MCLEAN, Va., Nov. 9, 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 third quarter ended September 30, 2015.
Recent Business Highlights
- Awarded initial task orders to commence work from one of the
three remaining Department of Homeland Security (DHS) component
agencies under our $600 million DHS
BPA
- Partnered with Bob Day &
Associates LLC to pursue new and expanded business opportunities
within the Homeland Security and cyber technology markets
- Engaged Deep Water Point to develop, pursue, and expand our
federal business reach as we scale our marketing footprint with
other departmental-level federal organizations
- Awarded approximately $6.5
million in new managed mobility services for federal,
municipal, and commercial work
- Awarded approximately $2.3
million, with renewals, in new consulting support work
- Launched New Online Bill Presentment and Analytics Solutions
for the Communication Service Provider (CSP) consumer market at
BroadSoft Connections 2015
- Continued engagements with DoD and DHS component/agencies for
Certificate-on-DeviceTM – derived credentialing and
other next-generation identity management services
- Continued development with strategic partners of our
Certificate-on-Device product roadmap for individuals, derived
credentials, machine device credentials, and other "Internet of
Things" components; continued consolidation of platforms and
integration efforts of our enterprise solutions
Third Quarter 2015 Financial Highlights
- Net revenue increased 17% to $17.0
million from $14.5 million in
the third quarter of 2014, driven principally by increases in our
DHS BPA expansion, partially offset by decreases in software
reselling activities within our managed services offerings.
- Gross profit was $3.1 million
compared to $4.0 million in the third
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 $1.1 million compared to $404,000 in the third quarter of 2014, driven by
continued technology, sales and marketing, and infrastructure
investments in support of our next-generation identity management
services and managed mobility services.
- Net loss was approximately $1.8
million compared to net loss of approximately $5.9 million in the third quarter of 2014 or
basic and diluted loss per share of 0.02 per share compared to
$0.08 in the third quarter of
2014.
James McCubbin, WidePoint's chief
financial officer, stated, "Our financial results in the third
quarter of 2015 were weaker than we expected as a result of delays
in anticipated contract awards. While we did receive awards late in
the third quarter and early in the fourth quarter of 2015,
including new initial task orders from one of the last three
agencies remaining to be won under our DHS BPA contract, the timing
put us behind schedule. We still remain confident, timing issues
aside, that we will continue to win additional work under our DHS
BPA. We believe that our revenues, gross margins, and overall
financial metrics and results, should improve, as our new
next-generation identity management services come on line."
Steve L. Komar, WidePoint's chief
executive officer, stated, "We continue to make great strides in
our development efforts of our next generation identity management
services and channel marketing efforts with our strategic partners.
While contract delays caused some timing issues that negatively
effected our financial performance in the third quarter of 2015, we
remain confident in our products and services, and in the
increasing demand we see for them in the market today and in the
future, in both the government and commercial sectors."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Monday, November 9, 2015. Anyone
interested in listening to our analyst call should call
1-877-419-6591 if calling within the
United States or 1-719-325-4747 if calling internationally.
There will be a playback available until November 23, 2015. To listen to the playback,
please call 1‑877‑870‑5176 if calling within the United States or 1-719-325-4752 if calling
internationally. Please use PIN code 4105835 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=116997.
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
|
|
|
|
|
|
SEPTEMBER
30,
|
|
DECEMBER
31,
|
|
2015
|
|
2014
|
|
|
|
|
ASSETS
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$ 10,443,065
|
|
$ 13,154,699
|
Accounts receivable,
net of allowance for doubtful accounts of $147,331 and $88,719 in 2015 and 2014,
respectively
|
9,546,162
|
|
8,543,050
|
Unbilled accounts
receivable
|
6,517,707
|
|
5,547,416
|
Inventories
|
26,716
|
|
37,025
|
Prepaid expenses and
other assets
|
417,907
|
|
426,736
|
Income taxes
receivable
|
-
|
|
25,984
|
Deferred income
taxes
|
-
|
|
18,584
|
|
|
|
|
Total current
assets
|
26,951,557
|
|
27,753,494
