MCLEAN, Va., Aug. 10, 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 second quarter ended June
30, 2015.
Recent Business Highlights
- Entered Strategic Alliance with Samsung SDS America.
- Launched New Online Bill Presentment and Analytics Solutions
with Three ("3") Ireland.
- Selected by Telefonica UK for Provisioning Cloud Digital
Services.
- Fully Deployed U.S. Immigration and Customs Enforcement
component/agency under our DHS BPA.
- Engaged with 3 major remaining DHS BPA component/agencies.
- Engaged with DoD and DHS component/agencies for
Certificate-on-DeviceTM (CoD) – derived credentialing
and other next generation identity management services.
- Completed phase 1 CoD consulting services with major financial
services company and entering phase 2 of rollout; initiated phase 1
CoD with 2 other large commercial enterprises.
- Awarded approximately $7.8M in
DHS BPA task awards; expanded sales channel training and education
of new channel partners; and grew 2nd half sales
pipeline due to introduction of new next generation identity
management services.
- Continued development with new partners of product roadmap for
CoD for individuals, derived credentials, machine device
credentials, and other "Internet of Things" components; continued
consolidation of platforms and integration efforts of our
enterprise solutions.
Second Quarter 2015 Financial Highlights
- Net revenue increased 41% to $17.4
million from $12.4 million in
the second quarter of 2014.
- Gross profit was $3.3 million
compared to $3.6 million in the
second quarter of 2014, which supports extra capacity for expanded
next generation identity management services and managed mobility
services.
- Adjusted EBITDA loss was approximately $958,000 compared to $669,000 in the second quarter of 2014, including
investments made in support of our next generation identity
management services in our general and administrative
expenses.
- Net loss was approximately $1.4
million compared to net loss of approximately $0.7 million in the second quarter of 2014 or
basic and diluted loss per share of 0.017 per share compared to
$0.009 in the second quarter of
2014.
- Net working capital was approximately $10.6 million as of June
30, 2015.
"Our results in the second quarter of 2015, when combined with
our first quarter performance, were largely in line with our year
to date expectations," stated Steve L.
Komar, WidePoint's chief executive officer. Komar further
added, "We made great strides in our development efforts of our
next generation identity management services with our new channel
partners. We see a tremendous interest in our solutions given
recent cybersecurity breaches and threats and the strong responses
being taken by both government and commercial groups."
James McCubbin, WidePoint CFO,
added, "Our second quarter revenues and financial performance were
overall in-line with our expectations with a bit more investment
required as a result of requests made by our new channel partners
for additional support. We continue to look for revenue
growth and improved operating results in the 2nd half of
the year as next generation identity management services come
further on line along with expectations for additional awards from
our DHS BPA and other services."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Monday, August 10, 2015. Anyone
interested in listening to our analyst call should call
1-888-337-8198 if calling within the
United States or 1-719-325-2354 if calling internationally.
There will be a playback available until August 24, 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 number 2313513 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=115828.
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
|
|
|
|
|
|
JUNE
30,
|
|
DECEMBER
31,
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
9,687,332
|
|
$ 13,154,699
|
|
Accounts receivable,
net of allowance for doubtful accounts of $73,636 and $88,719 in 2015 and 2014,
respectively
|
12,391,141
|
|
8,543,050
|
|
Unbilled accounts
receivable
|
5,340,750
|
|
5,547,416
|
|
Inventories
|
22,150
|
|
37,025
|
|
Prepaid expenses and
other assets
|
611,967
|
|
426,736
|
|
Income taxes
receivable
|
-
|
|
25,984
|
|
Deferred income
taxes
|
13,324
|
|
18,584
|
|
|
|
|
|
Total current
assets
|
28,066,664
|
|
27,753,494
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,550,624
|
|
1,614,182
|
|
Intangibles,
net
|
5,648,576
|
|
5,992,992
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
139,463
|
|
161,994
|
|
|
|
|
|
TOTAL
ASSETS
|
$ 53,960,905
|
|
$ 54,078,240
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
