MCLEAN, Va., Nov. 13, 2014 /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 third quarter ended September 30, 2014.
Recent Business Highlights
- Received four (4) new additional Task Orders, including one
issued by the U.S. Citizenship and Immigrations Services (USCIS),
under our $600 Million Blanket
Purchase Agreement (BPA) with the Department of Homeland Security
(DHS).
- Initiated business support with Compass Group Global in
Italy and Mexico. Support in Germany, France, and Spain is scheduled to commence in 2015.
- Began collaboration with SPYRUS, Inc., to deliver the
industry's first Trusted Mobile Windows To Go device that
guarantees device identity, personal identity, and secure network
access from any global location and commencing initial pilots in
2015.
- Continued to work closely with three leading device and handset
manufacturers to embed Certificate-on-Device security offering into
OEM equipment.
- Entered into a strategic alliance with leading device and
handset manufacturer Kyocera Communications, Inc., to offer their
ruggedized mobile devices as part of our MMS solutions. Initiated
relationship with LG Electronics MobileComm, USA, to jointly market WidePoint
Certificate-on-Device and LG Mobile Phones GATE enterprise
solutions. Commencing sales and marketing programs and pilots in
early 2015.
- Completed $11.5 million public
offering of common stock on November 5,
2014, to fund expanding business relationships and growth
opportunities.
Third Quarter 2014 Financial Highlights
- Net revenue increased 19.1% to $14.6
million from $12.2 million in
the third quarter of 2013.
- Gross margin was 27% of revenue as compared to 24% in the third
quarter of 2013.
- Net loss was approximately $5.9
million as compared to net income of approximately
$295,000 in the third quarter of
2013. The third quarter net loss included an approximately
$5.0 million non-cash tax provision
offsetting a tax asset as a result of various financial and
regulatory accounting rules and regulations.
"We continue to witness new task order awards and opportunities
in both the federal and commercial marketplaces. Our
Certificate-on-Device and other next-generation identity management
services in conjunction with our overall MMS portfolio are poised
for expansion in 2015 with our new and growing list of partners,"
Steve Komar, WidePoint chief
executive officer, commented. Mr. Komar further stated, "We
continue to be enthusiastic about our expanded list of MMS
offerings and, in combination with our recent financial offering of
$11.5 million, we believe we should
have the tools to support the increasing demands of our new
partnerships as we go to market with a number of pilot programs and
other new sales opportunities."
James McCubbin, WidePoint CFO,
added, "The investments that we continue to fund in capital and
effort appear to be laying the foundation for a financial model of
success. Improvements in our balance sheet from our recent capital
raise should allow us to both continue to fund and support our new
partnerships and contract obligations as they expand in 2015. With
a number of new and exciting opportunities expected to start in
pilot phase as we enter 2015, along with the commencement of sales
and marketing efforts with our partners, we believe 2015 should
demonstrate continued revenue growth and transition from a period
of operational losses to operational earnings."
Conference Call Information
A conference call and live webcast will take place at
4:30 p.m. Eastern Time, on
Thursday, November 13, 2014. Anyone
interested in participating should call 1-888-438-5491 if calling
within the United States or
1-719-457-2627 if calling internationally. There will be a playback
available until November 27, 2014. 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
2208379 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=111895.
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.
