Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

WidePoint Corporation Reports 2Q17 Financial Results


News provided by

WidePoint Corporation

Aug 14, 2017, 16:30 ET

Share this article

Share toX

Share this article

Share toX

MCLEAN, Va., Aug. 14, 2017 /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, 2017.

Recent Highlights

  • Appointed Jin Kang as new CEO and President of WidePoint Corporation on July 1st, 2017
  • Implemented major costs reductions during July, adding to reductions taken in the second quarter of 2017, to improve operational profitability outlook for the second half of 2017, stabilizing the financial condition of the business
  • Extinguished all remaining long-term debt and established a new $5 million dollar credit facility with zero borrowings outstanding
  • Launched Trusted Mobility Management offering, or TM2, consolidating platforms, improving operational efficiency, and creating a unique and improved value proposition for customers
  • Reorganized credentialing operations and initiated several new sales and marketing campaigns, including search engine optimization, to improve revenue growth and financial performance
  • Added, re-negotiated, and eliminated several channel partners as part of a repositioning of the Company's new TM2 value proposition to the marketplace
  • Secured several new contracts and successfully expanded wallet-share with several current customers that provides additional services
  • Entered into standstill agreement with Nokomis Capital and added two new independent directors

Second Quarter 2017 Financial Highlights

  • Net revenue was approximately $18.9 million compared to $17.5 million in the second quarter of 2016
  • Gross profit was approximately $3.3 million compared to $3.4 million in the second quarter of 2016
  • Operating expenses were approximately $4.5 million compared to $4.2 million in the second quarter of 2016
  • Operating loss was approximately $(1.3 million) compared to $(0.9 million) in the second quarter of 2016
  • Net loss was approximately $(1.3 million), or $(0.02) per basic and diluted share, compared to a loss of $(0.9 million), or $(0.01) per basic and diluted share
  • Adjusted EBITDA loss was approximately $(0.4 million) compared to approximately $(0.5 million) in the second quarter of 2016.

Six Months 2017 Financial Highlights

  • Net revenue was approximately $37.5 million compared to $38.0 million in the six months of 2016
  • Gross profit was approximately $6.7 million compared to $7.6 million in the six months of 2016
  • Operating expenses were approximately $9.2 million compared to $9.1 million in the six months of 2016
  • Operating loss was approximately $(2.4 million) compared to $(1.5 million) in the six months of 2016
  • Net loss was approximately $(2.5 million), or $(0.03) per basic and diluted share, compared to a loss of $(1.6 million), or $(0.02) per basic and diluted share
  • Adjusted EBITDA loss was approximately $(1.2 million) compared to approximately $(0.6 million) in the six months of 2016
  • Cash and cash equivalents was approximately $5.5 million as of June 30, 2017.
  • Long-term debt was zero and a new credit facility for $5.0 million was established with no borrowings.

"In the second quarter of 2017 we refocused our efforts on optimizing operations, reducing expenses, and growing our pipeline of business," stated CEO and President Jin Kang. "We also launched our TM2 vision with a new focus on improving current, high margin, high probability revenue opportunities while expanding overall cross utilization of operational personnel to drive economies of scale and reduce operational costs. We remain focused on improving our finance performance and our return to profitability."

James McCubbin, WidePoint's Chief Financial Officer, added, "The recent reductions in expenses should create a leaner and more nimble organization, driving improved financial performance in the second half of 2017. Coupling that with the payoff of our remaining long-term debt and our new untouched credit facility for up to $5 million provides us with the financial room to navigate our way through and support our growth plans that we have recently put into place."

Non-GAAP Financial Measures

WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of Net loss to Adjusted EBITDA is included on the schedules attached hereto.

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Tuesday, August 15, 2017. Anyone interested in listening to our earnings call should call 1-888-724-9516 if calling within the United States or 1-719-457-2627 if calling internationally. There will be a playback available until August 29, 2017. To listen to the playback, please call 1‑844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use PIN code 9187516 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=125768.

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, 2016 filed with the SEC on March 30, 2017.

-tables follow-

WIDEPOINT CORPORATION

CONSOLIDATED BALANCE SHEETS



JUNE 30,


DECEMBER 31,


2017


2016


(Unaudited)

