MCLEAN, Va., March 16, 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 fourth quarter and full-year ended December 31, 2014.
Recent Business Highlights
- Received a new additional Task Order under our $600 Million Blanket Purchase Agreement (BPA)
with the Department of Homeland Security (DHS) valued at
approximately $76.5 million over four
years.
- Received three new contract awards and one contract expansion
from United States federal
government agencies to manage telecommunications assets. One new
award and one modification came under the BPA, while the other two,
for full TLM, came from components of another cabinet-level
agency.
- Awarded a new contract by an existing federal agency customer
under the Department of Defense (DoD) for wireless Telecom Expense
Management (TEM) services valued at $3.7
million over three years.
- Entered into a strategic partnership with VOSS Solutions to
integrate the Soft-ex Optimiser® and VOSS
UC management solutions into a unique platform
offering.
- Awarded first DoD approval to issue External Certificate
Authority (ECA) Personal Identity Verification Interoperable
(PIV-I) credentials that comply with DoD requirements and address
the needs of more than 40 million users worldwide.
- Continued to work closely with three leading device and handset
manufacturers to embed Certificate-on-Device™ security offering
into OEM equipment.
- Announced the utilization of Certificate-on-Device on select
ruggedized smartphones from Kyocera Communications, Inc. to enable
advanced mobile security features such as on-demand VPN.
Full Year 2014 Financial Highlights
- Net revenue increased 13.9% to $53.3
million from $46.8 million in
2013.
- Gross margin was 25% of revenue as compared to 26% in
2013.
- Net loss was approximately $8.4
million as compared to net loss of approximately
$1.7 million in 2013. 2014 net loss
included an approximately $5.0
million non-cash tax provision in the third quarter of 2014,
offsetting a tax asset as a result of various financial and
regulatory accounting rules and regulations.
Fourth Quarter 2014 Financial Highlights
- Net revenue increased 48.5% to $16.8
million from $11.3 million in
the fourth quarter of 2013.
- Gross margin was 21% of revenue as compared to 21% in the
fourth quarter of 2013.
- Net loss was approximately $0.9
million as compared to net loss of approximately
$2.1 million in the fourth quarter of
2013.
"We continue to gain new task order awards under our DHS BPA,
and we are creating new opportunities in the federal and commercial
marketplaces, both directly and through partnerships, for our
technology offerings," Steve Komar,
WidePoint chief executive officer, commented. Mr. Komar further
stated, "We remain excited about our Certificate-on-Device and
other next-generation identity management services. Combined with
our range of differentiated cross-border MMS offerings and a host
of new partnerships and alliances, we believe we have set the stage
to exploit a diverse range of new revenue opportunities in
2015."
James McCubbin, WidePoint CFO,
added, "2014 was a year of investment in our sales and marketing
resources and in our personnel and technology platforms in order to
build and improve upon our operating infrastructure, which should
allow us to accelerate growth and expand margins as we progress
into 2015 and beyond. We believe we will deliver financial leverage
and improved operating performance as we work towards adding
higher-margin recurring revenue to our sales mix in 2015."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Monday, March 16, 2015. Anyone
interested in participating should call 1-888-500-6950 if calling
within the United States or
1-719-325-2315 if calling internationally. There will be a playback
available until March 30, 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
5717039 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=113389.
