MCLEAN, Va., May 10, 2016 /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, 2016.
Recent Business Highlights
- Continued demonstration of capabilities efforts with Department
of Defense (DoD) and Department of Homeland Security (DHS)
component/agencies for Certificate-on-DeviceTM derived
credentialing and other next-generation identity management
services
- Continued marketing and pipeline building activities with
Samsung and AT&T partners for Certificate-on-Device™ person,
derived, and device credentials, and other "Internet of Things"
components
- Partnered with HP Inc. as an HPI Mobility Independent Software
Vendor (ISV) Partner to provide secure digital identity assurance
on HPI's full mobility lineup, including its recently announced HP
Elite x3
- Partnered with Spikes Security to integrate WidePoint's
Certificate-on-Device™ digital certificates offering with Spikes'
Isla Malware Isolation System
- Renewed credit facility with Cardinal Bank through April 30, 2017
First Quarter 2016 Financial Highlights
- Net revenue increased approximately $2.8
million or 16% to $20.5
million from $17.7 million in
the first quarter of 2015, materially driven by increases in DHS
BPA task orders and other identity management awards that were
partially offset by decreases in software reselling activities
- Gross profit increased approximately $600,000 or 18% to $4.2
million from $3.6 million in
the first quarter of 2015, materially driven by a greater mix of
higher margin identity management and telecom services, which
partially offset a reduction in lower margin software reselling
revenues
- Adjusted EBITDA Loss improved approximately $496,000 to ($169,000) from ($665,000) in the first quarter of 2015,
notwithstanding an increase of approximately $189,000 in product development investments made
in support of our next-generation identity management services
- Net Loss improved approximately $500,000 to ($660,000) compared to net loss of approximately
($1.2 million) in the first quarter
of 2015, or basic and diluted loss per share of $0.008 per share compared to $0.014 in the first quarter of 2015
"We reported a strong and improving quarter driven by
double-digit revenue growth and improved gross profit,
demonstrating significant progress and bolstering our optimism for
achieving our stated full-year goals," stated Steve L. Komar, WidePoint's chief executive
officer. "We have invested in our next-generation solutions,
including securing leading technology partners, and we continue to
expand these relationships. We believe we are reaching a maturation
point with several of our larger partners, which should help us
drive additional revenue growth."
James McCubbin, WidePoint's chief
financial officer, added, "Our strong revenue and gross profit
growth led to substantial improvements in both our operating losses
and adjusted EBITDA loss in the first quarter. This progress does
not yet reflect cost reduction efforts we have recently initiated,
involving rationalization of our sales, marketing, general, and
administrative expenses, and we expect this initiative to benefit
the remainder of 2016."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Tuesday, May 10, 2016. Anyone
interested in listening to our analyst call should call
1-877-795-3610 if calling within the
United States or 1-719-325-4785 if calling internationally.
There will be a playback available until May
24, 2016. 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 4337611 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=119513.
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.
