EX-99.2 3 v424436_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 


 

 

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  

 

WidePoint Corporation Announces Third Quarter 2015 Financial Results

 

McLean, VA, November 9, 2015 – 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, 2015.

 

Recent Business Highlights

·Awarded initial task orders to commence work from one of the three remaining Department of Homeland Security (DHS) component agencies under our $600 million DHS BPA
·Partnered with Bob Day & Associates LLC to pursue new and expanded business opportunities within the Homeland Security and cyber technology markets
·Engaged Deep Water Point to develop, pursue, and expand our federal business reach as we scale our marketing footprint with other departmental-level federal organizations
·Awarded approximately $6.5 million in new managed mobilility services for federal, municipal, and commercial work
·Awarded approximately $2.3 million, with renewals, in new consulting support work
·Launched New Online Bill Presentment and Analytics Solutions for the Communication Service Provider (CSP) consumer market at BroadSoft Connections 2015
·Continued engagements with DoD and DHS component/agencies for Certificate-on-DeviceTM – derived credentialing and other next-generation identity management services
·Continued development with strategic partners of our Certificate-on-Device product roadmap for individuals, derived credentials, machine device credentials, and other “Internet of Things” components; continued consolidation of platforms and integration efforts of our enterprise solutions

  

 

 

 

Third Quarter 2015 Financial Highlights

·Net revenue increased 17% to $17.0 million from $14.5 million in the third quarter of 2014, driven principally by increases in our DHS BPA expansion, partially offset by decreases in software reselling activities within our managed services offerings.
·Gross profit was $3.1 million compared to $4.0 million in the third quarter of 2014, which, as in the prior quarter, supports extra capacity for expanded next-generation identity management services and managed mobility services.
·Adjusted EBITDA loss was approximately $1.1 million compared to $404,000 in the third quarter of 2014, driven by continued technology, sales and marketing, and infrastructure investments in support of our next-generation identity management services and managed mobility services.
·Net loss was approximately $1.8 million compared to net loss of approximately $5.9 million in the third quarter of 2014 or basic and diluted loss per share of 0.02 per share compared to $0.08 in the third quarter of 2014.

 

James McCubbin, WidePoint’s chief financial officer, stated, “Our financial results in the third quarter of 2015 were weaker than we expected as a result of delays in anticipated contract awards. While we did receive awards late in the third quarter and early in the fourth quarter of 2015, including new initial task orders from one of the last three agencies remaining to be won under our DHS BPA contract, the timing put us behind schedule. We still remain confident, timing issues aside, that we will continue to win additional work under our DHS BPA. We believe that our revenues, gross margins, and overall financial metrics and results, should improve, as our new next-generation identity management services come on line.”

 

Steve L. Komar, WidePoint’s chief executive officer, stated, “We continue to make great strides in our development efforts of our next generation identity management services and channel marketing efforts with our strategic partners. While contract delays caused some timing issues that negatively effected our financial performance in the third quarter of 2015, we remain confident in our products and services, and in the increasing demand we see for them in the market today and in the future, in both the government and commercial sectors.”

 

Conference Call Information

 

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, November 9, 2015. Anyone interested in listening to our analyst call should call 1-877-419-6591 if calling within the United States or 1-719-325-4747 if calling internationally. There will be a playback available until November 23, 2015. To listen to the playback, please call 1-877-870-5176 if calling within the United States or 1-719-325-4752 if calling internationally. Please use PIN code 4105835 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=116997.

 

 

 

 

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.

 

-tables follow-

 

 

 

 

WIDEPOINT CORPORATION

CONSOLIDATED BALANCE SHEETS

 

   SEPTEMBER 30,   DECEMBER 31, 
   2015   2014 
         
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents  $10,443,065   $13,154,699 
Accounts receivable, net of allowance for doubtful accounts          
of $147,331 and $88,719 in 2015 and 2014, respectively   9,546,162    8,543,050 
Unbilled accounts receivable   6,517,707    5,547,416 
Inventories   26,716    37,025 
Prepaid expenses and other assets   417,907    426,736 
Income taxes receivable   -    25,984 
Deferred income taxes   -    18,584 
           
Total current assets   26,951,557    27,753,494 
           
NONCURRENT ASSETS          
Property and equipment, net   1,544,090    1,614,182 
Intangibles, net   5,375,798    5,992,992 
Goodwill   18,555,578    18,555,578 
Deferred income tax asset, net of current   14,272    - 
Deposits and other assets   136,554    161,994 
           
