WidePoint Corporation Announces Second Quarter 2015 Financial Results
Forty-one percent year-over-year revenue growth; new partnerships, awards, Certificate-on-Device™ advancements, and DHS opportunities drive positive second half outlook
McLean, Virginia, August 10, 2015/PRNewswire/ – 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 second quarter ended June 30, 2015.
Recent Business Highlights
- Entered Strategic Alliance with Samsung SDS America
- Launched New Online Bill Presentment and Analytics Solutions with Three (“3”) Ireland
- Selected by Telefonica UK for Provisioning Cloud Digital Services
- Fully Deployed U.S. Immigration and Customs Enforcement component/agency under our DHS BPA
- Engaged with three major remaining DHS BPA component/agencies
- Engaged with DoD and DHS component/agencies for Certificate-on-DeviceTM – derived credentialing and other next-generation identity management services
- Completed phase one Certificate-on-Device consulting services with major financial services company and entering phase two of rollout; initiated phase one Certificate-on-Device with two other large commercial enterprises
- Awarded approximately $7.8M in DHS BPA task awards; expanded sales channel training and education of new channel partners; and grew second half sales pipeline due to introduction of new next-generation identity management services
- Continued development with new partners of product roadmap for Certificate-on-Device for individuals, derived credentials, machine device credentials, and other “Internet of Things” components; continued consolidation of platforms and integration efforts of our enterprise solutions.
Second Quarter 2015 Financial Highlights
- Net revenue increased 41% to $17.4 million from $12.4 million in the second quarter of 2014
- Gross profit was $3.3 million compared to $3.6 million in the second quarter of 2014, which supports extra capacity for expanded next-generation identity management services and managed mobility services
- Adjusted EBITDA loss was approximately $958,000 compared to $669,000 in the second quarter of 2014, including investments made in support of our next-generation identity management services in our general and administrative expenses
- Net loss was approximately $1.4 million compared to net loss of approximately $0.7 million in the second quarter of 2014, or basic and diluted loss per share of 0.017 per share compared to $0.009 in the second quarter of 2014
- Net working capital was approximately $10.6 million as of June 30, 2015.
“Our results in the second quarter of 2015, when combined with our first quarter performance, were largely in line with our year-to-date expectations,” stated Steve L. Komar, WidePoint’s chief executive officer. Komar further added, “We made great strides in our development efforts of our next-generation identity management services with our new channel partners. We see a tremendous interest in our solutions given recent cybersecurity breaches and threats and the strong responses being taken by both government and commercial groups.”
James McCubbin, WidePoint CFO, added, “Our second quarter revenues and financial performance were overall in line with our expectations with a bit more investment required as a result of requests made by our new channel partners for additional support. We continue to look for revenue growth and improved operating results in the second half of the year as next-generation identity management services come further online along with expectations for additional awards from our DHS BPA and other services.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, August 10, 2015. Anyone interested in listening to our analyst call should call 1-888-337-8198 if calling within the United States or 1-719-325-2354 if calling internationally. There will be a playback available until August 24, 2015. 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 2313513 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=115828.
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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CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION