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WidePoint Corporation Announces Full Year 2013 Financial Results

Strategic Investments in 2013, End of Year Compass and DHS Awards, Cert on Device Launch, and Capital Raise Position Company for Growth

WASHINGTON, March 31, 2014 /PRNewswire-FirstCall/ — WidePoint Corporation (NYSE Mkt: WYY), a leading provider of enterprise-wide Managed Mobility Solutions featuring mobile telecommunications management, cybersecurity, identity and data assurance, and consulting solutions deliverable in a secured environment, today announced financial results for the full-year ended December 31, 2013.

Business Highlights

  • Awarded $600 Million Blanket Purchase Agreement by the Department of Homeland Security (DHS)
  • Entered into a Global Master Services Agreement with Compass Group PLC
  • Developed and launched secured, cloud-based, Identity Service (IDS) ‘Certificate-on-Device’ for all types of mobile devices
  • Developed and launched ePassport Verification Services
  • Developed and launched Federally-Compliant Credentialed Healthcare IT Solution
  • Developed and launched Secure Cloud Service for Privileged User Access across hybrid cloud environments in January 2014
  • Awarded wireless managed service contracts by the Centers for Disease Control and Prevention (CDC) and the Federal Communications Commission (FCC)
  • Partnered with Truphone, a global mobile network, to provide for international coverage
  • Expanded Channel Partnership with National Professional Services Company
  • Provided SaaS-based, Customized Mobile TEM Platform for Regional TEM Company
  • Selected by Gartner Inc. for inclusion in its Magic Quadrant for Managed Mobility Services
  • Completed $12.5 million public offering of common stock

Full year 2013 Financial Highlights

  • Net revenue decreased 16% to $46.8 million from $55.8 million in in 2012.
  • Gross margin increased to 26% of revenue as compared to 25% in 2012.
  • Loss from operations was approximately $1.2 million compared to income from operations of approximately $1.0 million in 2012.
  • Net loss for the year was approximately $1.7 million as compared to net income of approximately $0.8 million in 2012.

“In addition to the many recent key accomplishments realized by the Company, we consciously invested in our business and made several key sales and marketing hires during 2013 to broaden our skills and expertise and to improve our reach into new target markets,” Steve Komar, CEO, WidePoint, commented. Mr. Komar further stated, “With our recent product launches, new partnerships, and our successful capital raise, we believe we have repositioned the Company in 2014 for accelerating growth and profitability.”

James McCubbin, WidePoint CFO, added, “2013 was a challenging year in many respects as we managed through a range of business issues, particularly federal government sequester and debt ceiling-related purchase delays. This led to a slowly contracting pipeline of new business as well as implementation holds on business awards. We also faced a major delay on our $600 million, multi-year telecommunications management award from DHS. However, during the year we continued to make key investments into the business and pay down debt. As we move into 2014, we currently see an expanding pipeline of business that should drive increased revenue in the 2nd and 3rd quarters of this year.”

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, March 31, 2014. Anyone interested in participating should call 1- 877-941-2068 if calling within the United States or 1-480-629-9712 if calling internationally. There will be a playback available until April 14, 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 number 4674898 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=108326.

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.

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

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WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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WIDEPOINT CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS TO NON-GAAP ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)

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