FAIRFAX, VA / ACCESSWIRE / August 16, 2021 / WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Identity Management (IdM), Telecommunications Lifecycle Management, and Digital Billing & Analytics solutions, today reported results for the second quarter ended June 30, 2021.

Second Quarter 2021 and Recent Operational Highlights

• Secured more than $36 million in Identity Management and Managed Mobility Services contract awards
• WidePoint's subsidiary, Soft-Ex Communications, was awarded Co-sell Ready status by Microsoft, enabling Soft-Ex to engage and collaborate on global sales opportunities with Microsoft's sales teams and channel partners
• Recognized as an honorable mention vendor in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global
• WidePoint subsidiary, WidePoint Mobile Corp., has achieved the R2v3 certification through SERI, Sustainable Electronics Recycling International. This certification helps accelerate the adoption of WidePoint's device recycling program and ensures that its customers' retired equipment, will be recycled by using the global best practices for protecting the environment and human health, while ensuring all customer data is protected

Second Quarter 2021 Financial Highlights

• Revenues were $20.0 million (reflects a reduction of $1.1 million due to carrier credits)
• Managed Services revenue was $8.1 million
• Gross margin improved to 20.0%
• Net loss was $(205,000) or $(0.02) per diluted share
• EBITDA, a non-GAAP financial measure, was $311,000
• Adjusted EBITDA, a non-GAAP financial measure, was $531,000
• As of June 30, 2021, cash and cash equivalents equaled $14.9 million

Six Month 2021 Financial Highlights:

• Revenues were $40.6 million (reflects a reduction of $3.7 million due to carrier credits)
• Managed Services revenue was $17.4 million
• Gross margin improved to 21.4%
• Net income was $381,000 or $0.04 per diluted share
• EBITDA, a non-GAAP financial measure, was $1.36 million
• Adjusted EBITDA, a non-GAAP financial measure, was $1.8 million

Management Commentary
"The second quarter marked a period of steady operational progress for WidePoint, as we continued to make focused and judicious investments in our staff and technology, in addition to further enhancing our sales and marketing resources and processes," said WidePoint's CEO, Jin Kang. "In particular, we have been making significant investments toward improving our solution delivery infrastructure to increase our gross margins, and to have tangible solutions that can increase our total addressable market and be leveraged by our commercial enterprise and federal government customers. In conjunction with the investments in our solution delivery infrastructure we are also revamping our sales and marketing tactics to capture all possible synergies with customers and to maximize our organic growth efforts. Moreover, even with Census phasing out from a financial perspective, we continue to reap indirect benefits, as we've been receiving an increase of inbound requests for demos and RFPs, that should translate to topline growth. Although we remain laser-focused on executing our near-term initiatives, we are somewhat restricted by macro headwinds, such as the pandemic with the lingering Delta variant strain, but we are cautiously optimistic on our long-term outlook, due to the growing tailwinds within our mobile ecosystem, in conjunction with our organic and inorganic growth strategies."

Second Quarter 2021 Full Financial details are available on www.widepoint.com

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Financial Outlook
The company is reiterating guidance provided during the Q1 2021 earnings call. However, carrier services revenues can fluctuate greatly due to customer usage patterns, carrier invoice timing, and other events effecting device usage. We remain focused on revenue diversification, in addition to increased gross margins and bottom-line profitability. The Company's financial outlook is based on current expectations and actual results could differ materially depending on market conditions and the factors set forth under the "Safe Harbor Statement" below.

Conference Call
WidePoint management will hold a conference call today Monday at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

WidePoint's President and CEO Jin Kang, Executive Vice President and Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO Kellie Kim will host the conference call, followed by a question and answer period.

U.S. dial-in number: (844) 369-8770
International number: (862) 298-0840
Passcode: 42392

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 30, 2021.

Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 42392

About WidePoint
WidePoint Corporation (NYSE American:WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA and 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.

