WIDEPOINT CORPORATION MCLEAN, Va., May 10, 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 first quarter ended March 31, 2016.
Recent Business Highlights
-- Continued demonstration of capabilities efforts with Department of
Defense (DoD) and Department of Homeland Security (DHS)
component/agencies for Certificate-on-Device(TM) derived credentialing
and other next-generation identity management services
-- Continued marketing and pipeline building activities with Samsung and
AT&T partners for Certificate-on-Device(TM) person, derived, and device
credentials, and other "Internet of Things" components
-- Partnered with HP Inc. as an HPI Mobility Independent Software Vendor
(ISV) Partner to provide secure digital identity assurance on HPI's full
mobility lineup, including its recently announced HP Elite x3
-- Partnered with Spikes Security to integrate WidePoint's
Certificate-on-Device(TM) digital certificates offering with Spikes'
Isla Malware Isolation System
-- Renewed credit facility with Cardinal Bank through April 30, 2017
First Quarter 2016 Financial Highlights
-- Net revenue increased approximately $2.8 million or 16% to $20.5 million
from $17.7 million in the first quarter of 2015, materially driven by
increases in DHS BPA task orders and other identity management awards
that were partially offset by decreases in software reselling activities
-- Gross profit increased approximately $600,000 or 18% to $4.2 million
from $3.6 million in the first quarter of 2015, materially driven by a
greater mix of higher margin identity management and telecom services,
which partially offset a reduction in lower margin software reselling
revenues
-- Adjusted EBITDA Loss improved approximately $496,000 to ($169,000) from
($665,000) in the first quarter of 2015, notwithstanding an increase of
approximately $189,000 in product development investments made in
support of our next-generation identity management services
-- Net Loss improved approximately $500,000 to ($660,000) compared to net
loss of approximately ($1.2 million) in the first quarter of 2015, or
basic and diluted loss per share of $0.008 per share compared to $0.014
in the first quarter of 2015
"We reported a strong and improving quarter driven by double-digit revenue growth and improved gross profit, demonstrating significant progress and bolstering our optimism for achieving our stated full-year goals," stated Steve L. Komar, WidePoint's chief executive officer. "We have invested in our next-generation solutions, including securing leading technology partners, and we continue to expand these relationships. We believe we are reaching a maturation point with several of our larger partners, which should help us drive additional revenue growth."
James McCubbin, WidePoint's chief financial officer, added, "Our strong revenue and gross profit growth led to substantial improvements in both our operating losses and adjusted EBITDA loss in the first quarter. This progress does not yet reflect cost reduction efforts we have recently initiated, involving rationalization of our sales, marketing, general, and administrative expenses, and we expect this initiative to benefit the remainder of 2016."
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Tuesday, May 10, 2016. Anyone interested in listening to our analyst call should call 1-877-795-3610 if calling within the United States or 1-719-325-4785 if calling internationally. There will be a playback available until May 24, 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 4337611 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=119513.
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 Company's ability to achieve profitability and positive cash flows; (v) the Company's ability to raise additional capital on favorable terms or at all; (vii) the Company's ability to gain market acceptance for its products and (viii) 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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016.
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
WIDEPOINT CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
2016 2015
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $6,251,464 $7,930,303
Accounts receivable, net of allowance for
doubtful accounts of $76,486 and $73,378 in
2016 and 2015, respectively
7,122,892 10,565,113
Unbilled accounts receivable 9,057,696 6,637,587
Inventories 40,993 28,400
Prepaid expenses and other
assets 510,533 435,300
Deferred income taxes 36,243 30,889
Total current assets 23,019,821 25,627,592
NONCURRENT ASSETS
Property and equipment, net 1,439,692 1,513,307
Intangibles, net 4,834,602 5,101,523
Goodwill 18,555,578 18,555,578
Deposits and other assets 56,190 60,471
TOTAL ASSETS $47,905,883 $50,858,471
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $585,712 $ -
Short term note payable 76,761 131,953
Accounts payable 2,886,931 7,812,226
Accrued expenses 9,679,060 6,687,054
Deferred revenue 1,253,896 2,007,970
Income taxes payable 59,645 37,684
Current portion of long-term
debt 679,074 893,706
Current portion of capital
lease obligations 18,716 28,752
Total current liabilities 15,239,795 17,599,345
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 426,937 431,756
Capital lease obligation, net
of current portion 5,111 11,962
Deferred rent, net of current
portion 144,724 151,994
Deferred revenue 6,132 24,937
Deferred income taxes 447,811 447,811
Total liabilities 16,270,510 18,667,805
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; 82,730,134 and 82,520,696
shares issued and outstanding, respectively
82,730 82,521
Additional paid-in capital 93,699,300 93,661,178
Accumulated other
comprehensive loss (204,254) (270,140)
Accumulated deficit (61,942,403) (61,282,893)
Total stockholders' equity 31,635,373 32,190,666
Total liabilities and
stockholders' equity $47,905,883 $50,858,471
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
---------
2016 2015
---- ----
REVENUES $20,508,640 $17,695,568
COST OF REVENUES (including
amortization and depreciation of
$292,241 and $295,436,
respectively)
16,303,662 14,125,600
---------- ----------
GROSS PROFIT 4,204,978 3,569,968
--------- ---------
OPERATING EXPENSES
Sales and
Marketing 739,049 770,511
General and
Administrative
Expenses
(including
share-based
compensation of
$87,879 and
$37,551,
respectively
3,757,946 3,727,045
Product
Development 257,383 68,852
Depreciation and
Amortization 94,478 98,297
------
Total Operating Expenses 4,848,856 4,664,705
--------- ---------
LOSS FROM OPERATIONS (643,878) (1,094,737)
OTHER INCOME (EXPENSE)
Interest Income 4,173 5,926
Interest Expense (20,330) (44,240)
Other Income 1,968 7,433
-----
Total Other Income
(Expense) (14,189) (30,881)
------- -------
LOSS BEFORE PROVISION FOR INCOME
TAXES (658,067) (1,125,618)
INCOME TAX PROVISION 1,443 32,141
----- ------
NET LOSS $(659,510) $(1,157,759)
========= ===========
BASIC EARNINGS PER SHARE $(0.008) $(0.014)
======= =======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,559,822 81,743,812
========== ==========
DILUTED EARNINGS PER SHARE $(0.008) $(0.014)
======= =======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,559,822 81,743,812
========== ==========
WIDEPOINT CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
---------
2016 2015
---- ----
NET LOSS $(659,500) $(1,157,800)
Adjustments to GAAP net income (loss):
Gain on change
in fair value
of contingent
obligation -
Depreciation
and
amortization 386,700 393,700
Income tax
provision
(benefit) 1,400 32,100
Interest
income (4,200) (5,900)
Interest
expense 20,300 44,200
Other
(expense)
income (2,000) (7,400)
Provision for
doubtful
accounts - (1,600)
Stock-based
compensation
expense 87,900 37,600
------------
Adjusted EBITDA $(169,400) $(665,100)
========= =========
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SOURCE WidePoint Corporation
