MCLEAN, Va., Aug. 8, 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 Second quarter ended June
30, 2016.
Recent Business Highlights
- Continued demonstration of capabilities in concert with
Department of Defense (DoD) and Department of Homeland Security
(DHS) component/agencies for Certificate-on-DeviceTM
derived credentialing and related next-generation identity
management services
- Continued marketing and pipeline building activities with
Samsung and other key industry partners for Certificate-on-Device™
person, derived, and device credentials, and other "Internet of
Things" (IoT) components
- Selected by AT&T for commercial roll-out of
Certificate-on-DeviceTM for AT&T's IoT product
offering in 2017
- Selected by Voya Financial as a strategic partner in the "One
Voya" initiative to pursue expanded identity management
opportunities
- Renewed expanded services contracts with Compass Group PLC and
the DOJ's Bureau of Alcohol, Tobacco, Firearms and Explosives,
securing over $10 million in new
contract wins and option year extensions. Successes included awards
for identity assurance, mobile telecomm, analytics and consulting
services, spanning both Government and Commercial markets.
- Appointed Jason Holloway as
Chief Sales and Marketing Officer
Second Quarter 2016 Financial Highlights
- Net revenue was approximately $17.5
million compared to $17.4
million in the second quarter of 2015
- Gross profit was approximately $3.4
million compared to $3.3
million in the second quarter of 2015
- Net Loss improved approximately $500,000 to ($897,000) compared to net loss of approximately
($1.4 million) in the second quarter
of 2015, or basic and diluted loss per share of $0.011 per share compared to $0.017 in the second quarter of 2015
- Adjusted EBITDA Loss improved approximately $510,000 to ($448,000) from ($958,000) in the second quarter of 2015
First Half 2016 Financial Highlights
- Net revenue was approximately $38.0
million compared to $35.1
million in the first six months of 2015
- Gross profit was approximately $7.5
million compared to $6.9
million in the first six months of 2015
- Net Loss improved approximately $1.0
million to ($1.6 million)
compared to net loss of approximately ($2.6
million) in the first six months of 2015, or basic and
diluted loss per share of $0.019 per
share compared to $0.031 in the first
six months of 2015
- Adjusted EBITDA Loss improved approximately $0.9 million to ($0.7
million) from ($1.6 million)
in the first six months of 2015
"Our second quarter was marked by substantial improvements in
our progress toward profitability," stated Steve L. Komar, WidePoint's chief executive
officer. "We continue to selectively invest in our next-generation
solutions and to expand our partnerships with leading technology
Channel Partners, including Samsung and AT&T. We are driving
fundamental changes to our business model to push our new business
building efforts to a focus on higher margin services including
mobility telecommunications and cybersecurity, and de-emphasizing
lower margin reselling and administrative services activities, and
continue to take steps to optimize our costs of operations and
delivery. We fully expect to see the financial impact of this
prioritization throughout the remainder of 2016, and increasingly
in the years to come."
James McCubbin, WidePoint's chief
financial officer, added, "Our improvements in both our net
operating losses and adjusted EBITDA loss in the second quarter and
in the first half were largely driven by our ongoing business
rationalization efforts to improve our operating model. We believe
we are on track to reach operational profitability in the second
half of 2016."
Conference Call Information
A conference call and live webcast will take place at
4:05 p.m. Eastern Time, on
Monday, August 8, 2016. Anyone
interested in listening to our analyst call should call
1-877-723-9522 if calling within the
United States or 1-719-325-4842 if calling internationally.
There will be a playback available until August 22, 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 4730874for the replay. The
call will also be accompanied live by webcast over the Internet and
accessible at http://public.viavid.com/index.php?id=120493.
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.
