Click here to close now.



Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, 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
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
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...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...