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WidePoint Corporation Announces 2012 Financial Results

35% Revenue Growth and 230+% Growth in Net Income Highlight Improved Performance

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WASHINGTON, April 1, 2013 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY), a leading provider of secured, cloud-based, enterprise-wide solutions and services for telecommunications life-cycle and cybersecurity management, today announced financial results for the year ending December 31, 2012.

Financial highlights for the year ended December 31, 2012 vs 2011:

  • Net revenues for 2012 increased 35% to approximately $56 million, an increase of $14.4 million, as compared to $41.4 million for 2011.
  • Gross profit for 2012 increased 50% to approximately $14 million, an increase of $4.6 million as compared to $9.2 million for 2011.
  • Income from operations for 2012 was approximately $1,020,000, an increase of $914,000 as compared to $105,000 for 2011.
  • Net income for 2012 was approximately $830,000, an increase of $585,000 as compared to $247,000 for 2011.
  • Non-GAAP Adjusted EBITDA for 2012 was approximately $2.3 million, an increase of $1.2 million, as compared to $1.1 million for 2011.
  • Working capital on December 31, 2012 increased 12% to $2.6 million, an increase of $0.3 million as compared to approximately $2.3 million at 2011 year end.
  • Outstanding Debt on December 31, 2012 was approximately $6.0 million, a decrease of $1.7 million as compared to $7.7 million at 2011 year end.
  • Stockholders Equity on December 31, 2012 was approximately $23.9 million, an increase of $1.1 million as compared to approximately $22.8 million at 2011 year end.

Steve Komar, WidePoint CEO, commented, "While we are pleased with the progress we made in 2012 and the platform it has provided for us to continue our evolution towards becoming an enterprise-wide provider of trusted managed mobile services solutions, it is really just the beginning.  Looking forward to 2013 we are excited by our plans and prospects to broaden our solutions to include Mobile Device Management and Mobile Security Management products and services; as well as expanding our commercial market presence and international services and support capabilities.  We started 2013 with a significant expansion of our sales and marketing infrastructure, incorporating new talent that will allow us to market more aggressively, launch new enterprise-wide solution sets, and better target new customers whose needs go well beyond the confines of our national borders.  While we are aware of budgeting and sequestration concerns in some of our markets, and understand the need to be focused on cost optimization and margin increases; we believe we are on the right path and that our expanded sales and marketing efforts and client acquisition success will result in more robust pipelines and backlogs, in accelerated performance and growth, increased market capitalization and, of course, attractive equity return to our investors and stakeholders."

James McCubbin, WidePoint CFO, added, "We continue to make progress in achieving our financial goals.  The path we started on in 2012 has positioned the Company to implement a number of key financial re-investments in WidePoint in 2013 that will allow us to better position the Company to support our multi-year goals of expanded solutions sets, new market penetration, and a migration to a portfolio of higher margin services."

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, April 1, 2013. Anyone interested in participating should call 877-941-2068 if calling within the United States or 480-629-9712 if calling internationally. There will be a playback available until April 15, 2013. To listen to the playback, please call 877-870-5176 if calling within the United States or 858-384-5517 if calling internationally. Please use pin number 4609495 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=103973.

About WidePoint

WidePoint is a specialist in providing telecommunications management and cybersecurity solutions utilizing its advanced information technology products and services. WidePoint has several wholly owned subsidiaries holding major government and commercial contracts. WidePoint enables Enterprises and Agencies to deploy fully compliant IT services in accordance with government mandated regulations and advanced system requirements. 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 Dave 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


 

