Welcome!

Government Cloud Authors: Elizabeth White, Liz McMillan, Pat Romanski, Dana Gardner, Gopala Krishna Behara

News Feed Item

WidePoint Corporation Announces Second Quarter 2014 Financial Results

Increased Revenue Results and Outlook Driven by Developing Partnerships and New Contract, Task Order, and Customer Wins

MCLEAN, Va., Aug. 14, 2014 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY) a leading provider of Managed Mobility Services (MMS) featuring Cybersecurity and Telecommunications Lifecycle Management (TLM) solutions, today announced financial results for the second quarter ended June 30, 2014.

Recent Business Highlights

    • Received new task orders worth in excess of $25.8 million under the $600 Million Blanket Purchase Agreement (BPA) with the Department of Homeland Security (DHS).
    • Awarded two new contracts by U.S. federal law enforcement agencies under the Department of Justice worth $28.8 million.
    • Awarded a $47.5 million BPA within the Department of Health and Human Services.
    • Received more than 70 Managed Mobility Services wins with 42 cyber-related awards and 31 mobile-related awards, including contracts with two new county governments.
    • Acquired Soft-ex Communications, Ltd, a Dublin-based leading provider of Telecom Data Intelligence (TDI) solutions throughout European and Middle Eastern markets, for approximately 1x revenues of $6 million.
    • Gained two new international commercial clients: a global consumer goods company utilizing WidePoint's business intelligence cloud-based services to support over 300 sites for an initial 5-year period, and an international offshore driller for an initial 3-year period.
    • Expanded our Compass relationship, with support starting in Italy and Mexico in the 3rd quarter. Support in Germany, France, and Spain is scheduled to start following the implementation of our support of Italy and Mexico.
    • Expanded our relationships and partnering with three major U.S. market Telecoms.
    • Working closely with three leading device and handset manufacturers to embed our Certificate-on-Device security offering into OEM equipment.

Second Quarter 2014 Financial Highlights

  • Net revenue increased 9.2% to $12.4 million from $11.3 million in the second quarter of 2013 and increased 29.1% sequentially from $9.6 million in the first quarter of 2014.
  • Gross margin was 29% of revenue as compared to 31% in the second quarter of 2013 and 26% in the previous first quarter of 2014.
  • Net loss was approximately $669,000 as compared to net income of approximately $139,000 in the second quarter of 2013 and net loss of $927,000 in the previous first quarter of 2014. The second quarter net loss included approximately $400,000 in non-recurring costs associated with the Soft-ex acquisition and other non-recurring costs associated with technology development.

"We posted a solid quarter, reflecting several new task order awards in our federal government business, particularly under our $600 million BPA with DHS. Meanwhile, we continue to pick up additional federal business with other Department-level agencies and new commercial opportunities are expanding our available target markets. In addition, we are excited about our recent acquisition of Soft-ex Communications, which has opened the European and Middle Eastern markets to us; in fact, we have already leveraged this business to gain entry into the G-Cloud 5, the UK Government's cloud computing initiative," Steve Komar, CEO, WidePoint, commented. Mr. Komar further stated, "We are also very enthusiastic about our 'Cert-on-Device' offering. We are already seeing widespread interest across both the government and commercial markets for our capabilities and expertise and expect to see numerous new revenue opportunities arise from this secured communications capability in coming quarters."

James McCubbin, WidePoint CFO, added, "We continue to see expanding demand for our managed mobility service and product offerings. In the month of July alone, we received over 30 inquiries from organizations seeking additional information about our managed mobility solutions cyber-related offerings driven by what we believe is the need to address cyber- and mobility-related security concerns in the marketplace. We began receiving task orders under our DHS BPA at the end of the first quarter and recently were awarded $25.8 million in new task orders under this contract vehicle. As a result of this market demand we expect our sales pipeline to continue to grow. We continue to believe the second half of 2014 should be stronger than the first half of 2014, and we anticipate an increase in sequential revenue growth in the 3rd quarter of 2014 as compared to the 2nd quarter of 2014."

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, August 14, 2014. Anyone interested in participating should call 1-888-378-0320 if calling within the United States or 1-719-457-2664 if calling internationally. There will be a playback available until August 28, 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 3988996 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=110369.

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

[email protected]

(703) 349-2577


[email protected]

-tables follow-


 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS







JUNE 30,


DECEMBER 31,


2014


2013





ASSETS

CURRENT ASSETS




Cash and cash equivalents

$      4,103,311


$                    -

Accounts receivable, net of allowance for doubtful accounts 

6,177,272


7,612,400

of $29,794 and $30,038 in 2014 and 2013, respectively




Unbilled accounts receivable

2,860,011


1,561,030

Inventories

35,871


61,338

Prepaid expenses and other assets

549,789


533,944

Income taxes receivable

-


763





Total current assets

13,726,254


9,769,475





NONCURRENT ASSETS




Property and equipment, net

1,836,865


1,545,951

Intangibles, net

4,080,957


3,613,271

Goodwill

20,838,927


16,618,467

Deferred income tax asset, net of current

5,498,201


4,407,630

Deposits and other assets

118,228


120,046





TOTAL ASSETS

$    46,099,432


$    36,074,840





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Line of credit advance

$                    -


$         916,663

Short term note payable

34,529


119,336

Accounts payable

3,550,495


3,228,586

Accrued expenses

4,221,829


4,407,286

Deferred revenue

829,257


40,911

Income taxes payable

21,121


217,982

Deferred income taxes

700,743


700,743

Current portion of long-term debt

2,164,185


1,150,455

Current portion of deferred rent

71,547


78,525

Current portion of capital lease obligations

75,835


45,125





Total current liabilities

11,669,541


10,905,612





NONCURRENT LIABILITIES




Long-term debt, net of current portion

1,759,501


2,509,492

Capital lease obligation, net of current portion

70,592


57,119

Deferred rent, net of current portion

18,395


2,421

Deferred revenue

68,672


82,494

Deposits and other liabilities

1,964


1,964





Total liabilities

13,588,665


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; 73,040,329 and 63,907,357 shares issued 




and outstanding, respectively

73,040


63,907

Additional paid-in capital

81,484,180


69,867,491

Accumulated other comprehensive (loss)

(34,856)


-

Accumulated deficit

(49,011,597)


(47,415,660)





Total stockholders' equity

32,510,767


22,515,738





Total liabilities and stockholders' equity

$    46,099,432


$    36,074,840

 


WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



























THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2014


2013


2014


2013

REVENUES

$         12,394,021


$       11,343,962


$         21,996,800


$         23,312,068

COST OF REVENUES (including amortization and depreciation of









$391,899, $363,609, $666,840, and $737,928, respectively)

8,780,226


7,816,920


15,915,767


16,510,574












GROSS PROFIT

3,613,795


3,527,042


6,081,033


6,801,494












OPERATING EXPENSES









Sales and Marketing

1,038,059


880,303


1,883,171


1,686,120


General and Administrative Expenses (including share-based










compensation of $83,988, $58,281, $166,704, and 










$112,268, respectively, and gain on change in fair value of 










contingent obligation of $0, $369,000, $0, and $589,000,










respectively)

3,666,282


2,386,801


6,722,120


4,913,616


Depreciation and Amortization

143,219


73,241


212,729


139,519















Total Operating Expenses

4,847,560


3,340,345


8,818,020


6,739,255












(LOSS) INCOME FROM OPERATIONS

(1,233,765)


186,697


(2,736,987)


62,239












OTHER INCOME (EXPENSE)









Interest Income

4,594


2,612


5,324


3,461


Interest (Expense)

(46,332)


(55,937)


(92,558)


(115,519)


Other Income (Expense)

5,924


4,134


11,799


8,505















Total Other Income (Expense)

(35,814)


(49,191)


(75,435)


(103,553)












(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES

(1,269,579)


137,506


(2,812,422)


(41,314)

INCOME TAX BENEFIT

(600,340)


(1,845)


(1,216,485)


(145,396)












NET (LOSS) INCOME

$             (669,239)


$            139,351


$          (1,595,937)


$              104,082












BASIC EARNINGS PER SHARE

$                 (0.009)


$                0.002


$                 (0.023)


$                  0.002












BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

72,998,461


63,751,857


69,929,300


63,751,857












DILUTED EARNINGS PER SHARE

$                 (0.009)


$                0.002


$                 (0.023)


$                  0.002












DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

72,998,461


63,936,607


69,929,300


63,908,752

 

SOURCE WidePoint Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...