secure alternatives across the (inaudible) within the mobile workforce. (Inaudible) has gone through a significant retooling over the past year and I’m very happy to report that this effort has been completed and we are excited to start reintroducing our clients with this capability and to begin innovating with (inaudible) again.

It is part of a very large market space and we still believe there is quality brand new potential in the future.

Moving to the future and what we believe will drive revenue growth. As we discussed on the last earnings call, one of the major initiatives to drive future growth is the reinvestment into our high value product lines.

(Inaudible) expanded our engineering team for EFT and are excited about releasing multiple new features in the coming year. Even with the barriers to release EFT over the last couples of years, we have recognized that we need to return innovation to the portfolio and build just the team to [design].

We've also realigned and expanded the sales team and greatly increased our marketing capability to attract the clients. The sales team has historically done a great job, selling into the existing client base, but the near model, the increased demand generation and a substantial growth with domestic channel alliances will enable GlobalSCAPE to touch more prospective clients than ever before.

We will of course continue to manage expenses, but these investments are critical for the long term growth of the company. To expand further on this point, we are expanding our domestic third party dealer channel or channel to support more rapid growth of our secure information exchange solution. To achieve wider distribution of our product portfolio using the channel, we are actively recruiting channel partners interested in selling out product suite as a part of their security and compliance software.

Historically, even though we have not primarily channel oriented in the international markets, we have only earned a small percentage of our domestic [breadth] in this channel. Our current strategy is to significantly increase this cost of revenue by adding new partners and distributors, particularly through addition of the domestic entity while maintaining the existing international alliances. Our approach is to create a two tiered program involving alliances who commit to a sales plan and technical training. A recent example of this approach and action was released earlier in January with the announcement of the Ingram Micro alliance.

Channel sales can help us establish a lower [test] delivery model through which we train and position the partners to sell industry solutions. We will leverage this approach to reduce our overall cost of marketing and selling our solutions in a direct fashion.

Additionally, channel partner supplemented our demand generation efforts and provide access to client basis that previously would not have been able to us. The team is focused on organic growth with the existing product line. While we have added resources to EFT, based on its position of driving 79% of revenue, we’re also looking forward to position both fee of marketing and potential future product enhancement, the overall suite of products into a solution set that offers greater capability than anyone product does (inaudible).

As part of a secure information (inaudible) these are the critical product lines including EFT, Mail Express, (inaudible) play a significant role in how our clients consume information with the need to do so in a secure manner.

With our portfolio of solutions and the changes we are making to [engineering] sales and marketing, I’m optimistic and excited about our growth potential for 2014 and beyond. We have seen revenue grow over the history of GlobalSCAPE and I believe this trend will continue in 2014.

As is our policy, we are not providing specific revenue and earnings guidance today, but I do want to reiterate our 2014 focus. From my perspective the key objectives are: first, we continue to grow top line revenue but also position ourselves for greater future capacity by ensuring that we are innovating as a company; and second, develop a demand generation, sales and marketing funnel that attract new clients to the GlobalSCAPE brand. We have demonstrated that once the client is exposed to GlobalSCAPE, we have a very high [best rate] of brining them in and [make happy] (inaudible) team to attract more clients. Through a new focus on our core products and increased regions of the market provided by the sales and marketing channels are designed to help make that happen.

Through these actions, we look forward to another good year of financial performance which in turn should translate into good shareholder value. Finally, earlier this week we announced that I will participate in the America’s growth capital complex at San Francisco on February 24th. I look forward to meeting with some of you at this event.

At this point, I will turn the call back over to Jim, to start question-and-answer session. Jim?

Jim Albrecht

Thank you, James. We will file our Form 10-K for 2013 in March. That report will provide you a comprehensive look at the financial results we just reviewed as well as a discussion of the various elements of our business. We are now pleased to take your questions. So operator, please open the call for questions and answers.

