Attached files
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| 8-K - FORM 8-K - GLOBALSCAPE INC | d8k.htm |
 Corporate Summary
Jim Morris, CEO
September 2010
Exhibit 99.1 |
 2
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities
Exchange Act of 1934. The words “would,”
“exceed,”
“should,”
“anticipates,”
“believe,”
“steady,”
“dramatic,”
and variations of such words and similar
expressions identify forward-looking statements, but their absence does not
mean that a statement is not a forward-looking statement. These
forward- looking statements are based upon the Company’s current
expectations and are
subject
to
a
number
of
risks,
uncertainties
and
assumptions.
The
Company
undertakes no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise. Among the important
factors that could cause actual results to differ significantly from those
expressed or implied by such forward-looking statements are risks that
are detailed in the Company’s Annual Report on Form 10-K for the
2009 calendar year, as filed with the Security Exchange Commission on March
30, 2010. |
 3
35+ years of IT and information security experience (Commercial and
Government) Former VP, Information Assurance Strategy (General
Dynamics) Joined in 2008
Jim Morris
President & CEO
Proven Executive Team
20+ years of IT and information security experience (Commercial and
Government) Former VP, Worldwide Managed Security Services; VP,
Worldwide Product Marketing (Symantec) Joined in 2008
Craig Robinson
COO
Mendy Marsh
CFO
William Buie
EVP Sales
30+ years of executive, sales, and marketing leadership
Former SVP Alliances/Channel/System Integrators (Fujitsu); VP Global Strategic
Partner Sales (Symantec); President/COO ( Allure Fusion Media); VP Channel
Sales (IBM) Joined in 2010
8+ years of corporate financial experience
Former Audit Manager (Deloitte & Touche, LLP)
Joined in 2008
Doug Conyers
VP Engineering
10+ years of software engineering and security experience; author of two telecom
security patents Former Chief Architect, Dir. Systems Engineering, Sr.
Software Engineer (SecureLogix Corp) Joined in 2007
Mark Perry
VP Managed Services
25+ years IT and information security experience (Commercial and
Government) Former SVP (Fujitsu American); Global VP (Symantec); Partner
(KPMG, LLP) Joined in 2010 |
 4
GlobalSCAPE
at a Glance
Overview
We provide secure information exchange solutions (software licenses, services, and
cloud-based solutions) to enterprise customers and over one million
individual consumers. Headquartered in San Antonio, Texas, with 80
full-time employees, supplemented by 5 offshore developers Founded
1996 Business Highlights
Provide license software and cloud-based subscription services for enterprises
and consumers As
of
August
31,
2010,
GlobalSCAPE
has
over
10,000
enterprise
customers
in
over
150
countries
Recognized as leader and innovator in the Security and Managed File Transfer
Sectors Profitable for 23 of the past 25 quarters; CAGR of 25+% over
the past 5 years (resulting in Deloitte Technology Fast 500
recognition). 90% Maintenance and Support (M&S) renewal rate
3 products
introduced
in
last
12
months
with
additional
products
to
be
introduced
over
next
6
months
Quarterly Financial Profile |
 5
Globally Trusted Company and Brand
Outstanding Corporate Culture
Recognized as a top workplace by Computerworld, San Antonio Business Journal, and
San Antonio Express-News
Staff retention much higher than the overall IT industry
Innovative and results oriented
Globally Trusted Brand
Implemented by 95 of Fortune 100 Companies
Deployed by U.S. Army for worldwide logistics operations
Solution certifications include FIPS 140-2, U.S. Army Certificate of
Networthiness, and Drummond AS/2
Global
name
recognition
of
CuteFTP®
consumer
solution
Leader in Gartner’s Magic Quadrant for Managed File Transfer
|
 6
Market Opportunity
6 |
 7
Budget Priorities (US)
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Server consolidation/virtualization
Improving Information and Network Security
Application or Business Intelligence Software deployment
Reducing the number of external IT vendors
Cloud Computing
Moving to work to lower cost locations
IT Outsourcing
PC Upgrade
Transition to Windows Vista or Windows 7
Custom software development
Human resources outsourcing
Call Center Outsourcing
Business Process Outsourcing
2Q2010
1Q2010
4Q2009
3Q2009
Market Opportunity |
 8
Cloud Services Market Opportunity
Source: Gartner, Citigroup Global Markets, IDC
2010/2011 Outlook
Estimated worldwide cloud services revenue is forecast to reach $68.3 billion in
2010, a 16.6% increase from 2009.
55% of US CIOs plan to implement cloud technologies over the next 12 months.
Market Upside (2012 and beyond)
Industry poised for strong growth, at least through 2014, when worldwide cloud
services revenue is forecasted to reach $148.8 billion.
Cloud services is expected to capture 25% of total IT spending growth by 2012 and
nearly 33% of growth of the following year. |
 Competitive Landscape
9 |
 10
Competitive Landscape (continued)
|
 11
Unequalled Solution Certifications
US
Army
Certificate
of
Networthiness
Signifies successful completion of a stringent assessment to ensure Army
Automated Information Systems are secure, supportable, sustainable, and
compatible with Army standards.
