WIDEPOINT CORPORATION MCLEAN, Va., March 15, 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 fourth quarter and full-year ended December 31, 2015.
Recent Business Highlights
-- Released two new mobile applications as part of the WidePoint
Certificate-on-Device(TM) solution: WidePoint Person-ID and WidePoint
Derived-ID enable the secure creation, delivery, and installation of
digital certificates to Android-based mobile devices
-- Unified iSYS LLC (iSYS) and Operational Research Consultants Inc. (ORC)
subsidiaries under the WidePoint brand as WidePoint Integrated Solutions
Corp. and WidePoint Cybersecurity Solutions Corporation, respectively,
to drive an integrated market strategy going forward
-- Won a new contract to supply Irish-based eir and its business telecom
customers with an Online Bill Presentment and Analytics solution through
WidePoint's UK-based Soft-ex subsidiary
-- Continued development with new partners of product roadmap for
Certificate-on-Device(TM) person, derived, and device credentials, and
other "Internet of Things" components
-- Continued consolidation of software platforms and integration of our
enterprise solutions, while initiating a program to streamline
operational costs and SG&A to manage and support these solutions
Full Year 2015 Financial Highlights
-- Net revenue increased 33% to $70.8 million from $53.3 million in 2014,
driven principally by increases in our DHS BPA expansion.
-- Gross profit was $13.2 million compared to $13.5 million in 2014, which
as in the prior quarter supports extra capacity for expanded
next-generation identity management services and managed mobility
services.
-- Adjusted EBITDA loss was approximately $3.6 million compared to $2.4
million in 2014, including continued investments made in support of our
next-generation identity management services in our sales, general, and
administrative expenses.
-- Net loss was approximately $5.5 million compared to net loss of
approximately $8.4 million in 2014 or basic and diluted loss per share
of $0.07 per share compared to $0.12 in the fourth quarter of 2014.
Fourth Quarter 2015 Financial Highlights
-- Net revenue increased 12% to $18.7 million from $16.8 million in the
fourth quarter of 2014, driven principally by increases in our DHS BPA
expansion.
-- Gross profit was $3.2 million compared to $3.4 million in the fourth
quarter of 2014, which as in the prior quarter, supports extra capacity
for expanded next generation identity management services and managed
mobility services.
-- Adjusted EBITDA loss was approximately $0.9 million compared to $0.5
million in the fourth quarter of 2014, including continued investments
made in support of our next-generation identity management services in
our sales, general, and administrative expenses.
-- Net loss was approximately $1.1 million compared to net loss of
approximately $0.9 million in the fourth quarter of 2014 or basic and
diluted loss per share of $0.014 per share compared to $0.011 in the
fourth quarter of 2014.
"Our results for 2015 were lower than our initial expectations, but set the stage for continued growth and a return to operational profitability in 2016," stated Steve L. Komar, WidePoint's chief executive officer. Komar further added, "We continue to expand our relationships with vendors like Samsung, LG, and Kyocera, and we are jointly marketing our next-generation identity management services with them even while we work to add new partners. We remain confident in our solutions and in the demand we see for them in the market today and in the future, in both the government and commercial sectors."
James McCubbin, WidePoint CFO, added, "We were pleased with the improvement we witnessed in revenue growth and the decrease we saw in our losses when comparing our fourth quarter against our third quarter of 2015. In 2016, we are working towards an expansion of revenue and margins from sales of higher margin solutions and efficiencies we are expecting as a result of platform unification, process improvements, and increase in critical mass. These improvements coupled with an initiative to streamline our sales, general, and administrative costs should drive positive performance in our financial model in 2016 as we push towards our goal of achieving operational profitability."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Tuesday, March 15, 2016. Anyone interested in listening to our analyst call should call 1-888-572-7033 if calling within the United States or 1-719-325-2494 if calling internationally. There will be a playback available until March 29, 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 3461649 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=118651.
