WIDEPOINT CORPORATION MCLEAN, Va., May 11, 2015 /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, 2015.
Recent Business Highlights
-- Received a Task Order renewal under our $600 Million Blanket Purchase
Agreement (BPA) with the Department of Homeland Security (DHS) valued at
approximately $17 million over three years with the DHS Headquarters.
-- Received a new Task Order under our DHS BPA with the DHS Office of
Biometric Identity Management (OBIM).
-- Subsidiary Soft-ex Communications awarded inclusion for provisioning of
Specialist Cloud Services in the latest G-Cloud 6 procurement agreement
of the UK Government.
-- Initiated work with an AT&T large financial services client providing
identity assurance consulting services in connection with our
next-generation identity management offerings.
-- Continued to work closely with three leading device manufacturers and
several carriers and other channel partners in expectation of booking
initial Certificate-on-Device(TM) revenues in the second quarter 2015.
First Quarter 2015 Financial Highlights
-- Net revenue increased 84% to $17.7 million from $9.6 million in the
first quarter of 2014.
-- Gross profit excluding amortization and depreciation increased
approximately $1.1 million to $3.9 million from $2.8 million in the
first quarter of 2014.
-- Adjusted EBITDA loss improved approximately $350,000 to $665,200 from
$1,015,300 in the first quarter of 2014, which included investments made
in Certificate-on-Device(TM), other software platform enhancements, and
start-up costs associated with the implementation of a new agency
component of DHS.
-- Net loss was approximately $1.2 million compared to net loss of
approximately $0.9 million in the first quarter of 2014 or basic and
diluted loss per share of 0.014 per share for each respective quarter.
-- Cash and cash equivalents were approximately $11.5 million as of March
31, 2015.
-- Net working capital was approximately $11.5 million as of March 31,
2015.
"We were pleased with our results in the first quarter of 2015 with slightly higher revenues than we had expected," stated Steve L. Komar, WidePoint's chief executive officer. Komar further added, "We remain on plan to continue to expand our DHS task order awards and launch our next-generation identity management offerings following Certificate-on-Device, while continuing our efforts at expanding our state/local and commercial footprints."
James McCubbin, WidePoint CFO, added, "Our first quarter revenues have us entering 2015 at an approximate $70+ million run-rate up from approximately a $40 million run-rate at this time last year. With a target revenue goal of 50% growth for 2015 over last year's $53 million in revenues, we believe we are off to a good start and on plan to reach our revenue goals. Furthermore, we believe our gross profit on both an absolute basis and percentage basis will expand as we bring on our higher-margin next-generation identity management services, reach critical mass in our DHS work, and expand our state/local and commercial mix. Coupling this with a leveling-off of our SG&A expenses, we believe we should witness positive financial results and demonstrate financial leverage within our business model."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, May 11, 2015. Anyone interested in listening to our analyst call should call 1-888-576-4398 if calling within the United States or 1-719-325-2484 if calling internationally. There will be a playback available until May 25, 2015. 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 6023891 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=114538.
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.
-tables follow-
WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
2015 2014
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $11,524,390 $13,154,699
Accounts receivable, net of
allowance for doubtful
accounts of $82,202 and
$88,719 in 2015 and 2014,
respectively 9,916,843 8,543,050
Unbilled accounts receivable 5,772,408 5,547,416
Inventories 26,221 37,025
Prepaid expenses and other
assets 561,900 426,736
Income taxes receivable - 25,984
Deferred income taxes 30,553 18,584
Total current assets 27,832,315 27,753,494
NONCURRENT ASSETS
Property and equipment, net 1,556,251 1,614,182
Intangibles, net 5,724,650 5,992,992
Goodwill 18,555,578 18,555,578
Deposits and other assets 142,373 161,994
TOTAL ASSETS $53,811,167 $54,078,240
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short term note payable $80,966 $137,025
Accounts payable 7,209,545 6,165,477
Accrued expenses 5,926,326 5,980,110
Deferred revenue 857,578 710,275
Income taxes payable 4,280 12,574
Current portion of long-term
debt 2,192,854 2,184,016
Current portion of deferred
rent 8,444 9,274
Current portion of capital
lease obligations 66,828 76,597
Total current liabilities 16,346,821 15,275,348
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 1,109,033 1,327,800
Capital lease obligation, net
of current portion 30,778 36,669
Deferred rent, net of current
portion 150,212 152,815
Deferred revenue 50,115 56,977
Deferred income taxes 447,811 447,811
Deposits and other liabilities 6,164 1,964
Total liabilities 18,140,934 17,299,384
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; 81,873,923 and
81,656,763 shares issued and
outstanding, respectively 81,874 81,657
Additional paid-in capital 92,824,426 92,661,000
Accumulated other
comprehensive (loss) (262,022) (147,515)
Accumulated deficit (56,974,045) (55,816,286)
Total stockholders' equity 35,670,233 36,778,856
Total liabilities and
stockholders' equity $53,811,167 $54,078,240
=========== ===========
WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
---------
2015 2014
---- ----
REVENUES $17,695,568 $9,602,779
COST OF REVENUES (including amortization and depreciation of
$295,436 and $331,867, respectively) 14,125,600 7,135,541
----------
GROSS PROFIT 3,569,968 2,467,238
--------- ---------
OPERATING EXPENSES
Sales and Marketing 770,511 845,112
General and Administrative Expenses (including share-
based
compensation of $37,551 and $82,716,
respectively 3,795,897 3,055,838
Depreciation and Amortization 98,297 69,510
------
Total Operating Expenses 4,664,705 3,970,460
--------- ---------
LOSS FROM OPERATIONS (1,094,737) (1,503,222)
OTHER INCOME (EXPENSE)
Interest Income 5,926 730
Interest (Expense) (44,240) (46,226)
Other Income (Expense) 7,433 5,875
-----
Total Other Income (Expense) (30,881) (39,621)
------- -------
LOSS BEFORE PROVISION FOR INCOME TAXES (1,125,618) (1,542,843)
INCOME TAX PROVISION (BENEFIT) 32,141 (616,145)
------ --------
NET LOSS $(1,157,759) $(926,698)
=========== =========
BASIC EARNINGS PER SHARE $(0.014) $(0.014)
======= =======
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING 81,743,812 66,826,037
========== ==========
DILUTED EARNINGS PER SHARE $(0.014) $(0.014)
======= =======
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 81,743,812 66,826,037
========== ==========
WIDEPOINT CORPORATION AND SUBSIDIARIES
NET LOSS TO NON-GAAP EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION RECONCILIATION
(ROUNDED)
THREE MONTHS ENDED
MARCH 31,
---------
2015 2014
---- ----
NET LOSS $(1,157,759) $(926,698)
Adjustments to GAAP net income (loss):
Depreciation and amortization 393,700 401,377
Amortization of deferred financing
costs - 3,800
Income tax provision (benefit) 32,100 (616,100)
Interest income (5,900) (700)
Interest expense 44,200 46,200
Other (expense) income (7,400) (5,900)
Provision for doubtful accounts (1,600) -
Stock-based compensation expense 37,500 82,700
------
Adjusted EBITDA $(665,159) $(1,015,321)
========= ===========
For More Information:
Jim McCubbin, EVP & CFO Brett Maas or David 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
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SOURCE WidePoint Corporation