FIPS-140-2
Certified
The Federal Information Processing Standard (FIPS) Pub 140-2 specifies
the security requirements of cryptographic modules. The certification verifies
that a vendors product has met or exceeded the requirement.
AS/2
Drummond
Certified
Drummond certification is vendor-neutral operability testing and
certification that a vendor meets or exceeds the Applicability Statement
2 (AS/2) standard with their product.
These certifications represent a considerable barrier to entry that significantly
differentiates GlobalSCAPE from its competitors.
|
 12
Current Product Offerings
Professional Services
Broad Range of Services
Customization, implementation,
process, training
Resell
Endpoint Security
Business Process
Automation
BOUNCER by CoreTrace
AutoMate and BPA Server by
Network Automation
Manage and automate business
processes and workflows
Protect against viruses and malware
through innovative whitelisting
technology
Cloud Offering
Cloud Services
Managed Information Xchange (MIX)
Securely exchange business data
in the cloud
E-mail Security
Mail Express
Easily and securely email large files
License
Secure File Transfer
(Encryption, Access
Controls, Auditing,
Reporting,
Management)
Enhanced File Transfer Server
Wide Area File Services (WAFS)
CuteFTP
Securely move files over the Internet
Access files real-time across offices
Manage data exchange among
worldwide offices, clients, and partners
Product Category
Products & Services
Product Descriptions |
 13
Technology and Product Roadmap
Personal File Transfer (CuteFTP™)
Managed File Transfer (EFT Server™)
Wide Area File Services
2008
File Transfer
SaaS File Transfer (CuteSendIt™)
A
B
2010
Managed E-mail Attachments (Mail Express™)
Endpoint
Operations
Advanced Workflow Engine –
(Network Automation)
Managed Information Xchange (MIX) –
through
Rackspace Hosting Infrastructure
Cloud-based Managed Services
Endpoint
Security
Application Whitelisting
–
Enterprise
2011+
Other Solutions
Other Solutions
Other Solutions
Other Solutions |
 Product Road Map
New modules
Additional certifications
Continued management and performance enhancements
Additional integration and partnerships
International offerings (e.g. support for additional languages, localizations,
etc.) Expand collaboration capabilities
Additional products and services
Additional integration and partnerships
Larger engagements to support increasing deal size
Additional
collaboration
with
3
rd
party
consulting
entities
License
Secure File Transfer
(Encryption, Access
Controls, Auditing,
Reporting,
Management)
E-mail Security
Cloud Offering
Cloud Services
Professional Services
Product Category
Potential Products & Services Offerings
14 |
 Product Differentiation and Advantages
License
Solutions
-
Managed
file
transfer
market
Best-value offering (feature coverage for TCO) for enterprises
Flexible
“add-on”
modules
for
core
products
to
meet
specific
customer
needs
Advanced security and automation capabilities
Easy to use, rollout, manage, and update
Certifications and validations
Cloud and Managed Services Solutions
Robust
“enterprise-grade”
security
measures
Fully scalable for large and global capacity demands
Built upon market leading products and providers
15 |
 16
16
Select Customers |
 Sales and Marketing Strategy
Direct Sales
We have 15 direct sales people led by William Buie, EVP Sales.
Our direct sales team, focused on enterprise solutions and M&S renewals,
accounts for 70% of our bookings. The
direct
sales
team
engages
with
key,
named
accounts
mostly
in
the
U.S.,
Canada,
and
the
UK.
We
have
long-standing
relationships
with
DoD
customers
and
within
the
finance,
health
care,
manufacturing,
engineering,
and other commercial verticals.
Indirect Sales
We
have
3
indirect
sales
people,
including
a
solution
architect,
who
focus
on
channel
development
and
enablement.
Our indirect sales team works with an international network of 150 distributors and
resellers who account for approximately 20% of our bookings.
We are leveraging select partners, including Lifeboat Distribution, to drive
channel sales growth (Target: >30% of bookings).
We also sell our consumer products and certain enterprise solutions over the
Internet (approximately 10% of bookings). Marketing
We have transformed from a managed file transfer (MFT) company into a market leader
in secure information exchange. We will continue to develop our brand through
marketing communications and investor relations activities. Our sales,
marketing, and engineering activities are integrated to deliver on the considerable market potential in current,
emerging, and projected markets.
17 |
 18
Select Partners
18 |
 19
Growth Strategy
Acquisitions and Partnerships
Capitalize on opportunities by making build/buy/partner decisions to increase
market share and enter adjacent markets with shorter
time-to-market. Goal: Retain leadership in current markets. Become
competitive in synergistic adjacent markets. Typically target specific
technologies (e.g., whitelisting) and market presence (high-growth adjacencies, such as cloud
solutions).
Sound financials and public stock (potentially part of the transaction currency)
increase range of viable possibilities. Targeted profile for
acquisitions: Similar or smaller-size companies; accretive (immediately or within short time period).
