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8-K - FORM 8-K - WIDEPOINT CORPv387270_8k.htm
EX-99.1 - EXHIBIT 99.1 - WIDEPOINT CORPv387270_ex99-1.htm

 

Exhibit 99.2

 


 

For More Information:

 

Jim McCubbin, EVP & CFO Brett Maas or David Fore
WidePoint Corporation Hayden IR
7926 Jones Branch Drive, Suite 520 (646) 536-7331
McLean, VA 22102 brett@haydenir.com
(703) 349-2577  
jmccubbin@widepoint.com  
   

 

WidePoint Corporation Announces Second Quarter 2014 Financial Results

 

Increased Revenue Results and Outlook Driven by Developing Partnerships

and New Contract, Task Order, and Customer Wins

 

MCLEAN, Va., August 14, 2014 /PRNewswire/ – WidePoint Corporation (NYSE Mkt: WYY) a leading provider of Managed Mobility Services (MMS) featuring Cybersecurity and Telecommunications Lifecycle Management (TLM) solutions, today announced financial results for the second quarter ended June 30, 2014.

 

Recent Business Highlights

 

oReceived new task orders worth in excess of $25.8 million under the $600 Million Blanket Purchase Agreement (BPA) with the Department of Homeland Security (DHS).
   
oAwarded two new contracts by U.S. federal law enforcement agencies under the Department of Justice worth $28.8 million.
   
oAwarded a $47.5 million BPA within the Department of Health and Human Services.
   
oReceived more than 70 Managed Mobility Services wins with 42 cyber-related awards and 31 mobile-related awards, including contracts with two new county governments.
   
oAcquired Soft-ex Communications, Ltd, a Dublin-based leading provider of Telecom Data Intelligence (TDI) solutions throughout European and Middle Eastern markets, for approximately 1x revenues of $6 million.
   
oGained two new international commercial clients: a global consumer goods company utilizing WidePoint’s business intelligence cloud-based services to support over 300 sites for an initial 5-year period, and an international offshore driller for an initial 3-year period.
   
oExpanded our Compass relationship, with support starting in Italy and Mexico in the 3rd quarter. Support in Germany, France, and Spain is scheduled to start following the implementation of our support of Italy and Mexico.
   
oExpanded our relationships and partnering with three major U.S. market Telecoms.
   
oWorking closely with three leading device and handset manufacturers to embed our Certificate-on-Device security offering into OEM equipment.

 

 
 

 

Second Quarter 2014 Financial Highlights

 

·Net revenue increased 9.2% to $12.4 million from $11.3 million in the second quarter of 2013 and increased 29.1% sequentially from $9.6 million in the first quarter of 2014.
   
·Gross margin was 29% of revenue as compared to 31% in the second quarter of 2013 and 26% in the previous first quarter of 2014.
   
·Net loss was approximately $669,000 as compared to net income of approximately $139,000 in the second quarter of 2013 and net loss of $927,000 in the previous first quarter of 2014. The second quarter net loss included approximately $400,000 in non-recurring costs associated with the Soft-ex acquisition and other non-recurring costs associated with technology development.

 

“We posted a solid quarter, reflecting several new task order awards in our federal government business, particularly under our $600 million BPA with DHS. Meanwhile, we continue to pick up additional federal business with other Department-level agencies and new commercial opportunities are expanding our available target markets. In addition, we are excited about our recent acquisition of Soft-ex Communications, which has opened the European and Middle Eastern markets to us; in fact, we have already leveraged this business to gain entry into the G-Cloud 5, the UK Government’s cloud computing initiative,” Steve Komar, CEO, WidePoint, commented. Mr. Komar further stated, “We are also very enthusiastic about our ‘Cert-on-Device’ offering. We are already seeing widespread interest across both the government and commercial markets for our capabilities and expertise and expect to see numerous new revenue opportunities arise from this secured communications capability in coming quarters.”

 

James McCubbin, WidePoint CFO, added, “We continue to see expanding demand for our managed mobility service and product offerings. In the month of July alone, we received over 30 inquiries from organizations seeking additional information about our managed mobility solutions cyber-related offerings driven by what we believe is the need to address cyber- and mobility-related security concerns in the marketplace. We began receiving task orders under our DHS BPA at the end of the first quarter and recently were awarded $25.8 million in new task orders under this contract vehicle. As a result of this market demand we expect our sales pipeline to continue to grow. We continue to believe the second half of 2014 should be stronger than the first half of 2014, and we anticipate an increase in sequential revenue growth in the 3rd quarter of 2014 as compared to the 2nd quarter of 2014.”

 

Conference Call Information

 

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Thursday, August 14, 2014. Anyone interested in participating should call 1-888-378-0320 if calling within the United States or 1-719-457-2664 if calling internationally. There will be a playback available until August 28, 2014. 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 3988996 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=110369.

 

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 declaration and payment of dividends; and (v) 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 Forms 10-K and 10-Q filed with the SEC.

 

-tables follow-

 

 
 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   JUNE 30,   DECEMBER 31, 
   2014   2013 
         
ASSETS                
CURRENT ASSETS          
Cash and cash equivalents  $4,103,311   $- 
Accounts receivable, net of allowance for doubtful accounts of $29,794 and $30,038 in 2014 and 2013, respectively   6,177,272    7,612,400 
Unbilled accounts receivable   2,860,011    1,561,030 
Inventories   35,871    61,338 
Prepaid expenses and other assets   549,789    533,944 
Income taxes receivable   -    763 
           
Total current assets   13,726,254    9,769,475 
           
NONCURRENT ASSETS          
Property and equipment, net   1,836,865    1,545,951 
Intangibles, net   4,080,957    3,613,271 
Goodwill   20,838,927    16,618,467 
Deferred income tax asset, net of current   5,498,201    4,407,630 
Deposits and other assets   118,228    120,046 
           
TOTAL ASSETS  $46,099,432   $36,074,840 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
Line of credit advance  $-   $916,663 
Short term note payable   34,529    119,336 
Accounts payable   3,550,495    3,228,586 
Accrued expenses   4,221,829    4,407,286 
Deferred revenue   829,257    40,911 
Income taxes payable   21,121    217,982 
Deferred income taxes   700,743    700,743 
Current portion of long-term debt   2,164,185    1,150,455 
Current portion of deferred rent   71,547    78,525 
Current portion of capital lease obligations   75,835    45,125 
           
Total current liabilities   11,669,541    10,905,612 
           
NONCURRENT LIABILITIES          
Long-term debt, net of current portion   1,759,501    2,509,492 
Capital lease obligation, net of current portion   70,592    57,119 
Deferred rent, net of current portion   18,395    2,421 
Deferred revenue   68,672    82,494 
Deposits and other liabilities   1,964    1,964 
           
Total liabilities   13,588,665    13,559,102 
           
STOCKHOLDERS' EQUITY          
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding   -    - 
Common stock, $0.001 par value; 110,000,000 shares authorized; 73,040,329 and 63,907,357 shares issued          
and outstanding, respectively   73,040    63,907 
Additional paid-in capital   81,484,180    69,867,491 
Accumulated other comprehensive (loss)   (34,856)   - 
Accumulated deficit   (49,011,597)   (47,415,660)
           
Total stockholders’ equity   32,510,767    22,515,738 
           
Total liabilities and stockholders’ equity  $46,099,432   $36,074,840 

 

 
 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   THREE MONTHS ENDED   SIX MONTHS ENDED 
   JUNE 30,   JUNE 30, 
   2014   2013   2014   2013 
REVENUES  $12,394,021   $11,343,962   $21,996,800   $23,312,068 
COST OF REVENUES (including amortization and depreciation of                    
$391,899, $363,609, $666,840, and $737,928, respectively)   8,780,226    7,816,920    15,915,767    16,510,574 
                     
GROSS PROFIT   3,613,795    3,527,042    6,081,033    6,801,494 
                     
OPERATING EXPENSES                    
Sales and Marketing   1,038,059    880,303    1,883,171    1,686,120 
General and Administrative Expenses (including share-based                    
compensation of $83,988, $58,281, $166,704, and                    
$112,268, respectively, and gain on change in fair value of                    
contingent obligation of $0, $369,000, $0, and $589,000,                    
respectively)   3,666,282    2,386,801    6,722,120    4,913,616 
Depreciation and Amortization   143,219    73,241    212,729    139,519 
                     
Total Operating Expenses   4,847,560    3,340,345    8,818,020    6,739,255 
                     
(LOSS) INCOME FROM OPERATIONS   (1,233,765)   186,697    (2,736,987)   62,239 
                     
OTHER INCOME (EXPENSE)                    
Interest Income   4,594    2,612    5,324    3,461 
Interest (Expense)   (46,332)   (55,937)   (92,558)   (115,519)
Other Income (Expense)   5,924    4,134    11,799    8,505 
                     
Total Other Income (Expense)   (35,814)   (49,191)   (75,435)   (103,553)
                     
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES   (1,269,579)   137,506    (2,812,422)   (41,314)
INCOME TAX BENEFIT   (600,340)   (1,845)   (1,216,485)   (145,396)
                     
NET (LOSS) INCOME  $(669,239)  $139,351   $(1,595,937)  $104,082 
                     
BASIC EARNINGS PER SHARE  $(0.009)  $0.002   $(0.023)  $0.002 
                     
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING   72,998,461    63,751,857    69,929,300    63,751,857 
                     
DILUTED EARNINGS PER SHARE  $(0.009)  $0.002   $(0.023)  $0.002 
                     
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING   72,998,461    63,936,607    69,929,300    63,908,752