WIDEPOINT CORPORATION MCLEAN, Va., Nov. 9, 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 third quarter ended September 30, 2015.
Recent Business Highlights
-- Awarded initial task orders to commence work from one of the three
remaining Department of Homeland Security (DHS) component agencies under
our $600 million DHS BPA
-- Partnered with Bob Day & Associates LLC to pursue new and expanded
business opportunities within the Homeland Security and cyber technology
markets
-- Engaged Deep Water Point to develop, pursue, and expand our federal
business reach as we scale our marketing footprint with other
departmental-level federal organizations
-- Awarded approximately $6.5 million in new managed mobility services for
federal, municipal, and commercial work
-- Awarded approximately $2.3 million, with renewals, in new consulting
support work
-- Launched New Online Bill Presentment and Analytics Solutions for the
Communication Service Provider (CSP) consumer market at BroadSoft
Connections 2015
-- Continued engagements with DoD and DHS component/agencies for
Certificate-on-Device(TM) - derived credentialing and other
next-generation identity management services
-- Continued development with strategic partners of our
Certificate-on-Device product roadmap for individuals, derived
credentials, machine device credentials, and other "Internet of Things"
components; continued consolidation of platforms and integration efforts
of our enterprise solutions
Third Quarter 2015 Financial Highlights
-- Net revenue increased 17% to $17.0 million from $14.5 million in the
third quarter of 2014, driven principally by increases in our DHS BPA
expansion, partially offset by decreases in software reselling
activities within our managed services offerings.
-- Gross profit was $3.1 million compared to $4.0 million in the third
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 $1.1 million compared to $404,000
in the third quarter of 2014, driven by continued technology, sales and
marketing, and infrastructure investments in support of our
next-generation identity management services and managed mobility
services.
-- Net loss was approximately $1.8 million compared to net loss of
approximately $5.9 million in the third quarter of 2014 or basic and
diluted loss per share of 0.02 per share compared to $0.08 in the third
quarter of 2014.
James McCubbin, WidePoint's chief financial officer, stated, "Our financial results in the third quarter of 2015 were weaker than we expected as a result of delays in anticipated contract awards. While we did receive awards late in the third quarter and early in the fourth quarter of 2015, including new initial task orders from one of the last three agencies remaining to be won under our DHS BPA contract, the timing put us behind schedule. We still remain confident, timing issues aside, that we will continue to win additional work under our DHS BPA. We believe that our revenues, gross margins, and overall financial metrics and results, should improve, as our new next-generation identity management services come on line."
Steve L. Komar, WidePoint's chief executive officer, stated, "We continue to make great strides in our development efforts of our next generation identity management services and channel marketing efforts with our strategic partners. While contract delays caused some timing issues that negatively effected our financial performance in the third quarter of 2015, we remain confident in our products and services, and in the increasing demand we see for them in the market today and in the future, in both the government and commercial sectors."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, November 9, 2015. Anyone interested in listening to our analyst call should call 1-877-419-6591 if calling within the United States or 1-719-325-4747 if calling internationally. There will be a playback available until November 23, 2015. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-719-325-4752 if calling internationally. Please use PIN code 4105835 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=116997.
