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GlobalSCAPE (GSB) is a software development company focused on utility software. This PC and server based FTP software is needed for about everyone that does any analytical or computer work. Therefore, if you are a webmaster, graphics designer, business analyst, programmer, DBA, or integrator - you will be using these type of software utilities every day! They also have a Continuous Data Protection product called Avail.

GlobalSCAPE's revenues and earnings are growing rapidly. ROA is 33%, ROE is 44%, ROI is 44%. Zero long term debt - a very healthy sign for a software company.

GlobalSCAPE has just begun the process of penetrating the US Government Agencies. This government revenue stream is in addition to the growth of their product lines.

Just a few days ago, the highest level of encryption certification was announced. This will lead to more government bid wins and also in financial, healthcare, medical products, food companies, etc. The demand for "high security encryption" on data files is critical in our current environment.

The October 23rd 2007 press release says:

GlobalSCAPE (AMEX:GSB), a leading provider of products that allow companies to move, store and share files securely over the Internet, announced that the Cryptographic Module to be embedded in its Secure Server and flagship, enterprise-class EFT Server products, has satisfied Federal Information Processing Standards [FIPS] pre-validation requirements. The Cryptographic Module has been placed on the FIPS 140-2 pre-validation list and now awaits the final certification review.

Forward PE on this 50% annual growth company is a 25 (forward PE) at $7.25 stock price. Therefore, share price continues to lag the growth rate, inferring a potential stock to invest in. One analyst has his goal price at $12 currently.

Within 3 years, revenues have climbed from 10 million to estimated 20 million annually for 2007. Based on the San Antonio newspaper article that interviewed the executives at GlobalSCAPE, 30+ million the next year is "reasonable and feasible".

Disclosure: Author has a long position in GSB

Source: GlobalSCAPE's Growth is Just Beginning