Question-and-Answer Session

Operator

Thank you, sir. (Operator instructions).

James Bindseil

(Inaudible) this James. While we’re waiting for the questions to queue up, I just wanted to add another note. I do want to recognize that a large part of 2013 and the success that we had was really due to the efforts of Craig Robinson, our former President and CEO for GlobalSCAPE. And he unfortunately passed away in September, but I do want to just recognize that for everybody on the call and really to pass my blessing for the time that we had with him and the great things that he did.

Operator

And our first question is coming from the line of Ryan Downie with Sidoti & Company. Please go ahead.

Ryan Downie - Sidoti & Company

Good afternoon, everyone.

James Bindseil

Hi Brian.

Ryan Downie - Sidoti & Company

I'm looking at these license revenues and it looks like it was up sequentially for the second quarter in a row and kind of sense that negative movement earlier in the year. Is that sort of the marketing efforts bearing fruit?

James Bindseil

Yes, we've got a lot of things going on to drive that license revenue. And as you well know Ryan and as I think we've discussed this in the past, a lot of the channel and partner and overall marketing efforts that you do take a while to ramp up. And so, we certainly are starting to see some uptick, but it's certainly not where we're looking for it to be at. And a lot of these opportunities are still starting to materialize. And we're obviously very excited to see some progress, but we have a whole lot more progress to go.

Ryan Downie - Sidoti & Company

Okay. So, thinking on some of the operating expenses, especially if you look at R&D line, that was bit higher than I had anticipated. Is that related to the headcount expanding?

James Bindseil

Yes, we certainly are the expanding the headcount and our R&D. We’ve had a lot of things happening in the engineering team in trying to get back to focusing on our core products. And so we are making sure that we’ve got the appropriate resources to drive forward the innovation that we were talking about here just a moment ago.

Unidentified Analyst

Okay. Very well, that’s everything for me now.

James Bindseil

Okay, thanks.

Operator

(Operator Instructions) And our next comes from the line of Jay (inaudible) with Twin Capitals. Please go ahead.

Unidentified Analyst

Thank you. Gentlemen, congratulations on another good quarter and the record financial results for 2013, you’ve really been hitting on all cylinders. I did have a couple of housekeeping questions that I would like to start with. Can you help me understand your EPS for 2013? It looks like fully diluted for the year you were at $0.20, however if I back out the one-time gain in the third quarter does that get me to about $0.13 a year? If my math is correct with that one-time you still had a very strong year compared to 2012 where you have to keep [closing] on EPS plus, so is my math correct?

Jim Albrecht

This is Jim Albrecht. Yes, the approach you’ve taken is reasonable and correct and in fact if you look at our previous 10-Q, as well as upcoming 10-K, we have a table in there that walks you through that sort of thing and it’s consistent with the remarks I made earlier. So yes, you are on target.

Unidentified Analyst

Good. I haven’t taken a look at the K yet, but I will. On the deferred revenue count it seems to be growing nicely. Could you discuss what’s driving that growth, should we expect it to increase this year?

James Bindseil

Yes. This is James Bindseil again. It’s really a combination of two factors. First and foremost as we mentioned earlier, we've got a really strong maintenance and support renewal rate. And so we keep the customers that we get and then with each new license sale that is made, we add new maintenance and support license on top of that. So you start to get a counting effect over the years naturally what's been happening, so it’s (inaudible) with our revenue growth.

Unidentified Analyst

Okay. Thank you. So let me move on, you mentioned on the call that you are investing in to drive your revenue growth this year, what gives you confidence that this investable generate high revenue this year, this fiscal year?

James Bindseil

A number of factors we have -- once again I think it’s important to note that we are starting to greatly expand our domestic channel and partner alliances. And we've done a lot of the channel in the past, in our international markets. But a whole lot of the spend, I’ve heard numbers close to 50% of the IT spend, it’s happening domestically and we've been doing that almost exclusively direct over the history of the company.