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
JUNE
30,
|
|
DECEMBER
31,
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
8,327,621
|
|
$
7,930,303
|
|
Accounts receivable,
net of allowance for doubtful accounts of $81,345 and $73,378 in 2016 and 2015,
respectively
|
7,967,307
|
|
10,565,113
|
|
Unbilled accounts
receivable
|
5,819,539
|
|
6,637,587
|
|
Inventories
|
65,248
|
|
28,400
|
|
Prepaid expenses and
other assets
|
400,768
|
|
435,300
|
|
Deferred income
taxes
|
39,467
|
|
30,889
|
|
|
|
|
|
Total current
assets
|
22,619,950
|
|
25,627,592
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property and
equipment, net
|
1,342,692
|
|
1,513,307
|
|
Intangibles,
net
|
4,801,164
|
|
5,101,523
|
|
Goodwill
|
18,555,578
|
|
18,555,578
|
|
Deposits and other
assets
|
61,791
|
|
60,471
|
|
|
|
|
|
TOTAL
ASSETS
|
$
47,381,175
|
|
$
50,858,471
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Line of credit
advance
|
$
137,861
|
|
$
-
|
|
Short term note
payable
|
35,063
|
|
131,953
|
|
Accounts
payable
|
7,433,642
|
|
7,812,226
|
|
Accrued
expenses
|
6,349,221
|
|
6,687,054
|
|
Deferred
revenue
|
1,132,983
|
|
2,007,970
|
|
Income taxes
payable
|
56,510
|
|
37,684
|
|
Current portion of
long-term debt
|
462,067
|
|
893,706
|
|
Current portion of
capital lease obligations
|
13,772
|
|
28,752
|
|
|
|
|
|
Total current
liabilities
|
15,621,119
|
|
17,599,345
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Long-term debt, net
of current portion
|
422,117
|
|
431,756
|
|
Capital lease
obligation, net of current portion
|
2,840
|
|
11,962
|
|
Deferred rent, net of
current portion
|
137,452
|
|
151,994
|
|
Deferred
revenue
|
-
|
|
24,937
|
|
Deferred income
taxes
|
447,811
|
|
447,811
|
|
|
|
|
|
Total
liabilities
|
16,631,339
|
|
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
|
93,745,431
|
|
93,661,178
|
|
Accumulated other
comprehensive loss
|
(238,989)
|
|
(270,140)
|
|
Accumulated
deficit
|
(62,839,336)
|
|
(61,282,893)
|
|
|
|
|
|
Total stockholders'
equity
|
30,749,836
|
|
32,190,666
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
47,381,175
|
|
$
50,858,471
|
|
|
|
|
|
|
|
|
|
WIDEPOINT
CORPORATION
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
|
|
JUNE 30,
|
|
JUNE 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
REVENUES
|
$
17,539,666
|
|
$
17,432,745
|
|
$
38,048,306
|
|
$
35,128,313
|
|
COST OF REVENUES
(including amortization and depreciation of $288,187, $288,277, $580,635, and $583,713,
respectively)
|
|
|
|
|
|
|
|
|
14,179,119
|
|
14,126,516
|
|
30,482,781
|
|
28,252,116
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,360,547
|
|
3,306,229
|
|
7,565,525
|
|
6,876,197
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
702,465
|
|
797,683
|
|
1,441,514
|
|
1,568,194
|
|
General and
Administrative Expenses (including share-based compensation of $48,447, $81,311, $136,326 and
$118,862, respectively
|
|
|
|
|
|
|
|
|
3,441,984
|
|
3,675,891
|
|
7,199,930
|
|
7,402,936
|
|
Product
Development
|
1,000
|
|
142,173
|
|
258,383
|
|
211,025
|
|
Depreciation and
Amortization
|
89,719
|
|
91,946
|
|
184,197
|
|
190,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,235,168
|
|
4,707,693
|
|
9,084,024
|
|
9,372,398
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(874,621)
|
|
(1,401,464)
|
|
(1,518,499)
|
|
(2,496,201)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
3,433
|
|
4,978
|
|
7,606
|
|
10,904
|
|
Interest
Expense
|
(19,828)
|
|
(36,145)
|
|
(40,158)
|
|
(80,385)
|
|
Other
Income
|
5,377
|
|
68,207
|
|
7,345
|
|
75,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(11,018)
|
|
37,040
|
|
(25,207)
|
|
6,159
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(885,639)
|
|
(1,364,424)
|
|
(1,543,706)
|
|
(2,490,042)
|
|
INCOME TAX
PROVISION
|
11,291
|
|
45,204
|
|
12,734
|
|
77,345
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
(896,930)
|
|
$
(1,409,628)
|
|
$
(1,556,440)
|
|
$
(2,567,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.011)
|
|
$
(0.017)
|
|
$
(0.019)
|
|
$
(0.031)
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,730,134
|
|
82,124,603
|
|
82,644,978
|
|
81,935,259
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.011)
|
|
$
(0.017)
|
|
$
(0.019)
|
|
$
(0.031)
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
82,730,134
|
|
82,124,603
|
|
82,644,978
|
|
81,935,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIDEPOINT
CORPORATION
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
SIX MONTHS
ENDED
|
|
|
|
|
JUNE 30,
|
|
JUNE 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$(896,900)
|
|
$
(1,409,600)
|
|
$
(1,556,400)
|
|
$
(2,567,400)
|
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
377,900
|
|
380,200
|
|
764,800
|
|
774,000
|
|
Amortization of
deferred financing costs
|
-
|
|
2,900
|
|
-
|
|
5,800
|
|
Income tax provision
(benefit)
|
11,300
|
|
45,200
|
|
12,700
|
|
77,300
|
|
Interest
income
|
(3,400)
|
|
(5,000)
|
|
(7,600)
|
|
(10,900)
|
|
Interest
expense
|
19,900
|
|
36,100
|
|
40,200
|
|
80,400
|
|
Other (expense)
income
|
(5,300)
|
|
(68,200)
|
|
(7,300)
|
|
(75,600)
|
|
Provision for
doubtful accounts
|
-
|
|
(21,500)
|
|
(13,400)
|
|
(23,100)
|
|
Stock-based
compensation expense
|
48,400
|
|
81,400
|
|
81,300
|
|
118,900
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$(448,100)
|
|
$
(958,500)
|
|
$
(685,700)
|
|
$
(1,620,600)
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-second-quarter-2016-financial-results-300310469.html
SOURCE WidePoint Corporation