MCLEAN, Va., March 15, 2016 /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, 2015.
Recent Business Highlights
- Released two new mobile applications as part of the WidePoint
Certificate-on-Device™ solution: WidePoint Person-ID and WidePoint
Derived-ID enable the secure creation, delivery, and installation
of digital certificates to Android-based mobile devices
- Unified iSYS LLC (iSYS) and Operational Research Consultants
Inc. (ORC) subsidiaries under the WidePoint brand as WidePoint
Integrated Solutions Corp. and WidePoint Cybersecurity Solutions
Corporation, respectively, to drive an integrated market strategy
going forward
- Won a new contract to supply Irish-based eir and its business
telecom customers with an Online Bill Presentment and Analytics
solution through WidePoint's UK-based Soft-ex subsidiary
- Continued development with new partners of product roadmap for
Certificate-on-Device™ person, derived, and device credentials, and
other "Internet of Things" components
- Continued consolidation of software platforms and integration
of our enterprise solutions, while initiating a program to
streamline operational costs and SG&A to manage and support
these solutions
Full Year 2015 Financial Highlights
- Net revenue increased 33% to $70.8
million from $53.3 million in
2014, driven principally by increases in our DHS BPA
expansion.
- Gross profit was $13.2 million
compared to $13.5 million in 2014,
which as in the prior quarter supports extra capacity for expanded
next-generation identity management services and managed mobility
services.
- Adjusted EBITDA loss was approximately $3.6 million compared to $2.4 million in 2014, including continued
investments made in support of our next-generation identity
management services in our sales, general, and administrative
expenses.
- Net loss was approximately $5.5
million compared to net loss of approximately $8.4 million in 2014 or basic and diluted loss
per share of $0.07 per share compared
to $0.12 in the fourth quarter of
2014.
Fourth Quarter 2015 Financial Highlights
- Net revenue increased 12% to $18.7
million from $16.8 million in
the fourth quarter of 2014, driven principally by increases in our
DHS BPA expansion.
- Gross profit was $3.2 million
compared to $3.4 million in the
fourth quarter of 2014, which as in the prior quarter, supports
extra capacity for expanded next generation identity management
services and managed mobility services.
- Adjusted EBITDA loss was approximately $0.9 million compared to $0.5 million in the fourth quarter of 2014,
including continued investments made in support of our
next-generation identity management services in our sales, general,
and administrative expenses.
- Net loss was approximately $1.1
million compared to net loss of approximately $0.9 million in the fourth quarter of 2014 or
basic and diluted loss per share of $0.014 per share compared to $0.011 in the fourth quarter of 2014.
"Our results for 2015 were lower than our initial expectations,
but set the stage for continued growth and a return to operational
profitability in 2016," stated Steve L.
Komar, WidePoint's chief executive officer. Komar further
added, "We continue to expand our relationships with vendors like
Samsung, LG, and Kyocera, and we are jointly marketing our
next-generation identity management services with them even while
we work to add new partners. We remain confident in our solutions
and in the demand we see for them in the market today and in the
future, in both the government and commercial sectors."
James McCubbin, WidePoint CFO,
added, "We were pleased with the improvement we witnessed in
revenue growth and the decrease we saw in our losses when comparing
our fourth quarter against our third quarter of 2015. In 2016, we
are working towards an expansion of revenue and margins from sales
of higher margin solutions and efficiencies we are expecting as a
result of platform unification, process improvements, and increase
in critical mass. These improvements coupled with an initiative to
streamline our sales, general, and administrative costs should
drive positive performance in our financial model in 2016 as we
push towards our goal of achieving operational profitability."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on Tuesday,
March 15, 2016. Anyone interested in listening to our analyst
call should call 1-888-572-7033 if calling within the United States or 1-719-325-2494 if calling
internationally. There will be a playback available until
March 29, 2016. 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 3461649 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=118651.
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
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
DECEMBER
31,
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$ 7,930,303
|
|
$ 13,154,699
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
|
|
of $73,378 and
$88,719 in 2015 and 2014, respectively
|
10,565,113
|
|
8,543,050
|
|
Unbilled accounts
receivable
|
6,637,587
|
|
5,547,416
|
|
Inventories
|
28,400
|
|
37,025
|
|
Prepaid expenses and
other assets
|
435,300
|
|
426,736
|
|
Income taxes
receivable
|
-
|
|
25,984
|
|
Deferred income
taxes
|
30,889
|
|
18,584
|
|
|
|
|
|
Total current
assets
|
25,627,592
|
|
27,753,494
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,513,307
|
|
1,614,182
|
|
Intangibles,
net
|
5,101,523
|
|
5,992,992
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
60,471
|
|
161,994
|
|
|
|
|
|
TOTAL
ASSETS
|
$ 50,858,471
