WidePoint Corporation Announces Third Quarter 2013 Financial Results
Federal Government Disruptions Delay Forecasted Revenue Growth
Washington, DC, November 14, 2013 /PRNewswire-FirstCall/ — WidePoint Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility Solutions featuring enterprise-wide telecommunications management, identitiy and data assurance, and consulting solutions deliverable in a secured cloud environment; today annouced financial results for the three and nine-month periods enabled September 30,2013.
Nine Months 2013 Financial Highlights
- Net Revenue decreased 14% to #35.5 million from $41.4 million in last year’s comparable period.
- Gross profit increased to 28% of revenue as compared to 24% in last year’s comparable period.
- Income from operations was approximately $8,000, as compared to income from operations of approximately $110,000 in last year’s comparable period.
Three Months 2013 Financial Highlights
- Net revenue decreased 20% to approximately $12.2 million, as compared to approximately $15.2 million in last year’s comparable period.
- Gross margin was 24% unchanged from last year’s comparable period.
- Loss from operations was approximately $(54,000) compared to income from operations of approximately $459,000 in last year’s comparable period.
- Net income was approximately $295,000 compared to a net income of approximately $244,000 in last year’s third quarter.
- Awarded customized security solution purchase order from tier-one telecommunications carrier.
- Awarded additional option year under our GSA MVS contract.
- Awarded 2nd cybersecurity purchase order from major U.S. based federal contractor.
- Awarded major new federal government agency service agreement for MMS Services.
- Won 5 new account relationships with Forbes 500 clients.
- Consummated a software licensing award with new white label reseller resulting in the conversion of 14+ commercial clients to our telecommunications management service platform.
- Awarded 3 new reseller state and local telecommunications projects.
- Conducted industry demonstrations of newly development ‘Cert on Chip’/Mobile Security Management capability.
- Entered into 3 new reseller/partnership agreements, enhancing our channel strategy both domestically and internationally.
- Expanded our current channel partnership with 7th largest accounting firm by adding two new trained offices in support of our managed mobility services offerings.
Steve Komar, CEO, WidePoint, commented, “During the third quarter, we faced some headwinds that impacted our revenue performance, including federal government sequester-related purchase delays, and slowed contracting pipeline and implementation attributed to the pending federal government shutdown. In addition, our forecasted revenue performance was affected by the delay through the end of the quarter of the presumed favorable resolution of the long-standing protest of our DHS multi-year telecommunications management award. That said, our sales and marketing efforts, featuring a deployed national direct sales force and re-positioned portfolio of services solutions, continue to accelerate with growing pipelines and new awards. We are also very pleased with the start of the selective demonstrations of our new ‘Cert on Chip’/Mobile Security Management capability, developed specifically to meet the identity protection needs of the mobile communications environment.”
James McCubbin, WidePoint CFO, added, “We continue to invest, manage, and balance our capital around our operating income, all while continuing to pay down debt. We’ve achieved this balance while also funding the reinvestment programs we launched in 2013 to competitively re-position the Company in future years.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, November 14, 2013. Anyone interested in participatingshould call 1-877-941-8416 if calling within the United States or 1-480-629-9808 if calling internationally. There will be a playback available until November 28, 2013. 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 4647019 for the replay. The call will also be accompanied live by webcase over the Internet and accessible at http://public.viavid.com/index.php?id=106556.
WidePoint is an IT specialist providing a suite of Managed Mobility Solutions, including specialized telecommunications management, cybersecurity, and consulting solutions utilizing its advanced information technology products and services. WidePoint has several wholly owned subsidiaries holding major government and commercial contracts. WidePoint enables enterprises and agencies to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. 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.