And so by expanding our domestic channel effort that gives us access to a lot more customers that haven’t actually heard of GlobalSCAPE before are not familiar with the brand. And so this allows us to work with system integrators where we can be part of largest solution, as well as just getting access to more clients because of those alliances.

And then secondly really is getting back to integrating again with the product and just getting more opportunity for our existing client base to buy additional things from us. We’ve got a very good track record with our sales team. Hello?

Operator

Ladies and gentlemen, this is your conference operator; it seems we’re having technical…

James Bindseil

The ability to up-sell further into our clients with new capabilities coming up for the product?

Unidentified Analyst

Okay. Thank you. I think I missed a little bit because of the technical difficulty, but I’ll leave the floor to someone else and I’ll jump back in the queue with additional question.

James Bindseil

Okay. Thank you.

Operator

And Mr. James could you please repeat just the last part of your response, seems like your line was muted or you lost connection for a second or two?

James Bindseil

Okay. The question was how -- the efforts believe towards additional revenue and I was going through two elements, the first is around the distribution channels and our partners increasing that network domestically so that we get access to more clients. And the second part was around increasing our activities involved with engineering and getting back to innovating again so that we’d get additional opportunities to sell into our existing client base.

And so that gives us the two different sorts of the revenue, more clients to go into initially, but then also the up-sell capability for our clients by having new capabilities. So those are the two areas that I was referring to.

Operator

Thank you, sir. (Operator Instructions). And our next question comes from the line of Greg Newman with The Newman Agency. Please go ahead.

Greg Newman - The Newman Agency

Thank you. Mom and I were on the call today and she want to congratulate you on the quarter. I wanted to follow along with the sales idea question, continuing with what’s (inaudible) can you give us perspective of how many more you think you can reach in your growth, what percentage is in the U.S. who did the channel approach, you had a very good record with sales team being able to up-sell so forth. Are you able to give us margin percentage or range?

James Bindseil

Yes. Hi Greg, this is James. We missed the very beginning of your question, it was breaking up a little bit, but I think I got the [hint] of it so I’ll try and answer real quickly, but please do let me know if I’m off the mark. I don’t have any specific percentages that I can disclose today regarding additional that we are going to achieve through those channel alliances.

We are growing our network a lot by the number of partner’s et cetera. And I can’t tell you that, while we won’t disclose what we think percentages of increased revenue et cetera will be, we are looking at growing the number of sales people via our partners exponentially because we as a company has been disclosed in the past in the neighborhood of 100 employee, when you start going out and acquiring new partners and new alliances in each one of those companies, then they come additional sales capacity for you.

And so, while we can't give any specific percentages, we do think it consider -- we do consider it significant the amount of extra sales capacity we're going to be at by leveraging those partners and that's just the sales capacity itself there is also additional demand generation when they do the wrong marketing efforts as well.

Greg Newman - Newman Agency

Yes, thank you. That's what I was looking for explanation helps quite a bit. I was very much interested in the employees through your partners, I think like a good aspect to it all. I'll switch because I was asked by Mr. (inaudible) one of the shareholders if I would ask to your views on what do you think of the best purchase to make sure their core brands and projects deliver on time. And I think the new management you said that should be able to -- I'm hopeful they hear my view to answer that question for Mr. (inaudible).

James Bindseil

No, I'm happy to answer. Well, I’ll give a big part of the answer first. The first part of the answer is that we don't disclose dates on when we're going to release product, business general rule. I know that we did in the past when we were looking at developing -- but we don't actually disclose the date. And so there are not basic commits as the general rule.

Having said that, we have not been to market as fast as we want to be. And we do have internal dates that we are striving to get then and we are examining every single process and procedure in our engineering organization from the way we do our requirements, to the way we do our coding, to the way we do our QAs to ensure that we don't miss space and that we are putting products out in a timely fashion.

