WIDEPOINT CORPORATION MCLEAN, Va., Aug. 8, 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 Second quarter ended June 30, 2016.
Recent Business Highlights
-- Continued demonstration of capabilities in concert with Department of
Defense (DoD) and Department of Homeland Security (DHS)
component/agencies for Certificate-on-Device(TM) derived credentialing
and related next-generation identity management services
-- Continued marketing and pipeline building activities with Samsung and
other key industry partners for Certificate-on-Device(TM) person,
derived, and device credentials, and other "Internet of Things" (IoT)
components
-- Selected by AT&T for commercial roll-out of Certificate-on-Device(TM)
for AT&T's IoT product offering in 2017
-- Selected by Voya Financial as a strategic partner in the "One Voya"
initiative to pursue expanded identity management opportunities
-- Renewed expanded services contracts with Compass Group PLC and the DOJ's
Bureau of Alcohol, Tobacco, Firearms and Explosives, securing over $10
million in new contract wins and option year extensions. Successes
included awards for identity assurance, mobile telecomm, analytics and
consulting services, spanning both Government and Commercial markets.
-- Appointed Jason Holloway as Chief Sales and Marketing Officer
Second Quarter 2016 Financial Highlights
-- Net revenue was approximately $17.5 million compared to $17.4 million in
the second quarter of 2015
-- Gross profit was approximately $3.4 million compared to $3.3 million in
the second quarter of 2015
-- Net Loss improved approximately $500,000 to ($897,000) compared to net
loss of approximately ($1.4 million) in the second quarter of 2015, or
basic and diluted loss per share of $0.011 per share compared to $0.017
in the second quarter of 2015
-- Adjusted EBITDA Loss improved approximately $510,000 to ($448,000) from
($958,000) in the second quarter of 2015
First Half 2016 Financial Highlights
-- Net revenue was approximately $38.0 million compared to $35.1 million in
the first six months of 2015
-- Gross profit was approximately $7.5 million compared to $6.9 million in
the first six months of 2015
-- Net Loss improved approximately $1.0 million to ($1.6 million) compared
to net loss of approximately ($2.6 million) in the first six months of
2015, or basic and diluted loss per share of $0.019 per share compared
to $0.031 in the first six months of 2015
-- Adjusted EBITDA Loss improved approximately $0.9 million to ($0.7
million) from ($1.6 million) in the first six months of 2015
"Our second quarter was marked by substantial improvements in our progress toward profitability," stated Steve L. Komar, WidePoint's chief executive officer. "We continue to selectively invest in our next-generation solutions and to expand our partnerships with leading technology Channel Partners, including Samsung and AT&T. We are driving fundamental changes to our business model to push our new business building efforts to a focus on higher margin services including mobility telecommunications and cybersecurity, and de-emphasizing lower margin reselling and administrative services activities, and continue to take steps to optimize our costs of operations and delivery. We fully expect to see the financial impact of this prioritization throughout the remainder of 2016, and increasingly in the years to come."
James McCubbin, WidePoint's chief financial officer, added, "Our improvements in both our net operating losses and adjusted EBITDA loss in the second quarter and in the first half were largely driven by our ongoing business rationalization efforts to improve our operating model. We believe we are on track to reach operational profitability in the second half of 2016."
Conference Call Information
A conference call and live webcast will take place at 4:05 p.m. Eastern Time, on Monday, August 8, 2016. Anyone interested in listening to our analyst call should call 1-877-723-9522 if calling within the United States or 1-719-325-4842 if calling internationally. There will be a playback available until August 22, 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 4730874for the replay. The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=120493.
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.