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
|
|
|
|
|
|
|
|
|
|
DECEMBER
31,
|
|
2014
|
|
2013
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$ 13,154,699
|
|
$
-
|
|
Accounts
receivable, net of allowance for doubtful
accounts of $88,719 and
$30,038 in 2014 and 2013, respectively
|
8,543,050
|
|
7,612,400
|
|
Unbilled
accounts receivable
|
5,547,416
|
|
1,561,030
|
|
Inventories
|
37,025
|
|
61,338
|
|
Prepaid
expenses and other assets
|
426,736
|
|
533,944
|
|
Income taxes
receivable
|
25,984
|
|
763
|
|
Deferred
income taxes
|
18,584
|
|
-
|
|
|
|
|
|
Total current
assets
|
27,753,494
|
|
9,769,475
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,614,182
|
|
1,545,951
|
|
Intangibles,
net
|
5,992,992
|
|
3,613,271
|
|
Goodwill
|
18,555,578
|
|
16,618,467
|
|
Deferred
income tax asset, net of current
|
-
|
|
4,407,630
|
|
Deposits and
other assets
|
161,994
|
|
120,046
|
|
|
|
|
|
TOTAL
ASSETS
|
$ 54,078,240
|
|
$ 36,074,840
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
-
|
|
$
916,663
|
|
Short term
note payable
|
137,025
|
|
119,336
|
|
Accounts
payable
|
6,165,477
|
|
3,228,586
|
|
Accrued
expenses
|
5,980,110
|
|
4,407,286
|
|
Deferred
revenue
|
710,275
|
|
40,911
|
|
Income taxes
payable
|
12,574
|
|
217,982
|
|
Deferred
income taxes
|
-
|
|
700,743
|
|
Current
portion of long-term debt
|
2,184,016
|
|
1,150,455
|
|
Current
portion of deferred rent
|
9,274
|
|
78,525
|
|
Current
portion of capital lease obligations
|
76,597
|
|
45,125
|
|
|
|
|
|
Total current
liabilities
|
15,275,348
|
|
10,905,612
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term
debt, net of current portion
|
1,327,800
|
|
2,509,492
|
|
Capital lease
obligation, net of current portion
|
36,669
|
|
57,119
|
|
Deferred rent,
net of current portion
|
152,815
|
|
2,421
|
|
Deferred
revenue
|
56,977
|
|
82,494
|
|
Deferred
income taxes
|
447,811
|
|
-
|
|
Deposits and
other liabilities
|
1,964
|
|
1,964
|
|
|
|
|
|
Total
liabilities
|
17,299,384
|
|
13,559,102
|
|
|
|
|
|
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; 81,656,763 and 63,907,357 shares
issued and outstanding,
respectively
|
81,657
|
|
63,907
|
|
Additional
paid-in capital
|
92,661,000
|
|
69,867,491
|
|
Accumulated
other comprehensive (loss)
|
(147,515)
|
|
-
|
|
Accumulated
deficit
|
(55,816,286)
|
|
(47,415,660)
|
|
|
|
|
|
Total stockholders'
equity
|
36,778,856
|
|
22,515,738
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 54,078,240
|
|
$ 36,074,840
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEARS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
|
|
|
2014
|
|
2013
|
|
REVENUES
|
$
53,316,210
|
|
$
46,825,032
|
|
COST OF REVENUES
(including amortization and depreciation of $1,462,505, $1,462,995, and $1,511,267,
respectively)
|
39,802,293
|
|
34,713,471
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
13,513,917
|
|
12,111,561
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
Marketing
|
3,432,602
|
|
3,125,867
|
|
General and
Administrative Expenses (including share-based compensation of
$324,281 and $227,035, respectively, and gain on change in fair value
of contingent obligation of
$-- and $1,250,000 respectively)
|
14,356,372
|
|
9,872,655
|
|
|
|
Depreciation and
Amortization
|
375,951
|
|
288,333
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
18,164,925
|
|
13,286,855
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
OPERATIONS
|
(4,651,008)
|
|
(1,175,294)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
Income
|
17,002
|
|
7,364
|
|
Interest
(Expense)
|
(186,796)
|
|
(175,358)
|
|
Other Income
(Expense)
|
12,890
|
|
11,267
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(156,904)
|
|
(156,727)
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
PROVISION FOR INCOME TAXES
|
(4,807,912)
|
|
(1,332,021)
|
|
INCOME TAX (BENEFIT)
PROVISION
|
3,592,714
|
|
362,764
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
$
(8,400,626)
|
|
$
(1,694,785)
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.115)
|
|
$
(0.027)
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
73,048,883
|
|
63,802,275
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.115)
|
|
$
(0.027)
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
73,048,883
|
|
63,802,275
|
|
|
|
|
|
|
|
|
|
|
|
QUARTERS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Operating
Results
|
|
|
|
|
Revenues
|
$
16,763,502
|
|
$
11,290,459
|
|
Gross
profit
|
3,448,494
|
|
2,331,098
|
|
(Loss) income
from operations
|
(1,034,182)
|
|
(1,183,589)
|
|
Net (loss)
income
|
(902,993)
|
|
(2,093,688)
|
|
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-full-year-2014-financial-results-300051053.html
SOURCE WidePoint Corporation