WIDEPOINT CORPORATION MCLEAN, Va., March 16, 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 fourth quarter and full-year ended December 31, 2014.
Recent Business Highlights
-- Received a new additional Task Order under our $600 Million Blanket
Purchase Agreement (BPA) with the Department of Homeland Security (DHS)
valued at approximately $76.5 million over four years.
-- Received three new contract awards and one contract expansion from
United States federal government agencies to manage telecommunications
assets. One new award and one modification came under the BPA, while the
other two, for full TLM, came from components of another cabinet-level
agency.
-- Awarded a new contract by an existing federal agency customer under the
Department of Defense (DoD) for wireless Telecom Expense Management
(TEM) services valued at $3.7 million over three years.
-- Entered into a strategic partnership with VOSS Solutions to integrate
the Soft-ex Optimiser® and VOSS UC management solutions into a unique
platform offering.
-- Awarded first DoD approval to issue External Certificate Authority (ECA)
Personal Identity Verification Interoperable (PIV-I) credentials that
comply with DoD requirements and address the needs of more than 40
million users worldwide.
-- Continued to work closely with three leading device and handset
manufacturers to embed Certificate-on-Device(TM) security offering into
OEM equipment.
-- Announced the utilization of Certificate-on-Device on select ruggedized
smartphones from Kyocera Communications, Inc. to enable advanced mobile
security features such as on-demand VPN.
Full Year 2014 Financial Highlights
-- Net revenue increased 13.9% to $53.3 million from $46.8 million in 2013.
-- Gross margin was 25% of revenue as compared to 26% in 2013.
-- Net loss was approximately $8.4 million as compared to net loss of
approximately $1.7 million in 2013. 2014 net loss included an
approximately $5.0 million non-cash tax provision in the third quarter
of 2014, offsetting a tax asset as a result of various financial and
regulatory accounting rules and regulations.
Fourth Quarter 2014 Financial Highlights
-- Net revenue increased 48.5% to $16.8 million from $11.3 million in the
fourth quarter of 2013.
-- Gross margin was 21% of revenue as compared to 21% in the fourth quarter
of 2013.
-- Net loss was approximately $0.9 million as compared to net loss of
approximately $2.1 million in the fourth quarter of 2013.
"We continue to gain new task order awards under our DHS BPA, and we are creating new opportunities in the federal and commercial marketplaces, both directly and through partnerships, for our technology offerings," Steve Komar, WidePoint chief executive officer, commented. Mr. Komar further stated, "We remain excited about our Certificate-on-Device and other next-generation identity management services. Combined with our range of differentiated cross-border MMS offerings and a host of new partnerships and alliances, we believe we have set the stage to exploit a diverse range of new revenue opportunities in 2015."
James McCubbin, WidePoint CFO, added, "2014 was a year of investment in our sales and marketing resources and in our personnel and technology platforms in order to build and improve upon our operating infrastructure, which should allow us to accelerate growth and expand margins as we progress into 2015 and beyond. We believe we will deliver financial leverage and improved operating performance as we work towards adding higher-margin recurring revenue to our sales mix in 2015."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, March 16, 2015. Anyone interested in participating should call 1-888-500-6950 if calling within the United States or 1-719-325-2315 if calling internationally. There will be a playback available until March 30, 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 5717039 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=113389.
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
DECEMBER 31,
2014 2013
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $13,154,699 $ -
Accounts receivable, net of allowance for
doubtful accounts of $88,719 and $30,038
in 2014 and 2013, respectively
8,543,050 7,612,400
Unbilled accounts
receivable 5,547,416 1,561,030
Inventories 37,025 61,338
Prepaid expenses and other
assets 426,736 533,944
Income taxes receivable 25,984 763
Deferred income taxes 18,584 -
Total current assets 27,753,494 9,769,475
NONCURRENT ASSETS
Property and equipment, net 1,614,182 1,545,951
Intangibles, net 5,992,992 3,613,271
Goodwill 18,555,578 16,618,467
Deferred income tax asset,
net of current - 4,407,630
Deposits and other assets 161,994 120,046
TOTAL ASSETS $54,078,240 $36,074,840
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $ - $916,663
Short term note payable 137,025 119,336
Accounts payable 6,165,477 3,228,586
Accrued expenses 5,980,110 4,407,286
Deferred revenue 710,275 40,911
Income taxes payable 12,574 217,982
Deferred income taxes - 700,743
Current portion of long-
term debt 2,184,016 1,150,455
Current portion of deferred
rent 9,274 78,525
Current portion of capital
lease obligations 76,597 45,125
Total current liabilities 15,275,348 10,905,612
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 1,327,800 2,509,492
Capital lease obligation,
net of current portion 36,669 57,119
Deferred rent, net of
current portion 152,815 2,421
Deferred revenue 56,977 82,494
Deferred income taxes 447,811 -
Deposits and other
liabilities 1,964 1,964
Total liabilities 17,299,384 13,559,102
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; 81,656,763 and
63,907,357 shares issued
and outstanding,
respectively 81,657 63,907
Additional paid-in capital 92,661,000 69,867,491
Accumulated other
comprehensive (loss) (147,515) -
Accumulated deficit (55,816,286) (47,415,660)
Total stockholders' equity 36,778,856 22,515,738
Total liabilities and
stockholders' equity $54,078,240 $36,074,840
=========== ===========
WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED
DECEMBER 31,
------------
2014 2013
---- ----
REVENUES $53,316,210 $46,825,032
COST OF REVENUES (including amortization and depreciation of $1,462,505,
$1,462,995, and $1,511,267, respectively)
39,802,293 34,713,471
---------- ----------
GROSS PROFIT 13,513,917 12,111,561
---------- ----------
OPERATING EXPENSES
Sales and Marketing 3,432,602 3,125,867
General and Administrative
Expenses (including share-based
compensation of $324,281 and
$227,035, respectively, and gain
on change in fair value of
contingent obligation of $--
and $1,250,000 respectively) 14,356,372 9,872,655
Depreciation and Amortization 375,951 288,333
-------
Total Operating Expenses 18,164,925 13,286,855
---------- ----------
(LOSS) INCOME FROM OPERATIONS (4,651,008) (1,175,294)
OTHER INCOME (EXPENSE)
Interest Income 17,002 7,364
Interest (Expense) (186,796) (175,358)
Other Income (Expense) 12,890 11,267
------
Total Other Income (Expense) (156,904) (156,727)
-------- --------
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES (4,807,912) (1,332,021)
INCOME TAX (BENEFIT) PROVISION 3,592,714 362,764
--------- -------
NET (LOSS) INCOME $(8,400,626) $(1,694,785)
=========== ===========
BASIC EARNINGS PER SHARE $(0.115) $(0.027)
======= =======
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING 73,048,883 63,802,275
========== ==========
DILUTED EARNINGS PER SHARE $(0.115) $(0.027)
======= =======
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 73,048,883 63,802,275
========== ==========
QUARTERS ENDED
DECEMBER 31,
------------
2014 2013
---- ----
Operating Results
Revenues $16,763,502 $11,290,459
Gross profit 3,448,494 2,331,098
(Loss) income from operations (1,034,182) (1,183,589)
Net (loss) income (902,993) (2,093,688)
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
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/widepoint-corporation-announces-full-year-2014-financial-results-300051053.html
SOURCE WidePoint Corporation
