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WidePoint Reports First Quarter 2020 Financial Results

Fairfax, VA – May 14, 2020 – WidePoint Corporation (NYSE American: WYY)

, the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported results for the first quarter ended March 31, 2020.

First Quarter 2020 and Recent Operational Highlights: 
  • Selected as strategic vendor for SYNNEX Corporation (NYSE: SNX), which may potentially expand sales of TM2
  • Received a 12-month, sole source indefinite delivery, indefinite quantity (IDIQ) contract from the U.S. Department of Homeland Security (DHS) for Cellular Wireless Managed Services (CWMS)
  • Supported and continuing to expand work with the United States Census 2020 as the U.S. Census Bureau has increased the forecasted number of field devices needed by 20%
  • Partnered with KoolSpan to provide end-to-end encryption for phone calls and text messages
  • Secured $20 million in new contract wins, exercised option periods, and contract extensions during the first quarter of 2020
First Quarter 2020 Financial Highlights (results compared to the same year-ago period):
  • Revenues increased 81% to $39.7 million
  • Managed Services revenue increased 52% to $11.5 million
  • Gross profit increased 17% to $5.0 million
  • Net income totaled $484,000, up 26%
  • EBITDA, a non-GAAP financial measure, increased 21% to $1.2 million

First Quarter 2020 Financial Summary 
(in millions, except per share amounts) March 31, 2020 March 31, 2019
(Unaudited)
Revenues  $39.7  21.9
Gross Profit  $5.0 $4.3
Gross Profit Margin 12.5% 19.4%
Operating Expenses $4.2  $3.8
Income (Loss) from Operations  $0.7  $0.5
Net Income (Loss) $0.5  $0.4
Basic and Diluted Earnings per Share (EPS)  $0.01  $0.00
EBITDA  $1.2 $1.0
Nine Month 2019 Financial Summary 
(in millions, except per share amounts) September 30, 2019 September 30, 2018
(Unaudited)
Revenues  $73.6  58.9
Gross Profit  $12.6 $10.8
Gross Profit Margin 17% 18%
Operating Expenses $12.0  $11.7
Income (Loss) from Operations  $0.6  $(0.9)
Net Income (Loss) $0.3  $(1.0)
Basic and Diluted Earnings per Share (EPS)  $0.00  $(0.01)
Adjusted EBITDA  $2.6 $0.8

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.

Management Commentary

“In the first quarter of 2020, we continued to build upon the momentum we generated last year and produced one of the most successful quarters in our company’s history,” said WidePoint’s CEO, Jin Kang. “From a financial perspective, the quarter was highlighted by an 81% increase in total revenues to $39.7 million, a 52% increase in managed services revenues, positive net income, and a $2.4 million improvement in our cash position. Operationally, we continued our work on the 2020 U.S. Census project, which was the primary cause of the uncharacteristically large increase in our topline, and which should continue contributing to our revenues until the start of 2021. During the quarter, we also secured an aggregate of $20 million in contract awards. Subsequent to the quarter’s end, we secured a 12-month sole source contract with the U.S. Department of Homeland Security, and we announced that we have been selected as a SYNNEX vendor, which could open new doors and help us expand our customer base.

“The current pandemic has diminished our ability to accurately predict the timing of events in the near-term, but our primary goal of simultaneously improving the topline and driving profitability as we help large enterprises navigate the complexities of the mobile landscape remains unchanged. Many of our customers are on the frontlines of battling COVID-19 and are working hard to help us all return to a sense of normalcy. We intend to ensure they have the necessary devices and cost optimization tools in place to continue operating in this challenging environment.

“The world may still be fraught with uncertainty, but given the trends in our industry, our resilient customer base, and our solid financial position, we believe we are well positioned to continue successfully pursuing our strategic initiatives to drive growth and profitability in the long-run.”


Conference Call

WidePoint management will hold a conference call today (May 14, 2020) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

WidePoint President and CEO Jin Kang, Executive Vice President and Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO Kellie Kim will host the conference call, followed by a question and answer period.

U.S. dial-in number:  844-407-9500

International number: 862-298-0850

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through May 28, 2020.

Toll-free replay number: 

877-481-4010

International replay number: 919-882-2331

Replay ID: 34584

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Non-GAAP Financial Measures

WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as 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 income to EBITDA is included on the schedules attached hereto.

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Safe Harbor Statement

The information contained in any materials that may be accessed above was, to the best of WidePoint Corporations’ knowledge, timely and accurate as of the date and/or dates indicated in such materials. However, the passage of time can render information stale, and you should not rely on the continued accuracy of any such materials. WidePoint Corporation has no responsibility to update any information contained in any such materials. In addition, you should refer to periodic reports filed by WidePoint Corporation with the Securities and Exchange Commission for information regarding the risks and uncertainties to which forward-looking statements made in such materials are subject. Such risks and uncertainties may cause WidePoint Corporation’s actual results to differ materially from those described in the forward-looking statements.

Investor Relations:

Gateway Investor Relations

Matt Glover or Charlie Schumacher

949-574-3860

[email protected]

 


WIDEPOINT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

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WIDEPOINT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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