For More Information:
Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com
-tables follow-
WIDEPOINT CORPORATION
CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31,
2016 2015
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $8,327,621 $7,930,303
Accounts receivable, net of allowance for
doubtful accounts of $81,345 and $73,378
in 2016 and 2015, respectively
7,967,307 10,565,113
Unbilled accounts
receivable 5,819,539 6,637,587
Inventories 65,248 28,400
Prepaid expenses and other
assets 400,768 435,300
Deferred income taxes 39,467 30,889
Total current assets 22,619,950 25,627,592
NONCURRENT ASSETS
Property and equipment, net 1,342,692 1,513,307
Intangibles, net 4,801,164 5,101,523
Goodwill 18,555,578 18,555,578
Deposits and other assets 61,791 60,471
TOTAL ASSETS $47,381,175 $50,858,471
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit advance $137,861 $ -
Short term note payable 35,063 131,953
Accounts payable 7,433,642 7,812,226
Accrued expenses 6,349,221 6,687,054
Deferred revenue 1,132,983 2,007,970
Income taxes payable 56,510 37,684
Current portion of long-
term debt 462,067 893,706
Current portion of capital
lease obligations 13,772 28,752
Total current liabilities 15,621,119 17,599,345
NONCURRENT LIABILITIES
Long-term debt, net of
current portion 422,117 431,756
Capital lease obligation,
net of current portion 2,840 11,962
Deferred rent, net of
current portion 137,452 151,994
Deferred revenue - 24,937
Deferred income taxes 447,811 447,811
Total liabilities 16,631,339 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 93,745,431 93,661,178
Accumulated other
comprehensive loss (238,989) (270,140)
Accumulated deficit (62,839,336) (61,282,893)
Total stockholders' equity 30,749,836 32,190,666
Total liabilities and
stockholders' equity $47,381,175 $50,858,471
=========== ===========
WIDEPOINT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
REVENUES $17,539,666 $17,432,745 $38,048,306 $35,128,313
COST OF REVENUES (including amortization and depreciation of $288,187,
$288,277, $580,635, and $583,713, respectively)
14,179,119 14,126,516 30,482,781 28,252,116
---------- ---------- ---------- ----------
GROSS PROFIT 3,360,547 3,306,229 7,565,525 6,876,197
--------- --------- --------- ---------
OPERATING EXPENSES
Sales and
Marketing 702,465 797,683 1,441,514 1,568,194
General and
Administrative
Expenses
(including
share-based
compensation of
$48,447,
$81,311,
$136,326 and
$118,862,
respectively
3,441,984 3,675,891 7,199,930 7,402,936
Product
Development 1,000 142,173 258,383 211,025
Depreciation and
Amortization 89,719 91,946 184,197 190,243
------
Total Operating Expenses 4,235,168 4,707,693 9,084,024 9,372,398
--------- --------- --------- ---------
LOSS FROM OPERATIONS (874,621) (1,401,464) (1,518,499) (2,496,201)
OTHER INCOME (EXPENSE)
Interest Income 3,433 4,978 7,606 10,904
Interest Expense (19,828) (36,145) (40,158) (80,385)
Other Income 5,377 68,207 7,345 75,640
-----
Total Other Income
(Expense) (11,018) 37,040 (25,207) 6,159
------- ------ ------- -----
LOSS BEFORE PROVISION FOR INCOME
TAXES (885,639) (1,364,424) (1,543,706) (2,490,042)
INCOME TAX PROVISION 11,291 45,204 12,734 77,345
------ ------ ------ ------
NET LOSS $(896,930) $(1,409,628) $(1,556,440) $(2,567,387)
========= =========== =========== ===========
BASIC EARNINGS PER SHARE $(0.011) $(0.017) $(0.019) $(0.031)
======= ======= ======= =======
BASIC WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,730,134 82,124,603 82,644,978 81,935,259
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE $(0.011) $(0.017) $(0.019) $(0.031)
======= ======= ======= =======
DILUTED WEIGHTED-AVERAGE SHARES
OUTSTANDING 82,730,134 82,124,603 82,644,978 81,935,259
========== ========== ========== ==========
WIDEPOINT CORPORATION
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
NET LOSS $(896,900) $(1,409,600) $(1,556,400) $(2,567,400)
Adjustments to GAAP net income (loss):
Depreciation
and
amortization 377,900 380,200 764,800 774,000
Amortization
of deferred
financing
costs - 2,900 - 5,800
Income tax
provision
(benefit) 11,300 45,200 12,700 77,300
Interest
income (3,400) (5,000) (7,600) (10,900)
Interest
expense 19,900 36,100 40,200 80,400
Other
(expense)
income (5,300) (68,200) (7,300) (75,600)
Provision for
doubtful
accounts - (21,500) (13,400) (23,100)
Stock-based
compensation
expense 48,400 81,400 81,300 118,900
-----------
Adjusted EBITDA $(448,100) $(958,500) $(685,700) $(1,620,600)
========= ========= ========= ===========
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SOURCE WidePoint Corporation