122,527
|
|
$
-
|
|
Short term note
payable
|
37,423
|
|
137,025
|
|
Accounts
payable
|
8,659,862
|
|
6,165,477
|
|
Accrued
expenses
|
5,944,560
|
|
5,980,110
|
|
Deferred
revenue
|
1,768,374
|
|
710,275
|
|
Income taxes
payable
|
39,408
|
|
12,574
|
|
Current portion of
long-term debt
|
869,296
|
|
2,184,016
|
|
Current portion of
deferred rent
|
-
|
|
9,274
|
|
Current portion of
capital lease obligations
|
33,269
|
|
76,597
|
|
|
|
|
|
Total current
liabilities
|
17,474,719
|
|
15,275,348
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
887,444
|
|
1,327,800
|
|
Capital lease
obligation, net of current portion
|
47,444
|
|
36,669
|
|
Deferred rent, net of
current portion
|
155,222
|
|
152,815
|
|
Deferred
revenue
|
42,449
|
|
56,977
|
|
Deferred income
taxes
|
447,811
|
|
447,811
|
|
Deposits and other
liabilities
|
1,964
|
|
1,964
|
|
|
|
|
|
Total
liabilities
|
19,057,053
|
|
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; 82,481,792 and 81,656,763 shares
issued and outstanding,
respectively
|
82,482
|
|
81,657
|
|
Additional paid-in
capital
|
93,449,495
|
|
92,661,000
|
|
Accumulated other
comprehensive (loss)
|
(244,452)
|
|
(147,515)
|
|
Accumulated
deficit
|
(58,383,673)
|
|
(55,816,286)
|
|
|
|
|
|
Total stockholders'
equity
|
34,903,852
|
|
36,778,856
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 53,960,905
|
|
$ 54,078,240
|
|
WIDEPOINT
CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
JUNE 30,
|
|
JUNE 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
REVENUES
|
$
17,432,745
|
|
$
12,394,021
|
|
$
35,128,313
|
|
$
21,996,800
|
|
COST OF REVENUES
(including amortization and depreciation of $288,277, $334,973, $583,713, and $666,840,
respectively)
|
14,126,516
|
|
8,780,226
|
|
28,252,116
|
|
15,915,767
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,306,229
|
|
3,613,795
|
|
6,876,197
|
|
6,081,033
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
797,683
|
|
1,038,059
|
|
1,568,194
|
|
1,883,171
|
|
General and
Administrative Expenses (including share-based compensation of $81,311, $83,988, $118,862 and
$166,704, respectively)
|
3,818,064
|
|
3,666,282
|
|
7,613,961
|
|
6,722,120
|
|
Depreciation and
Amortization
|
91,946
|
|
143,219
|
|
190,243
|
|
212,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,707,693
|
|
4,847,560
|
|
9,372,398
|
|
8,818,020
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,401,464)
|
|
(1,233,765)
|
|
(2,496,201)
|
|
(2,736,987)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
4,978
|
|
4,594
|
|
10,904
|
|
5,324
|
|
Interest
(Expense)
|
(36,145)
|
|
(46,332)
|
|
(80,385)
|
|
(92,558)
|
|
Other Income
(Expense)
|
68,207
|
|
5,924
|
|
75,640
|
|
11,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
37,040
|
|
(35,814)
|
|
6,159
|
|
(75,435)
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(1,364,424)
|
|
(1,269,579)
|
|
(2,490,042)
|
|
(2,812,422)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
45,204
|
|
(600,340)
|
|
77,345
|
|
(1,216,485)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(1,409,628)
|
|
$
(669,239)
|
|
$
(2,567,387)
|
|
$
(1,595,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.017)
|
|
$
(0.009)
|
|
$
(0.031)
|
|
$
(0.023)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,124,603
|
|
72,998,461
|
|
81,935,259
|
|
69,929,300
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.017)
|
|
$
(0.009)
|
|
$
(0.031)
|
|
$
(0.023)
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,124,603
|
|
72,998,461
|
|
81,935,259
|
|
69,929,300
|
|
WIDEPOINT
CORPORATION
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
|
|
JUNE 30,
|
|
JUNE 30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(1,409,600)
|
|
$
(669,200)
|
|
$
(2,567,400)
|
|
$
(1,595,900)
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
380,200
|
|
478,200
|
|
774,000
|
|
879,600
|
|
Amortization of
deferred financing costs
|
2,900
|
|
3,800
|
|
5,800
|
|
4,700
|
|
Income tax provision
(benefit)
|
45,200
|
|
(600,300)
|
|
77,300
|
|
(1,216,500)
|
|
Interest
income
|
(5,000)
|
|
(4,600)
|
|
(10,900)
|
|
(5,300)
|
|
Interest
expense
|
36,100
|
|
46,300
|
|
80,400
|
|
92,600
|
|
Other (expense)
income
|
(68,200)
|
|
(5,900)
|
|
(75,600)
|
|
(11,800)
|
|
Provision for
doubtful accounts
|
(21,500)
|
|
-
|
|
(23,100)
|
|
(200)
|
|
Stock-based
compensation expense
|
81,400
|
|
82,700
|
|
118,900
|
|
166,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
(958,600)
|
|
$
(669,000)
|
|
$
(1,620,600)
|
|
$
(1,686,100)
|
|
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-second-quarter-2015-financial-results-300126196.html
SOURCE WidePoint Corporation