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
SEPTEMBER 30, DECEMBER 31,
2015 2014
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $10,443,065 $13,154,699
Accounts receivable, net of allowance for
doubtful accounts of $147,331 and $88,719
in 2015 and 2014, respectively
9,546,162 8,543,050
Unbilled accounts
receivable 6,517,707 5,547,416
Inventories 26,716 37,025
Prepaid expenses and other
assets 417,907 426,736
Income taxes receivable - 25,984
Deferred income taxes - 18,584
Total current assets 26,951,557 27,753,494
NONCURRENT ASSETS
Property and equipment, net 1,544,090 1,614,182
Intangibles, net 5,375,798 5,992,992
Goodwill 18,555,578 18,555,578
Deferred income tax asset,
net of current 14,272 -
Deposits and other assets 136,554 161,994
TOTAL ASSETS $52,577,849 $54,078,240
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $2,013,665 $ -
Short term note payable 48,738 137,025
Accounts payable 6,448,509 6,165,477
Accrued expenses 6,490,586 5,980,110
Deferred revenue 1,953,168 710,275
Income taxes payable 94,236 12,574
Current portion of long-
term debt 879,181 2,184,016
Current portion of deferred
rent - 9,274
Current portion of capital
lease obligations 47,935 76,597
Total current liabilities 17,976,018 15,275,348
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 663,267 1,327,800
Capital lease obligation,
net of current portion 11,682 36,669
Deferred rent, net of
current portion 159,266 152,815
Deferred revenue 36,816 56,977
Deferred income taxes 447,811 447,811
Deposits and other
liabilities - 1,964
Total liabilities 19,294,860 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 93,569,933 92,661,000
Accumulated other
comprehensive (loss) (222,512) (147,515)
Accumulated deficit (60,146,953) (55,816,286)
Total stockholders' equity 33,282,989 36,778,856
Total liabilities and
stockholders' equity $52,577,849 $54,078,240
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2015 2014 2015 2014
---- ---- ---- ----
REVENUES $16,994,858 $14,555,908 $52,123,171 $36,552,708
COST OF REVENUES (including
amortization and depreciation of
$290,011, $309,276, $873,724, and
$976,116, respectively)
13,875,473 10,571,518 42,127,589 26,487,285
GROSS PROFIT 3,119,385 3,984,390 9,995,582 10,065,423
--------- --------- --------- ----------
OPERATING EXPENSES
Sales and
Marketing 764,845 868,152 2,333,039 2,751,323
General and
Administrative
Expenses
(including
share-based
compensation of
$89,229,
$70,397,
$208,091 and
$237,101,
respectively)
3,893,348 3,816,100 11,507,309 10,538,220
Depreciation and
Amortization 92,968 179,977 283,211 392,706
------
Total Operating Expenses 4,751,161 4,864,229 14,123,559 13,682,249
--------- --------- ---------- ----------
LOSS FROM OPERATIONS (1,631,776) (879,839) (4,127,977) (3,616,826)
OTHER INCOME (EXPENSE)
Interest Income 7,020 6,290 17,924 11,614
Interest
(Expense) (30,868) (47,020) (111,253) (139,578)
Other Income
(Expense) (37,814) (5,159) 37,826 6,640
--------
Total Other Income
(Expense) (61,662) (45,889) (55,503) (121,324)
------- ------- ------- --------
LOSS BEFORE PROVISION FOR INCOME
TAXES (1,693,438) (925,728) (4,183,480) (3,738,150)
INCOME TAX PROVISION 69,842 4,975,968 147,187 3,759,483
------ --------- ------- ---------
NET LOSS $(1,763,280) $(5,901,696) $(4,330,667) $(7,497,633)
=========== =========== =========== ===========
BASIC EARNINGS PER SHARE $(0.021) $(0.081) $(0.053) $(0.106)
======= ======= ======= =======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,515,103 73,195,464 82,130,665 71,029,985
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE $(0.021) $(0.081) $(0.053) $(0.106)
======= ======= ======= =======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,515,103 73,195,464 82,130,665 71,029,985
========== ========== ========== ==========
WIDEPOINT CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2015 2014 2015 2014
---- ---- ---- ----
NET LOSS $(1,763,300) $(5,901,700) $(4,330,700) $(7,497,633)
Adjustments to GAAP net income (loss):
Depreciation
and
amortization 382,900 401,400 1,156,900 1,368,822
Amortization
of deferred
financing
costs 2,900 3,800 8,700 4,700
Income tax
provision
(benefit) 69,900 4,976,000 147,200 3,759,500
Interest
income (7,000) (6,300) (17,900) (11,600)
Interest
expense 30,900 47,000 111,300 139,600
Other
(expense)
income 37,800 5,200 (37,800) (6,600)
Provision for
doubtful
accounts 80,027 - 56,900 24,000
Stock-based
compensation
expense 89,200 70,400 208,100 237,100
------------
Adjusted EBITDA $(1,076,673) $(404,200) $(2,697,300) $(1,982,111)
=========== ========= =========== ===========
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
