WidePoint Corporation Reports Record Third Quarter 2012 Results

WASHINGTON, Nov. 14, 2012 /PRNewswire/ -- WidePoint Corporation (NYSE Amex: WYY), a specialist in Telecommunications Management and Cybersecurity solutions, today announced financial results for the three months ended September 30, 2012.

Third Quarter 2012 Results and Highlights

• Net revenue for the quarter ended September 30, 2012 increased 42% to $15.2 million from $10.7 million in last year's comparable period.  Segment highlights are summarized below:
  • Telecommunications Management segment revenue increased 15% to $7.1 million from $6.2 million in last year's comparable period predominantly as a result of commercial sector sales offset partially from lower revenues in billable reselling of minutes to our federal customers.
  • CyberSecurity Managed Solutions segment revenue increased 48% to $2.3 million from $1.6 million in last year's comparable period driven by credentialing managed service sales to government and commercial customers and continued expansion in support of the Transportation Workers Identification Credentialing (TWIC) program.
  • IT Consulting Services and Products revenues increased to $5.8 million from $2.9 million in last year's comparable period materially driven by growth in commercial consulting and government product resale of hardware, software, mobile device and accessory products and IT consulting services.
• Gross profit for the third quarter of 2012 was approximately $3.6 million, or 23% of revenues, as compared to gross profit of $2.6 million, or 24% of revenues, for the third quarter of 2011.
• Income from operations was approximately $459,000 compared to approximately $270,000 in last year's comparable period.
• Net income was approximately $244,000, compared to $218,000 in last year's comparable period.
• Non-GAAP adjusted EBITDA was approximately $1,035,000 as compared to $544,000 in last year's comparable third quarter.
• WidePoint ended the period with $2.5 million in cash.

Steve Komar, CEO, WidePoint, commented, "Management is gratified by the strong revenue performance during the third quarter of 2012.  This 'across the board' improvement speaks well for several business development initiatives we've implemented over the past year. We are seeing recurring and accelerating revenue growth from several comprehensive multi-year programs in our market sectors.  In addition, this performance allows us the leeway that we need to channel continuing investment into the tools and development activities necessary to ensure the future growth and success of the enterprise."

WidePoint CFO Jim McCubbin commented, "We were pleased with the financial results in our third quarter of 2012.  Revenues increased 42% with growth in each segment and our adjusted EBITDA increased 90%, exceeding $1 million, while we continued to invest in our operations, pay down debt, and improve our stockholder equity." 

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, November 14, 2012. Anyone interested in participating should call 1-877-941-4775 if calling within the United States or 1-480-629-9761 if calling internationally. There will be a playback available until November 28, 2012. 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 4573618 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=102357.

About WidePoint

WidePoint is a specialist in providing wireless mobility 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 organizations to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. For more information, visit http://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-

SOURCE WidePoint Corporation