Just had an opportunity to read the GAO release and it was clear that GAO wants these protests to cease. TCS and their attorneys were handed a solid and reasoned shellacking by GAO on all points.
What is even clearer, and can serve WYY well in the future by way of inference from the Decision, is the very high regard that iSys is held in by DHS both from a management and work product standpoint. What also can be inferred is that if you are an agency making choices on your TEMS, MMS, etc. programs, choosing iSys/WYY as your provider is safe as they have been vetted for quality, delivery and overall performance. In my opinion this clearly puts them in the running for any OASIS contract they go after.
Part of having larger contracts is there must be the managerial confidence on both sides of the contract that they contract will be professionally carried out. This really points to an imprimatur of approval from the feds for the way iSys, llc does business. The DHS and GAO got a victory, iSYS got a victory; and we have something current and leverageable for future contract discussions.
WYY is in a good place and with hard work will be in a better place in 2014. Look forward to taking my place on the platform, boarding the train, and taking the full ride!
I have not been able to attend any WYY investor conferences and just missed Jim's last Chicago conference as I was passing thru Chicago last week but missed it by a day and could not move my meetings to attend.
While I welcome any announcements since there are so few, having this announced again and expecting a big bump seems a bit wishful. If it attracts analysts that would be good. I would think there would need to be more than a rehash of "We got the work" but more of here is a concerted strategy and some of the opportunities that we are putting together on our way out of the sub $5 share price basement.
There are still some promised voids they need to fill. The only thing that has excited retail is the DHS award as they assigned some dollar values to that. They need to build on that and also fill out the train schedule here.
I'm on board, I know where some of the stops are, I know we're heading North, but I would like to know more about the whole route. I would like more color. Not fluff mind you but a guidebook that contains more than we leave today and arrive a year or so from now.
Have no problem with a formal announcement but that will not tempt me to buy more as I already know they were awarded the contract. Now if they do a good job in building the case for how this will add 75 million a year in revenue when it is fully up and running as Komar mentioned, if they add clarity to the airline partner, if they flesh out the deal with Thales on cert on a chip, if they announce the other partner, if they talk to the potential under the new OASIS process, then you may get some analyst butts in chairs. Just don't expect a lot during the holidays as folks tend to sty closer to home.
Haven't sold any, still nibbling and I agree you and I should do a buyout with your half a million shares and my 36 shares we may need to find another partner! Have a great holiday and Merry Christmas Hawk.
Why would announcing what will have been baked in and confirmed for weeks be a great transformative day? Don't mean to be rude, but I believe we might be setting some unrealistic expectations re the announcement . Also Cert on a Chip is very unlikely to be the cause of any delay as the contract is largely TEMS on the front side and there is much to do before they get into the weeds with CoC. . iSys is already working on the DHS contract but realizing it is pre holiday probably will not begin to hit full stride in planning until Q1 2014 and full steam in 2015.
I do agree that the opportunities for WYY are expanding rapidly and they will be hard pressed to maintain focus to engage the building out on the DHS contract whilst maintaining in place business and the growth from the commercial and international sales efforts.
Working in a business that is also experiencing a lot of growth globally, and being responsible for managing the ops side of that growth, I know how all consuming it can be. But it beats the alternative!
Suspect it's folks taking profits. People are forever tweaking and positioning trying to turn the WYY pennies into nickels. I'm sitting tight at present and even nibbling for a few thousand shares here and there. Already have a full load but I can't resist.
Have owned this before they had this SINGLE contract that the CEO states will be worth $75,000,000 per year when it is fully engaged and it is a multi year contract. So WYY prospects are just too good given their conservative financial tendencies. You gotta pay attention to that.
Where else can I go that will give me the potential return of a WYY at this juncture? The contracts are getting bigger with OASIS and after WYY wins their first OASIS contract, and I am confident they will they could really take off. Scaling this type of business should be manageable and they have the other irons in the fire. They will get taken out before maturing fully I suspect. It's all not government anymore either I see unlimited commercial potential as security needs are forced to be tightened because of all the nimrods in the world.
Why share price is roller coasting, I don't have a solid clue could be a lot of different things. I would like to see more emphasis by WYY in keeping some share stability by staying a bit more in the public eye...but that's just me. I want to see this at least $3-5 next year before it's sold. 2014 could be huge. Lots of challenges some headwinds but she's a sound ship.
Another sociopath in his parents basement speaks! Ain't life grand when we can give even the pollywogs an opportunity to swim in the big pool.
These meetings rarely have any big news coming out of them. Mainly for tallying proxies and to satisfy the requirement to have an annual meeting. How much fun can you have in a lawyers office anyway?
Some firms announce a tidbit, if they can, in the days surrounding the meeting and I am sure as reticent as WYY is to post we will hear something when they are mandated to release on a material issue.
I'm beginning to believe that the boys are not big football fans as they seem to have forgotten about the cheerleader aspect of the game... not that I want to see any of 'em in skirts or tights; but a little cheerleadin' might be just what we need to loosen up the purse strings of those institutional tightwads.
On second thought maybe they should actually hire some cheerleaders for the next meeting and a few of us old guys might show up. None of that Borat stuff though...that's unseemly. Or they could hire Dennis Koslowski to throw a party, I hear he's out. Just sayin'
1.) Revenues largely declined due to govt. shutdown and sequestration. Pretty much off the table for a while since neither party gained anything from that moronic exercise.
2.) Decline in software margins. What software are you referring to. Margins are sound and gross margins were up 28%.
3.) The defense sector is very vulnerable to cut backs in certain programs but not of the kind that WYY is involved in. That path is set. TEMS and MMS save money. Cyber security and credentialing are a growing necessity. Their sector is sound for the foreseeable future.
4.) ~$75,000,000 per annum recurring revenue with new contract award alone when it is fully rolled out.
5.) New civil aviation client
6.) New cert on a chip device being piloted within commercial healthcare and governmental entities.
I could go on but not sure of your bona fides. I'll test you....
In Cert on a Chip are they using Lays, Golden Flake, Tostitos or Thales?
Tomorrow is the annual shareholders meeting. Would be nice to have some announcement coming out of that. I am sure the boys are happy but pensive.
Let's face it, they have a solid reputation. The recent protest was not directed at them it was directed at the process. The sector is strong and will enter a serious consolidation period as awards for TEMS, MMS, credentialing, and Cyber-security continue to grow both by demand, price and through the new government procurement process. We are in for a period of growth, protest and profits where patience wins out over hubris.
The new government OASIS program is starting with continued controversy and protest of awards will be common until the kinks get ironed out. But consolidation of the governmental demand in this sector will continue unabated. We may even get some breathing room free from shut down and sequester for awhile which should garner the opportunity to work the demons out of the new procurement system.
WYY is still under the radar for investors, for sector player however, it has to be a juicy target.
I look at some of these posters and I realize that I am not a patient man.. unless I'm fishing. But the chum some of these "experts" throw out there makes me wonder if they are all interviewing for financial advisor positions at Zacks!
Keep the faith my friend, some of us are investors, some of us are traders, some are short the stock some are long. I don't recall where I was going with this and it was sounding as much a prayer as a sagacious statement; so can we just shoot the shorts and put them out of their misery and let's get on with the party? Amen!
Be well. I bought a little more as well.
Are you on crack? Related in any way to the Mayor of Toronto? Leader of North Korea, perhaps? You're irrational and do not mind advertising that fact at every brief downturn.
Thought you hired those folks back in August as one of your infantile posts stated. Since that post WYY has more than doubled even with the profit taking and consolidation today. Why do you persist in this lunacy?
Sorry, I apologize go take your substance of choice and leave the rational folks alone. You got me, I got sucked in and responded.
Old and happy to be holding the WYY bag.
The brain dead identity known as portfoliomanager2013 has been put on your ignore list
Awards can always be taken away and there is evidence of that. . Appearance of Impropriety is impropriety in the government's eyes. There is no timeline
The name of the company that lost the contract ...Telecommunications Systems, Inc. TCS had been awarded the contract and then it was taken away after they had already started working on it The agency issued request for proposals (RFP) No. HC1013-09-R-2004 on March 2, 2010, and initial proposals were received on April 28.
"The contract was awarded to TCS on November 3. The agency informed SGSI, the incumbent contractor, of the award on the same date, and debriefed SGSI on November 8. SGSI filed a protest on November 12, alleging, among other things, that the agency had ignored a serious conflict of interest created by TCS’s hiring of the agency’s former SATCOM Special Interest Program Manager (SATCOM PM). The agency decided to take corrective action to investigate whether TCS’s hiring of the SATCOM PM created an unfair competitive advantage. Based on the agency’s proposed corrective action, our Office dismissed SGSI’s protest. "
"The agency performed an 8-month investigation, in which it collected and analyzed documentary evidence from agency and TCS records. On July 22, 2011, the contracting officer found, based on the documentary evidence, that although there may not have been an actual impropriety, there was an appearance of impropriety, which could not be avoided, neutralized or mitigated. In this regard, the contracting officer found that the documentary evidence showed that the SATCOM PM had access to source selection information and provided advice to TCS in preparing its proposal revisions. Accordingly, the contracting officer excluded TCS from further participation in the procurement and terminated TCS’s contract. "
So TCS, several months after they edged an incumbent out of a contract and had started working, had the contract cancelled and was prohibited from participating in a rebid.
It does feel anti climatic doesn't it? But we have had a run up of over 60% in anticipation of this event so it is largely no big news event and much of this run was priced in. WYY are not PR mavens and I'm not sure that serves them well all the time but they are looking at a different set of data than the rest of us and with a different set of eyes.
