WidePoint Corporation Announces Second Quarter 2013 Results

WASHINGTON, Aug. 14, 2013 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY), a leading provider of Information Technology-secured, cloud-delivered, enterprise-wide, Managed Mobility Solutions and Services, today announced financial results for the three months ended June 30, 2013.

Second Quarter and Six Months 2013 Financial Highlights

• Second quarter net revenue decreased 9% to approximately $11.3 million, as compared to approximately $12.5 million in last year's comparable period. Year-to-date net revenue decreased 11% to $23.3 million from $26.2 million in last year's comparable period.
• Second quarter gross profit increased to 31% as compared to 23% in last year's comparable period. The increase reflects the realization of a greater level of higher margin recurring revenues. Year-to-date gross profit increased to 29% of revenue as compared to 24% in last year's comparable period.
• Second quarter income from operations was approximately $187,000 compared to loss from operations of approximately $(477,000) in last year's comparable period. Year-to-date income from operations was approximately $62,000, as compared to loss from operations of approximately $(349,000) in last year's comparable period.
• Second quarter net income was approximately $139,500 compared to a net loss of approximately $(302,100) in last year's second quarter. Year-to-date net income was approximately $104,000, as compared to net loss of approximately $(244,700) in last year's comparable period.
• Second quarter non-GAAP Adjusted EBITDA was approximately $337,000 compared to $22,000 in last year's comparable period. Year-to-date non-GAAP Adjusted EBITDA was approximately $489,000 compared to $834,000 in last year's comparable period.

Steve Komar, CEO, WidePoint, commented, "During the second quarter, we made solid progress in the goals we set out for WidePoint at the beginning of the year. The strong financial performance of our higher margin revenue streams, such as the continuing acceleration of enrollment and usage of Certificates at the TWIC contract, have allowed us to fund our infrastructural reinvestment programs while retaining profitability. While sequestration has had some impact on our software resale business, and the administrative delays resulting from a protest of a major contract win we received earlier this year have capped our short term upside, our second half outlook remains positive. Our sales and marketing efforts are progressing well with growing pipelines and backlogs, and we remain hopeful that the protested contract award we received will soon be resolved in our favor. We also feel it is important to share our progress and the developments that have not yet had any financial impact, but speak well to future Quarters' growth, and have listed several of those in the body of this press release."

James McCubbin, WidePoint CFO, added, "We are pleased with the progress and performance of our higher margin services portfolio. As we focus additional resources on delivering more of these longer-life services with higher margins, we believe we can continue to balance financing the investments we are presently making at WidePoint and continuing to pay down our debt, all while positioning the Company with a more valuable annuity based contract portfolio of services and solutions."

Recent Non-Financial Highlights

• Awarded 2 new State contracts for IT-based telecom services under the Western States Alliance Agreement.
• Awarded a contract to provide IT-based credentialing and authentication services to a major U.S. based federal contractor and its clients.
• Added to the team a U.S. federal contractor in support of the Defense Logistics Agency Program Management Support Services Blanket Purchase Agreement.
• Working with the primary federal contractor awarded the TTAC contract on the transition of the TWIC contract to the expanded TTAC multi-year contract.
• Awarded a contract by a tier one telecom provider under U.S. Federal Government Networx Contract to provision secured communications to the global airline industry.
• Awarded a 3-year contract to support a multi-national industrial customer in 16 European countries.
• Received our first United Kingdom order from a major foodservice company.
• Received our first Asian business order from a major U.S. multi-national fast food company.
• Awarded recognition and competitive inclusion in the Gartner Group's new "Magic Quadrant for Managed Mobile Services" based on our enterprise services vision and mobile security capabilities.

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, August 14, 2013. Anyone interested in participating should call 1-888-846-5003 if calling within the United States or 1-480-629-9856 if calling internationally. There will be a playback available until August 28, 2013. 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 4634457 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=105655.

About WidePoint

WidePoint is an IT specialist 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:

-tables follow-

SOURCE WidePoint Corporation