WidePoint Corporation Announces Third Quarter 2015 Financial Results
McLean, VA, November 9, 2015 – 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, 2015.
Recent Business Highlights
- Awarded initial task orders to commence work from one of the three remaining Department of Homeland Security (DHS) component agencies under our $600 million DHS BPA
- Partnered with Bob Day & Associates LLC to pursue new and expanded business opportunities within the Homeland Security and cyber technology markets
- Engaged Deep Water Point to develop, pursue, and expand our federal business reach as we scale our marketing footprint with other departmental-level federal organizations
- Awarded approximately $6.5 million in new managed mobilility services for federal, municipal, and commercial work
- Awarded approximately $2.3 million, with renewals, in new consulting support work
- Launched New Online Bill Presentment and Analytics Solutions for the Communication Service Provider (CSP) consumer market at BroadSoft Connections 2015
- Continued engagements with DoD and DHS component/agencies for Certificate-on-Device™ – derived credentialing and other next-generation identity management services
- Continued development with strategic partners of our Certificate-on-Device product roadmap for individuals, derived credentials, machine device credentials, and other “Internet of Things” components; continued consolidation of platforms and integration efforts of our enterprise solutions
Third Quarter 2015 Financial Highlights
- Net revenue increased 17% to $17.0 million from $14.5 million in the third quarter of 2014, driven principally by increases in our DHS BPA expansion, partially offset by decreases in software reselling activities within our managed services offerings.
- Gross profit was $3.1 million compared to $4.0 million in the third 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 $1.1 million compared to $404,000 in the third quarter of 2014, driven by continued technology, sales and marketing, and infrastructure investments in support of our next-generation identity management services and managed mobility services.
- Net loss was approximately $1.8 million compared to net loss of approximately $5.9 million in the third quarter of 2014 or basic and diluted loss per share of 0.02 per share compared to $0.08 in the third quarter of 2014.
James McCubbin, WidePoint’s chief financial officer, stated, “Our financial results in the third quarter of 2015 were weaker than we expected as a result of delays in anticipated contract awards. While we did receive awards late in the third quarter and early in the fourth quarter of 2015, including new initial task orders from one of the last three agencies remaining to be won under our DHS BPA contract, the timing put us behind schedule. We still remain confident, timing issues aside, that we will continue to win additional work under our DHS BPA. We believe that our revenues, gross margins, and overall financial metrics and results, should improve, as our new next-generation identity management services come on line.”
Steve L. Komar, WidePoint’s chief executive officer, stated, “We continue to make great strides in our development efforts of our next generation identity management services and channel marketing efforts with our strategic partners. While contract delays caused some timing issues that negatively effected our financial performance in the third quarter of 2015, we remain confident in our products and services, and in the increasing demand we see for them in the market today and in the future, in both the government and commercial sectors.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, November 9, 2015. Anyone interested in listening to our analyst call should call 1-877-419-6591 if calling within the United States or 1-719-325-4747 if calling internationally. There will be a playback available until November 23, 2015. To listen to the playback, please call 1 877 870 5176 if calling within the United States or 1-719-325-4752 if calling internationally. Please use PIN code 4105835 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=116997.
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