WidePoint Corporation Announces Full Year 2015 Financial Results

Fiscal year end 2015 Revenue increased 33% to $70.8 million from $53.3 million in 2014; Fourth quarter 2015 Revenue increased 12% to $18.7 million from $16.8 million in fourth quarter 2014

Mar 15, 2016, 16:05 ET from 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™ 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™ 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




 

SOURCE WidePoint Corporation



RELATED LINKS

http://www.widepoint.com