So I absolutely share the spirit of the question and we are going to be ensuring that we don’t miss dates, but I do just want to make it clear that we don’t actually typically disclose what features are going to come out and when they are coming out. So that’s more of an internal operating metric, but driving forward in an efficient fashion that is the way we are going to be running our business exactly as [he asked it].

Operator

And our next question comes from the line of Phillip (inaudible). Please go ahead.

Unidentified Analyst

Yes. Hi, I guess my question was partially answered there. I was also I guess as many were concerned about just how much larger the exposure is going to be of your, I guess basically flagships we have products here versus competition and how much more exposure you are going to be getting into the marketplace? And I guess it must be difficult to quantify with having Seagate and Ingram Micro involved, but it seems as though revenues should be ramping up nicely during 2014?

James Bindseil

Yes, we really are going to be adding a lot of partners. There is multiple phases to that. So I want to make sure that I answer that carefully. The first thing you do is you recruit the partners then you ramp them up and then when the opportunities come in then you have to (inaudible) through that opportunity. And each one of those phases does require an effort. So there is ramp time, but materially I agree with every single word that you said, we will pay dividends (inaudible) it’s going to definitely help with us in the future, but each product line and each partner has a different ramp. And so we have to make our way through that process.

Unidentified Analyst

I understand. Thanks very much. Great quarter.

James Bindseil

Thank you.

Operator

And our next question comes from the line of Katherine Richards. Please go ahead.

Unidentified Analyst

Hi. Thank you for your time today. I have a couple of questions. The first is about your new partnership contracts. I know it takes a while to negotiate those type of contracts, can you tell me if they were negotiated under the privilege of the past President or if the new President has had a hand in negotiating those contracts?

James Bindseil

Well, we've had some contracts for a very long time, and I will obviously my predecessors dealt with those. But the contracts that we’re primarily talking about today have really just begun this year and at the very end of December. So, these actually have transpired since I became President.

Unidentified Analyst

Okay. And related to that question, and unfortunately, I don’t quite remember the name of the partner, it was several years ago and you had an exclusive partnership with them for access to some of the government agencies. And I’m wondering how that exclusivity has been affected by the newer contracts?

James Bindseil

There are a number of contracts that we have, where we’re doing work with the government. And so I do not...

Unidentified Analyst

This was like an aggregator that they provided a software through them to -- they were on the approved GSA list?

James Bindseil

Yes, and actually we have several of those and that's why I’m trying to be careful because I don’t want to just pull a name out there, actually several that we have…

Unidentified Analyst

Okay.

James Bindseil

That provide that capability. And I can tell you that we have a lot of new partners and we do maintain our existing partners and we do not believe that there is any comp lift, and we’re progressing forward nicely with all of them.

Unidentified Analyst

Okay. And then my second question is in taking a quick look at the industry, it seems that your major competition is shareware or very low cost software that’s out there? And how do you address that competition?

James Bindseil

We have a number of competitors, both from enterprise level all the way down to shareware. And there is a lot of different ways that you approach all of them differently. When you get to the shareware level, there is the number things that enterprise clients are expecting world-class support and maintenance for their products, they’re expecting to see new releases that support their enterprise needs. And so, somebody that is desiring to install a piece of shareware that they don’t care whether it works or not, you’re not going to compete with them at an enterprise level. But people that actually run their business and outages in that execution cost them money, they care about having an enterprise class company behind them and maintain that solution for them. And so that’s really how we will come back, the shareware site is just really demonstrating that if you are going to be running a business and outages cost you money, then the company like ours can help you.

Unidentified Analyst

Okay. Thank you very much for your time.

Operator

Our next question comes from line of [Jay Nadel]. Please go ahead.

Unidentified Analyst

Thanks. Some further questions to (inaudible). And I wanted to actually change (inaudible) and guiding to the (inaudible) which is your mobile security solution. Specifically I wanted to know how big of a market opportunity this could be for you. And also it sounds like, this is a safer alternative, there is some other things in the marketplace such as drop box and (inaudible) Can you explain the differences between your products and those where you think your opportunities running for this?

