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WidePoint Corporation Reports Second Quarter 2018 Results

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WidePoint Corporation Reports Second Quarter 2018 Results

PR Newswire

MCLEAN, Va., Aug. 14, 2018 /PRNewswire/ -- WidePoint Corporation (NYSE:WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunication Lifecycle Management, Identity Management, and Bill Presentment & Analytics solutions, announced financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Summary (Comparisons versus Second Quarter 2017)

  • Revenue was $17.5 million compared to $18.9 million
  • Gross profit improved 8% to $3.5 million
  • Operating expenses declined 12% to $4.0 million
  • Net loss reduced to $0.5 million from $1.3 million
  • Adjusted EBITDA was $0.1 million as compared to ($0.4) million

First Half 2018 Summary (Comparisons versus First Half 2017)

  • Revenue was $37.6 million compared to $37.5 million
  • Gross profit improved 6% to $7.1 million
  • Operating expenses declined 13% to $8.0 million
  • Net loss reduced to $0.9 million from $2.5 million
  • Adjusted EBITDA was $0.2 million as compared to ($1.2) million

"I'm pleased to report four consecutive quarters of positive Adjusted EBITDA due to the progress we've made on capturing higher margin revenue opportunities and our cost savings initiatives. Over the past six months alone, we've reduced our operating expenses by almost $1.2 million," stated Jin Kang, WidePoint's President and Chief Executive Officer. "Meanwhile, we are aggressively working to grow our topline and to improve our sales pipeline with both new and existing customers through the marketing and cross-selling of our leading technology solutions, particularly our TM2 offering. We are positioning the company for profitable growth."

Kito Mussa, WidePoint's Chief Financial Officer, added, "While our second quarter revenue declined due to timing of resale revenue, we improved our gross profit, continued to narrow our GAAP net loss, and continued to be Adjusted EBITDA positive. We will remain focused on managing costs as we work to grow our top-line."

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

(in millions, except per share amounts)

June 30, 2018

June 30, 2017

Revenues

$17.5

$18.9

Gross Profit (% of Revenue)

$3.5 (20%)

$3.3 (17%)

Operating Expenses

$4.0

$4.5

Loss from Operations

$(0.4)

$(1.3)

Net Loss

$(0.5)

$(1.3)

Basic and Diluted Earnings per Share (EPS)

$(0.01)

$(0.02)

Adjusted EBITDA

$0.1

$(0.4)

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

(in millions, except per share amounts)

June 30, 2018

June 30, 2017

Revenues

$37.6

$37.5

Gross Profit (% of Revenue)

$7.1 (19%)

$6.7 (18%)

Operating Expenses

$8.0

$9.2

Loss from Operations

$(0.9)

$(2.4)

Net Loss

$(0.9)

$(2.5)

Basic and Diluted Earnings per Share (EPS)

$(0.01)

$(0.03)

Adjusted EBITDA

$0.2

$(1.2)

 

  • Cash and cash equivalents was approximately $5.3 million as of June 30, 2018.
  • The outstanding balance on the credit facility was $155,000 as of June 30, 2018.

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 Tuesday, August 14, 2018. Interested parties 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 August 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 13681584 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=130500.

About WidePoint

WidePoint Corporation (NYSE: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






JUNE 30,


DECEMBER 31,


2018


2017


(Unaudited)

ASSETS

CURRENT ASSETS




Cash and cash equivalents

$         5,363,830


$       5,272,457

Accounts receivable, net of allowance for doubtful accounts of $97,745 and $107,618 in 2018 and 2017, respectively

6,660,434


8,131,025

Unbilled accounts receivable

7,871,908


8,131,448

Other current assets

795,374


767,944





Total current assets

20,691,546


22,302,874





NONCURRENT ASSETS




Property and equipment, net

1,129,318


1,318,420

Intangibles, net

3,395,084


3,671,506

Goodwill

18,555,578


18,555,578

Other long-term assets

146,727


44,553





Total assets

$       43,918,253


$     45,892,931





LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES




Line of credit advance

$            155,094


$                      -

Accounts payable

6,089,583


7,266,212

Accrued expenses

9,315,474


9,796,350

Deferred revenue

2,244,145


2,348,578

Current portion of long term debt

96,762


101,591

Current portion of other term obligations

98,279


203,271





Total current liabilities

17,999,337


19,716,002





NONCURRENT LIABILITIES




Long-term debt, net of current portion

185,047


232,109

Other term obligations, net of current portion

65,697


78,336

Deferred revenue

691,899


264,189

Deferred tax liability

393,610


392,229





Total liabilities

19,335,590


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 83,031,595 shares issued; 83,081,595 and 83,031,595 shares outstanding, respectively

