MCLEAN, Va., May 15, 2017 /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 first quarter ended March
31, 2017.
Recent Business Highlights
- Awarded approximately $16 million
in new and option year contract awards for public sector TLM
services
- Expanded cybersecurity business with the acquisition of the
assets of Probaris' Probaris ID® Identity Management
System software suite
- Proactively adjusted commercial TLM partnership commission
plans and re-negotiated TLM pricing plans with customers to lay the
groundwork to improve gross margins and improve financial operating
results
- Continued realignment of sales and marketing activities with
launch of new lead generation activities to increase market
awareness and drive commercial revenue growth
- Initiated development of new credentialing social media
marketing and sales campaign in support of new executive order and
driven by recent negative cyber events to drive revenue growth of
higher margin offerings
- Continued the consolidation efforts of physical and logical
infrastructure to eliminate redundant overheads and reduce costs,
with consolidation of accounting functions, help desk functions,
and platform unifications underway and in support of creating a
more streamlined and costs effective operating environment
First Quarter 2017 Financial Highlights
- Net revenue was approximately $18.6
million compared to $20.5
million in the first quarter of 2016
- Gross profit was approximately $3.4
million compared to $4.2
million in the first quarter of 2016
- Operating expenses were approximately $4.6 million compared to $4.8 million in the first quarter of 2016
- Operating loss was approximately $(1.2
million) compared to $(0.6
million) in the first quarter of 2016
- Net loss was approximately $(1.1
million), or $(0.01) per basic
and diluted share, compared to a loss of $(0.7 million), or $(0.01) per basic and diluted share
- Adjusted EBITDA loss was approximately $(0.7 million) compared to approximately
$(0.2 million) first quarter of
2016
- Cash and cash equivalents was approximately $7.0 million as of March
31, 2017. Working capital was approximately $4.2 million
"In the first quarter of 2017 we have begun taking steps to
realign our cost structures with our revenues, with the goal of
returning to operating profitability later in 2017," stated
Jeffrey O. Nyweide, WidePoint's
chief executive officer and president. "Our stated goals of
eliminating approximately $2.5
million in annualized fixed costs through facility and
functional consolidation and elimination of duplicative resources
continue on pace. Coupling these cost-cutting activities with our
sales and marketing initiatives to expand awareness and better
target our current offerings to the marketplace should put us on a
path towards sustainable and profitable growth."
Further, Mr. Nyweide stated, "In the first quarter, we
demonstrated continued success in the public sector marketplace
with new awards including two new task orders, three logical
follow-on task orders, and 11 option year exercises. These
wins give me optimism that better financial performance is on the
way. Our public sector and federal base of business will remain a
key driver of revenue and profitability in 2017. We are
particularly excited about our recent acquisition of the Probaris
assets to support several new agency relationships and to enhance
our core identity management credentialing services intellectual
property."
Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics,
including non-GAAP financial measures such as Adjusted EBITDA, to
enable it to analyze its performance and financial condition. The
presentation of non-GAAP financial information should not be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP. A reconciliation of Net loss to Adjusted EBITDA is included
on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Monday, May 15, 2017. Anyone
interested in listening to our analyst call should call
1-888-471-3840 if calling within the
United States or 1-719-325-2499 if calling internationally.
There will be a playback available until May
29, 2017. To listen to the playback, please call 1
844-512-2921 if calling within the United
States or 1-412-317-6671 if calling internationally. Please
use PIN code 2169455 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=123939.
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 Company's ability
to achieve profitability and positive cash flows; (v) the Company's
ability to raise additional capital on favorable terms or at all;
(vii) the Company's ability to gain market acceptance for its
products and (viii) 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 Annual Report on Form 10-K for the year ended
December 31, 2015 filed with the SEC
on March 15, 2016.