James Bindseil

Certainly, I will actually take the questions in reverse order because I believe your second question is important to step up the first one. And when you look at the other companies, they primarily have it established such that you put your content up into their cloud and then wherever you are, you have access to it. And with that type of architecture, you actually have a situation where if another client is comprised at that internal location or that centralized location, then it puts your information at risk as well and vice versa for them because you are on that shared infrastructure. Whereas with the top end solution, your data actually resides where it is that you want it to be. So if you have it on your home computer and you have it on laptop and you have it on your work computer, you actually get access to that information at that point, so you can provide the appropriate level of security controls to your information yourself rather than trusting that somebody else is going to do that for you.

And it really is just a matter of making sure that you are keeping track of where your information is and find that appropriate security to it.

And so, do we think it has a growth potential, we absolutely do. And we've been doing a lot of our efforts over these OEM arrangements and going direct with TappIn and providing the service as it is.

One of the things that we are going to be driving towards is the TappIn enterprise version, which will provide enterprises the ability to have their own TappIn service that you want. And basically what that means is that they can run it in spite of their own environment, they can apply their own security controls and they can do everything to themselves rather than going through any third-party provider.

And so, we believe by taking this consumer product to the enterprise, we're going to continue that market even further such that companies will be able to really deal with the entire BYOD [threat] or performance in a way that it's not a factor to them.

Unidentified Analyst

So, did you say that you'll be taking TappIn to the enterprise market through direct sales efforts or will you be partnering with distributors and resellers?

James Bindseil

First we have to complete the technology despite that we have the TappIn enterprise offering to deliver. And so, that is where we're expanding our efforts right now. We're looking at ways that we can pull that anywhere, still a good way to win from that. Once it is available, then we will be going through both direct and through our partner that we do with all of our solutions.

Unidentified Analyst

Okay, great. Just [listen] to my next question. What was the last month your news will be around your products being sold for Ingram Micro? Could you discuss how this opportunity came about and how benefit your company is, in other words, can you discuss the economics in any terms of video agreement?

James Bindseil

No, I won’t discuss the economics that’s the part of the contract. I will tell you that, the partnership has been doing extremely well; we’re bringing them up to speed as we speak. And while I won’t put any question into their mouth they need to speak on their own. We have heard from a number of people that they are very excited about rounding out their portfolio with our solution. And so, we are still coming up to speed with it. We anticipate great things to come out of this partnership. And you are going to hear a lot more about that in the future.

Unidentified Analyst

Great, I look forward to that. My last question, your stock has gone up nicely in trading volume it’s been significantly higher than it was when we heard you talk on the last conference call yet the stock it’s cheap if you can deliver on everything that you have talked, but if you can execute on everything we’ve heard today, it seems like you are doing a great job thus far. So, I am glad that your plan to participate in investor conference later this month to get the story out. Is that part of a plan to be more active in meeting with investors this year?

James Bindseil

Absolutely, we had a lot of interest coming to us from the investor community. Jim and I have done a number of calls with people we are going to attend additional conferences. And we are very excited about the future of the company and everybody that we are talking to is excited too. And it’s a good day.

Unidentified Analyst

Terrific, thanks so much.

Operator

Mr. Albrecht there are no further questions at this time, please continue.

Jim Albrecht

Thank you very much. And thanks to everyone for joining the call today. We are pleased with the success we enjoyed in 2013 and certainly look forward to continuing that trend in 2014. We will visit with you in the spring to review our Q1 2014 results. Everyone have a good day.

Operator

Ladies and gentlemen, this concludes the conference for today. We thank you for your participation. You may now disconnect.

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Source: GlobalSCAPE's Management Discusses Q4 2013 Results - Earnings Call Transcript

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