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
Property and
equipment, net
|
1,544,090
|
|
1,614,182
|
Intangibles,
net
|
5,375,798
|
|
5,992,992
|
Goodwill
|
18,555,578
|
|
18,555,578
|
Deferred income tax
asset, net of current
|
14,272
|
|
-
|
Deposits and other
assets
|
136,554
|
|
161,994
|
|
|
|
|
TOTAL
ASSETS
|
$ 52,577,849
|
|
$ 54,078,240
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Line of credit
advance
|
$ 2,013,665
|
|
$
-
|
Short term note
payable
|
48,738
|
|
137,025
|
Accounts
payable
|
6,448,509
|
|
6,165,477
|
Accrued
expenses
|
6,490,586
|
|
5,980,110
|
Deferred
revenue
|
1,953,168
|
|
710,275
|
Income taxes
payable
|
94,236
|
|
12,574
|
Current portion of
long-term debt
|
879,181
|
|
2,184,016
|
Current portion of
deferred rent
|
-
|
|
9,274
|
Current portion of
capital lease obligations
|
47,935
|
|
76,597
|
|
|
|
|
Total current
liabilities
|
17,976,018
|
|
15,275,348
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
Long-term debt, net
of current portion
|
663,267
|
|
1,327,800
|
Capital lease
obligation, net of current portion
|
11,682
|
|
36,669
|
Deferred rent, net of
current portion
|
159,266
|
|
152,815
|
Deferred
revenue
|
36,816
|
|
56,977
|
Deferred income
taxes
|
447,811
|
|
447,811
|
Deposits and other
liabilities
|
-
|
|
1,964
|
|
|
|
|
Total
liabilities
|
19,294,860
|
|
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
|
93,569,933
|
|
92,661,000
|
Accumulated other
comprehensive (loss)
|
(222,512)
|
|
(147,515)
|
Accumulated
deficit
|
(60,146,953)
|
|
(55,816,286)
|
|
|
|
|
Total stockholders'
equity
|
33,282,989
|
|
36,778,856
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 52,577,849
|
|
$ 54,078,240
|
WIDEPOINT
CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
REVENUES
|
$16,994,858
|
|
$14,555,908
|
|
$ 52,123,171
|
|
$ 36,552,708
|
COST OF REVENUES
(including amortization and depreciation of $290,011, $309,276, $873,724, and $976,116,
respectively)
|
13,875,473
|
|
10,571,518
|
|
42,127,589
|
|
26,487,285
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,119,385
|
|
3,984,390
|
|
9,995,582
|
|
10,065,423
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
764,845
|
|
868,152
|
|
2,333,039
|
|
2,751,323
|
|
General and
Administrative Expenses (including share-based compensation of $89,229, $70,397, $208,091 and
$237,101, respectively)
|
3,893,348
|
|
3,816,100
|
|
11,507,309
|
|
10,538,220
|
|
|
Depreciation and
Amortization
|
92,968
|
|
179,977
|
|
283,211
|
|
392,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,751,161
|
|
4,864,229
|
|
14,123,559
|
|
13,682,249
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,631,776)
|
|
(879,839)
|
|
(4,127,977)
|
|
(3,616,826)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
7,020
|
|
6,290
|
|
17,924
|
|
11,614
|
|
Interest
(Expense)
|
(30,868)
|
|
(47,020)
|
|
(111,253)
|
|
(139,578)
|
|
Other Income
(Expense)
|
(37,814)
|
|
(5,159)
|
|
37,826
|
|
6,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(61,662)
|
|
(45,889)
|
|
(55,503)
|
|
(121,324)
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(1,693,438)
|
|
(925,728)
|
|
(4,183,480)
|
|
(3,738,150)
|
INCOME TAX
PROVISION
|
69,842
|
|
4,975,968
|
|
147,187
|
|
3,759,483
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$(1,763,280)
|
|
$ (5,901,696)
|
|
$ (4,330,667)
|
|
$ (7,497,633)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.021)
|
|
$
(0.081)
|
|
$
(0.053)
|
|
$
(0.106)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,515,103
|
|
73,195,464
|
|
82,130,665
|
|
71,029,985
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.021)
|
|
$
(0.081)
|
|
$
(0.053)
|
|
$
(0.106)
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,515,103
|
|
73,195,464
|
|
82,130,665
|
|
71,029,985
|
WIDEPOINT
CORPORATION
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$(1,763,300)
|
|
$ (5,901,700)
|
|
$ (4,330,700)
|
|
$ (7,497,633)
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
382,900
|
|
401,400
|
|
1,156,900
|
|
1,368,822
|
|
Amortization of
deferred financing costs
|
2,900
|
|
3,800
|
|
8,700
|
|
4,700
|
|
Income tax provision
(benefit)
|
69,900
|
|
4,976,000
|
|
147,200
|
|
3,759,500
|
|
Interest
income
|
(7,000)
|
|
(6,300)
|
|
(17,900)
|
|
(11,600)
|
|
Interest
expense
|
30,900
|
|
47,000
|
|
111,300
|
|
139,600
|
|
Other (expense)
income
|
37,800
|
|
5,200
|
|
(37,800)
|
|
(6,600)
|
|
Provision for
doubtful accounts
|
80,027
|
|
-
|
|
56,900
|
|
24,000
|
|
Stock-based
compensation expense
|
89,200
|
|
70,400
|
|
208,100
|
|
237,100
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$(1,076,673)
|
|
$ (404,200)
|
|
$ (2,697,300)
|
|
$ (1,982,111)
|
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-third-quarter-2015-financial-results-300175048.html
SOURCE WidePoint Corporation