Welcome!

Mobile IoT Authors: Derek Weeks, Mark Herring, Pat Romanski, Elizabeth White, Liz McMillan

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.

@ThingsExpo Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.
SYS-CON Events announced today that Nirmata will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nirmata provides a comprehensive platform, for deploying, operating, and optimizing containerized applications across clouds, powered by Kubernetes. Nirmata empowers enterprise DevOps teams by fully automating the complex operations and management of application containers and its underlying ...
SYS-CON Events announced today that Opsani to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. Opsani is creating the next generation of automated continuous deployment tools designed specifically for containers. How is continuous deployment different from continuous integration and continuous delivery? CI/CD tools provide build and test. Continuous Deployment is the means by which...