McLean, VA, May 15, 2017 – WidePoint Corporation (NYSE Mkt: WYY), a leading provider of Managed Mobility Services (MMS) specializing in Cybersecurity and Telecommunications Lifecycle Management (TLM) solutions, today announced financial results for the first quarter ended March 31, 2017.
Recent Business Highlights
• Continued the consolidation efforts of physical and logical infrastructure to eliminate redundant overheads and reduce costs, with consolidation of accounting functions, help desk functions, and platform unifications underway and in support of creating a more streamlined and costs effective operating environment.
First Quarter 2017 Financial Highlights
• Operating expenses were approximately $4.6 million compared to $4.8 million in the first quarter of 2016
• Cash and cash equivalents was approximately $7.0 million as of March 31, 2017. Working capital was approximately $4.2 million.
“In the first quarter of 2017 we have begun taking steps to realign our cost structures with our revenues, with the goal of returning to operating profitability later in 2017,” stated Jeffrey O. Nyweide, WidePoint’s chief executive officer and president. “Our stated goals of eliminating approximately $2.5 million in annualized fixed costs through facility and functional consolidation and elimination of duplicative resources continue on pace. Coupling these cost cutting activities with our sales and marketing initiatives to expand awareness and better target our current offerings to the marketplace should put us on a path towards sustainable and profitable growth.”
Further, Mr. Nyweide stated, “In the first quarter, we demonstrated continued success in the public sector marketplace with new awards including two new task orders, three logical follow on task orders, and 11 option year exercises. These wins give me optimism that better financial performance is on the way. Our public sector and federal base of business will remain a key driver of revenue and profitability in 2017. We are particularly excited about our recent acquisition of the Probaris assets to support several new agency relationships and to enhance our core identity management credentialing services intellectual property.”
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 Net loss to Adjusted EBITDA is included on the schedules attached hereto.
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