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
|
|
|
|
-tables follow-
WIDEPOINT
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
SEPTEMBER
30,
|
|
DECEMBER
31,
|
|
2014
|
|
2013
|
|
|
|
|
ASSETS
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
3,079,485
|
|
$
-
|
Accounts receivable,
net of allowance for doubtful accounts
|
8,859,476
|
|
7,612,400
|
of $101,157
and $30,038 in 2014 and 2013, respectively
|
|
|
|
Unbilled accounts
receivable
|
3,416,224
|
|
1,561,030
|
Inventories
|
39,084
|
|
61,338
|
Prepaid expenses and
other assets
|
414,841
|
|
533,944
|
Income taxes
receivable
|
-
|
|
763
|
|
|
|
|
Total current
assets
|
15,809,110
|
|
9,769,475
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
Property and
equipment, net
|
1,710,790
|
|
1,545,951
|
Intangibles,
net
|
3,728,542
|
|
3,613,271
|
Goodwill
|
20,838,927
|
|
16,618,467
|
Deferred income tax
asset, net of current
|
699,350
|
|
4,407,630
|
Deposits and other
assets
|
122,950
|
|
120,046
|
|
|
|
|
TOTAL
ASSETS
|
$
42,909,669
|
|
$
36,074,840
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Line of credit
advance
|
$
392,222
|
|
$
916,663
|
Short term note
payable
|
45,420
|
|
119,336
|
Accounts
payable
|
6,071,801
|
|
3,228,586
|
Accrued
expenses
|
3,911,505
|
|
4,407,286
|
Deferred
revenue
|
754,294
|
|
40,911
|
Income taxes
payable
|
107,567
|
|
217,982
|
Deferred income
taxes
|
700,743
|
|
700,743
|
Current portion of
long-term debt
|
2,174,722
|
|
1,150,455
|
Current portion of
deferred rent
|
2,169
|
|
78,525
|
Current portion of
capital lease obligations
|
48,011
|
|
45,125
|
|
|
|
|
Total current
liabilities
|
14,208,454
|
|
10,905,612
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
Long-term debt, net
of current portion
|
1,544,376
|
|
2,509,492
|
Capital lease
obligation, net of current portion
|
83,145
|
|
57,119
|
Deferred rent, net of
current portion
|
155,418
|
|
2,421
|
Deferred
revenue
|
63,135
|
|
82,494
|
Deposits and other
liabilities
|
1,964
|
|
1,964
|
|
|
|
|
Total
liabilities
|
16,056,492
|
|
13,559,102
|
|
|
|
|
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;
73,425,328 and 63,907,357 shares issued
|
|
|
|
and
outstanding, respectively
|
73,425
|
|
63,907
|
Additional paid-in
capital
|
81,800,617
|
|
69,867,491
|
Accumulated other
comprehensive (loss)
|
(107,572)
|
|
-
|
Accumulated
deficit
|
(54,913,293)
|
|
(47,415,660)
|
|
|
|
|
Total stockholders'
equity
|
26,853,177
|
|
22,515,738
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
42,909,669
|
|
$
36,074,840
|
|
|
|
|
WIDEPOINT
CORPORATION AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
NINE MONTHS
ENDED
|
|
|
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
REVENUES
|
$
14,555,908
|
|
$ 12,222,505
|
|
$
36,552,708
|
|
$ 35,534,573
|
COST OF REVENUES
(including amortization and depreciation of $309,276, $363,040, $976,116, and $1,100,968,
respectively)
|
|
|
|
|
|
|
|
10,571,518
|
|
9,243,536
|
|
26,487,285
|
|
25,754,110
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,984,390
|
|
2,978,969
|
|
10,065,423
|
|
9,780,463
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and
Marketing
|
868,152
|
|
675,780
|
|
2,751,323
|
|
2,361,900
|
|
General and
Administrative Expenses (including share-based compensation of $70,397, $68,659, $237,101,
and $180,927, respectively,
and gain on change in fair value of contingent obligation of $0, $661,000, $0, and
$1,250,000, respectively)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,816,100
|
|
2,282,991
|
|
10,538,220
|
|
7,196,607
|
|
Depreciation and
Amortization
|
179,977
|
|
74,142
|
|
392,706
|
|
213,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
4,864,229
|
|
3,032,913
|
|
13,682,249
|
|
9,772,168
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(879,839)
|
|
(53,944)
|
|
(3,616,826)
|
|
8,295
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
Income
|
6,290
|
|
2,727
|
|
11,614
|
|
6,188
|
|
Interest
(Expense)
|
(47,020)
|
|
(15,414)
|
|
(139,578)
|
|
(130,933)
|
|
Other Income
(Expense)
|
(5,159)
|
|
5,927
|
|
6,640
|
|
14,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income
(Expense)
|
(45,889)
|
|
(6,760)
|
|
(121,324)
|
|
(110,313)
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES
|
(925,728)
|
|
(60,704)
|
|
(3,738,150)
|
|
(102,018)
|
INCOME TAX PROVISION
(BENEFIT)
|
4,975,968
|
|
(355,525)
|
|
3,759,483
|
|
(500,921)
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
$
(5,901,696)
|
|
$
294,821
|
|
$
(7,497,633)
|
|
$
398,903
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
$
(0.081)
|
|
$
0.005
|
|
$
(0.106)
|
|
$
0.006
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
73,195,464
|
|
63,824,647
|
|
71,029,985
|
|
63,776,387
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
$
(0.081)
|
|
$
0.005
|
|
$
(0.106)
|
|
$
0.006
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
73,195,464
|
|
64,014,359
|
|
71,029,985
|
|
64,103,082
|
SOURCE WidePoint Corporation