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 third quarter ended September 30, 2016.
Third Quarter 2016 Financial Highlights
• Cash and cash equivalents of $5.6 million as of September 30, 2016. Working capital of approximately $7.0 million.
Year to Date 2016 Financial Highlights
“Our third quarter’s financial results were satisfyingly strong. We grew our top line by 30% year over year and we were operationally profitable on an Adjusted EBITDA basis,” stated Steve L. Komar, WidePoint’s chief executive officer. “We remain confident that we will continue to make progress with our financial model, and we are particularly excited by the opportunities we see for our identity management solutions and our telecom lifecycle management solutions in both the Federal and Commercial market spaces. We continue to be optimistically excited about the direction that our partnership with AT&T is leading us, especially given their focused thrust into the Internet of Things (IoT). Coupling this opportunity with the continued positive progress we are making with the United States Coast Guard (USCG), leads us to believe that 2017 should continue to demonstrate even more positive financial improvements, and leveraging and scaling within our business model.”
James McCubbin, WidePoint’s chief financial officer, added, “The third quarter showed the leverage in our business model. We saw improvements in revenues, gross profits, and bottom line performance. Our third quarter performance put us on track to meet many of our goals that we set out at the beginning of the year, while we still had to deal with timing challenges in awards, regulatory delays, as well as the negative financial impact that we realized from the United Kingdom’s vote to exit the European Union. Given these challenges we were pleased with our ability to achieve the positive results in the third quarter of 2016. We believe that 2017 will be an exciting year for all of our stakeholders given the new awards we are still expecting from the USCG and our new Identity Management solutions.”
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.
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, November 9, 2016. Anyone interested in listening to our analyst call should call 1-877-795-3649 if calling within the United States or 1-719-325-4776 if calling internationally. There will be a playback available until November 23, 2016. 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 1385272 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=121612.
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 Company’s ability to achieve profitability and positive cash flows; (v) the Company’s ability to raise additional capital on favorable terms or at all; (vii) the Company’s ability to gain market acceptance for its products and (viii) 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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 15, 2016.
-For detailed financial table please visit www.widepoint.com-