WidePoint Corporation Announces Full Year 2013 Financial Results

       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

PR Newswire

WASHINGTON, March 31, 2014

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

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

Full year 2013 Financial Highlights

  oNet revenue decreased 16% to $46.8 million from $55.8 million in in 2012.
  oGross margin increased to 26% of revenue as compared to 25% in 2012.
  oLoss from operations was approximately $1.2 million compared to income
    from operations of approximately $1.0 million in 2012.
  oNet 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
  2^nd and 3^rd 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                   brett@haydenir.com
(703) 349-2577
jmccubbin@widepoint.com

-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        7,612,400               6,932,366
allowance for doubtful accounts
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  4,407,630               3,346,948
current
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   45,125                  42,878
obligations
Total current liabilities          10,905,612              10,578,617
NONCURRENT LIABILITIES
Long-term debt, net of current     2,509,492               4,918,732
portion
Capital lease obligation, net of   57,119                  102,244
current portion
Deferred rent, net of current      2,421                   15,786
portion
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              $  36,074,840          $  39,579,841
stockholders' equity



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,             34,713,471          41,920,161
 respectively)
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,             9,872,655           9,820,695
  respectively)
 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      (1,332,021)         732,614
INCOME TAXES
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           63,802,275          63,474,871
OUTSTANDING
DILUTED EARNINGS PER SHARE              $     (0.027)  $      0.013
DILUTED WEIGHTED-AVERAGE SHARES         63,802,275          63,758,632
OUTSTANDING



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 (1,250,000)       (900,000)
 obligation
 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    -                 12,000
 and related costs
 Avalon integration initiatives            21,000            121,600
Adjusted EBITDA                             $   (141,900)  $   2,342,800

SOURCE WidePoint Corporation

Website: http://www.widepoint.com
 
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