WidePoint Corporation Announces Second Quarter 2015 Financial Results

41 percent year-over-year revenue growth; New Partnerships, Awards, CoD Advancements and DHS Opportunities Drive Positive 2nd Half Outlook

Aug 10, 2015, 16:05 ET from WidePoint Corporation

MCLEAN, Va., Aug. 10, 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 second quarter ended June 30, 2015.

Recent Business Highlights

  • Entered Strategic Alliance with Samsung SDS America.
  • Launched New Online Bill Presentment and Analytics Solutions with Three ("3") Ireland.
  • Selected by Telefonica UK for Provisioning Cloud Digital Services.
  • Fully Deployed U.S. Immigration and Customs Enforcement component/agency under our DHS BPA.
  • Engaged with 3 major remaining DHS BPA component/agencies.
  • Engaged with DoD and DHS component/agencies for Certificate-on-DeviceTM (CoD) – derived credentialing and other next generation identity management services.
  • Completed phase 1 CoD consulting services with major financial services company and entering phase 2 of rollout; initiated phase 1 CoD with 2 other large commercial enterprises.
  • Awarded approximately $7.8M in DHS BPA task awards; expanded sales channel training and education of new channel partners; and grew 2nd half sales pipeline due to introduction of new next generation identity management services.
  • Continued development with new partners of product roadmap for CoD for individuals, derived credentials, machine device credentials, and other "Internet of Things" components; continued consolidation of platforms and integration efforts of our enterprise solutions.

Second Quarter 2015 Financial Highlights

  • Net revenue increased 41% to $17.4 million from $12.4 million in the second quarter of 2014.
  • Gross profit was $3.3 million compared to $3.6 million in the second quarter of 2014, which supports extra capacity for expanded next generation identity management services and managed mobility services.
  • Adjusted EBITDA loss was approximately $958,000 compared to $669,000 in the second quarter of 2014, including investments made in support of our next generation identity management services in our general and administrative expenses.
  • Net loss was approximately $1.4 million compared to net loss of approximately $0.7 million in the second quarter of 2014 or basic and diluted loss per share of 0.017 per share compared to $0.009 in the second quarter of 2014.
  • Net working capital was approximately $10.6 million as of June 30, 2015.

"Our results in the second quarter of 2015, when combined with our first quarter performance, were largely in line with our year to date expectations," stated Steve L. Komar, WidePoint's chief executive officer. Komar further added, "We made great strides in our development efforts of our next generation identity management services with our new channel partners. We see a tremendous interest in our solutions given recent cybersecurity breaches and threats and the strong responses being taken by both government and commercial groups."

James McCubbin, WidePoint CFO, added, "Our second quarter revenues and financial performance were overall in-line with our expectations with a bit more investment required as a result of requests made by our new channel partners for additional support.  We continue to look for revenue growth and improved operating results in the 2nd half of the year as next generation identity management services come further on line along with expectations for additional awards from our DHS BPA and other services."

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, August 10, 2015. Anyone interested in listening to our analyst call should call 1-888-337-8198 if calling within the United States or 1-719-325-2354 if calling internationally. There will be a playback available until August 24, 2015. 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 number 2313513 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=115828.

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






JUNE 30,


DECEMBER 31,


2015


2014





ASSETS

CURRENT ASSETS




Cash and cash equivalents

$      9,687,332


$    13,154,699

Accounts receivable, net of allowance for doubtful accounts of $73,636 and $88,719 in 2015 and 2014, respectively

