WidePoint Corporation Reports First Quarter 2018 Results
McLean, VA, May 14, 2018 – WidePoint Corporation (NYSE American: WYY) a leading provider of Trusted Mobility Management (TM2) specializing in Telecommunication Lifecycle Management, Identity Management, and Bill Presentment & Analytics solutions, announced financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights (Comparisons versus First Quarter 2017)
- Revenue grew 8% to $20.1 million
- Operating expenses declined 13% to $4.0 million
- Net loss reduced to $0.5 million from $1.2 million
- Adjusted EBITDA was $0.1 million as compared to ($0.7) million
“I’m pleased with the progress we’ve made on cost savings initiatives. Over the past year, we’ve reduced our operating expenses by over $0.6 million. Meanwhile on the top line, we witnessed one of the strongest quarters we’ve seen since 2016, bolstered in part by a large, new award from U.S. Armed Forces valued at more than $1.8 million,” stated Jin Kang, WidePoint’s Chief Executive Officer. “We have been successful executing follow-on contracts with existing customers to maintain our key customer base and we are working diligently to build our pipeline with both new and existing customers through increased marketing and cross-selling of our leading technology solutions. Our sales and marketing resources are now fully aligned to support our TM2 offering, and we are positioning the company for profitable growth.”
Kito Mussa, WidePoint’s Chief Financial Officer, added, “We saw revenue growth in the quarter of 8% year-over-year, reduced our GAAP net losses, and continue to be Adjusted EBITDA positive for the first quarter. We remain focused on reducing the costs of delivering and supporting our services to improve profitability.”
First Quarter 2018 Financial Summary (Comparisons versus First Quarter 2017)
|(in millions, except per share amounts)||March 31, 2018||March 31, 2017|
|Gross Profit (% of Revenue)||$3.6 (18%)||$3.4 (18%)|
|Loss from Operations||$(0.4)||$(1.2)|
|Basic and Diluted Earnings per Share (EPS)||$(0.01)||$(0.01)|
- Cash and cash equivalents was approximately $7.4 million as of March 31, 2018.
- There was no outstanding balance on the credit facility.
Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net loss to Adjusted EBITDA is included on the schedules attached hereto.
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, May 14, 2018. Anyone interested in listening to our analyst call should call 1-877-451-6152 if calling within the United States or 1-201-389-0879 if calling internationally. There will be a playback available until May 28, 2018. To listen to the playback, please call 1‑844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use PIN code 13679932 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=129749.
WidePoint Corporation (NYSE American: WYY) is a leading provider of technology-based management solutions including telecom management, mobile management, access management and identity management. For more information, visit www.widepoint.com.
CONDENSED CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS