WidePoint Corporation Reports Second Quarter 2018 Results

WidePoint Corporation (NYSE American: WYY), provider of Trusted Mobility Management (TM2) specializing in Telecommunication Lifecycle Management, Identity Management, and Bill Presentment & Analytics solutions, announced financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Summary (Comparisons versus Second Quarter 2017)

  • Revenue was $17.5 million compared to $18.9 million
  • Gross profit improved 8% to $3.5 million
  • Operating expenses declined 12% to $4.0 million
  • Net loss reduced to $0.5 million from $1.3 million
  • Adjusted EBITDA was $0.1 million as compared to ($0.4) million

First Half 2018 Summary (Comparisons versus First Half 2017)

  • Revenue was $37.6 million compared to $37.5 million
  • Gross profit improved 6% to $7.1 million
  • Operating expenses declined 13% to $8.0 million
  • Net loss reduced to $0.9 million from $2.5 million
  • Adjusted EBITDA was $0.2 million as compared to ($1.2) million

“I’m pleased to report four consecutive quarters of positive Adjusted EBITDA due to the progress we’ve made on capturing higher margin revenue opportunities and our cost savings initiatives. Over the past six months alone, we’ve reduced our operating expenses by almost $1.2 million,” stated Jin Kang, WidePoint’s President and Chief Executive Officer. “Meanwhile, we are aggressively working to grow our topline and to improve our sales pipeline with both new and existing customers through the marketing and cross-selling of our leading technology solutions, particularly our TM2 offering. We are positioning the company for profitable growth.”

Kito Mussa, WidePoint’s Chief Financial Officer, added, “While our second quarter revenue declined due to timing of resale revenue, we improved our gross profit, continued to narrow our GAAP net loss, and continued to be Adjusted EBITDA positive. We will remain focused on managing costs as we work to grow our top-line.”

Second Quarter 2018 Financial Summary (Comparisons versus Second Quarter 2017)

(in millions, except per share amounts) June 30, 2018 June 30, 2017
Revenues $17.5 $18.9
Gross Profit (% of Revenue) $3.5 (20%) $3.3 (17%)
Operating Expenses $4.0 $4.5
Loss from Operations $(0.4) $(1.3)
Net Loss $(0.5) $(1.3)
Basic and Diluted Earnings per Share (EPS) $(0.01) $(0.02)
Adjusted EBITDA $0.1 $(0.4)

First Half 2018 Financial Summary (Comparisons versus First Half 2017)

(in millions, except per share amounts) June 30, 2018 June 30, 2017
Revenues $37.6 $37.5
Gross Profit (% of Revenue) $7.1 (19%) $6.7 (18%)
Operating Expenses $8.0 $9.2
Loss from Operations $(0.9) $(2.4)
Net Loss $(0.9) $(2.5)
Basic and Diluted Earnings per Share (EPS) $(0.01) $(0.03)
Adjusted EBITDA $0.2 $(1.2)
  • Cash and cash equivalents was approximately $5.3 million as of June 30, 2018.
  • The outstanding balance on the credit facility was $155,000 as of June 30, 2018.

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 GAAP Net loss to Adjusted EBITDA is included on the schedules attached hereto.

Conference Call Information

A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Tuesday, August 14, 2018. Interested parties should call 1-877-451-6152 if calling within the United States or 1-201-389-0879 if calling internationally. There will be a playback available until August 28, 2018. To listen to the playback, please call 1 844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use PIN code 13681584 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=130500.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of technology-based management solutions including telecom management, mobile management, access management and identity management. For more information, visit www.widepoint.com.

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