MCLEAN, Va., March 21, 2018 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY) a leading provider of Trusted Mobility
Management (TM2) specializing in Telecommunication Lifecycle
Management (TLM) and Cybersecurity solutions, announced its fourth
quarter and full year 2017 financial results.
Fourth Quarter 2017 Highlights (Comparisons versus Fourth
Quarter 2016)
- Revenue grew 9% to $19.9
million
- Operating expenses declined 12% to $4.3
million
- Net loss reduced to $0.8 million
from $2.4 million
- Adjusted EBITDA was $0.3 million
as compared to ($1.7) million
"I'm very pleased with the progress we made to stabilize the
company and reduce our net losses as a result of cost savings
actions taken during the second, third and fourth quarters of
2017. I'm also pleased that our financial performance for the
fourth quarter was markedly better than the third quarter with both
top line and bottom line improvements. We believe that we have
strategically aligned our resources in sales and marketing to
support our TM2 offering, which is gaining traction as evidenced by
the new contracts awarded in the first quarter," stated
Jin Kang, WidePoint's President and
Chief Executive Officer.
Kito Mussa, WidePoint's Chief
Financial Officer, added, "We saw revenue growth in the quarter of
9 percent year-over-year, we reduced our net losses for the full
year and the fourth quarter, and we achieved our goal to be
Adjusted EBITDA positive in the fourth quarter. We are
focusing next on improving our business profitability by reducing
the cost to deliver our services. We believe this approach will
position WidePoint to scale and meet the demands of our potential
revenue growth opportunities."
Fourth Quarter 2017 Financial Highlights versus Comparative
Period in Prior Year
(in millions,
except per share amounts)
|
December 31,
2017
|
December 31,
2016
|
Revenues
|
$19.9
|
$18.3
|
Gross Profit (% of
Revenue)
|
$3.6 (18%)
|
$2.4 (18%)
|
Operating
Expenses
|
$4.3
|
$4.9
|
Loss from
Operations
|
$(0.7)
|
$(2.5)
|
Net Loss
|
$(0.8)
|
$(2.4)
|
Basic and Diluted
Earnings per Share (EPS)
|
$(0.01)
|
$(0.03)
|
Adjusted
EBITDA
|
$0.3
|
$(1.7)
|
- Cash and cash equivalents was approximately $5.3 million as of December 31, 2017.
- There was no outstanding balance on the credit facility.
Full Year 2017 Financial Highlights versus Comparative Period
in Prior Year
(in millions,
except per share amounts)
|
December 31,
2017
|
December 31,
2016
|
Net
Revenue
|
$75.9
|
$78.4
|
Gross Profit (% of
Revenue)
|
$13.7
(18%)
|
$14.0
(18%)
|
Operating
Expenses
|
$17.2
|
$18.2
|
Loss From
Operations
|
$(3.5)
|
$(4.2)
|
Net Loss
|
$(3.5)
|
$(4.1)
|
Basic and Diluted
EPS
|
$(0.04)
|
$(0.05)
|
Adjusted EBITDA
Loss
|
$(0.9)
|
$(2.0)
|
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 GAAP Net loss to Adjusted EBITDA is
included on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place today at
4:30 p.m. Eastern Time. Anyone
interested in listening to our analyst call should call
1-877-451-6152 if calling within the
United States or 1-201-389-0879 if calling internationally.
There will be a playback available until April 4, 2018. 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 13676925 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=128570.
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider
of technology-based management solutions including telecom
management, mobile management, access management and identity
management. For more information, visit www.widepoint.com.
For More Information:
Kimberly
Rogers
Hayden IR
385-831-7337
kim@haydenir.com
WIDEPOINT
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
DECEMBER
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
5,272,457
|
|
$
9,123,498
|
Accounts receivable,
net of allowance for doubtful accounts of $107,618 and
$344,411 in 2017 and 2016, respectively
|
8,131,025
|
|
5,153,093
|
Unbilled accounts
receivable
|
8,131,448
|
|
8,112,690
|
Other current
assets
|
767,944
|
|
551,571
|
|
|
|
|
Total current
assets
|
22,302,874
|
|
22,940,852
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
Land and building
held for sale
|
-
|
|
594,376
|
Property and
equipment, net
|
1,318,420
|
|
736,678
|
Intangibles,
net
|
3,671,506
|
|
4,298,902
|
Goodwill
|
18,555,578
|
|
18,555,578
|
Other long term
assets
|
44,553
|
|
52,456
|
|
|
|
|
TOTAL
ASSETS
|
$
45,892,931
|
|
$
47,178,842
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
$
7,266,212
|
|
$
8,708,345
|
Accrued
expenses
|
9,796,350
|
|
7,834,802
|
Deferred
revenue
|
2,348,578
|
|
1,190,558
|
Current portion of
long term debt
|
101,591
|
|
94,868
|
Current portion of
other term obligations
|
203,271
|
|
176,255
|
|
|
|
|
Total current
liabilities
|
19,716,002
|
|
18,004,828
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
Mortgage debt related
to assets held for sale, net
of current
portion
|
-
|
|
412,180
|
Long-term debt, net
of current portion
|
232,109
|
|
-
|
Other term
obligations, net of current portion
|
78,336
|
|
86,198
|
Deferred
revenue
|
264,189
|
|
-
|
Deferred tax
liability
|
392,229
|
|
398,985
|
|
|
|
|
Total
liabilities
|
20,682,865
|
|
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;
83,031,595 and 82,730,134 shares issued
and outstanding,
respectively
|
|
|
|
Additional
paid-in capital
|
94,200,237
|
|
93,920,095
|
Accumulated
other comprehensive loss
|
(122,461)
|
|
(309,369)
|
Accumulated
deficit
|
(68,950,742)
|
|
(65,416,805)
|
|
|
|
|
Total stockholders'
equity
|
25,210,066
|
|
28,276,651
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
45,892,931
|
|
$
47,178,842
|
WIDEPOINT
CORPORATION
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
YEARS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
DECEMBER
31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
19,927,629
|
|
$
18,257,719
|
|
$
75,884,246
|
|
$
78,420,864
|
COST OF REVENUES
(including amortization and
depreciation)
|
|
16,334,655
|
|
15,850,877
|
|
62,194,187
|
|
64,410,468
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
3,592,974
|
|
2,406,842
|
|
13,690,059
|
|
14,010,396
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
|
493,021
|
|
600,813
|
|
2,202,913
|
|
2,667,808
|
|
General and
Administrative Expenses (including
share-based
compensation)
|
|
3,724,292
|
|
3,797,573
|
|
14,392,660
|
|
14,448,270
|
|
Product
Development
|
|
-
|
|
437,982
|
|
219,141
|
|
699,013
|
|
Depreciation and
Amortization
|
|
125,440
|
|
89,603
|
|
338,314
|
|
358,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
|
4,342,753
|
|
4,925,971
|
|
17,153,028
|
|
18,173,650
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
(749,779)
|
|
(2,519,129)
|
|
(3,462,969)
|
|
(4,163,254)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
|
3,788
|
|
3,973
|
|
15,352
|
|
14,591
|
|
Interest
Expense
|
|
(15,756)
|
|
(11,163)
|
|
(52,158)
|
|
(72,231)
|
|
Other (Expense)
Income
|
|
2,047
|
|
2,412
|
|
3,805
|
|
13,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
|
(9,921)
|
|
(4,778)
|
|
(33,001)
|
|
(44,104)
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX PROVISION (BENEFIT)
|
|
(759,700)
|
|
(2,523,907)
|
|
(3,495,970)
|
|
(4,207,358)
|
INCOME TAX PROVISION
(BENEFIT)
|
|
5,244
|
|
(94,475)
|
|
37,967
|
|
(73,446)
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
(764,944)
|
|
$
(2,429,432)
|
|
$
(3,533,937)
|
|
$
(4,133,912)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.04)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
|
83,011,331
|
|
82,730,134
|
|
82,911,730
|
|
82,687,789
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
|
$
(0.01)
|
|
$
(0.03)
|
|
$
(0.04)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
|
83,011,331
|
|
82,730,134
|
|
82,911,730
|
|
82,687,789
|
WIDEPOINT
CORPORATION
|
RECONCILIATION OF
GAAP NET LOSS TO
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
YEARS
ENDED
|
|
|
|
|
DECEMBER
31,
|
|
DECEMBER
31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$(764,900)
|
|
$
(2,429,400)
|
|
$
(3,533,900)
|
|
$
(4,133,912)
|
Adjustments to GAAP
net income (loss):
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
385,200
|
|
406,600
|
|
1,493,200
|
|
1,566,400
|
|
Amortization of
deferred financing costs
|
|
9,800
|
|
-
|
|
19,300
|
|
-
|
|
Income tax provision
(benefit)
|
|
5,300
|
|
(94,400)
|
|
38,000
|
|
(73,400)
|
|
Interest
income
|
|
(3,800)
|
|
(4,000)
|
|
(15,400)
|
|
(14,600)
|
|
Interest
expense
|
|
15,800
|
|
11,100
|
|
52,200
|
|
72,200
|
|
Other (expense)
income
|
|
(2,000)
|
|
(2,300)
|
|
(3,800)
|
|
(13,500)
|
|
Provision for
doubtful accounts
|
|
31,300
|
|
261,300
|
|
62,500
|
|
253,400
|
|
Gain on sale of
assets held for sale
|
|
-
|
|
-
|
|
(66,700)
|
|
-
|
|
Loss on disposal of
leasehold improvements
|
|
-
|
|
-
|
|
172,800
|
|
-
|
|
Severance and exit
costs
|
|
353,100
|
|
-
|
|
540,600
|
|
-
|
|
Stock-based
compensation expense
|
|
249,200
|
|
106,600
|
|
387,200
|
|
311,000
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
279,000
|
|
$
(1,744,500)
|
|
$
(854,000)
|
|
$
(2,032,412)
|
View original
content:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-fourth-quarter-and-full-year-2017-results-300617140.html
SOURCE WidePoint Corporation