83,082


83,032

Additional paid-in capital

94,542,525


94,200,237

Accumulated other comprehensive loss

(157,858)


(122,461)

Accumulated deficit

(69,885,086)


(68,950,742)





Total stockholders' equity

24,582,663


25,210,066





Total liabilities and stockholders' equity

$       43,918,253


$     45,892,931

 

WIDEPOINT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
















THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2018


2017


2018


2017





(Unaudited)

REVENUES

$       17,544,338


$  18,880,506


$        37,623,957


$  37,492,745

COST OF REVENUES (including amortization and depreciation

of $258,201, $294,803, $554,165, and $576,627, respectively)

 

13,997,185


15,589,330


30,524,797


30,771,965












GROSS PROFIT

3,547,153


3,291,176


7,099,160


6,720,780












OPERATING EXPENSES









Sales and marketing

444,945


628,319


979,582


1,177,178


General and administrative expenses (including share-based compensation of $195,934, $134,062, $320,338 and $219,079, respectively)

3,427,301


3,789,980


6,780,642


7,622,220



Product development

-


56,426


-


207,799


Depreciation and amortization

110,463


71,189


207,849


142,939















Total operating expenses

3,982,709


4,545,914


7,968,073


9,150,136












LOSS FROM OPERATIONS

(435,556)


(1,254,738)


(868,913)


(2,429,356)












OTHER (EXPENSE) INCOME









Interest income

2,077


2,566


5,403


9,593


Interest expense

(23,937)


(12,849)


(49,887)


(22,417)


Other (expense) income

3


(875)


1


3,299















Total other (expense) income 

(21,857)


(11,158)


(44,483)


(9,525)












LOSS BEFORE INCOME TAX PROVISION

(457,413)


(1,265,896)


(913,396)


(2,438,881)

INCOME TAX PROVISION

14,758


34,279


20,948


15,511












NET LOSS

$           (472,171)


$  (1,300,175)


$            (934,344)


$   (2,454,392)












BASIC LOSS PER SHARE

$                 (0.01)


$           (0.02)


$                  (0.01)


$            (0.03)












BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

83,081,597


82,845,449


83,061,707


82,843,631












DILUTED LOSS PER SHARE

$                 (0.01)


$           (0.02)


$                  (0.01)


$            (0.03)












DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

83,081,597


82,845,449


83,061,707


82,843,631

 

WIDEPOINT CORPORATION

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
















THREE MONTHS ENDED


SIX MONTHS ENDED





JUNE 30,


JUNE 30,





2018


2017


2018


2017





(Unaudited)


(Unaudited)

NET LOSS

$             (472,200)


$          (1,300,200)


$             (934,300)


$          (2,454,400)

Adjustments to GAAP net income (loss):









Depreciation and amortization

368,600


366,200


761,800


719,800


Amortization of deferred financing costs

7,000


-


14,800


-


Income tax provision (benefit)

14,700


34,300


20,900


15,500


Interest income

(2,100)


(2,600)


(5,400)


(9,600)


Interest expense

23,900


12,800


49,900


22,400


Other (expense) income

-


900


-


(3,300)


Provision for doubtful accounts

-


17,100


(5,800)


31,200


Gain on sale of assets held for sale

-


(66,700)


-


(66,700)


Loss on disposal of leasehold improvements

-


176,700


-


172,800


Severance and exit costs

-


187,500


-


187,500


Stock-based compensation expense

195,900


134,100


320,300


219,100












Adjusted EBITDA

$              135,800


$             (439,900)


$              222,200


$          (1,165,700)

 

For More Information:

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

 

Cision View original content:http://www.prnewswire.com/news-releases/widepoint-corporation-reports-second-quarter-2018-results-300697046.html

SOURCE WidePoint Corporation

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