Welcome!

News Feed Item

WidePoint Corporation Announces Full Year 2013 Financial Results

Strategic Investments in 2013, End of Year Compass and DHS Awards, Cert on Device Launch, and Capital Raise Position Company for Growth

WASHINGTON, March 31, 2014 /PRNewswire/ -- WidePoint Corporation (NYSE Mkt: WYY), a leading provider of enterprise-wide Managed Mobility Solutions featuring mobile telecommunications management, cybersecurity, identity and data assurance, and consulting solutions deliverable in a secured environment, today announced financial results for the full-year ended December 31, 2013.

Business Highlights

    • Awarded $600 Million Blanket Purchase Agreement by the Department of Homeland Security (DHS)
    • Entered into a Global Master Services Agreement with Compass Group PLC
    • Developed and launched secured, cloud-based, Identity Service (IDS) 'Certificate-on-Device' for all types of mobile devices
    • Developed and launched ePassport Verification Services
    • Developed and launched Federally-Compliant Credentialed Healthcare IT Solution
    • Developed and launched Secure Cloud Service for Privileged User Access across hybrid cloud environments in January 2014
    • Awarded wireless managed service contracts by the Centers for Disease Control and Prevention (CDC) and the Federal Communications Commission (FCC)
    • Partnered with Truphone, a global mobile network, to provide for international coverage
    • Expanded Channel Partnership with National Professional Services Company
    • Provided SaaS-based, Customized Mobile TEM Platform for Regional TEM Company
    • Selected by Gartner Inc. for inclusion in its Magic Quadrant for Managed Mobility Services
    • Completed $12.5 million public offering of common stock

Full year 2013 Financial Highlights

  • Net revenue decreased 16% to $46.8 million from $55.8 million in in 2012.
  • Gross margin increased to 26% of revenue as compared to 25% in 2012.
  • Loss from operations was approximately $1.2 million compared to income from operations of approximately $1.0 million in 2012.
  • Net loss for the year was approximately $1.7 million as compared to net income of approximately $0.8 million in 2012.

"In addition to the many recent key accomplishments realized by the Company, we consciously invested in our business and made several key sales and marketing hires during 2013 to broaden our skills and expertise and to improve our reach into new target markets," Steve Komar, CEO, WidePoint, commented. Mr. Komar further stated, "With our recent product launches, new partnerships, and our successful capital raise, we believe we have repositioned the Company in 2014 for accelerating growth and profitability." 

James McCubbin, WidePoint CFO, added, "2013 was a challenging year in many respects as we managed through a range of business issues, particularly federal government sequester and debt ceiling-related purchase delays. This led to a slowly contracting pipeline of new business as well as implementation holds on business awards. We also faced a major delay on our $600 million, multi-year telecommunications management award from DHS.  However, during the year we continued to make key investments into the business and pay down debt. As we move into 2014, we currently see an expanding pipeline of business that should drive increased revenue in the 2nd and 3rd quarters of this year."

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Monday, March 31, 2014. Anyone interested in participating should call 1- 877-941-2068 if calling within the United States or 1-480-629-9712 if calling internationally. There will be a playback available until April 14, 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 number 4674898 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=108326.

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.

For More Information:


Jim McCubbin, EVP & CFO

Brett Maas or Dave Fore

WidePoint Corporation

Hayden IR

7926 Jones Branch Drive, Suite 520

(646) 536-7331

McLean, VA 22102

[email protected]

(703) 349-2577


[email protected]