Organic Growth
Expand our solution portfolio with products and services in current and adjacent
markets (e.g., cloud and endpoint security).
Continue to enhance and develop our existing solutions for enterprise customers and
individual consumers. Aggressively grow cloud-based subscription
services that complement our existing software license (on premises)
business.
Build
upon
current
recurring
revenue
base
(40%)
from
maintenance
and
support
contracts.
Develop our global sales capability, including direct and channel sales.
Increase government sales (larger deal size but longer sales cycles); recent
Defense AT&L article. Penetrate deeper into organizations (tackle the
last mile) and increase exposure to CXO-level decision makers (through
new solutions and more business-oriented marketing).
19 |
 20
Partner Case Study: CoreTrace
Austin-based Application Whitelisting Startup; VC-funded in 2007
Revenue generating; increasing market traction
Have known the leadership team for 20 years (founders of Wheel Group)
Innovative technology in projected high-growth market
Why Partner?
Possibly disruptive Endpoint Security solution with or without AntiVirus
McAfee Acquired SolidCore for $33M and $14M earn out in 2009
Resell into our 10,000 enterprise customers
Resell through our worldwide distribution channels
Possible integration into our product line or rebranded (OEM)
GlobalSCAPE invested $2.3 million in Series B in December 2009
Access to technology
Minority equity position
Board seat |
 21
Partner Case Study: Rackspace
San Antonio-based web hosting and cloud infrastructure company (NYSE: RAX)
$629M revenue (2009); 120,000 customers worldwide; Fanatical Support®
Top 100 Performing Technology Company by Bloomberg Businessweek
Leader’s Quadrant of the Gartner Magic Quadrant for Web Hosting and Hosted
Cloud System Infrastructure Services
GlobalSCAPE
Managed Solutions
Initially: Hosted and Hosted/Managed File Transfer
Later Phases: Integrate additional products and services
Why cloud services and Rackspace?
Enter attractive and growing adjacent Cloud Services market
Shorter sales cycle; CXO as economic buyer; attractive value proposition
Helps customers operate within tighter budgets and address elasticity demands
Establish
strong
positioning
and
global
reach
with
global
“Tier
1”
cloud
provider
Mutually beneficial sales relationship leveraging two San Antonio-based
firms |
 22
Select Financial Highlights
Notes
1.
During fiscal year 2009, maintenance & support revenue represented
approximately 40% of total revenue. 2.
M&S renewal rate for 2009 was over 90% for enterprise products.
3.
17.9M fully diluted shares as of June 30, 2010.
4.
Adjusted EBITDA equals standard EBITDA plus stock compensation expense.
|
 23
Recent Financial Highlights
Q2 2010 (ended June 30, 2010)
Revenue of $4.5M vs. $4.4M in Q1 10 (both exceeding prior guidance)
Software product revenue of $2.6M
Maintenance and support revenue of $1.9M
Other second quarter highlights
YTD revenue of $8.9M exceeds YTD 2009 by 11% (even with large $2.7M Army order in
FY 09) Free cash flow of $1.3M, up from $900,000 in Q1 FY 10
Cash balances increased to $9.5M from $8.2M at end of FY 09
|
 24
Summary and Outlook (Market, Customers, Sales)
Large and Growing Market Footprint
Transformed
from
managed
file
transfer
vendor
to
secure
information
exchange
solution
provider
Security and cloud markets are much larger than MFT market and represent an IT
budget priority Established Base of Customers
95
of
the
Fortune
100
are
GlobalSCAPE
customers
10,000 enterprise customers
One million+ consumer customers (large target audience for potential future
solutions) New Product and Partnership Introductions
Enhancements of existing solutions
New solutions to be announced in next two quarters
Potential acquisitions to augment our offerings
Strong Sales of Existing Solutions
Revenue up 11% YTD; >90% Maintenance & Support (M&S) renewal
rates Quarterly growth in sales (exceeds revenue growth as subscription
sales increase) |
 25
Summary and Outlook (Financials)
Solid Financial Position
Consistent cash generation, with no long term debt
Customer Retention greater than 90% and growing base of recurring revenues
Strong position for potential acquisitions
Increased ability to see additional, future revenue
Financial Projections
FY 2010 organic revenues projected to be > $18.5M (new high water
mark) 12%
increase
from
FY
09
(including
single
large
Army
order
in
FY
09)
27%
increase
in
core
revenue
(excluding
the
Army
order
in
FY
09)
FY 2011 organic revenue in $21M to $25M range
Software licenses
Increased
recurring
revenue
(Managed
Information
Xchange
and
Maintenance
&
Support
contracts)
Sales Growth even greater than Revenue Growth (due to subscription sales)
Company has been and will remain fiscally disciplined
Clear focus on revenue growth into 2011
Manage to positive EPS |
 Contact Us
Corporate Headquarters
4500 Lockhill-Selma, Suite 150
San Antonio, TX 78249
800-290-5054 (US & Canada)
210-308-8267 (International)
www.GlobalSCAPE.com
NYSE Amex: GSB
26 |