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
CONSOLIDATED BALANCE SHEETS
DECEMBER 31,
2015 2014
---- ----
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $7,930,303 $13,154,699
Accounts receivable, net of allowance for doubtful
accounts
of $73,378 and
$88,719 in 2015
and 2014,
respectively 10,565,113 8,543,050
Unbilled accounts
receivable 6,637,587 5,547,416
Inventories 28,400 37,025
Prepaid expenses
and other assets 435,300 426,736
Income taxes
receivable - 25,984
Deferred income
taxes 30,889 18,584
Total current
assets 25,627,592 27,753,494
NONCURRENT ASSETS
Property and
equipment, net 1,513,307 1,614,182
Intangibles, net 5,101,523 5,992,992
Goodwill 18,555,578 18,555,578
Deposits and
other assets 60,471 161,994
TOTAL ASSETS $50,858,471 $54,078,240
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short term note
payable $131,953 $137,025
Accounts payable 7,812,226 6,165,477
Accrued expenses 6,687,054 5,980,110
Deferred revenue 2,007,970 710,275
Income taxes
payable 37,684 12,574
Current portion
of long-term
debt 893,706 2,184,016
Current portion
of deferred rent - 9,274
Current portion
of capital lease
obligations 28,752 76,597
Total current
liabilities 17,599,345 15,275,348
NONCURRENT LIABILITIES
Long-term debt,
net of current
portion 431,756 1,327,800
Capital lease
obligation, net
of current
portion 11,962 36,669
Deferred rent,
net of current
portion 151,994 152,815
Deferred revenue 24,937 56,977
Deferred income
taxes 447,811 447,811
Deposits and
other
liabilities - 1,964
Total liabilities 18,667,805 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; 82,520,696 and 81,656,763 shares issued
and outstanding,
respectively 82,521 81,657
Additional paid-
in capital 93,661,178 92,661,000
Accumulated other
comprehensive
(loss) (270,140) (147,515)
Accumulated
deficit (61,282,893) (55,816,286)
Total
stockholders'
equity 32,190,666 36,778,856
Total liabilities
and
stockholders'
equity $50,858,471 $54,078,240
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
YEARS ENDED
DECEMBER 31,
------------
2015 2014 2013
---- ---- ----
REVENUES $70,838,017 $53,316,210 $46,825,032
COST OF REVENUES (including amortization
and depreciation of
$1,183,143, $1,462,505, and $1,462,995, respectively) 57,605,357 39,802,293 34,713,471
----------
GROSS PROFIT 13,232,660 13,513,917 12,111,561
---------- ---------- ----------
OPERATING EXPENSES
Sales and
Marketing 3,030,249 3,432,602 3,125,867
General and
Administrative
Expenses
(including share-
based
compensation
of $299,337,
$324,281 and
$227,035,
respectively) 14,608,014 13,876,249 9,799,094
Product
Development 673,093 480,123 73,561
Depreciation and
Amortization 383,265 375,951 288,333
-------
Total Operating Expenses 18,694,621 18,164,925 13,286,855
---------- ---------- ----------
LOSS FROM OPERATIONS (5,461,961) (4,651,008) (1,175,294)
OTHER INCOME (EXPENSE)
Interest Income 23,031 17,002 7,364
Interest (Expense) (142,497) (186,796) (175,358)
Other Income
(Expense) 33,009 12,890 11,267
------
Total Other Income
(Expense) (86,457) (156,904) (156,727)
------- -------- --------
LOSS BEFORE PROVISION FOR INCOME TAXES (5,548,418) (4,807,912) (1,332,021)
INCOME TAX (BENEFIT) PROVISION (81,811) 3,592,714 362,764
------- --------- -------
NET LOSS $(5,466,607) $(8,400,626) $(1,694,785)
=========== =========== ===========
BASIC EARNINGS PER SHARE $(0.066) $(0.115) $(0.027)
======= ======= =======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,228,974 73,048,883 63,802,275
========== ========== ==========
DILUTED EARNINGS PER SHARE $(0.066) $(0.115) $(0.027)
======= ======= =======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,228,974 73,048,883 63,802,275
========== ========== ==========
WIDEPOINT CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (ROUNDED)
YEARS ENDED
DECEMBER 31,
------------
2015 2014 2013
---- ---- ----
NET LOSS $(5,466,600) $(8,400,600) $(1,694,800)
Adjustments to GAAP net
income (loss):
Gain on
change in
fair value
of
contingent
obligation - - (1,250,000)
Depreciation
and
amortization 1,566,400 1,838,400 1,751,300
Amortization
of deferred
financing
costs 10,300 7,900 8,700
Income tax
provision
(benefit) (81,800) 3,592,700 362,800
Interest
income (23,000) (17,000) (7,400)
Interest
expense 132,200 178,900 166,700
Other
(expense)
income (33,000) (12,900) (11,300)
Provision for
doubtful
accounts 18,100 37,700 75,400
Inventory
write-downs - 5,400 200,000
Stock-based
compensation
expense 299,300 324,300 227,000
Integration
initiatives - - 21,000
------------
Adjusted EBITDA $(3,578,100) $(2,445,200) $(150,600)
=========== =========== =========
THREE MONTHS ENDED
DECEMBER 31,
2015 2014
---- ----
NET LOSS $(1,135,900) $(902,967)
Adjustments to GAAP net
income (loss):
Gain on
change in
fair value
of
contingent
obligation - -
Depreciation
and
amortization 409,500 469,578
Amortization
of deferred
financing
costs 1,600 3,200
Income tax
provision
(benefit) (229,000) (166,800)
Interest
income (5,100) (5,400)
Interest
expense 20,900 44,000
Other
(expense)
income 4,800 (6,300)
Provision for
doubtful
accounts (38,800) 13,700
Inventory
write-downs - 5,400
Stock-based
compensation
expense 91,200 87,200
------------
Adjusted EBITDA $(880,800) $(458,389)
========= =========
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