ASSETS

CURRENT ASSETS




Cash and cash equivalents

$     5,472,363


$        9,123,498

Accounts receivable, net of allowance for doubtful accounts 




of $75,521 and $344,411 in 2017 and 2016, respectively

8,648,612


5,153,093

Unbilled accounts receivable

6,048,130


8,112,690

Inventories

142,587


123,287

Prepaid expenses and other assets

587,091


385,388

Income taxes receivable

-


42,896





Total current assets

20,898,783


22,940,852





NONCURRENT ASSETS




Land and building held for sale

-


594,376

Property and equipment, net

976,552


736,678

Intangibles, net

3,988,662


4,298,902

Goodwill

18,555,578


18,555,578

Deposits and other assets

93,911


52,456





TOTAL ASSETS

$   44,513,486


$      47,178,842





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Short term note payable

$          34,975


$           131,761

Accounts payable

7,066,408


8,665,449

Accrued expenses

9,379,319


7,872,557

Deferred revenue

1,261,880


1,190,558

Income taxes payable

51,856


5,141

Current portion of long-term debt

-


94,868

Current portion of deferred rent

26,207


40,397

Current portion of capital lease obligations

18,027


4,097





Total current liabilities

17,838,672


18,004,828





NONCURRENT LIABILITIES




Long-term debt related to assets held for sale, net of current portion

-


412,180

Capital lease obligation, net of current portion

61,119


-

Deferred rent, net of current portion

100,380


86,198

Deferred revenue

13,333


-

Deferred income taxes

386,360


398,985





Total liabilities

18,399,864


18,902,191





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; 82,946,847 and 82,730,134 shares issued 




and outstanding, respectively

82,947


82,730

Additional paid-in capital

94,083,209


93,920,095

Accumulated other comprehensive loss

(181,337)


(309,369)

Accumulated deficit

(67,871,197)


(65,416,805)





Total stockholders' equity

26,113,622


28,276,651





Total liabilities and stockholders' equity

$   44,513,486


$      47,178,842

WIDEPOINT CORPORATION

CONSOLIDATED STATEMENT OF OPERATIONS



























THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2017


2016


2017


2016





(Unaudited)

REVENUES

$   18,880,506


$   17,539,666


$   37,492,745


$   38,048,306

COST OF REVENUES (including amortization and depreciation of $294,803, $288,277, $576,627, and $580,635, respectively)

15,589,330


14,179,119


30,771,965


30,482,781












GROSS PROFIT

3,291,176


3,360,547


6,720,780


7,565,525












OPERATING EXPENSES









Sales and Marketing

628,319


702,465


1,177,178


1,441,514


General and Administrative Expenses (including share-based compensation of $134,062, $48,447, $219,079 and $136,326, respectively)

3,789,980


3,441,984


7,622,220


7,199,930


Product Development

56,426


1,000


207,799


258,383


Depreciation and Amortization

71,189


89,719


142,939


184,197















Total Operating Expenses

4,545,914


4,235,168


9,150,136


9,084,024












LOSS FROM OPERATIONS

(1,254,738)


(874,621)


(2,429,356)


(1,518,499)












OTHER INCOME (EXPENSE)









Interest Income

2,566


3,433


9,593


7,606


Interest Expense

(12,849)


(19,828)


(22,417)


(40,158)


Other (Expense) Income

(875)


5,377


3,299


7,345















Total Other Income (Expense)

(11,158)


(11,018)


(9,525)


(25,207)












LOSS BEFORE INCOME TAX PROVISION

(1,265,896)


(885,639)


(2,438,881)


(1,543,706)

INCOME TAX PROVISION

34,279


11,291


15,511


12,734












NET LOSS

$   (1,300,175)


$      (896,930)


$   (2,454,392)


$   (1,556,440)












BASIC EARNINGS PER SHARE

$            (0.02)


$            (0.01)


$            (0.03)


$            (0.02)












BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

82,845,449


82,730,134


82,843,631


82,644,978












DILUTED EARNINGS PER SHARE

$            (0.02)


$            (0.01)


$            (0.03)


$            (0.02)












DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

82,845,449


82,730,134


82,843,631


82,644,978

WIDEPOINT CORPORATION

ADJUSTED EARNINGS BEFORE INTEREST, TAXES,

DEPRECIATION AND AMORTIZATION



THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2017


2016


2017


2016












NET LOSS

$  (1,300,200)


$  (896,900)


$  (2,454,400)


$  (1,556,400)

Adjustments to GAAP net income (loss):









Depreciation and amortization

366,200


377,900


719,800


764,600


Income tax provision (benefit)

34,300


11,300


15,500


12,700


Interest income

(2,600)


(3,400)


(9,600)


(7,600)


Interest expense

12,800


19,900


22,400


40,200


Other (expense) income

900


(5,300)


(3,300)


(7,300)


Provision for doubtful accounts

17,100


(6,800)


31,200


(13,400)


Gain on sale of assets held for sale

(66,700)


-


(66,700)




Loss on disposal of leasehold improvements

176,700


-


172,800


-


Severance and exit costs

187,500


-


187,500




Stock-based compensation expense

134,100


48,400


136,300


136,300












Adjusted EBITDA

$     (439,900)


$  (454,900)


$  (1,248,500)


$     (630,900)

For More Information:

Brett Maas or David Fore 
Hayden IR  
(646) 536-7331  
[email protected]

SOURCE WidePoint Corporation

Related Links

http://www.widepoint.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.