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WidePoint Corporation Reports Full Year 2016 Financial Results

McLean, VA, March 30, 2017 – 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 fourth quarter and full-year ended December 31, 2016.

Recent Business Highlights

  • Board of Directors appointed Jeffrey O. Nyweide as the Chief Executive Officer and President and Director
  • Added a major telecommunication consolidator as a new channel partner for TLM
  • Added two major resellers as channel partners for credentialing solutions
  • Realigned sales and marketing to improve lead generation activities
  • Initiated consolidation of physical and logical infrastructure to eliminate redundant overheads and reduce costs

Full Year 2016 Financial Highlights

  • Net revenue was approximately $78.4 million compared to $70.8 million in 2015
  • Gross profit was approximately $14.0 million compared to $13.2 million in 2015
  • Net loss of approximately ($4.1 million) compared to ($5.5 million) in 2015, or basic and diluted loss per share of $0.05 per share compared to $0.07 in 2015
  • Adjusted EBITDA loss of approximately ($2.0 million) compared to approximately ($3.5 million) in 2015

Fourth Quarter 2016 Financial Highlights

  • Net revenue was approximately $18.3 million compared to $18.7 million in the fourth quarter of 2015
  • Gross profit was approximately $2.4 million compared to $3.2 million in the fourth quarter of 2015
  • Net loss was approximately ($2.4 million) compared to ($1.1 million) in the fourth quarter of 2015, or basic and diluted loss per share of $0.03 per share compared to $0.01 in the fourth quarter of 2015.
  • Adjusted EBITDA loss was approximately ($1.7 million) compared to approximately ($0.9 million) in fourth quarter of 2015. Included in our 4th quarter 2016 expenses were also approximately $1.2 million in non-recurring charges.
  • Cash and cash equivalents was approximately $9.1 million as of December 31, 2016. Working capital was approximately $5.0 million.

“Over the past three months, I’ve conducted a strategic review of our business to gain a deep understanding of our products and services, our employees and management, our clients and partners. I see a lot of opportunities ahead for WidePoint,” stated Jeffrey O. Nyweide, WidePoint’s Chief Executive Officer and President. “As a company, we are committed to capitalizing on our foundation of core expertise and innovation to pursue high growth opportunities in both mobile telecommunications and cybersecurity. Throughout 2017, we will continue to streamline and consolidate our infrastructure to support an organization that can scale both revenues and profitability.”

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 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 Thursday, March 30, 2017. Anyone interested in listening to our analyst call should call 1-888-791-4305 if calling within the United States or 1-913-312-1378 if calling internationally. There will be a playback available until April 13, 2017. 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 4711433 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=123277.

About WidePoint

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 Company’s ability to achieve profitability and positive cash flows; (v) the Company’s ability to raise additional capital on favorable terms or at all; (vii) the Company’s ability to gain market acceptance for its products and (viii) 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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016.

WIDEPOINT CORPORATION
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