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/C O R R E C T I O N -- WidePoint Corporation/

In the news release, WidePoint Corporation Reports Full Year 2016 Financial Results, issued 30-Mar-2017 by WidePoint Corporation over PR Newswire, we are advised by the company that a line has been added to the CONSOLIDATED BALANCE SHEETS table. A new row was added below the "Deposits and other liabilities" row. The new row is labeled "Deferred income taxes" with "447,811" added to 2016 column and "447,811" added to 2015 column. This is a new line to the table as originally issued inadvertently. The complete, corrected release follows:

WidePoint Corporation Reports Full Year 2016 Financial Results

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MCLEAN, Va., March 30, 2017 /PRNewswire/ -- 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.

-tables follow-

 


WIDEPOINT CORPORATION

CONSOLIDATED BALANCE SHEETS



DECEMBER 31,


2016


2015





ASSETS

CURRENT ASSETS




Cash and cash equivalents

$     9,123,498


$     7,930,303

Accounts receivable, net of allowance for doubtful accounts of $344,411 and $73,378 in 2016 and 2015, respectively

5,153,093


10,565,113

Unbilled accounts receivable

8,112,690


6,637,587

Inventories

123,287


28,400

Prepaid expenses and other assets

385,388


435,300

Income taxes receivable

42,896


-

Deferred income taxes

48,826


30,889





Total current assets

22,989,678


25,627,592





NONCURRENT ASSETS




Assets held for sale

594,376


-

Property and equipment, net

736,678


1,513,307

Intangibles, net

4,298,902


5,101,523

Goodwill

18,555,578


18,555,578

Deposits and other assets

52,456


60,471





TOTAL ASSETS

$   47,227,668


$   50,858,471





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Short term note payable

$        131,761


$        131,953

Accounts payable

8,665,449


7,812,226

Accrued expenses

7,872,557


6,687,054

Deferred revenue

1,190,558


2,007,970

Income taxes payable

5,141


37,684

Current portion of long-term debt

94,868


893,706

Current portion of deferred rent

40,397


28,071

Current portion of capital lease obligations

4,097


28,752





Total current liabilities

18,004,828


17,627,416





NONCURRENT LIABILITIES




Long-term debt related to assets held for sale, net of current portion

412,180


-

Long-term debt, net of current portion

-


431,756

Capital lease obligation, net of current portion

-


11,962

Deferred rent, net of current portion

86,198


123,923

Deferred revenue

-


24,937

Deposits and other liabilities

-


-

Deferred income taxes

447,811


447,811





Total liabilities

18,951,017


18,667,805





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; 82,730,134 and 82,520,696 shares issued and outstanding, respectively

82,730


82,521

Additional paid-in capital

93,920,095


93,661,178

Accumulated other comprehensive loss

(309,369)


(270,140)

Accumulated deficit

(65,416,805)


(61,282,893)





Total stockholders' equity

28,276,651


32,190,666





Total liabilities and stockholders' equity

$   47,227,668


$   50,858,471





 


WIDEPOINT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS



YEAR ENDED


THREE MONTHS ENDED


DECEMBER 31,


DECEMBER 31,


2016


2015


2016


2015






(Unaudited)

REVENUES

$   78,420,864


$   70,838,017


$   18,257,719


$   18,714,846

COST OF REVENUES (including amortization and depreciation of $1,204,858 and $1,183,143, respectively)








64,410,468


57,605,357


15,850,877


15,477,768









GROSS PROFIT

14,010,396


13,232,660


2,406,842


3,237,078









OPERATING EXPENSES









Sales and Marketing

2,667,808


3,030,249


600,813


697,210


General and Administrative Expenses (including share-based compensation of $310,989 and $299,337, respectively)









14,448,270


14,608,014


3,797,573


3,100,705


Product Development

699,013


673,093


437,982


673,093


Depreciation and Amortization

358,559


383,265


89,603


100,054












Total Operating Expenses

18,173,650


18,694,621


4,925,971


4,571,062









LOSS FROM OPERATIONS

(4,163,254)


(5,461,961)


(2,519,129)


(1,333,984)









OTHER INCOME (EXPENSE)









Interest Income

14,591


23,031


3,973


5,107


Interest Expense

(72,231)


(142,497)


(11,163)


(31,244)


Other Income

13,536


33,009


2,412


(4,814)












Total Other Income (Expense)

(44,104)


(86,457)


(4,778)


(30,951)









LOSS BEFORE PROVISION FOR INCOME TAXES

(4,207,358)


(5,548,418)


(2,523,907)


(1,364,935)

INCOME TAX BENEFIT

(73,446)


(81,811)


(94,475)


(228,998)









NET LOSS

$   (4,133,912)


$   (5,466,607)


$   (2,429,432)


$   (1,135,937)









BASIC EARNINGS PER SHARE

$            (0.05)


$            (0.07)


$            (0.03)


$            (0.01)









BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

82,687,789


82,228,974


82,730,134


79,039,745









DILUTED EARNINGS PER SHARE

$            (0.05)


$            (0.07)


$            (0.03)


$            (0.01)









DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

82,687,789


82,228,974


82,730,134


79,039,745









 


WIDEPOINT CORPORATION

ADJUSTED EARNINGS BEFORE INTEREST, TAXES,

DEPRECIATION AND AMORTIZATION



FISCAL YEAR ENDED


THREE MONTHS ENDED


DECEMBER 31,


DECEMBER 31,


2016


2015


2016


2015


Unaudited)









NET LOSS

$  (4,133,900)


$  (5,466,607)


$  (2,429,400)


$  (1,135,900)

Adjustments to GAAP net loss:









Depreciation and amortization

1,563,400


1,566,400


406,600


409,500


Amortization of deferred financing costs

-


10,300


-


1,600


Income tax provision (benefit)

(73,400)


(81,800)


(94,400)


(229,000)


Interest income

(14,600)


(23,000)


(4,000)


(5,100)


Interest expense

72,200


132,200


11,100


20,900


Other (expense) income

(13,500)


(33,000)


(2,400)


4,800


Provision for doubtful accounts

253,400


18,100


261,300


(38,800)


Stock-based compensation expense

311,000


299,300


106,600


91,200









Adjusted EBITDA

$  (2,035,400)


$  (3,578,107)


$  (1,744,600)


$     (880,800)










 

For More Information:

Brett Maas or David Fore
Hayden IR
(646) 536-7331
brett@haydenir.com  

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-full-year-2016-financial-results-300432026.html