TOTAL ASSETS  $52,577,849   $54,078,240 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
Line of credit advance  $2,013,665   $- 
Short term note payable   48,738    137,025 
Accounts payable   6,448,509    6,165,477 
Accrued expenses   6,490,586    5,980,110 
Deferred revenue   1,953,168    710,275 
Income taxes payable   94,236    12,574 
Current portion of long-term debt   879,181    2,184,016 
Current portion of deferred rent   -    9,274 
Current portion of capital lease obligations   47,935    76,597 
           
Total current liabilities   17,976,018    15,275,348 
           
NONCURRENT LIABILITIES          
Long-term debt, net of current portion   663,267    1,327,800 
Capital lease obligation, net of current portion   11,682    36,669 
Deferred rent, net of current portion   159,266    152,815 
Deferred revenue   36,816    56,977 
Deferred income taxes   447,811    447,811 
Deposits and other liabilities   -    1,964 
           
Total liabilities   19,294,860    17,299,384 
           
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; 82,520,696 and 81,656,763 shares issued          
and outstanding, respectively   82,521    81,657 
Additional paid-in capital   93,569,933    92,661,000 
Accumulated other comprehensive (loss)   (222,512)   (147,515)
Accumulated deficit   (60,146,953)   (55,816,286)
           
Total stockholders’ equity   33,282,989    36,778,856 
           
Total liabilities and stockholders’ equity  $52,577,849   $54,078,240 

 

 

 

 

 

WIDEPOINT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

   THREE MONTHS ENDED   NINE MONTHS ENDED 
   SEPTEMBER 30,   SEPTEMBER 30, 
   2015   2014   2015   2014 
REVENUES  $16,994,858   $14,555,908   $52,123,171   $36,552,708 
COST OF REVENUES (including amortization and depreciation of                    
$290,011, $309,276, $873,724, and $976,116, respectively)   13,875,473    10,571,518    42,127,589    26,487,285 
                     
GROSS PROFIT   3,119,385    3,984,390    9,995,582    10,065,423 
                     
OPERATING EXPENSES                    
Sales and Marketing   764,845    868,152    2,333,039    2,751,323 
General and Administrative Expenses (including share-based                    
compensation of $89,229, $70,397, $208,091 and $237,101,                    
respectively)   3,893,348    3,816,100    11,507,309    10,538,220 
Depreciation and Amortization   92,968    179,977    283,211    392,706 
                     
Total Operating Expenses   4,751,161    4,864,229    14,123,559    13,682,249 
                     
LOSS FROM OPERATIONS   (1,631,776)   (879,839)   (4,127,977)   (3,616,826)
                     
OTHER INCOME (EXPENSE)                    
Interest Income   7,020    6,290    17,924    11,614 
Interest (Expense)   (30,868)   (47,020)   (111,253)   (139,578)
Other Income (Expense)   (37,814)   (5,159)   37,826    6,640 
                     
Total Other Income (Expense)   (61,662)   (45,889)   (55,503)   (121,324)
                     
LOSS BEFORE PROVISION FOR INCOME TAXES   (1,693,438)   (925,728)   (4,183,480)   (3,738,150)
INCOME TAX PROVISION   69,842    4,975,968    147,187    3,759,483 
                     
NET LOSS  $(1,763,280)  $(5,901,696)  $(4,330,667)  $(7,497,633)
                     
BASIC EARNINGS PER SHARE  $(0.021)  $(0.081)  $(0.053)  $(0.106)
                     
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING   82,515,103    73,195,464    82,130,665    71,029,985 
                     
DILUTED EARNINGS PER SHARE  $(0.021)  $(0.081)  $(0.053)  $(0.106)
                     
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING   82,515,103    73,195,464    82,130,665    71,029,985 

 

 

 

 

 

WIDEPOINT CORPORATION

ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

 

   THREE MONTHS ENDED   NINE MONTHS ENDED 
   SEPTEMBER 30,   SEPTEMBER 30, 
   2015   2014   2015   2014 
                 
NET LOSS  $(1,763,300)  $(5,901,700)  $(4,330,700)  $(7,497,633)
Adjustments to GAAP net income (loss):                    
Depreciation and amortization   382,900    401,400    1,751,300    1,368,822 
Amortization of deferred financing costs   2,900    3,800    8,700    4,700 
Income tax provision (benefit)   69,900    4,976,000    147,200    3,759,500 
Interest income   (7,000)   (6,300)   (17,900)   (11,600)
Interest expense   30,900    47,000    111,300    139,600 
Other (expense) income   37,800    5,200    (37,800)   (6,600)
Provision for doubtful accounts   59,900    -    56,900    24,000 
Stock-based compensation expense   89,200    70,400    208,100    237,100 
                     
Adjusted EBITDA  $(1,096,800)  $(404,200)  $(2,102,900)  $(1,982,111)