WIDEPOINT CORPORATION MCLEAN, Va., Nov. 13, 2014 /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 third quarter ended September 30, 2014.
Recent Business Highlights
-- Received four (4) new additional Task Orders, including one issued by
the U.S. Citizenship and Immigrations Services (USCIS), under our $600
Million Blanket Purchase Agreement (BPA) with the Department of Homeland
Security (DHS).
-- Initiated business support with Compass Group Global in Italy and
Mexico. Support in Germany, France, and Spain is scheduled to commence
in 2015.
-- Began collaboration with SPYRUS, Inc., to deliver the industry's first
Trusted Mobile Windows To Go device that guarantees device identity,
personal identity, and secure network access from any global location
and commencing initial pilots in 2015.
-- Continued to work closely with three leading device and handset
manufacturers to embed Certificate-on-Device security offering into OEM
equipment.
-- Entered into a strategic alliance with leading device and handset
manufacturer Kyocera Communications, Inc., to offer their ruggedized
mobile devices as part of our MMS solutions. Initiated relationship with
LG Electronics MobileComm, USA, to jointly market WidePoint
Certificate-on-Device and LG Mobile Phones GATE enterprise solutions.
Commencing sales and marketing programs and pilots in early 2015.
-- Completed $11.5 million public offering of common stock on November 5,
2014, to fund expanding business relationships and growth opportunities.
Third Quarter 2014 Financial Highlights
-- Net revenue increased 19.1% to $14.6 million from $12.2 million in the
third quarter of 2013.
-- Gross margin was 27% of revenue as compared to 24% in the third quarter
of 2013.
-- Net loss was approximately $5.9 million as compared to net income of
approximately $295,000 in the third quarter of 2013. The third quarter
net loss included an approximately $5.0 million non-cash tax provision
offsetting a tax asset as a result of various financial and regulatory
accounting rules and regulations.
"We continue to witness new task order awards and opportunities in both the federal and commercial marketplaces. Our Certificate-on-Device and other next-generation identity management services in conjunction with our overall MMS portfolio are poised for expansion in 2015 with our new and growing list of partners," Steve Komar, WidePoint chief executive officer, commented. Mr. Komar further stated, "We continue to be enthusiastic about our expanded list of MMS offerings and, in combination with our recent financial offering of $11.5 million, we believe we should have the tools to support the increasing demands of our new partnerships as we go to market with a number of pilot programs and other new sales opportunities."
James McCubbin, WidePoint CFO, added, "The investments that we continue to fund in capital and effort appear to be laying the foundation for a financial model of success. Improvements in our balance sheet from our recent capital raise should allow us to both continue to fund and support our new partnerships and contract obligations as they expand in 2015. With a number of new and exciting opportunities expected to start in pilot phase as we enter 2015, along with the commencement of sales and marketing efforts with our partners, we believe 2015 should demonstrate continued revenue growth and transition from a period of operational losses to operational earnings."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, November 13, 2014. Anyone interested in participating should call 1-888-438-5491 if calling within the United States or 1-719-457-2627 if calling internationally. There will be a playback available until November 27, 2014. 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 2208379 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=111895.
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.
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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WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
2014 2013
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $3,079,485 $ -
Accounts receivable, net of
allowance for doubtful
accounts 8,859,476 7,612,400
of $101,157 and $30,038 in 2014 and 2013, respectively
Unbilled accounts receivable 3,416,224 1,561,030
Inventories 39,084 61,338
Prepaid expenses and other
assets 414,841 533,944
Income taxes receivable - 763
Total current assets 15,809,110 9,769,475
NONCURRENT ASSETS
Property and equipment, net 1,710,790 1,545,951
Intangibles, net 3,728,542 3,613,271
Goodwill 20,838,927 16,618,467
Deferred income tax asset,
net of current 699,350 4,407,630
Deposits and other assets 122,950 120,046
TOTAL ASSETS $42,909,669 $36,074,840
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $392,222 $916,663
Short term note payable 45,420 119,336
Accounts payable 6,071,801 3,228,586
Accrued expenses 3,911,505 4,407,286
Deferred revenue 754,294 40,911
Income taxes payable 107,567 217,982
Deferred income taxes 700,743 700,743
Current portion of long-
term debt 2,174,722 1,150,455
Current portion of deferred
rent 2,169 78,525
Current portion of capital
lease obligations 48,011 45,125
Total current liabilities 14,208,454 10,905,612
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 1,544,376 2,509,492
Capital lease obligation,
net of current portion 83,145 57,119
Deferred rent, net of
current portion 155,418 2,421
Deferred revenue 63,135 82,494
Deposits and other
liabilities 1,964 1,964
Total liabilities 16,056,492 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; 73,425,328 and 63,907,357 shares issued
and outstanding,
respectively 73,425 63,907
Additional paid-in capital 81,800,617 69,867,491
Accumulated other
comprehensive (loss) (107,572) -
Accumulated deficit (54,913,293) (47,415,660)
Total stockholders' equity 26,853,177 22,515,738
Total liabilities and
stockholders' equity $42,909,669 $36,074,840
=========== ===========
WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2014 2013 2014 2013
---- ---- ---- ----
REVENUES $14,555,908 $12,222,505 $36,552,708 $35,534,573
COST OF REVENUES (including amortization
and depreciation of $309,276, $363,040,
$976,116, and $1,100,968, respectively)
10,571,518 9,243,536 26,487,285 25,754,110
---------- --------- ---------- ----------
GROSS PROFIT 3,984,390 2,978,969 10,065,423 9,780,463
--------- --------- ---------- ---------
OPERATING EXPENSES
Sales and
Marketing 868,152 675,780 2,751,323 2,361,900
General and
Administrative
Expenses
(including share-
based
compensation of
$70,397, $68,659,
$237,101, and
$180,927,
respectively, and
gain on change in
fair value of
contingent
obligation of $0,
$661,000, $0, and
$1,250,000,
respectively)
3,816,100 2,282,991 10,538,220 7,196,607
Depreciation and
Amortization 179,977 74,142 392,706 213,661
-----------------
Total Operating Expenses 4,864,229 3,032,913 13,682,249 9,772,168
--------- --------- ---------- ---------
LOSS FROM OPERATIONS (879,839) (53,944) (3,616,826) 8,295
OTHER INCOME (EXPENSE)
Interest Income 6,290 2,727 11,614 6,188
Interest (Expense) (47,020) (15,414) (139,578) (130,933)
Other Income
(Expense) (5,159) 5,927 6,640 14,432
-------------
Total Other Income
(Expense) (45,889) (6,760) (121,324) (110,313)
------- ------ -------- --------
LOSS BEFORE PROVISION FOR INCOME TAXES (925,728) (60,704) (3,738,150) (102,018)
INCOME TAX PROVISION (BENEFIT) 4,975,968 (355,525) 3,759,483 (500,921)
--------- -------- --------- --------
NET (LOSS) INCOME $(5,901,696) $294,821 $(7,497,633) $398,903
=========== ======== =========== ========
BASIC EARNINGS PER SHARE $(0.081) $0.005 $(0.106) $0.006
======= ====== ======= ======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 73,195,464 63,824,647 71,029,985 63,776,387
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE $(0.081) $0.005 $(0.106) $0.006
======= ====== ======= ======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 73,195,464 64,014,359 71,029,985 64,103,082
========== ========== ========== ==========
SOURCE WidePoint Corporation