Safe Harbor Statement
This press release contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition that are subject to risks and uncertainties. All statements other than statements of historical fact included herein are forward-looking statements. You can identify these statements by words such as "aim," "anticipate," "assume," "believe," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "potential," "positioned," "predict," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management's beliefs and assumptions. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, the impact of the COVID-19 pandemic on our business and operations; our ability to successfully execute our strategy; our ability to sustain profitability and positive cash flows; our ability to gain market acceptance for our products; our ability to win new contracts, execute contract extensions and expansion of services of existing contracts; our ability to compete with companies that have greater resources than us; our ability to penetrate the commercial sector to expand our business; our ability to retain key personnel; and the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 24, 2021. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Relations:
Gateway Investor Relations
Matt Glover or John Yi
949-574-3860
WYY@gatewayir.com

SOURCE: WidePoint Corporation

View source version on accesswire.com:
https://www.accesswire.com/659976/WidePoint-Reports-Second-Quarter-2021-Financial-Results

Soft-ex, a subsidiary of WidePoint Corporation (NYSE American: WYY),the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management (IdM) and Digital Billing & Analytics solutions, announced today that it has been awarded Co-sell Ready status by Microsoft which enables engagement and collaboration on global sales opportunities with Microsoft sales teams and channel partners, delivering accelerated business growth.

The current trend among corporations to undertake or complete digital transformations of their end-to-end operations has created a unique opportunity for Microsoft and its partners to engage with customers in new and compelling ways. Co-sell Ready status exposes Soft-ex solutions to Microsoft sales teams and channel partners, identifying joint opportunities and accelerating customer success. The Soft-ex solution is now available within the Microsoft commercial marketplace providing Microsoft Teams customers with an advanced UC Voice Analytics &Billing solution to assist them optimise adoption; customer experience; costs and quality of service.

Ian Sparling, CEO at Soft-ex noted that “Soft-ex is delighted to have achieved Microsoft Co-sell Ready status and now that our SAAS solutions are included in the Microsoft Product Catalog, we can offer a truly integrated journey to optimising unified comms infrastructure, performance and costs in a Microsoft Teams environment. Our SAAS platform provides centralised visibility and advanced self-serve analytics for Microsoft clients and as we collaborate with Microsoft we’ll continue to become more effective at delivering compelling solutions and enhanced digital experiences for our mutual clients”.

Jin Kang, WidePoint’s CEO commented, “We are excited to be selected by Microsoft as a global Co-sell Ready partner at a time when their UC platforms are in such high demand as a result of the new way we all now work and communicate. This will allow us to engage directly with Microsoft on joint selling opportunities to reach global customers, take innovative complementary solutions to the market, and deliver tangible customer success”.

About Soft-ex

Soft-ex, part of the WidePoint Group, is a leading supplier of SAAS based Digital Billing and Analytics solutions that provide unique online data intelligence for Digital Service Providers and their Enterprise & Consumer customers for fixed, mobile and PABX communications. Headquartered in Ireland, we have customers and partners in over 70 countries globally. For more information, visit soft-ex.net.

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

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WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management (IdM) and Digital Billing & Analytics solutions, today reported results for the first quarter ended March 31, 2021.

First Quarter 2021 and Recent Operational Highlights

• Received the first task orders under the Department of Homeland Security Cellular Wireless Management Services 2.0 contract, which were valued at $86 million in aggregate
• Successfully on-boarded the DHS Cybersecurity and Infrastructure Security Agency (CISA)
• Recognized by the International Organization for Standardization (ISO) for quality, environmental, and occupational health and safety
• Awarded three new Identity Management contracts, including a deployment with a Fortune Global 500 corporation, increasing WidePoint's commercial footprint as well as the Company's secure digital certificates into a new U.S. federal agency
• Number of U.S. Department of Defense secure digital certificates issued increased 8% sequentially from the fourth quarter of 2020
• Recognized as honorable mention vendor in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global

First Quarter 2021 Financial Highlights:

• Revenues were $20.7 million
• Managed Services revenue increased sequentially to $9.3 million
• Gross margin improved to 22.8%
• Net income improved to $585,000, or $0.06 per diluted share
• EBITDA, a non-GAAP financial measure, was $1.0 million
• Adjusted EBITDA, a non-GAAP financial measure, was $1.2 million
• As of March 31, 2021, cash increased to $17.1 million

Management Commentary
"After completing what was, by many metrics, the most successful year in WidePoint's history, we entered 2021 with solid momentum and with an intense focus on maintaining and ultimately growing our profitability," said WidePoint's CEO, Jin Kang. "In the first quarter, we grew our high margin Managed Services revenues sequentially to $9.3 million, while our low margin Carrier Services revenues decreased due to our work on the 2020 Census winding down as well as the residual effects of a carrier credit from last quarter. Carrier credits occur frequently in the normal course of our business as we occasionally find that a carrier has overcharged one of our clients. In this instance, we found the miscalculation and were able to save one of our prominent clients $2.6 million in expenses, which is reflected in our results as a decrease in Carrier Services, but which has no impact on our profitability. With Carrier Services revenues decreasing and gross profit staying fairly stable at $4.7 million, we improved our gross margins to 22.8%. We also increased our cash position to $17.1 million as we generated positive cash flows from operations and leveraged our at-the-market offering in January to better prepare WidePoint for growth opportunities.

