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Kenetix by Globalscape Driving Kinetic Growth



July 14, 2017 – Comments (0) | RELATED TICKERS: GSB , HPE , FFIV

Globalscape Launches Kenetix, its new integration Platform as a service solution:
GSB just launched a major new data integration as a platform product, Kenetix. It is one of the top data integration products out there now in terms of functionality and capabilities and is able to easily implement in minutes and top integrations in as little as two weeks for major enterprises. Kenetix currently integrates about 120 of the most favorite apps right now with more to come.

Globalscape Completes a Major Channel Sales Managers Team Hiring Campaign for Kenetix:
They just hired twelve channel sales managers with minimums of 5 years experience in  data integration for the launch of Kenetix to hit the ground running across the United States. They have never hired even 4 or 5 channel sales managers before at one time, so this is really a major development for them.
They always manage to the bottom line, so to hire so many experts on data integration channel sales is very telling that they are convinced from their current client base that this is going to be very in demand. Ingram Micro already has Kenetix listed on their website in four embodiments, with one listed at about $25,000 and the highest one listed for about $75,000 for so many users, and is a subscription model with monthly recurring revenue to make it easier to close on sales and avoid large one time outlays. It increases predictable income very well. Then go to their Q1 conference call transcript and read where the CEO and the CFO make very positive comments about finally being able to reward long term shareholders going forward and then one said, Not only long-term shareholders but our new, large recent purchasers of our stock as well will be rewarded. That is not how Globalscape talks ever, so this Kenetix is really something they have solid customer feedback about wanting and the demand and waiting list is big and long. If you hold shares, you may want to buy more. If you don't have shares, check it out how solid a company with a dividend and cash horde and continual profitability for some 20 quarters in a row, with revenue and earnings growth as well versus the competition in MFT market which has seen most of them losing market share while Globalscape adds share.

Sales Trends & Partnership Deals:
They have never reported any quarter with Kenetix yet because it just got released at the end of June, so the first full quarter of it will be Q3 ending September 30, 2017. But they will discuss it on the Q2 conference call because it came out during Q2 so it is fair game to discuss, and they have shown a willingness to at least project a very positive trend in sales and revenues. Normally they do not give financial guidance, what to expect for a quarter, but try to focus on the year. So their statements about finally rewarding shareholders, there are three or four of them they made on the call, and that's unheard of. As I said, they never do that. And then there's an article in the San Antonio paper where the CEO also announced there would be three exciting deals they are going to announce, so I guess they have the signed term sheets and letters of intent in place, because they never do that either. And that's just because this is so certain and so exciting. They have been waiting a long time to hit a home run, and this appears to be it. Definitely this goes on any tech watch list. They signed a major partnership with HPE as well and with Versatile (HPE's top reseller) and are working on the packaging and marketing of that joint product with Versatile, which is a big deal because they never had a deal with a major like that and then to also sign a partnership agreement with that major's reseller is really positive. That may have some effect on the Q2 sales, but we weren't told that for sure. They did say they were already doing sales of that product, too, but how much of that would go to the 2nd quarter I can't say. But I won't focus on Q2 anyway for that. I expect Q2 to be very strong, and then going forward, the HPE-Versatile deal and the Kenetix data integration platform will really boost sales. Take a look at the Kenetix pages and see the apps it works with. You can tell employees will be wanting to use Kenetix so they can integrate all of those apps. It's like a candy store for a kid, and employees will be asking IT for that product, and IT departments will be getting it for them.

Matt Goulet, President & CEO on Kenetix during Q1 2017 Conference Call:
"Finally, and perhaps most exciting, in the near future we’re planning to launch a cloud data integration platform as a service offering, also known in the industry as iPaaS.  We view this subscription-based technology as a forward-looking, next-generation data management offering.  Data integration is an adjacent market to MFT and we believe this solution will be a natural extension and enhancement to our core MFT offering.  Integrating and innovating new technologies like iPaaS enables us to grow and expand more quickly and efficiently, benefiting not only GlobalSCAPE but our growing customer base, who can decrease their costs associated with deployment, set up, configuration, and training."

"It’s important to note that our upcoming product releases will be the most impactful we’ve delivered since the mid-2014 launch of EFT, with high availability, and we’re not stopping with these product releases.  GlobalSCAPE will continue to research adjacent markets to determine strategic ways to extend our portfolio with complementary technologies."

"... we’ve experienced a 150% year-over-year increase this quarter in leads delivered to our sales team, a metric that validates the effectiveness of our overall demand generation engine..."

Matt Goulet in the Q&A Session:
"Well, we appreciate that and I meant to thank the gentlemen previously for being such a long-term shareholder and supporter.  We have a number of people like that.  They’ve been with us for a long time and we look forward to really rewarding them for their perseverance over the next few years."

"... if you take a look at our financial history with the cash available, continuously profitable revenue growth, profitability growth that we’ve had, there’s very few—there’s very few companies in that particular category.  So, we’re going to continue to get the word out.  Marketing, really focused on lead generation, building awareness.  We think some of these partnership programs like with F5 and HP, the things that we’re doing with Cisco, will continue to give us some coverage that way."

Jim Albrecht:, CFO in the Q&A Session:
"Sure, and a couple of other things we do, we actively look for analyst coverage which can always be a challenge for a company our size but we’re working hard and we’re looking forward to those opportunities.  Of course, the enhanced investor relations activities that Matt alluded to are going to be— begin to pay dividends, and then not the least of which are some of the new product offerings, particularly the iPaaS products and other things that are going to begin to add some additional visibility to GlobalSCAPE, begin to set it apart from what it’s been in the past and get people interested in the story and what we’re doing, and then lastly but certainly not least, as we continue to deliver these handsome financial results, we hope and we believe the market will begin to take notice."


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