I'm content to let them play the hand if they can announce another coup before years end and use the DHS protest denial as color for that announcement. If they say nothing, I would be disappointed. Each time you lose an opportunity to increase share price you also take away from the price appreciation you might receive during a negotiated buy out. in the future.
The opportunities for WYY just on the Federal side of the equation are just becoming clearer. As awards grow it will stress infrastructure and money will need to be spent in consolidating all the smaller players. WYY could do this as some one who procures another firm or is itself gobbled up in the rush to the federal trough.
They now have the emergence of a more defined commercial and institutional line that has started to grow international tentacles. With another federal award and another commercial award the pressure will be on from the larger players to solve the WYY riddle, and bring their growing and consistent future cash flow over to a larger entity. The federal awards are multi year and DHS is just a single agency. I expect more to come and this might not be the largest.
This business is rapidly scalable in that they can be ramped up fairly quickly without huge cash outlays so the keel of this ship has been laid and built. It's been outfitted and sailed some rough waters in its commissioning phase and now we'll see if it is totally mission ready.
Or we get bought out for $6.14 on September 18th, 2014...whichever comes first.
Thanks, wrote it on a plane home. We've been involved in some of the same stocks over the years and I always value your input. Glad this one is making the first turn in good shape and looking to get in front of the field for a change. It reminds me a lot of Clarient in that management is approachable, conservative, weathered tough times and are marquee players in a growing niche. They'll probably sell it sooner rather than later as well replicating hat CLRT did as well.
Not a moment too soon. Even though DHS is 50/50 in the protest denial side of their awards, they are under extreme fire for the DHS Eagle II awards. Already 28 companies have filed suit against the DHS with the GAO. This is mainly under the Eagle II information technology portion of the seven year $22 billion contract.
This is an area where WYY plays both as a prime and as a sub and it is disheartening to see the logjam in the fed pipeline once again. To be fair a number of protests here have been dismissed but the legacy we are leaving is one of dispute and delay instead of engaging in the people's work.
GSA will award the multibillion OSAIS contracts in early 2014 and this could hit the $60 billion a year level for services.
Cyber-security according to IDC Government Insights will grow at a 4% pace past 2017 from the current $7.3 billion.
So we are awash with opportunity and the difficult work of execution is now the challenge.
Congrats to the WYY team that saw this through and prevailed to this point.
There have been 49 contract award protests by DHS this year including the initial rejection by DHS of the TSYS first protest, their have also been 49 denials, withdrawals, or dismissals. There are 31 DHS contract award protests pending with the TSYS protest of the iSys contract award the most long lived and hopefully next to be acted upon, according to the GAO website. TSYS also has another protest lodged with DHS on a separate contract.
Here's to DHS being proven to be correct in their initial rejection and their going 50 for 50 in denial of protests
WYY has improved their website. Like the new look and check out the audio presentation with WidePoint CTO Dan Turrisini (also ORC CEO) and Thales e-security the hardware security module. This is very, very, good stuff maybe the good guys win a few innings here.
Having had several years of business experience dealing with Thales their bona fides are well established even though you may not be aware of the name.
Encourage all to listen to this long presentation as it lends both education and information on the credentialing process and how the Thales WYY collaboration will make a difference in the secured data world.
The future is here and WYY is positioning themselves to partner with the best of the best in the fields of identity as a service, credentialing, and security on the cloud.
Perhaps some dice rolling going on entering into decision time with the odds favoring dismissal of protest when viewed historically in favor of the non protestor, a larger player has decided that fortune smiles on those who put themselves at risk and they are accumulating in advance of the release of the decision.
Believe it was Eisenhower that got us initially involved in Vietnam after the defeat of the French i1956 at Dien Bien Phu and Ike made his famous Domino Theory stating that the countries of SE Asia will fall like dominoes to the Red Menace.
In truth Ike had some folks on the ground training locals after UN divvied up the country after France left. Kennedy put in a few thousand and as we are want to do we set about freeing people from themselves.
Otherwise this avowed liberal warrior pretty much agrees with what you write. Gotta have a strong military we just need to do a better job of hiding the keys to the engines of war from those that seek to profit from them.
This is TSYS protesting the DHS Eagle II contract or one of the awards under that solicitation HSHQDC-11-R-10001 which differs from their other protest on the award for iSYS, llc. which is HSHQDC-13-Q-00011.
TSYS appears to be trying to add to its revenues thru force of tort and protest rather than paying it's dues and winning contracts through process. How long it takes for their attorneys to bleed them dry is anyone's guess. How long it takes for DHS to look at any submittal, both bid solicitation or protest is probably of much sorter duration if it has not already occurred...DHS has got to be ticked off by now.
The system is built neither for speed nor clarity, and I would hope some attempts are made in the future to add both to this Neanderthal process. It is beyond understanding and needs the light of day with a sunshine law so that we can see exactly what the protests are about when they are filed.
Penalties for frivolous protest filings should also be considered as they gum up the works.