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  
Press spacebar to pause and continue. Press esc to stop.