Welcome!

Microsoft Cloud Authors: Elizabeth White, Liz McMillan, Mihai Corbuleac, Pat Romanski, David Bermingham

News Feed Item

WidePoint Corporation Reports Record Third Quarter 2012 Results

Quarter Revenue Up 42% over Last Year with Growth in All Segments

WASHINGTON, Nov. 14, 2012 /PRNewswire/ -- WidePoint Corporation (NYSE Amex: WYY), a specialist in Telecommunications Management and Cybersecurity solutions, today announced financial results for the three months ended September 30, 2012.

Third Quarter 2012 Results and Highlights

  • Net revenue for the quarter ended September 30, 2012 increased 42% to $15.2 million from $10.7 million in last year's comparable period.  Segment highlights are summarized below:
    • Telecommunications Management segment revenue increased 15% to $7.1 million from $6.2 million in last year's comparable period predominantly as a result of commercial sector sales offset partially from lower revenues in billable reselling of minutes to our federal customers.
    • CyberSecurity Managed Solutions segment revenue increased 48% to $2.3 million from $1.6 million in last year's comparable period driven by credentialing managed service sales to government and commercial customers and continued expansion in support of the Transportation Workers Identification Credentialing (TWIC) program.
    • IT Consulting Services and Products revenues increased to $5.8 million from $2.9 million in last year's comparable period materially driven by growth in commercial consulting and government product resale of hardware, software, mobile device and accessory products and IT consulting services.
  • Gross profit for the third quarter of 2012 was approximately $3.6 million, or 23% of revenues, as compared to gross profit of $2.6 million, or 24% of revenues, for the third quarter of 2011.
  • Income from operations was approximately $459,000 compared to approximately $270,000 in last year's comparable period.
  • Net income was approximately $244,000, compared to $218,000 in last year's comparable period.
  • Non-GAAP adjusted EBITDA was approximately $1,035,000 as compared to $544,000 in last year's comparable third quarter.
  • WidePoint ended the period with $2.5 million in cash.

Steve Komar, CEO, WidePoint, commented, "Management is gratified by the strong revenue performance during the third quarter of 2012.  This 'across the board' improvement speaks well for several business development initiatives we've implemented over the past year. We are seeing recurring and accelerating revenue growth from several comprehensive multi-year programs in our market sectors.  In addition, this performance allows us the leeway that we need to channel continuing investment into the tools and development activities necessary to ensure the future growth and success of the enterprise."

WidePoint CFO Jim McCubbin commented, "We were pleased with the financial results in our third quarter of 2012.  Revenues increased 42% with growth in each segment and our adjusted EBITDA increased 90%, exceeding $1 million, while we continued to invest in our operations, pay down debt, and improve our stockholder equity." 

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, November 14, 2012. Anyone interested in participating should call 1-877-941-4775 if calling within the United States or 1-480-629-9761 if calling internationally. There will be a playback available until November 28, 2012. 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 4573618 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=102357.

About WidePoint

WidePoint is a specialist in providing wireless mobility management and cybersecurity Solutions utilizing its advanced information technology products and services. WidePoint has several wholly owned subsidiaries holding major government and commercial contracts.  WidePoint enables organizations to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. For more information, visit http://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

 


SEPTEMBER 30,


DECEMBER 31,


2012


2011


(Unaudited)

