MCLEAN, Va., Aug. 14, 2014 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY) a leading provider of Managed Mobility
Services (MMS) featuring Cybersecurity and Telecommunications
Lifecycle Management (TLM) solutions, today announced financial
results for the second quarter ended June
30, 2014.
Recent Business Highlights
- Received new task orders worth in excess of $25.8 million under the $600 Million Blanket Purchase Agreement (BPA)
with the Department of Homeland Security (DHS).
- Awarded two new contracts by U.S. federal law enforcement
agencies under the Department of Justice worth $28.8 million.
- Awarded a $47.5 million BPA
within the Department of Health and Human Services.
- Received more than 70 Managed Mobility Services wins with 42
cyber-related awards and 31 mobile-related awards, including
contracts with two new county governments.
- Acquired Soft-ex Communications, Ltd, a Dublin-based leading provider of Telecom Data
Intelligence (TDI) solutions throughout European and Middle Eastern
markets, for approximately 1x revenues of $6
million.
- Gained two new international commercial clients: a global
consumer goods company utilizing WidePoint's business intelligence
cloud-based services to support over 300 sites for an initial
5-year period, and an international offshore driller for an initial
3-year period.
- Expanded our Compass relationship, with support starting in
Italy and Mexico in the 3rd
quarter. Support in Germany,
France, and Spain is scheduled to start following the
implementation of our support of Italy and Mexico.
- Expanded our relationships and partnering with three major U.S.
market Telecoms.
- Working closely with three leading device and handset
manufacturers to embed our Certificate-on-Device security offering
into OEM equipment.
Second Quarter 2014 Financial Highlights
- Net revenue increased 9.2% to $12.4
million from $11.3 million in
the second quarter of 2013 and increased 29.1% sequentially from
$9.6 million in the first quarter of
2014.
- Gross margin was 29% of revenue as compared to 31% in the
second quarter of 2013 and 26% in the previous first quarter of
2014.
- Net loss was approximately $669,000 as compared to net income of
approximately $139,000 in the second
quarter of 2013 and net loss of $927,000 in the previous first quarter of 2014.
The second quarter net loss included approximately $400,000 in non-recurring costs associated with
the Soft-ex acquisition and other non-recurring costs associated
with technology development.
"We posted a solid quarter, reflecting several new task order
awards in our federal government business, particularly under our
$600 million BPA with DHS. Meanwhile,
we continue to pick up additional federal business with other
Department-level agencies and new commercial opportunities are
expanding our available target markets. In addition, we are excited
about our recent acquisition of Soft-ex Communications, which has
opened the European and Middle Eastern markets to us; in fact, we
have already leveraged this business to gain entry into the G-Cloud
5, the UK Government's cloud computing initiative," Steve Komar, CEO, WidePoint, commented. Mr.
Komar further stated, "We are also very enthusiastic about our
'Cert-on-Device' offering. We are already seeing widespread
interest across both the government and commercial markets for our
capabilities and expertise and expect to see numerous new revenue
opportunities arise from this secured communications capability in
coming quarters."
James McCubbin, WidePoint CFO,
added, "We continue to see expanding demand for our managed
mobility service and product offerings. In the month of July alone,
we received over 30 inquiries from organizations seeking additional
information about our managed mobility solutions cyber-related
offerings driven by what we believe is the need to address cyber-
and mobility-related security concerns in the marketplace. We began
receiving task orders under our DHS BPA at the end of the first
quarter and recently were awarded $25.8
million in new task orders under this contract vehicle. As a
result of this market demand we expect our sales pipeline to
continue to grow. We continue to believe the second half of 2014
should be stronger than the first half of 2014, and we anticipate
an increase in sequential revenue growth in the 3rd
quarter of 2014 as compared to the 2nd quarter of
2014."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Thursday, August 14, 2014. Anyone
interested in participating should call 1-888-378-0320 if calling
within the United States or
1-719-457-2664 if calling internationally. There will be a playback
available until August 28, 2014. 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
3988996 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=110369.
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.
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
|
-tables follow-
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
JUNE
30,
|
|
DECEMBER
31,
|
|
2014
|
|
2013
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$ 4,103,311
|
|
$
-
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
6,177,272
|
|
7,612,400
|
|
of $29,794 and
$30,038 in 2014 and 2013, respectively
|
|
|
|
|
Unbilled accounts
receivable
|
2,860,011
|
|
1,561,030
|
|
Inventories
|
35,871
|
|
61,338
|
|
Prepaid expenses and
other assets
|
549,789
|
|
533,944
|
|
Income taxes
receivable
|
-
|
|
763
|
|
|
|
|
|
Total current
assets
|
13,726,254
|
|
9,769,475
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,836,865
|
|
1,545,951
|
|
Intangibles,
net
|
4,080,957
|
|
3,613,271
|
|
Goodwill
|
20,838,927
|
|
16,618,467
|
|
Deferred income tax
asset, net of current
|
5,498,201
|
|
4,407,630
|
|
Deposits and other
assets
|
118,228
|
|
120,046
|
|
|
|
|
|
TOTAL
ASSETS
|
$ 46,099,432
|
|
$ 36,074,840
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
-
|
|
$
916,663
|
|
Short term note
payable
|
34,529
|
|
119,336
|
|
Accounts
payable
|
3,550,495
|
|
3,228,586
|
|
Accrued
expenses
|
4,221,829
|
|
4,407,286
|
|
Deferred
revenue
|
829,257
|
|
40,911
|
|
Income taxes
payable
|
21,121
|
|
217,982
|
|
Deferred income
taxes
|
700,743
|
|
700,743
|
|
Current portion of
long-term debt
|
2,164,185
|
|
1,150,455
|
|
Current portion of
deferred rent
|
71,547
|
|
78,525
|
|
Current portion of
capital lease obligations
|
75,835
|
|
45,125
|
|
|
|
|
|
Total current
liabilities
|
11,669,541
|
|
10,905,612
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
1,759,501
|
|
2,509,492
|
|
Capital lease
obligation, net of current portion
|
70,592
|
|
57,119
|
|
Deferred rent, net of
current portion
|
18,395
|
|
2,421
|
|
Deferred
revenue
|
68,672
|
|
82,494
|
|
Deposits and other
liabilities
|
1,964
|
|
1,964
|
|
|
|
|
|
Total
liabilities
|
13,588,665
|
|
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;
73,040,329 and 63,907,357 shares issued
|
|
|
|
|
and outstanding,
respectively
|
73,040
|
|
63,907
|
|
Additional paid-in
capital
|
81,484,180
|
|
69,867,491
|
|
Accumulated other
comprehensive (loss)
|
(34,856)
|
|
-
|
|
Accumulated
deficit
|
(49,011,597)
|
|
(47,415,660)
|
|
|
|
|
|
Total stockholders'
equity
|
32,510,767
|
|
22,515,738
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 46,099,432
|
|
$ 36,074,840
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
|
|
JUNE 30,
|
|
JUNE 30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
REVENUES
|
$
12,394,021
|
|
$ 11,343,962
|
|
$
21,996,800
|
|
$
23,312,068
|
|
COST OF REVENUES
(including amortization and depreciation of
|
|
|
|
|
|
|
|
|
$391,899, $363,609,
$666,840, and $737,928, respectively)
|
8,780,226
|
|
7,816,920
|
|
15,915,767
|
|
16,510,574
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,613,795
|
|
3,527,042
|
|
6,081,033
|
|
6,801,494
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
1,038,059
|
|
880,303
|
|
1,883,171
|
|
1,686,120
|
|
General and
Administrative Expenses (including share-based
|
|
|
|
|
|
|
|
|
|
compensation of
$83,988, $58,281, $166,704, and
|
|
|
|
|
|
|
|
|
|
$112,268,
respectively, and gain on change in fair value of
|
|
|
|
|
|
|
|
|
|
contingent obligation
of $0, $369,000, $0, and $589,000,
|
|
|
|
|
|
|
|
|
|
respectively)
|
3,666,282
|
|
2,386,801
|
|
6,722,120
|
|
4,913,616
|
|
Depreciation and
Amortization
|
143,219
|
|
73,241
|
|
212,729
|
|
139,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,847,560
|
|
3,340,345
|
|
8,818,020
|
|
6,739,255
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
OPERATIONS
|
(1,233,765)
|
|
186,697
|
|
(2,736,987)
|
|
62,239
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
4,594
|
|
2,612
|
|
5,324
|
|
3,461
|
|
Interest
(Expense)
|
(46,332)
|
|
(55,937)
|
|
(92,558)
|
|
(115,519)
|
|
Other Income
(Expense)
|
5,924
|
|
4,134
|
|
11,799
|
|
8,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(35,814)
|
|
(49,191)
|
|
(75,435)
|
|
(103,553)
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
PROVISION FOR INCOME TAXES
|
(1,269,579)
|
|
137,506
|
|
(2,812,422)
|
|
(41,314)
|
|
INCOME TAX
BENEFIT
|
(600,340)
|
|
(1,845)
|
|
(1,216,485)
|
|
(145,396)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
$
(669,239)
|
|
$
139,351
|
|
$
(1,595,937)
|
|
$
104,082
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.009)
|
|
$
0.002
|
|
$
(0.023)
|
|
$
0.002
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
72,998,461
|
|
63,751,857
|
|
69,929,300
|
|
63,751,857
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.009)
|
|
$
0.002
|
|
$
(0.023)
|
|
$
0.002
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
72,998,461
|
|
63,936,607
|
|
69,929,300
|
|
63,908,752
|
SOURCE WidePoint Corporation