WASHINGTON, May 15, 2014 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility
Services featuring enterprise-wide Telecommunications Lifecycle
Management (TLM) and Cybersecurity solutions, today announced
financial results for the first quarter ended March 31, 2014.
Year-to-Date Business Highlights
- Awarded a $47.5 million BPA with
a Major Health Related Federal Department.
- Received 3 Annual Task Orders under the $600 Million Blanket Purchase Agreement (BPA)
with Department of Homeland Security (DHS) worth approximately
$11M.
- Acquired Soft-ex Communications, a leading provider of Telecom
Data Intelligence (TDI) solutions throughout European and Middle
Eastern markets, for $6 million.
- Awarded 13 new commercial accounts with work anticipated to
start in the end of the 2nd quarter of 2014.
- Awarded 2 new municipal awards with work anticipated to start
in the end of the 2nd quarter of 2014.
- Expanded partnerships for secured, cloud-based, Identity
Management Services (IDM) 'Certificate-on-Device' for all
types of mobile devices.
- Announced collaboration agreement with Wave Systems Corp. to
secure digital certificates within Trusted Platform Modules (TPMs)
on customer devices.
- Continued to expand development relationships with several
mobile OEMs and telecom service providers.
- Initiated the development of a Managed Mobility Solutions (MMS)
solution in conjunction with an OEM provider that addresses a
single market of 880K users.
- Implemented initial services with Compass PLC outside of the US
in Canada and UK with plans to
expand to European locations in 3rd quarter of
2014.
First Quarter 2014 Financial Highlights
- Net revenue decreased 20% to $9.6
million from $11.9 million in
the first quarter of 2013.
- Gross margin was 26% of revenue as compared to 27% in the first
quarter of 2013.
- Net loss was approximately $927,000 as compared to net loss of approximately
$35,000 in the first quarter of
2013.
"Following the complete repositioning of the Company for growth
last year, we continued to leverage major contract wins such as the
DHS BPA and new commercial opportunities to broaden our reach into
new markets and to win additional contracts such as a new BPA with
a another major Federal Department. Also, we are particularly
excited about our acquisition of Soft-ex Communications earlier
this month which will provide us a strong base of operations and
services to target the European and Middle Eastern markets,"
Steve Komar, CEO, WidePoint,
commented. Mr. Komar further stated, "With new offerings such as
'Cert-on-Device', new commercial partnerships, and a strong
balance sheet, we believe we are well positioned for accelerating
growth and profitability."
James McCubbin, WidePoint CFO,
added, "During the first quarter, our revenue was impacted by a
range of events, including customer purchase delays caused by
severe winter storms, government credentialing contracts in
transition, and weak government product resale procurements. Also,
our carrier services revenues were lower as a result of greater
efficiencies realized by our services as well as the transition
period and start-up phase of our DHS contract award. However, we do
expect these services to expand in 2014 as we commence work under
task orders that have been issued under the DHS vehicle, and we
anticipate that revenues will expand from both our
'Cert-on-Device' services and other services to our
commercial customers. However, we do expect growth in 2014 as we
commence work under task orders that have been issued, year to
date, under the DHS vehicle; as well as, the role out of our
'Cert-on-Device' and other services to our commercial customer
base. This is reflected in an expanding pipeline of business that
will drive increased revenue this year."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Thursday, May 15, 2014. Anyone
interested in participating should call 1-877-941-8418 if calling
within the United States or
1-480-629-9809 if calling internationally. There will be a playback
available until May 29, 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 number
4683107 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=109216.
