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WidePoint Corporation Reports First Quarter 2018 Results

MCLEAN, Va., May 14, 2018 /PRNewswire/ -- WidePoint Corporation (NYSE American: WYY) a leading provider of Trusted Mobility Management (TM2) specializing in Telecommunication Lifecycle Management, Identity Management, and Bill Presentment & Analytics solutions, announced financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights (Comparisons versus First Quarter 2017)

  • Revenue grew 8% to $20.1 million
  • Operating expenses declined 13% to $4.0 million
  • Net loss reduced to $0.5 million from $1.2 million
  • Adjusted EBITDA was $0.1 million as compared to ($0.7) million

"I'm pleased with the progress we've made on cost savings initiatives. Over the past year, we've reduced our operating expenses by over $0.6 million. Meanwhile on the top line, we witnessed one of the strongest quarters we've seen since 2016, bolstered in part by a large, new award from U.S. Armed Forces valued at more than $1.8 million," stated Jin Kang, WidePoint's Chief Executive Officer. "We have been successful executing follow-on contracts with existing customers to maintain our key customer base and we are working diligently to build our pipeline with both new and existing customers through increased marketing and cross-selling of our leading technology solutions. Our sales and marketing resources are now fully aligned to support our TM2 offering, and we are positioning the company for profitable growth."

Kito Mussa, WidePoint's Chief Financial Officer, added, "We saw revenue growth in the quarter of 8% year-over-year, reduced our GAAP net losses, and continue to be Adjusted EBITDA positive for the first quarter. We remain focused on reducing the costs of delivering and supporting our services to improve profitability."

First Quarter 2018 Financial Summary (Comparisons versus First Quarter 2017)


(in millions, except per share amounts)

March 31, 2018

March 31, 2017

Revenues

$20.1

$18.6

Gross Profit (% of Revenue)

$3.6 (18%)

$3.4 (18%)

Operating Expenses

$4.0

$4.6

Loss from Operations

$(0.4)

$(1.2)

Net Loss

$(0.5)

$(1.2)

Basic and Diluted Earnings per Share (EPS)

$(0.01)

$(0.01)

Adjusted EBITDA

$0.1

$(0.7)

 

  • Cash and cash equivalents was approximately $7.4 million as of March 31, 2018.
  • There was no outstanding balance on the credit facility.

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 GAAP 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 Monday, May 14, 2018. Anyone interested in listening to our analyst call should call 1-877-451-6152 if calling within the United States or 1-201-389-0879 if calling internationally. There will be a playback available until May 28, 2018. 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 13679932 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=129749.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of technology-based management solutions including telecom management, mobile management, access management and identity management. For more information, visit www.widepoint.com.

WIDEPOINT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS










MARCH 31,


DECEMBER 31, 


2018


2017


(Unaudited)

ASSETS

CURRENT ASSETS




Cash and cash equivalents

$     7,445,722


$         5,272,457

Accounts receivable, net of allowance for doubtful accounts of $101,947 and $107,618 in and, respectively


8,656,398



8,131,025

Unbilled accounts receivable

6,157,034


8,131,448

Other current assets

1,034,386


767,944





Total current assets

23,293,540


22,302,874





NONCURRENT ASSETS




Property and equipment, net

1,213,163


1,318,420

Intangibles, net

3,510,393


3,671,506

Goodwill

18,555,578


18,555,578

Other long term assets

121,551


44,553





Total assets

$   46,694,225


$       45,892,931





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Accounts payable

$   10,530,605


$         7,266,212

Accrued expenses

7,801,763


9,796,350

Deferred revenue

2,136,669


2,348,578

Current portion of long term debt

103,172


101,591

Current portion of other term obligations

149,669


203,271





Total current liabilities

20,721,878


19,716,002





NONCURRENT LIABILITIES




Long-term debt, net of current portion

207,860


232,109

Other term obligations, net of current portion

65,630


78,336

Deferred revenue

410,983


264,189

Deferred tax liability

390,639


392,229





Total liabilities

21,796,990


20,682,865





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; 84,062,446 and 83,081,595 shares issued; 83,081,595 and 83,031,595 shares outstanding, respectively and outstanding, respectively



83,082



83,032

Additional paid-in capital

94,346,591


94,200,237

Accumulated other comprehensive loss

(119,523)


(122,461)

Accumulated deficit

(69,412,915)


(68,950,742)





Total stockholders' equity

24,897,235


25,210,066





Total liabilities and stockholders' equity

$   46,694,225


$       45,892,931

 

WIDEPOINT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



















THREE MONTHS ENDED





MARCH 31, 





2018


2017





(Unaudited)

REVENUES

$   20,079,619


$   18,612,239

COST OF REVENUES (including amortization and depreciation $295,979 and $281,824, respectively)


16,527,612



15,182,635








GROSS PROFIT

3,552,007


3,429,604








OPERATING EXPENSES





Sales and marketing

534,637


548,859


General and administrative expenses (including share-based compensation of $124,404 and $85,017, respectively)


3,353,341



3,832,240



Product development

-


151,373


Depreciation and amortization

97,386


71,750











Total operating expenses

3,985,364


4,604,222








LOSS FROM OPERATIONS

(433,357)


(1,174,618)








OTHER (EXPENSE) INCOME





Interest income

3,326


7,027


Interest expense

(25,950)


(9,568)


Other (expense) income

(2)


4,174











Total other (expense) income 

(22,626)


1,633








LOSS BEFORE INCOME TAX PROVISION (BENEFIT)

(455,983)


(1,172,985)

INCOME TAX PROVISION (BENEFIT)

6,190


(18,768)








NET LOSS

$      (462,173)


$   (1,154,217)








BASIC EARNINGS PER SHARE

$            (0.01)


$            (0.01)








BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

83,041,597


82,841,812








DILUTED EARNINGS PER SHARE

$            (0.01)


$            (0.01)








DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

83,041,597


82,841,812

 

WIDEPOINT CORPORATION

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION











THREE MONTHS ENDED




MARCH 31, 




2018


2017




(Unaudited)

NET LOSS


$  (462,200)


$  (1,154,200)

Adjustments to GAAP net income (loss):






Depreciation and amortization


393,400


353,600


Amortization of deferred financing costs


7,800


-


Income tax provision (benefit)


6,200


(18,800)


Interest income


(3,300)


(7,000)


Interest expense


26,000


9,600


Other (expense) income


-


(4,200)


Provision for doubtful accounts


(5,800)


14,100


Stock-based compensation expense


124,400


85,000







Adjusted EBITDA


$      86,500


$     (721,900)

For More Information:

Kim Rogers or Dave Fore
Hayden IR
(646) 419-4300
kim@haydenir.com/dave@haydenir.com

 

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