WidePoint Corporation Reports Second Quarter 2016 Financial Results
Highlighting New Product Roll-outs and Reduced Operating Losses
McLean, VA, August 8, 2016 – 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 second quarter ended June 30, 2016.
Recent Business Highlights
- Continued demonstration of capabilities in concert with Department of Defense (DoD) and Department of Homeland Security (DHS) component agencies for Certificate-on-DeviceTM derived credentialing and related next-generation identity management services
- Continued marketing and pipeline building activities with Samsung and other key industry partners for Certificate-on-Device™ person, derived, and device credentials, and other “Internet of Things” (IoT) components
- Selected by AT&T for commercial roll-out of Certificate-on-DeviceTM for AT&T’s IoT product offering in 2017
- Selected by Voya Financial as a strategic partner in the “One Voya” initiative to pursue expanded identity management opportunities
- Renewed expanded services contracts with Compass Group PLC and the DOJ’s Bureau of Alcohol, Tobacco, Firearms and Explosives, securing over $10 million in new contract wins and option year extensions. Successes included awards for identity assurance, mobile telecomm, analytics, and consulting services, spanning both Government and Commercial markets.
- Appointed Jason Holloway as Chief Sales and Marketing Officer
Second Quarter 2016 Financial Highlights
- Net revenue was approximately $17.5 million compared to $17.4 million in the second quarter of 2015
- Gross profit was approximately $3.4 million compared to $3.3 million in the second quarter of 2015
- Net Loss improved approximately $500,000 to ($897,000) compared to net loss of approximately ($1.4 million) in the second quarter of 2015, or basic and diluted loss per share of $0.011 per share compared to $0.017 in the second quarter of 2015
- Adjusted EBITDA Loss improved approximately $510,000 to ($448,000) from ($958,000) in the second quarter of 2015
First Half 2016 Financial Highlights
- Net revenue was approximately $38.0 million compared to $35.1 million in the first six months of 2015
- Gross profit was approximately $7.5 million compared to $6.9 million in the first six months of 2015
- Net Loss improved approximately $1.0 million to ($1.6 million) compared to net loss of approximately ($2.6 million) in the first six months of 2015, or basic and diluted loss per share of $0.019 per share compared to $0.031 in the first six months of 2015
- Adjusted EBITDA Loss improved approximately $0.9 million to ($0.7 million) from ($1.6 million) in the first six months of 2015
“Our second quarter was marked by substantial improvements in our progress toward profitability,” stated Steve L. Komar, WidePoint’s chief executive officer. “We continue to selectively invest in our next-generation solutions and to expand our partnerships with leading technology Channel Partners, including Samsung and AT&T. We are driving fundamental changes to our business model to push our new business building efforts to a focus on higher margin services including mobility telecommunications and cybersecurity, and de-emphasizing lower margin reselling and administrative services activities, and continue to take steps to optimize our costs of operations and delivery. We fully expect to see the financial impact of this prioritization throughout the remainder of 2016, and increasingly in the years to come.”
James McCubbin, WidePoint’s chief financial officer, added, “Our improvements in both our net operating losses and adjusted EBITDA loss in the second quarter and in the first half were largely driven by our ongoing business rationalization efforts to improve our operating model. We believe we are on track to reach operational profitability in the second half of 2016.”
Conference Call Information
A conference call and live webcast will take place at 4:05 p.m. Eastern Time, on Monday, August 8, 2016. Anyone interested in listening to our analyst call should call 1-877-723-9522 if calling within the United States or 1-719-325-4842 if calling internationally. There will be a playback available until August 22, 2016. 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 4730874for the replay. The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=120493.
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.
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS
ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION