MCLEAN, Va., May 11, 2015 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility
Services (MMS) specializing in Cybersecurity and Telecommunications
Lifecycle Management (TLM) solutions, today announced financial
results for the first quarter ended March
31, 2015.
Recent Business Highlights
- Received a Task Order renewal under our $600 Million Blanket Purchase Agreement (BPA)
with the Department of Homeland Security (DHS) valued at
approximately $17 million over three
years with the DHS Headquarters.
- Received a new Task Order under our DHS BPA with the DHS Office
of Biometric Identity Management (OBIM).
- Subsidiary Soft-ex Communications awarded inclusion for
provisioning of Specialist Cloud Services in the latest G-Cloud 6
procurement agreement of the UK Government.
- Initiated work with an AT&T large financial services client
providing identity assurance consulting services in connection with
our next-generation identity management offerings.
- Continued to work closely with three leading device
manufacturers and several carriers and other channel partners in
expectation of booking initial Certificate-on-DeviceTM
revenues in the second quarter 2015.
First Quarter 2015 Financial Highlights
- Net revenue increased 84% to $17.7
million from $9.6 million in
the first quarter of 2014.
- Gross profit excluding amortization and depreciation increased
approximately $1.1 million to $3.9
million from $2.8 million in
the first quarter of 2014.
- Adjusted EBITDA loss improved approximately $350,000 to $665,200 from $1,015,300 in the first quarter of 2014, which
included investments made in Certificate-on-DeviceTM,
other software platform enhancements, and start-up costs associated
with the implementation of a new agency component of DHS.
- Net loss was approximately $1.2
million compared to net loss of approximately $0.9 million in the first quarter of 2014 or
basic and diluted loss per share of 0.014 per share for each
respective quarter.
- Cash and cash equivalents were approximately $11.5 million as of March
31, 2015.
- Net working capital was approximately $11.5 million as of March
31, 2015.
"We were pleased with our results in the first quarter of 2015
with slightly higher revenues than we had expected," stated
Steve L. Komar, WidePoint's chief
executive officer. Komar further added, "We remain on plan to
continue to expand our DHS task order awards and launch our
next-generation identity management offerings following
Certificate-on-Device, while continuing our efforts at expanding
our state/local and commercial footprints."
James McCubbin, WidePoint CFO,
added, "Our first quarter revenues have us entering 2015 at an
approximate $70+ million run-rate up from approximately a
$40 million run-rate at this time
last year. With a target revenue goal of 50% growth for 2015 over
last year's $53 million in revenues,
we believe we are off to a good start and on plan to reach our
revenue goals. Furthermore, we believe our gross profit on both an
absolute basis and percentage basis will expand as we bring on our
higher-margin next-generation identity management services, reach
critical mass in our DHS work, and expand our state/local and
commercial mix. Coupling this with a leveling-off of our SG&A
expenses, we believe we should witness positive financial results
and demonstrate financial leverage within our business model."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on Monday,
May 11, 2015. Anyone interested in listening to our analyst
call should call 1-888-576-4398 if calling within the United States or 1-719-325-2484 if calling
internationally. There will be a playback available until
May 25, 2015. To listen to the
playback, please call 1-877-870-5176 if calling within the United States or 1-858-384-5517 if calling
internationally. Please use PIN code 6023891 for the replay. The
call will also be accompanied live by webcast over the Internet and
accessible at http://public.viavid.com/index.php?id=114538.
About WidePoint
WidePoint is a leading provider of secure, cloud-delivered,
enterprise-wide information technology-based solutions that can
enable enterprises and agencies to deploy fully compliant IT
services in accordance with government mandated regulations and
advanced system requirements. WidePoint has several major
government and commercial contracts. For more information, visit
www.widepoint.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release may contain forward-looking
information within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the Exchange Act), including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of the company, its
directors or its officers with respect to, among other things: (i)
the company's financing plans; (ii) trends affecting the company's
financial condition or results of operations; (iii) the company's
growth strategy and operating strategy; (iv) the declaration and
payment of dividends; and (v) the risk factors disclosed in the
Company's periodic reports filed with the SEC. The words "may,"
"would," "will," "expect," "estimate," "anticipate," "believe,"
"intend" and similar expressions and variations thereof are
intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond the company's ability to
control, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various
factors including the risk factors disclosed in the company's Forms
10-K and 10-Q filed with the SEC.
|
-tables
follow-
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
|
2015
|
|
2014
|
|
|
|
|
ASSETS
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$ 11,524,390
|
|
$ 13,154,699
|
Accounts receivable,
net of allowance for doubtful accounts of $82,202 and $88,719 in
2015 and 2014, respectively
|
9,916,843
|
|
8,543,050
|
Unbilled accounts
receivable
|
5,772,408
|
|
5,547,416
|
Inventories
|
26,221
|
|
37,025
|
Prepaid expenses and
other assets
|
561,900
|
|
426,736
|
Income taxes
receivable
|
-
|
|
25,984
|
Deferred income
taxes
|
30,553
|
|
18,584
|
|
|
|
|
Total current
assets
|
27,832,315
|
|
27,753,494
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
Property and
equipment, net
|
1,556,251
|
|
1,614,182
|
Intangibles,
net
|
5,724,650
|
|
5,992,992
|
Goodwill
|
18,555,578
|
|
18,555,578
|
Deposits and other
assets
|
142,373
|
|
161,994
|
|
|
|
|
TOTAL
ASSETS
|
$ 53,811,167
|
|
$ 54,078,240
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Short term note
payable
|
$
80,966
|
|
$
137,025
|
Accounts
payable
|
7,209,545
|
|
6,165,477
|
Accrued
expenses
|
5,926,326
|
|
5,980,110
|
Deferred
revenue
|
857,578
|
|
710,275
|
Income taxes
payable
|
4,280
|
|
12,574
|
Current portion of
long-term debt
|
2,192,854
|
|
2,184,016
|
Current portion of
deferred rent
|
8,444
|
|
9,274
|
Current portion of
capital lease obligations
|
66,828
|
|
76,597
|
|
|
|
|
Total current
liabilities
|
16,346,821
|
|
15,275,348
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
Long-term debt, net of
current portion
|
1,109,033
|
|
1,327,800
|
Capital lease
obligation, net of current portion
|
30,778
|
|
36,669
|
Deferred rent, net of
current portion
|
150,212
|
|
152,815
|
Deferred
revenue
|
50,115
|
|
56,977
|
Deferred income
taxes
|
447,811
|
|
447,811
|
Deposits and other
liabilities
|
6,164
|
|
1,964
|
|
|
|
|
Total
liabilities
|
18,140,934
|
|
17,299,384
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Preferred stock,
$0.001 par value; 10,000,000 shares authorized; 2,045,714 shares
issued and none outstanding
|
-
|
|
-
|
Common stock, $0.001
par value; 110,000,000 shares authorized;
81,873,923 and 81,656,763 shares issued and outstanding,
respectively
|
81,874
|
|
81,657
|
Additional paid-in
capital
|
92,824,426
|
|
92,661,000
|
Accumulated other
comprehensive (loss)
|
(262,022)
|
|
(147,515)
|
Accumulated
deficit
|
(56,974,045)
|
|
(55,816,286)
|
|
|
|
|
Total stockholders'
equity
|
35,670,233
|
|
36,778,856
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 53,811,167
|
|
$ 54,078,240
|
|
|
|
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
MARCH 31,
|
|
2015
|
|
2014
|
REVENUES
|
$ 17,695,568
|
|
$ 9,602,779
|
COST OF REVENUES
(including amortization and depreciation of
|
|
|
|
|
$295,436 and
$331,867, respectively)
|
14,125,600
|
|
7,135,541
|
|
|
|
|
GROSS
PROFIT
|
3,569,968
|
|
2,467,238
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
Marketing
|
770,511
|
|
845,112
|
|
General and
Administrative Expenses (including share-based
|
|
|
|
|
|
compensation of
$37,551 and $82,716, respectively
|
3,795,897
|
|
3,055,838
|
|
Depreciation and
Amortization
|
98,297
|
|
69,510
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,664,705
|
|
3,970,460
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,094,737)
|
|
(1,503,222)
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
Income
|
5,926
|
|
730
|
|
Interest
(Expense)
|
(44,240)
|
|
(46,226)
|
|
Other Income
(Expense)
|
7,433
|
|
5,875
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(30,881)
|
|
(39,621)
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(1,125,618)
|
|
(1,542,843)
|
INCOME TAX PROVISION
(BENEFIT)
|
32,141
|
|
(616,145)
|
|
|
|
|
NET LOSS
|
$ (1,157,759)
|
|
$ (926,698)
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.014)
|
|
$
(0.014)
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
81,743,812
|
|
66,826,037
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.014)
|
|
$
(0.014)
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
81,743,812
|
|
66,826,037
|
|
|
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
NET LOSS TO
NON-GAAP EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
RECONCILIATION
|
(ROUNDED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
MARCH 31,
|
|
2015
|
|
2014
|
|
|
|
|
NET LOSS
|
$ (1,157,759)
|
|
$ (926,698)
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
Depreciation and
amortization
|
393,700
|
|
401,377
|
|
Amortization of
deferred financing costs
|
-
|
|
3,800
|
|
Income tax provision
(benefit)
|
32,100
|
|
(616,100)
|
|
Interest
income
|
(5,900)
|
|
(700)
|
|
Interest
expense
|
44,200
|
|
46,200
|
|
Other (expense)
income
|
(7,400)
|
|
(5,900)
|
|
Provision for
doubtful accounts
|
(1,600)
|
|
-
|
|
Stock-based
compensation expense
|
37,500
|
|
82,700
|
|
|
|
|
Adjusted
EBITDA
|
$ (665,159)
|
|
$ (1,015,321)
|
|
|
|
|
|
For More
Information:
|
|
|
Jim McCubbin, EVP
& CFO
|
Brett Maas or David
Fore
|
WidePoint
Corporation
|
Hayden IR
|
7926 Jones Branch
Drive, Suite 520
|
(646)
536-7331
|
McLean, VA
22102
|
brett@haydenir.com
|
(703)
349-2577
|
|
jmccubbin@widepoint.com
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/widepoint-corporation-announces-first-quarter-2015-financial-results-300081050.html
SOURCE WidePoint Corporation