12,391,141


8,543,050

Unbilled accounts receivable

5,340,750


5,547,416

Inventories

22,150


37,025

Prepaid expenses and other assets

611,967


426,736

Income taxes receivable

-


25,984

Deferred income taxes

13,324


18,584





Total current assets

28,066,664


27,753,494





NONCURRENT ASSETS




Property and equipment, net

1,550,624


1,614,182

Intangibles, net

5,648,576


5,992,992

Goodwill

18,555,578


18,555,578

Deposits and other assets

139,463


161,994





TOTAL ASSETS

$    53,960,905


$    54,078,240





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Line of credit advance

$         122,527


$                    -

Short term note payable

37,423


137,025

Accounts payable

8,659,862


6,165,477

Accrued expenses

5,944,560


5,980,110

Deferred revenue

1,768,374


710,275

Income taxes payable

39,408


12,574

Current portion of long-term debt

869,296


2,184,016

Current portion of deferred rent

-


9,274

Current portion of capital lease obligations

33,269


76,597





Total current liabilities

17,474,719


15,275,348





NONCURRENT LIABILITIES




Long-term debt, net of current portion

887,444


1,327,800

Capital lease obligation, net of current portion

47,444


36,669

Deferred rent, net of current portion

155,222


152,815

Deferred revenue

42,449


56,977

Deferred income taxes

447,811


447,811

Deposits and other liabilities

1,964


1,964





Total liabilities

19,057,053


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; 82,481,792 and 81,656,763 shares issued and outstanding, respectively

82,482


81,657

Additional paid-in capital

93,449,495


92,661,000

Accumulated other comprehensive (loss)

(244,452)


(147,515)

Accumulated deficit

(58,383,673)


(55,816,286)





Total stockholders' equity

34,903,852


36,778,856





Total liabilities and stockholders' equity

$    53,960,905


$    54,078,240

 

WIDEPOINT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS






THREE MONTHS ENDED


SIX MONTHS ENDED


JUNE 30,


JUNE 30,


2015


2014


2015


2014

REVENUES

$         17,432,745


$         12,394,021


$         35,128,313


$         21,996,800

COST OF REVENUES (including amortization and depreciation of $288,277, $334,973, $583,713, and $666,840, respectively)

14,126,516


8,780,226


28,252,116


15,915,767












GROSS PROFIT

3,306,229


3,613,795


6,876,197


6,081,033












OPERATING EXPENSES









Sales and Marketing

797,683


1,038,059


1,568,194


1,883,171


General and Administrative Expenses (including share-based  compensation of $81,311, $83,988, $118,862 and $166,704, respectively)

3,818,064


3,666,282


7,613,961


6,722,120


Depreciation and Amortization

91,946


143,219


190,243


212,729















Total Operating Expenses

4,707,693


4,847,560


9,372,398


8,818,020












LOSS FROM OPERATIONS

(1,401,464)


(1,233,765)


(2,496,201)


(2,736,987)












OTHER INCOME (EXPENSE)









Interest Income

4,978


4,594


10,904


5,324


Interest (Expense)

(36,145)


(46,332)


(80,385)


(92,558)


Other Income (Expense)

68,207


5,924


75,640


11,799















Total Other Income (Expense)

37,040


(35,814)


6,159


(75,435)












LOSS BEFORE PROVISION FOR INCOME TAXES

(1,364,424)


(1,269,579)


(2,490,042)


(2,812,422)

INCOME TAX PROVISION (BENEFIT)

45,204


(600,340)


77,345


(1,216,485)












NET LOSS

$          (1,409,628)


$             (669,239)


$          (2,567,387)


$          (1,595,937)












BASIC EARNINGS PER SHARE

$                 (0.017)


$                 (0.009)


$                 (0.031)


$                 (0.023)












BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

82,124,603


72,998,461


81,935,259


69,929,300












DILUTED EARNINGS PER SHARE

$                 (0.017)


$                 (0.009)


$                 (0.031)


$                 (0.023)












DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

82,124,603


72,998,461


81,935,259


69,929,300

 

WIDEPOINT CORPORATION

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION












THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2015


2014


2015


2014












NET LOSS

$          (1,409,600)


$             (669,200)


$          (2,567,400)


$          (1,595,900)

Adjustments to GAAP net income (loss):









Depreciation and amortization

380,200


478,200


774,000


879,600


Amortization of deferred financing costs

2,900


3,800


5,800


4,700


Income tax provision (benefit)

45,200


(600,300)


77,300


(1,216,500)


Interest income

(5,000)


(4,600)


(10,900)


(5,300)


Interest expense

36,100


46,300


80,400


92,600


Other (expense) income

(68,200)


(5,900)


(75,600)


(11,800)


Provision for doubtful accounts

(21,500)


-


(23,100)


(200)


Stock-based compensation expense

81,400


82,700


118,900


166,700












Adjusted EBITDA

$             (958,600)


$             (669,000)


$          (1,620,600)


$          (1,686,100)

 

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