WidePoint Corporation Announces Third Quarter 2014 Financial Results
DHS Task Order Awards, Commercial Expansion, and Certificate-on-Device New Partner Relationships Drive Positive Outlook
McLean, Virginia, November 13, 2014 /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 third quarter ended September 30, 2014.
Recent Business Highlights
- Received four (4) new additional Task Orders, including one issued by the U.S. Citizenship and Immigrations Services (USCIS), under our $600 Million Blanket Purchase Agreement (BPA) with the Department of Homeland Security (DHS).
- Initiated business support with Compass Group Global in Italy and Mexico. Support in Germany, France, and Spain is scheduled to commence in 2015.
- Began collaboration with SPYRUS, Inc., to deliver the industry’s first Trusted Mobile Windows To Go device that guarantees device identity, personal identity, and secure network access from any global location and commencing initial pilots in 2015.
- Continued to work closely with three leading device and handset manufacturers to embed Certificate-on-Device security offering into OEM equipment.
- Entered into a strategic alliance with leading device and handset manufacturer Kyocera Communications, Inc., to offer their ruggedized mobile devices as part of our MMS solutions. Initiated relationship with LG Electronics MobileComm, USA, to jointly market WidePoint Certificate-on-Device and LG Mobile Phones GATE enterprise solutions. Commencing sales and marketing programs and pilots in early 2015.
- Completed $11.5 million public offering of common stock on November 5, 2014, to fund expanding business relationships and growth opportunities.
Third Quarter 2014 Financial Highlights
- Net revenue increased 19.1% to $14.6 million from $12.2 million in the third quarter of 2013.
- Gross margin was 27% of revenue as compared to 24% in the third quarter of 2013.
- Net loss was approximately $5.9 million as compared to net income of approximately $295,000 in the third quarter of 2013. The third quarter net loss included an approximately $5.0 million non-cash tax provision offsetting a tax asset as a result of various financial and regulatory accounting rules and regulations.
“We continue to witness new task order awards and opportunities in both the federal and commercial marketplaces. Our Certificate-on-Device and other next-generation identity management services in conjunction with our overall MMS portfolio are poised for expansion in 2015 with our new and growing list of partners,” Steve Komar, WidePoint chief executive officer, commented. Mr. Komar further stated, “We continue to be enthusiastic about our expanded list of MMS offerings and, in combination with our recent financial offering of $11.5 million, we believe we should have the tools to support the increasing demands of our new partnerships as we go to market with a number of pilot programs and other new sales opportunities.”
James McCubbin, WidePoint CFO, added, “The investments that we continue to fund in capital and effort appear to be laying the foundation for a financial model of success. Improvements in our balance sheet from our recent capital raise should allow us to both continue to fund and support our new partnerships and contract obligations as they expand in 2015. With a number of new and exciting opportunities expected to start in pilot phase as we enter 2015, along with the commencement of sales and marketing efforts with our partners, we believe 2015 should demonstrate continued revenue growth and transition from a period of operational losses to operational earnings.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, November 13, 2014. Anyone interested in participating should call 1-888-438-5491 if calling within the United States or 1-719-457-2627 if calling internationally. There will be a playback available until November 27, 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 2208379 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=111895.
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
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WIDEPOINT CORPORATION AND SUBSIDIARIES
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