"The financial results of the first quarter demonstrate that WidePoint has a solid base from which we can continue to build and expand our profitability. With tailwinds from the increasing complex mobile landscape, the growing need to secure mobile devices, and the return to more in person work expanding our pipeline, we are optimistic that we are in a healthy and strong position to continue driving the business's profitable growth over the long-run."

First Quarter 2021 Financial Summary details available at Widepoint

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Financial Outlook
Due to the large, short-term changes in WidePoint's financial performance from the 2020 Census project, the Company believes comparing 2021 expectations to 2020 results, excluding the 2020 Census project, may provide a more objective analysis of the Company's anticipated performance. For the fiscal year 2021, the Company currently expects revenues of approximately $103 million, adjusted EBITDA of $4.3 million, and EPS of $0.12 per diluted share, based on 9,128,000 shares outstanding. Excluding WidePoint's work on the 2020 Census project, the Company's expectations reflect revenue growth of approximately 16% year-over-year and adjusted EBITDA consistent with fiscal year 2020. The Company's financial outlook is based on current expectations and actual results could differ materially depending on market conditions and the factors set forth under the "Safe Harbor Statement" below.

Conference Call
WidePoint management will hold a conference call today (May 14, 2021) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

WidePoint's President and CEO Jin Kang, Executive Vice President and Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO Kellie Kim will host the conference call, followed by a question and answer period.

U.S. dial-in number: 888-506-0062
International number: 973-528-0011
Passcode: 862059

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through May 28, 2021.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 40863

About WidePoint
WidePoint Corporation (NYSE American:WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA and 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.  

SOURCE: WidePoint Corporation

WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today announced that WidePoint was recognized as a Honorable Mention Vendor in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global.

"WidePoint is honored to be named in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global," stated Jin Kang, WidePoint's chief executive officer. "As the world's leading research and advisory company, Gartner continues to set the standard for enterprise technology best practices. In our opinion, WidePoint's inclusion in this important research reflects positively on the strength of our managed services offering and the security and scalability of our mobility management platform."

According to the report , "Managed mobility services have evolved into two themes, one on sourcing and logistics, the other centered on full outsourcing and geographic coverage."

Todd Dzyak, president of WidePoint Integrated Solutions Corp., added,"WidePoint offers a complete set of scalable MMS capabilities. WidePoint's secure MMS solutions support noteworthy MMS projects including the U.S. 2020 Decennial Census, and deliver full outsourcing services to the U.S. Department of Homeland Security, Centers for Disease Control and Prevention, and numerous organizations including military, transportation and financial enterprises, among others. We are focused on security as a key differentiator and proud that WidePoint is named in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global."

Gartner,"Magic Quadrant for Managed Mobility Services, Global," Katja Ruud, Leif-Olof Wallin, Bill Menezes, 6 April 2021.

Note: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, managed mobility services, identity management, and digital billing and analytics. For more information, visit widepoint.com.

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Investor Relations:

Gateway Investor Relations

Matt Glover or Charlie Schumacher

949-574-3860, WYY@gatewayir.com

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Today, many companies are increasingly embracing UC, moving away from traditional telephony. Many of those companies have been migrating to Teams, which alongside some remarkable benefits, has brought along new challenges. Companies switching to Teams demand the continuation of the Voice Analytics they were receiving on their traditional platforms in order to provide them with visibility regarding performance, costs, infrastructure and usage patterns.

Soft-ex offer 30+ years of experience delivering comprehensive billing and analytics solutions, and has plenty of  experience in helping companies navigate the new Teams environment. “A lot of our clients now have their entire workforce working from home, and most state that WFH will remain a large part of their continued employment. Many of these organisations decided to transition to Microsoft Teams, and they have all been experiencing similar pain points,“ shares Eamonn Farrell, Country Sales Manager at Soft-ex.  

