WidePoint Corporation Announces Full Year 2015 Financial Results
Fiscal year end 2015 Revenue increased 33% to $70.8 million from $53.3 million in 2014; Fourth quarter 2015 Revenue increased 12% to $18.7 million from $16.8 million in fourth quarter 2014
McLean, VA, March 15, 2016 – 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 fourth quarter and full-year ended December 31, 2015.
Recent Business Highlights
- Released two new mobile applications as part of the WidePoint Certificate-on-Device™ solution: WidePoint Person-ID and WidePoint Derived-ID enable the secure creation, delivery, and installation of digital certificates to Android-based mobile devices
- Unified iSYS LLC (iSYS) and Operational Research Consultants Inc. (ORC) subsidiaries under the WidePoint brand as WidePoint Integrated Solutions Corp. and WidePoint Cybersecurity Solutions Corporation, respectively, to drive an integrated market strategy going forward
- Won a new contract to supply Irish-based eir and its business telecom customers with an Online Bill Presentment and Analytics solution through WidePoint’s UK-based Soft-ex subsidiary
- Continued development with new partners of product roadmap for Certificate-on-Device™ person, derived, and device credentials, and other “Internet of Things” components
- Continued consolidation of software platforms and integration of our enterprise solutions, while initiating a program to streamline operational costs and SG&A to manage and support these solutions
Full Year 2015 Financial Highlights
- Net revenue increased 33% to $70.8 million from $53.3 million in 2014, driven principally by increases in our DHS BPA expansion.
- Gross profit was $13.2 million compared to $13.5 million in 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 $3.6 million compared to $2.4 million in 2014, including continued investments made in support of our next-generation identity management services in our sales, general, and administrative expenses.
- Net loss was approximately $5.5 million compared to net loss of approximately $8.4 million in 2014 or basic and diluted loss per share of $0.07 per share compared to $0.12 in the fourth quarter of 2014.
Fourth Quarter 2015 Financial Highlights
- Net revenue increased 12% to $18.7 million from $16.8 million in the fourth quarter of 2014, driven principally by increases in our DHS BPA expansion.
- Gross profit was $3.2 million compared to $3.4 million in the fourth 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 $0.9 million compared to $0.5 million in the fourth quarter of 2014, including continued investments made in support of our next-generation identity management services in our sales, general, and administrative expenses.
- Net loss was approximately $1.1 million compared to net loss of approximately $0.9 million in the fourth quarter of 2014 or basic and diluted loss per share of $0.014 per share compared to $0.011 in the fourth quarter of 2014.
“Our results for 2015 were lower than our initial expectations, but set the stage for continued growth and a return to operational profitability in 2016,” stated Steve L. Komar, WidePoint’s chief executive officer. Komar further added, “We continue to expand our relationships with vendors like Samsung, LG, and Kyocera, and we are jointly marketing our next-generation identity management services with them even while we work to add new partners. We remain confident in our solutions and in the demand we see for them in the market today and in the future, in both the government and commercial sectors.”
James McCubbin, WidePoint CFO, added, “We were pleased with the improvement we witnessed in revenue growth and the decrease we saw in our losses when comparing our fourth quarter against our third quarter of 2015. In 2016, we are working towards an expansion of revenue and margins from sales of higher margin solutions and efficiencies we are expecting as a result of platform unification, process improvements, and increase in critical mass. These improvements coupled with an initiative to streamline our sales, general, and administrative costs should drive positive performance in our financial model in 2016 as we push towards our goal of achieving operational profitability.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Tuesday, March 15, 2016. Anyone interested in listening to our analyst call should call 1-888-572-7033 if calling within the United States or 1-719-325-2494 if calling internationally. There will be a playback available until March 29, 2016. 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 3461649 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=118651.
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.
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WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (ROUNDED)