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
MARCH
31,
|
|
DECEMBER
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$ 6,251,464
|
|
$
7,930,303
|
|
Accounts receivable,
net of allowance for doubtful accounts of $76,486 and $73,378 in 2016 and 2015,
respectively
|
7,122,892
|
|
10,565,113
|
|
Unbilled accounts
receivable
|
9,057,696
|
|
6,637,587
|
|
Inventories
|
40,993
|
|
28,400
|
|
Prepaid expenses and
other assets
|
510,533
|
|
435,300
|
|
Deferred income
taxes
|
36,243
|
|
30,889
|
|
|
|
|
|
Total current
assets
|
23,019,821
|
|
25,627,592
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,439,692
|
|
1,513,307
|
|
Intangibles,
net
|
4,834,602
|
|
5,101,523
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
56,190
|
|
60,471
|
|
|
|
|
|
TOTAL
ASSETS
|
$ 47,905,883
|
|
$ 50,858,471
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
585,712
|
|
$
-
|
|
Short term note
payable
|
76,761
|
|
131,953
|
|
Accounts
payable
|
2,886,931
|
|
7,812,226
|
|
Accrued
expenses
|
9,679,060
|
|
6,687,054
|
|
Deferred
revenue
|
1,253,896
|
|
2,007,970
|
|
Income taxes
payable
|
59,645
|
|
37,684
|
|
Current portion of
long-term debt
|
679,074
|
|
893,706
|
|
Current portion of
capital lease obligations
|
18,716
|
|
28,752
|
|
|
|
|
|
Total current
liabilities
|
15,239,795
|
|
17,599,345
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
426,937
|
|
431,756
|
|
Capital lease
obligation, net of current portion
|
5,111
|
|
11,962
|
|
Deferred rent, net of
current portion
|
144,724
|
|
151,994
|
|
Deferred
revenue
|
6,132
|
|
24,937
|
|
Deferred income
taxes
|
447,811
|
|
447,811
|
|
|
|
|
|
Total
liabilities
|
16,270,510
|
|
18,667,805
|
|
|
|
|
|
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; 82,730,134 and 82,520,696 shares
issued and outstanding,
respectively
|
82,730
|
|
82,521
|
|
Additional paid-in
capital
|
93,699,300
|
|
93,661,178
|
|
Accumulated other
comprehensive loss
|
(204,254)
|
|
(270,140)
|
|
Accumulated
deficit
|
(61,942,403)
|
|
(61,282,893)
|
|
|
|
|
|
Total stockholders'
equity
|
31,635,373
|
|
32,190,666
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 47,905,883
|
|
$ 50,858,471
|
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
MARCH 31,
|
|
|
|
|
2016
|
|
2015
|
|
REVENUES
|
$ 20,508,640
|
|
$ 17,695,568
|
|
COST OF REVENUES
(including amortization and depreciation of $292,241 and $295,436, respectively)
|
16,303,662
|
|
14,125,600
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
4,204,978
|
|
3,569,968
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Sales and
Marketing
|
739,049
|
|
770,511
|
|
General and
Administrative Expenses (including share-based compensation of $87,879 and $37,551,
respectively
|
3,757,946
|
|
3,727,045
|
|
Product
Development
|
257,383
|
|
68,852
|
|
Depreciation and
Amortization
|
94,478
|
|
98,297
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,848,856
|
|
4,664,705
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(643,878)
|
|
(1,094,737)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
Interest
Income
|
4,173
|
|
5,926
|
|
Interest
Expense
|
(20,330)
|
|
(44,240)
|
|
Other
Income
|
1,968
|
|
7,433
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(14,189)
|
|
(30,881)
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(658,067)
|
|
(1,125,618)
|
|
INCOME TAX
PROVISION
|
1,443
|
|
32,141
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(659,510)
|
|
$ (1,157,759)
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.008)
|
|
$
(0.014)
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,559,822
|
|
81,743,812
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.008)
|
|
$
(0.014)
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,559,822
|
|
81,743,812
|
|
WIDEPOINT
CORPORATION
|
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND
|
|
AMORTIZATION
|
|
|
WIDEPOINT
CORPORATION
|
|
|
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
|
|
MARCH 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
NET LOSS
|
$ (659,500)
|
|
$ (1,157,800)
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
Gain on change in
fair value of contingent obligation
|
-
|
|
|
|
Depreciation and
amortization
|
386,700
|
|
393,700
|
|
Income tax provision
(benefit)
|
1,400
|
|
32,100
|
|
Interest
income
|
(4,200)
|
|
(5,900)
|
|
Interest
expense
|
20,300
|
|
44,200
|
|
Other (expense)
income
|
(2,000)
|
|
(7,400)
|
|
Provision for
doubtful accounts
|
-
|
|
(1,600)
|
|
Stock-based
compensation expense
|
87,900
|
|
37,600
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ (169,400)
|
|
$ (665,100)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-first-quarter-2016-financial-results-300266117.html
SOURCE WidePoint Corporation