WIDEPOINT CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets



DECEMBER 31


2012


2011





ASSETS

CURRENT ASSETS




Cash and cash equivalents

$   1,857,614


$   2,035,343

Accounts receivable, net of allowance for doubtful accounts 

of $76,886 and $61,584 in 2012 and 2011, respectively




6,932,366


7,858,902

Unbilled accounts receivable

2,969,450


2,715,406

Inventories

286,920


167,992

Prepaid expenses and other assets

482,389


614,870

Income taxes receivable

138,575


-

Deferred income taxes

473,430


473,430





Total current assets

13,140,744


13,865,943





NONCURRENT ASSETS




Property and equipment, net

1,428,323


1,336,134

Intangibles, net

4,969,241


6,229,227

Goodwill

16,618,467


16,618,467

Deferred income tax asset, net of current

3,346,948


3,265,125

Deposits and other assets

76,118


81,941





TOTAL ASSETS

$ 39,579,841


$ 41,396,837





LIABILITIES AND STOCKHOLDERS' DEFICIT





CURRENT LIABILITIES




Short term note payable

$      113,018


$      100,951

Checks Written in Excess of Cash Balance

-


-

Accounts payable

5,555,419


8,418,854

Accrued expenses

3,539,710


1,808,289

Deferred revenue

173,655


390,506

Income taxes payable

-


-

Current portion of long-term debt

1,102,741


798,319

Current portion of deferred rent

51,196


36,508

Current portion of capital lease obligations

42,878


22,908





Total current liabilities

10,578,617


11,576,335





NONCURRENT LIABILITIES




Long-term debt, net of current portion

4,918,732


6,919,143

Capital lease obligation, net of current portion

102,244


-

Deferred rent, net of current portion

15,786


65,207

Deferred revenue

25,231


-

Deposits and other liabilities

1,964


-





Total liabilities

15,642,574


18,560,685





STOCKHOLDERS' EQUITY




Common stock, $0.001 par value; 110,000,000 shares

authorized; 63,751,857 and 63,226,857 shares issued 

and outstanding, respectively







63,752


63,227

Additional paid-in capital

69,594,390


69,326,705

Accumulated deficit

(45,720,875)


(46,553,780)





Total stockholders' equity

23,937,267


22,836,152





Total liabilities and stockholders' equity

$ 39,579,841


$ 41,396,837

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations










YEAR ENDED





DECEMBER 31





2012


2011








REVENUES

$   55,782,742


$ 41,372,490

COST OF REVENUES (including amortization and depreciation of $1,511,267 and $649,829, respectively)




41,920,161


32,128,988








GROSS PROFIT

13,862,581


9,243,502








OPERATING EXPENSES





Sales and Marketing

2,741,799


1,484,003


General and Administrative Costs (including share-based compensation of $217,611 and $157,459, respectively and gain on change in fair value of contingent obligation of $900,000 and $0, respectively)

 

9,820,695


7,443,197








Depreciation and Amortization

281,310


211,129











Total Operating Expenses

12,843,804


9,138,329








INCOME FROM OPERATIONS

1,018,777


105,173








OTHER INCOME (EXPENSE)





Interest Income

4,881


12,572


Interest Expense

(294,244)


(69,317)


Other Income (Expense)

3,200


(608)











Total Other Income (Expense)

(286,163)


(57,353)








INCOME BEFORE PROVISION FOR INCOME TAXES

732,614


47,820

INCOME TAX BENEFIT

(99,687)


(199,046)








NET INCOME

$        832,301


$      246,866








BASIC EARNINGS PER SHARE

$            0.013


$          0.004








BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

63,474,871


62,882,100








DILUTED EARNINGS PER SHARE

$            0.013


$          0.004








DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

63,758,632


64,148,331

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

Net Income to Non-GAAP EBITDA Reconciliation










YEAR ENDED





DECEMBER 31





2012


2011








NET INCOME (LOSS)

$        832,301


$      246,866

Adjustments to GAAP net income (loss):





Gain on change in fair value of contingent obligation

(900,000)


-


Depreciation and amortization

1,792,577


860,958


Amortization of deferred financing costs

3,088


3,214


Income tax provision (benefit)

(99,687)


(199,046)


Interest income

(4,881)


(3,000)


Interest expense

294,244


15,000


Other (expense) income

(3,200)


1,000


Provision for doubtful accounts

25,070


-


Inventory write-downs

52,056


-


Stock-based compensation expense

217,611


157,459


Avalon business combination transaction and related costs

12,000


-


Avalon integration initiatives 

121,646


-

Adjusted EBITDA

$     2,342,825


$   1,082,451

SOURCE WidePoint Corporation



RELATED LINKS
http://www.widepoint.com

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