-tables follow-


WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS






DECEMBER 31,


2013


2012





ASSETS

CURRENT ASSETS




Cash and cash equivalents

$                    -


$     1,857,614

Accounts receivable, net of allowance for doubtful accounts 

7,612,400


6,932,366

of $30,038 and $76,886 in 2013 and 2012, respectively




Unbilled accounts receivable

1,561,030


2,969,450

Inventories

61,338


286,920

Prepaid expenses and other assets

533,944


482,389

Income taxes receivable

763


138,575

Deferred income taxes

-


473,430





Total current assets

9,769,475


13,140,744





NONCURRENT ASSETS




Property and equipment, net

1,545,951


1,428,323

Intangibles, net

3,613,271


4,969,241

Goodwill

16,618,467


16,618,467

Deferred income tax asset, net of current

4,407,630


3,346,948

Deposits and other assets

120,046


76,118





TOTAL ASSETS

$   36,074,840


$   39,579,841





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Line of credit advance

$        916,663


$                    -

Short term note payable

119,336


113,018

Accounts payable

3,228,586


5,555,419

Accrued expenses

4,407,286


3,539,710

Deferred revenue

40,911


173,655

Income taxes payable

217,982


-

Deferred income taxes

700,743


-

Current portion of long-term debt

1,150,455


1,102,741

Current portion of deferred rent

78,525


51,196

Current portion of capital lease obligations

45,125


42,878





Total current liabilities

10,905,612


10,578,617





NONCURRENT LIABILITIES




Long-term debt, net of current portion

2,509,492


4,918,732

Capital lease obligation, net of current portion

57,119


102,244

Deferred rent, net of current portion

2,421


15,786

Deferred revenue

82,494


25,231

Deposits and other liabilities

1,964


1,964





Total liabilities

13,559,102


15,642,574





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; 63,907,357 and 63,751,857 shares issued 




and outstanding, respectively

63,907


63,752

Additional paid-in capital

69,867,491


69,594,390

Accumulated deficit

(47,415,660)


(45,720,875)





Total stockholders' equity

22,515,738


23,937,267





Total liabilities and stockholders' equity

$   36,074,840


$   39,579,841

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS












YEAR ENDED





DECEMBER 31,





2013


2012

REVENUES

$   46,825,032


$   55,782,742

COST OF REVENUES (including amortization and depreciation of





$1,462,995 and $1,511,267, respectively)

34,713,471


41,920,161








GROSS PROFIT

12,111,561


13,862,581








OPERATING EXPENSES





Sales and Marketing

3,125,867


2,741,799


General and Administrative Expenses (including share-based






compensation of $227,035 and $217,611, respectively,






 and gain on change in fair value of contingent obligation of






 $1,250,000 and $900,000, respectively)

9,872,655


9,820,695


Depreciation and Amortization

288,333


281,310











Total Operating Expenses

13,286,855


12,843,804








(LOSS) INCOME FROM OPERATIONS

(1,175,294)


1,018,777








OTHER INCOME (EXPENSE)





Interest Income

7,364


4,881


Interest Expense

(175,358)


(294,244)


Other Income (Expense)

11,267


3,200











Total Other Income (Expense)

(156,727)


(286,163)








(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES

(1,332,021)


732,614

INCOME TAX PROVISION (BENEFIT)

362,764


(99,687)








NET (LOSS) INCOME

$   (1,694,785)


$        832,301








BASIC EARNINGS PER SHARE

$          (0.027)


$            0.013








BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

63,802,275


63,474,871








DILUTED EARNINGS PER SHARE

$          (0.027)


$            0.013








DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

63,802,275


63,758,632

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS TO NON-GAAP ADJUSTED EARNINGS

BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)






YEAR ENDED





DECEMBER 31,





2013


2012








NET (LOSS) INCOME

$   (1,694,800)


$        832,300

Adjustments to GAAP net income (loss):





Gain on change in fair value of contingent obligation

(1,250,000)


(900,000)


Depreciation and amortization

1,751,300


1,792,600


Amortization of deferred financing costs

8,700


3,100


Income tax provision (benefit)

362,800


(99,700)


Interest income

(7,400)


(4,900)


Interest expense

175,400


294,200


Other (expense) income

(11,300)


(3,200)


Provision for doubtful accounts

75,400


25,100


Inventory write-downs

200,000


52,100


Stock-based compensation expense

227,000


217,600


Avalon business combination transaction and related costs

-


12,000


Avalon integration initiatives 

21,000


121,600








Adjusted EBITDA

$      (141,900)


$     2,342,800

SOURCE WidePoint Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.