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
WASHINGTON, August 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 Heath 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.
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.
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WIDEPOINT CORPORATION AND SUBSIDIARIES
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