WidePoint Corporation Reports First Quarter 2018 Results
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
83,032
83,082
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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SOURCE WidePoint Corporation