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 Dave
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
|
|
|
|
|
|
|
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
|
2014
|
|
2013
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and
cash equivalents
|
$
10,133,529
|
|
$
-
|
|
Accounts
receivable, net of allowance for doubtful
accounts of $29,814 and $30,038
in 2014 and 2013, respectively
|
5,187,800
|
|
7,612,400
|
|
Unbilled
accounts receivable
|
1,362,451
|
|
1,561,030
|
|
Inventories
|
43,813
|
|
61,338
|
|
Prepaid
expenses and other assets
|
566,474
|
|
533,944
|
|
Income
taxes receivable
|
399,382
|
|
763
|
|
|
|
|
|
Total current
assets
|
17,693,449
|
|
9,769,475
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property
and equipment, net
|
1,466,058
|
|
1,545,951
|
|
Intangibles, net
|
3,449,644
|
|
3,613,271
|
|
Goodwill
|
16,618,467
|
|
16,618,467
|
|
Deferred
income tax asset, net of current
|
4,407,630
|
|
4,407,630
|
|
Deposits
and other assets
|
119,137
|
|
120,046
|
|
|
|
|
|
TOTAL
ASSETS
|
$
43,754,385
|
|
$
36,074,840
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of
credit advance
|
$
-
|
|
$
916,663
|
|
Short
term note payable
|
68,557
|
|
119,336
|
|
Accounts
payable
|
3,217,838
|
|
3,228,586
|
|
Accrued
expenses
|
2,869,404
|
|
4,407,286
|
|
Deferred
revenue
|
37,566
|
|
40,911
|
|
Income
taxes payable
|
-
|
|
217,982
|
|
Deferred
income taxes
|
700,743
|
|
700,743
|
|
Current
portion of long-term debt
|
949,771
|
|
1,150,455
|
|
Current
portion of deferred rent
|
77,709
|
|
78,525
|
|
Current
portion of capital lease obligations
|
34,993
|
|
45,125
|
|
|
|
|
|
Total current
liabilities
|
7,956,581
|
|
10,905,612
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net of current portion
|
2,509,492
|
|
2,509,492
|
|
Capital
lease obligation, net of current portion
|
58,419
|
|
57,119
|
|
Deferred
rent, net of current portion
|
10,408
|
|
2,421
|
|
Deferred
revenue
|
75,648
|
|
82,494
|
|
Deposits
and other liabilities
|
1,964
|
|
1,964
|
|
|
|
|
|
Total
liabilities
|
10,612,512
|
|
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; 72,965,329 and 63,907,357 shares issued and
outstanding, respectively
|
72,965
|
|
63,907
|
|
Additional paid-in
capital
|
81,411,266
|
|
69,867,491
|
|
Accumulated
deficit
|
(48,342,358)
|
|
(47,415,660)
|
|
|
|
|
|
Total stockholders'
equity
|
33,141,873
|
|
22,515,738
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
43,754,385
|
|
$
36,074,840
|
|
|
|
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
MARCH 31,
|
|
|
|
|
2014
|
|
2013
|
|
REVENUES
|
$
9,602,779
|
|
$
11,968,106
|
|
COST OF REVENUES
(including amortization and depreciation of
|
|
|
|
|
$331,867 and
$374,319, respectively)
|
7,135,541
|
|
8,693,654
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
2,467,238
|
|
3,274,452
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
Marketing
|
845,112
|
|
805,817
|
|
General and
Administrative Expenses (including share-based
|
|
|
|
|
|
compensation of
$82,716 and $53,987, respectively,
|
|
|
|
|
|
and gain on change in
fair value of contingent obligation of
|
|
|
|
|
|
$0 and $220,000,
respectively)
|
3,055,838
|
|
2,526,815
|
|
Depreciation and
Amortization
|
69,510
|
|
66,278
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
3,970,460
|
|
3,398,910
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,503,222)
|
|
(124,458)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
Income
|
730
|
|
849
|
|
Interest
Expense
|
(46,226)
|
|
(59,582)
|
|
Other Income
(Expense)
|
5,875
|
|
4,371
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(39,621)
|
|
(54,362)
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(1,542,843)
|
|
(178,820)
|
|
INCOME TAX
BENEFIT
|
(616,145)
|
|
(143,551)
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(926,698)
|
|
$
(35,269)
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.014)
|
|
$
(0.001)
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
66,826,037
|
|
63,751,857
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.014)
|
|
$
(0.001)
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
66,826,037
|
|
63,751,857
|
SOURCE WidePoint Corporation