-tables follow-
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
7,039,448
|
|
$
9,123,498
|
|
Accounts receivable,
net of allowance for doubtful accounts of $345,264 and $344,411 in
2017 and 2016, respectively
|
6,786,384
|
|
5,153,093
|
|
Unbilled accounts
receivable
|
6,393,376
|
|
8,112,690
|
|
Inventories
|
175,005
|
|
123,287
|
|
Prepaid expenses and
other assets
|
491,548
|
|
385,388
|
|
Income taxes
receivable
|
42,896
|
|
42,896
|
|
|
|
|
|
Total current
assets
|
20,928,657
|
|
22,940,852
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Land and building
held for sale
|
594,376
|
|
594,376
|
|
Property and
equipment, net
|
778,202
|
|
736,678
|
|
Intangibles,
net
|
4,042,679
|
|
4,298,902
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
50,956
|
|
52,456
|
|
|
|
|
|
TOTAL
ASSETS
|
$
44,950,448
|
|
$
47,178,842
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Short term note
payable
|
$
76,613
|
|
$
131,761
|
|
Accounts
payable
|
6,088,504
|
|
8,665,449
|
|
Accrued
expenses
|
9,164,415
|
|
7,872,557
|
|
Deferred
revenue
|
1,305,981
|
|
1,190,558
|
|
Income taxes
payable
|
52,441
|
|
5,141
|
|
Current portion of
long-term debt
|
20,491
|
|
94,868
|
|
Current portion of
deferred rent
|
43,538
|
|
40,397
|
|
Current portion of
capital lease obligations
|
22,850
|
|
4,097
|
|
|
|
|
|
Total current
liabilities
|
16,774,833
|
|
18,004,828
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt
related to assets held for sale, net of current portion
|
406,992
|
|
412,180
|
|
Capital lease
obligation, net of current portion
|
57,677
|
|
-
|
|
Deferred rent, net of
current portion
|
71,802
|
|
86,198
|
|
Deferred revenue, net
of current portion
|
13,333
|
|
-
|
|
Deferred income
taxes
|
394,289
|
|
398,985
|
|
|
|
|
|
Total
liabilities
|
17,718,926
|
|
18,902,191
|
|
|
|
|
|
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; 82,844,322 and 82,730,134
shares issued and outstanding, respectively
|
82,844
|
|
82,730
|
|
Additional paid-in
capital
|
93,976,061
|
|
93,920,095
|
|
Accumulated other
comprehensive loss
|
(256,361)
|
|
(309,369)
|
|
Accumulated
deficit
|
(66,571,022)
|
|
(65,416,805)
|
|
|
|
|
|
Total stockholders'
equity
|
27,231,522
|
|
28,276,651
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
44,950,448
|
|
$
47,178,842
|
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
MARCH 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
(Unaudited)
|
|
REVENUES
|
$
18,612,239
|
|
$
20,508,640
|
|
COST OF REVENUES
(including amortization and depreciation of $281,824 and $295,436, respectively)
|
|
|
|
|
15,182,635
|
|
16,303,662
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,429,604
|
|
4,204,978
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
Marketing
|
548,859
|
|
739,049
|
|
General and
Administrative Expenses (including share-based compensation of
$85,017 and $87,879, respectively)
|
3,832,240
|
|
3,757,946
|
|
Product
Development
|
151,373
|
|
257,383
|
|
Depreciation and
Amortization
|
71,750
|
|
94,478
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,604,222
|
|
4,848,856
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,174,618)
|
|
(643,878)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
Income
|
7,027
|
|
4,173
|
|
Interest
Expense
|
(9,568)
|
|
(20,330)
|
|
Other
Income
|
4,174
|
|
1,968
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
1,633
|
|
(14,189)
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX (BENEFIT) PROVISION
|
(1,172,985)
|
|
(658,067)
|
|
INCOME TAX (BENEFIT)
PROVISION
|
(18,768)
|
|
1,443
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(1,154,217)
|
|
$
(659,510)
|
|
|
|
|
|
|
|
|
BASIC LOSS PER
SHARE
|
$
(0.01)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,841,812
|
|
82,559,822
|
|
|
|
|
|
|
|
|
DILUTED LOSS PER
SHARE
|
$
(0.01)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,841,812
|
|
82,559,822
|
|
WIDEPOINT
CORPORATION
|
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES,
|
|
DEPRECIATION AND
AMORTIZATION
|
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH 31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
NET LOSS
|
$
(1,154,200)
|
|
$
(659,500)
|
|
Adjustments to GAAP
net loss:
|
|
|
|
|
Depreciation and
amortization
|
353,600
|
|
386,700
|
|
Amortization of
deferred financing costs
|
-
|
|
-
|
|
Income tax provision
(benefit)
|
(18,800)
|
|
1,400
|
|
Interest
income
|
(7,000)
|
|
(4,200)
|
|
Interest
expense
|
9,600
|
|
20,300
|
|
Other (expense)
income
|
(4,200)
|
|
(2,000)
|
|
Provision for
doubtful accounts
|
14,100
|
|
(6,600)
|
|
Stock-based
compensation expense
|
85,000
|
|
87,900
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
(721,900)
|
|
$
(176,000)
|
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-1q17-financial-results-300457760.html
SOURCE WidePoint Corporation