|
|
$ 54,078,240
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Short term note
payable
|
$
131,953
|
|
$ 137,025
|
|
Accounts
payable
|
7,812,226
|
|
6,165,477
|
|
Accrued
expenses
|
6,687,054
|
|
5,980,110
|
|
Deferred
revenue
|
2,007,970
|
|
710,275
|
|
Income taxes
payable
|
37,684
|
|
12,574
|
|
Current portion of
long-term debt
|
893,706
|
|
2,184,016
|
|
Current portion of
deferred rent
|
-
|
|
9,274
|
|
Current portion of
capital lease obligations
|
28,752
|
|
76,597
|
|
|
|
|
|
Total current
liabilities
|
17,599,345
|
|
15,275,348
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
431,756
|
|
1,327,800
|
|
Capital lease
obligation, net of current portion
|
11,962
|
|
36,669
|
|
Deferred rent, net of
current portion
|
151,994
|
|
152,815
|
|
Deferred
revenue
|
24,937
|
|
56,977
|
|
Deferred income
taxes
|
447,811
|
|
447,811
|
|
Deposits and other
liabilities
|
-
|
|
1,964
|
|
|
|
|
|
Total
liabilities
|
18,667,805
|
|
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;
82,520,696 and 81,656,763 shares issued
|
|
|
|
|
and outstanding,
respectively
|
82,521
|
|
81,657
|
|
Additional paid-in
capital
|
93,661,178
|
|
92,661,000
|
|
Accumulated other
comprehensive (loss)
|
(270,140)
|
|
(147,515)
|
|
Accumulated
deficit
|
(61,282,893)
|
|
(55,816,286)
|
|
|
|
|
|
Total stockholders'
equity
|
32,190,666
|
|
36,778,856
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 50,858,471
|
|
$ 54,078,240
|
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEARS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
$ 70,838,017
|
|
$ 53,316,210
|
|
$ 46,825,032
|
|
COST OF REVENUES
(including amortization and depreciation of
|
|
|
|
|
|
|
$1,183,143,
$1,462,505, and $1,462,995, respectively)
|
57,605,357
|
|
39,802,293
|
|
34,713,471
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
13,232,660
|
|
13,513,917
|
|
12,111,561
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Sales and
Marketing
|
3,030,249
|
|
3,432,602
|
|
3,125,867
|
|
General and
Administrative Expenses (including share-based
|
|
|
|
|
|
|
|
compensation of
$299,337, $324,281 and $227,035,
|
|
|
|
|
|
|
|
respectively)
|
14,608,014
|
|
13,876,249
|
|
9,799,094
|
|
Product
Development
|
673,093
|
|
480,123
|
|
73,561
|
|
Depreciation and
Amortization
|
383,265
|
|
375,951
|
|
288,333
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
18,694,621
|
|
18,164,925
|
|
13,286,855
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(5,461,961)
|
|
(4,651,008)
|
|
(1,175,294)
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
Interest
Income
|
23,031
|
|
17,002
|
|
7,364
|
|
Interest
(Expense)
|
(142,497)
|
|
(186,796)
|
|
(175,358)
|
|
Other Income
(Expense)
|
33,009
|
|
12,890
|
|
11,267
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(86,457)
|
|
(156,904)
|
|
(156,727)
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(5,548,418)
|
|
(4,807,912)
|
|
(1,332,021)
|
|
INCOME TAX (BENEFIT)
PROVISION
|
(81,811)
|
|
3,592,714
|
|
362,764
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$ (5,466,607)
|
|
$ (8,400,626)
|
|
$ (1,694,785)
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.066)
|
|
$
(0.115)
|
|
$
(0.027)
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,228,974
|
|
73,048,883
|
|
63,802,275
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.066)
|
|
$
(0.115)
|
|
$
(0.027)
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,228,974
|
|
73,048,883
|
|
63,802,275
|
|
WIDEPOINT
CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION (ROUNDED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEARS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$ (5,466,600)
|
|
$ (8,400,600)
|
|
$ (1,694,800)
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
Gain on change in
fair value of contingent obligation
|
-
|
|
-
|
|
(1,250,000)
|
|
Depreciation and
amortization
|
1,566,400
|
|
1,838,400
|
|
1,751,300
|
|
Amortization of
deferred financing costs
|
10,300
|
|
7,900
|
|
8,700
|
|
Income tax provision
(benefit)
|
(81,800)
|
|
3,592,700
|
|
362,800
|
|
Interest
income
|
(23,000)
|
|
(17,000)
|
|
(7,400)
|
|
Interest
expense
|
132,200
|
|
178,900
|
|
166,700
|
|
Other (expense)
income
|
(33,000)
|
|
(12,900)
|
|
(11,300)
|
|
Provision for
doubtful accounts
|
18,100
|
|
37,700
|
|
75,400
|
|
Inventory
write-downs
|
-
|
|
5,400
|
|
200,000
|
|
Stock-based
compensation expense
|
299,300
|
|
324,300
|
|
227,000
|
|
Integration
initiatives
|
-
|
|
-
|
|
21,000
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ (3,578,100)
|
|
$ (2,445,200)
|
|
$ (150,600)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
|
|
DECEMBER
31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$ (1,135,900)
|
|
$ (902,967)
|
|
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
Gain on change in
fair value of contingent obligation
|
-
|
|
-
|
|
|
|
Depreciation and
amortization
|
409,500
|
|
469,578
|
|
|
|
Amortization of
deferred financing costs
|
1,600
|
|
3,200
|
|
|
|
Income tax provision
(benefit)
|
(229,000)
|
|
(166,800)
|
|
|
|
Interest
income
|
(5,100)
|
|
(5,400)
|
|
|
|
Interest
expense
|
20,900
|
|
44,000
|
|
|
|
Other (expense)
income
|
4,800
|
|
(6,300)
|
|
|
|
Provision for
doubtful accounts
|
(38,800)
|
|
13,700
|
|
|
|
Inventory
write-downs
|
-
|
|
5,400
|
|
|
|
Stock-based
compensation expense
|
91,200
|
|
87,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ (880,800)
|
|
$ (458,389)
|
|
|
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-2015-financial-results-300236491.html
SOURCE WidePoint Corporation