ASSETS

CURRENT ASSETS




Cash and cash equivalents

$         2,493,589


$       2,135,310

Accounts receivable, net of allowance of $35,684 and $35,684, respectively

6,329,418


7,884,802

Unbilled accounts receivable

1,877,686


2,715,406

Prepaid expenses and other assets

804,957


782,862

Deferred income taxes

473,430


473,430





Total current assets

11,979,080


13,991,810





NONCURRENT ASSETS




Property and equipment, net

1,508,895


1,336,134

Intangibles, net

4,251,143


5,421,655

Goodwill

18,150,172


18,193,561

Deferred income tax asset, net of current

3,407,760


3,265,125

Deposits and other assets

78,049


81,941





TOTAL ASSETS

$      39,375,099


$    42,290,226





LIABILITIES AND STOCKHOLDERS' DEFICIT





CURRENT LIABILITIES




Short term note payable

$               27,349


$           100,951

Accounts payable

5,423,310


8,418,854

Accrued expenses

2,441,118


1,851,678

Deferred revenue

53,055


390,506

Current portion of long-term debt

357,894


798,319

Current portion of deferred rent

48,412


36,508

Current portion of capital lease obligations

10,226


22,908





Total current liabilities

8,361,364


11,619,724





Long-term debt, net of current portion

7,769,143


7,769,143

Capital lease obligation, net of current portion

145,122


-

Deferred rent, net of current portion

29,318


65,207

Deferred revenue

27,516


-

Deposits and other liabilities

1,964


-





Total liabilities

16,334,427


19,454,074





STOCKHOLDERS' EQUITY




Common stock, $0.001 par value; 110,000,000 shares authorized; 63,651,857 and 63,226,857 shares issued and outstanding, respectively

63,652


63,227

Additional paid-in capital

69,531,751


69,326,705

Accumulated deficit

(46,554,731)


(46,553,780)





Total stockholders' equity

23,040,672


22,836,152





Total liabilities and stockholders' equity

$      39,375,099


$    42,290,226





 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 


THREE MONTHS ENDED


NINE MONTHS ENDED


SEPTEMBER 30,


SEPTEMBER 30,


2012


2011


2012


2011


(Unaudited)









REVENUES

$  15,210,896


$    10,681,817


$  41,423,281


$    31,176,820









COST OF SALES (including amortization and depreciation of 

$419,657, $155,630, $1,262,105, and $510,431, respectively)








11,637,696


$      8,115,658


31,645,847


$    24,066,355









GROSS PROFIT

3,573,200


2,566,159


9,777,434


7,110,465









OPERATING EXPENSES









Sales and marketing

705,190


362,654


2,222,305


1,177,937


General and administrative (including shared-based compensation 

expense of $55,593, $69,920, $165,873, and $109,857, respectively









2,334,492


1,885,001


7,231,857


5,628,952


Depreciation and amortization

74,682


48,536


213,658


154,907












Total operating expenses

3,114,364


2,296,191


9,667,820


6,961,796









INCOME FROM OPERATIONS

458,836


269,968


109,614


148,669









OTHER INCOME (EXPENSE)









Interest income

956


2,718


4,179


9,391


Interest expense

(85,366)


(14,949)


(264,570)


(54,808)


Other income (expense)

11,091


(944)


19,946


199












Total other expense, net

(73,319)


(13,175)


(240,445)


(45,218)









NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

385,517


256,793


(130,831)


103,451

INCOME TAX PROVISION (BENEFIT)

141,809


38,854


(129,880)


(11,559)









NET INCOME (LOSS)

$        243,708


$         217,939


$               (951)


$         115,010









BASIC EARNINGS PER SHARE

$              0.004


$              0.003


$           (0.000)


$              0.002









BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING

63,651,857


62,930,873


63,427,681


62,882,100









DILUTED EARNINGS PER SHARE

$              0.004


$              0.003


$           (0.000)


$              0.002









DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING

63,820,891


63,968,039


63,427,681


64,230,693

 

 

WIDEPOINT CORPORATION AND SUBSIDIARIES

 

RECONCILIATION OF GAAP EARNINGS TO EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION (EBITDA)

 


THREE MONTHS ENDED


NINE MONTHS ENDED


SEPTEMBER 30,


SEPTEMBER 30,


2012


2011


2012


2011









NET INCOME (LOSS)

$        244,000


$         218,000


$           (1,000)


$         115,000

Adjustments to GAAP net income (loss):








     Depreciation and amortization

494,000


204,000


1,475,763


665,000

     Income tax provision (benefit)

142,000


39,000


(130,000)


(12,000)

     Interest income

(1,000)


(3,000)


(4,200)


(9,000)

     Interest expense

85,000


15,000


265,000


55,000

     Other (expense) income

(11,000)


1,000


(20,000)


-

     Stock-based compensation expense

56,000


70,000


166,000


87,000

     Avalon business combination transaction

     and related costs

-


-


12,000


-

     Avalon integration initiatives 

26,000


-


107,000


-

Adjusted EBITDA

$     1,035,000


$         544,000


$     1,870,563


$         901,000

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.

@ThingsExpo Stories
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.