“The main thing that those clients are looking for is the continuation of visibility,” explains Farrell. “This is proven by the inclusion of Voice Analytics in most of the RFPs our partners are receiving. Whether it’s in terms of call reporting, costing, inbound and outbound calls, or managing infrastructure – visibility is key for those clients. And knowing that Soft-ex have a proven track record in UC, they turn to us to fill those requirements.”  

Meeting UC Expectations and Providing Self-Serve Visibility

As most companies now have to manage employees remotely, many of them look for reports that center around performance. “This effectively means that stakeholders or department heads within the organisation require understanding and visibility of the customer experience,” says Farrell. “For instance, answered calls versus unanswered calls, call durations, calls to voice mail and hunt group management – these are all reports that the Soft-ex platform provides. Ultimately, companies want to be able to police customer experience better.“

There are also other common pain points among companies transitioning to Teams, all of which the Soft-ex solution caters to. “Our customers still need to understand where their calls are coming from and going to. Current compliance requirements have made it essential for them to understand internal versus external calls, and they need to be able to tariff those calls at the correct rate which leads to achieving cost-effectiveness.“

Another pain point that the Soft-ex solution can help with has to do with infrastructure management and how to make it more cost-effective.  “Our solution offers a unique set of analytics by integrating the Teams and SBC call detail records. This, in turn, allows the production of various reports regarding bandwidth management, channel utilisation, occupancy, peak thresholds and blocking. This information, when combined with the ability to identify devices that haven’t been used in any given timeframe, leads to optimal infrastructure management”  

Another plus of the Soft-ex solution is that it can cater for hybrid or mixed platforms, consolidating all the required data onto one platform. Reports can then be exported to PDF, Excel or CSV, and scheduled to be sent to key stakeholders on a timely basis.

Complementing the Teams Platform

“In a nutshell, we complement the Microsoft Teams platform by delivering granular Voice Analytics such as voice quality, answer and unanswered calls, zero usage, call billing and chargeback,” summarises Farrell. “The icing on the cake is that for enterprises who have been used to receiving Voice Analytics on older platforms, but still have a strong requirement for these self-serve analytics in their new Teams environment, Soft-ex can help with seamlessly providing that transition onto the new platform. This consistent visibility which we provide has proven to be critical for businesses migrating to Teams.”

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WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, has been awarded more than $86 million in task orders through its recently secured indefinite delivery, indefinite quantity (IDIQ) contract with the U.S. Department of Homeland Security (DHS).

In November 2020, WidePoint announced that it had secured the Cellular Wireless Managed Services (CWMS) 2.0 contract from its long-standing customer, DHS. The contract has a $500 million ceiling and contains a one-year base period with four 12-month option periods extending through November 24, 2025. The $86 million in task orders, which started being awarded less than two months after the contract vehicle was put in place, are the first set of task orders to be awarded under the new contract vehicle. They include:

• A one-year task order, with four twelve-month option periods, for Immigration and Customs Enforcement (ICE), valued at $81.8 million over the potential five-year period
• A one-year task order for the Cyber Security and Infrastructure Security Agency (CISA), valued at $1.1 million
• Three separate task orders varying in length from one to five years for Customs and Border Protection (CBP), which, in aggregate, are valued at $1.6 million
• A three-month task order for DHS headquarters, valued at $2.2 million

"These new task order awards form a solid foundation from which WidePoint can continue to build," said Todd Dzyak, president of WidePoint Integrated Solutions Corp. and the executive leading the DHS CWMS program. "While most of these contracts are logical follow-on awards, the awards from CISA are new as are some of the expansions with ICE and DHS HQ, and they demonstrate that we have opportunities to grow even within our existing relationships. The fact that these task orders came to fruition so quickly after the contract vehicle was put in place indicates that there is currently a large appetite for our solutions, and we therefore may see similarly material orders in the near future."

Jin Kang, WidePoint's chief executive, commented, "Securing the CWMS 2.0 contract with DHS was an important first step to ensuring that DHS and the agencies under its umbrella can continue to benefit from our services uninterrupted. While it is assuring to have confirmation that these important customer relationships remain in good standing, it is also encouraging to see new orders come to fruition, expanding our presence with DHS. We look forward to continuing our work with DHS to better service their needs and to realize a greater portion of this contract's potential value."

About WidePoint
WidePoint Corporation (NYSE American:WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:
Gateway Investor Relations, Matt Glover or Charlie Schumacher
949-574-3860, WYY@gatewayir.com

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