GAAP Net Income of $0.4 million; Gross Profit Up 20%; Seventh Consecutive Quarter of Positive Adjusted EBITDA

‍WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Bill Presentment & Analytics solutions, today reported results for the first quarter ended March 31, 2019.

First Quarter 2019 and Recent Operational Highlights:

• Secured more than $1.3 million in Trusted Mobility Management (TM2) contracts, the majority of which are high-margin, commercial contracts
• Successfully implemented ITMSTM Instance with GovCloud, an industry first that strengthens the competitive advantage of TM2 and represents the fist significant step towards achieving a FedRAMP certification
• Secured $1.6 million contract expansion with the U.S. Customs and Border Protection (CBP) agency, increasing the number of devices managed by 50% to 45,000
• Teamed with Leidos on the NASA Nest contract to provide Managed Mobility Services in support of the agency’s mission
• Relocated company headquarters to Fairfax, VA as part of consolidation and cost-savings strategy

First Quarter 2019 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 9% to $21.9 million
• Gross profit increased 20% to $4.3 million
• Net income of $384,000
• Adjusted EBITDA, a non-GAAP financial measure, increased to $1.0 million, marking the company’s seventh consecutive quarter of positive adjusted EBITDA

First Quarter 2019 Financial Summary

Please visit www.widepoint.com for more breakdown on the Financial Summary.

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Financial Outlook

For the fiscal year ending December 31, 2019, the company is reiterating its revenues guidance of $90.0 million to $93.0 million, representing growth of 8% to 12%. The company is also raising its adjusted EBITDA guidance to $2.75 million to $3.5 million, which represents an improvement compared to fiscal 2018. The increase reflects the company’s strategic investments in sales and marketing and product development to accelerate growth as well as a $400,000 increase due to new FASB guidance regarding the treatment of capital lease. The company’s financial outlook is based on current expectations.

Management Commentary

“The first quarter was a strong start to what we anticipate will be a solid year for WidePoint as we delivered continued solid financial results, expanded on new and current customer relationships, and improved our industry leading suite of credentials,” said WidePoint’s CEO, Jin Kang. “Our financial performance in the first quarter was highlighted by our first quarter of GAAP profitability in nearly six years, a 20% increase in gross profit and positive adjusted EBITDA of approximately $1.0 million, all of which demonstrate improved leverage in our financial model.

“Operationally, the recent contracts we secured in the first quarter with CBP, CNA, and others, highlight that our internal sales team, our strategic partnerships with systems integrators, as well as our cross-selling and up-selling initiatives continue to be an effective means of landing new business. We also made substantial progress this quarter in bolstering our credentials by successfully implementing ITMSTM Instance with GovCloud, which is a first for our industry and a crucial step towards achieving a FedRAMP certification.

“We remain optimistic about the remainder of 2019 and beyond, and we look forward to continuing with our strategy to more aggressively grow the topline while improving our margins, improving profitability and returning greater value to our supportive shareholders.”

Conference Call

WidePoint management will hold a conference call today (May 14, 2019) at 4:30 p.m. Eastern time (1:30 p.m. local time) to discuss these results.

WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and President and CEO of Soft-ex Communications and WidePoint Interim CFO Ian Sparling will host the conference call, followed by a question and answer period.

U.S. dial-in number: 877-407-9210

International number: 201-689-8049

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 14, 2019.

Toll-free replay number: 877-481-4010

International replay number: 919-882-2331

Replay ID: 47592

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 bill presentment 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 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.

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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 Bill Presentment & Analytics solutions, has secured new contract awards valued at more than $1.3 million.

“These awards span our entire TM2 solution suite, with the majority being high-margin revenues in the commercial market,” said WidePoint CEO Jin Kang. “A key component of our growth strategy is aimed at further penetrating the bourgeoning commercial market and these new awards are another proof point of the effectiveness of our strategy. It also demonstrates our team’s ability to not only secure new commercial clients but also our ability to expand our share of wallet within existing clients across our platform of solutions and services.”  

Highlights of the contracts include:

• Providing enhanced TLM support for the world’s leading fast food company

• Expanding TLM services with a major airliner carrier

• Launching a logistics management pilot program for a healthcare leader

• Providing strategic consulting and IdM services to a transportation agency

• Expanding TM2 services with an influential strategic government organization

• Securing new contracts and extending several existing contracts with telecom service and software providers in the United Kingdom

Ian Sparling, President and CEO of WidePoint’s subsidiary, Soft-ex Communications Ltd., added: “While the uncertainty of Brexit continues to temporarily slow business in the UK, we’re encouraged to see clients renewing and expanding their use of our solutions through prototype projects. WidePoint’s commitment to helping enterprises secure, manage and analyze their telecom and mobile environments is illustrated in the value and expertise we continue to deliver. Our strategic goal of growing our business through delivering operational excellence is being realized.”

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 bill presentment and analytics. For more information, visit widepoint.com.

Investor Relations:

Liolios

Matt Glover or Charlie Schumacher

949-574-3860, WYY@liolios.com

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Soft-ex are delighted to announce the launch of our new Digital Billing & Analytics UX for B2C.

This highly innovative portal is easier to navigate and offers drill-down on all services. What’s more, we push personalized billing notifications real-time, so that consumers don’t experience any bill shock!

Key features:

-              Simplified and transparent billing communications

-              Line item descriptions with click-thru to see what’s causing changes to this month’s bill

-              Personalization with banner advertising and discounts

-              Prorating for on-boarding new subscribers and services - all clearly explained upfront.

-              Usage trends with easy to follow graphs

-              Consolidated billing from multiple billing platforms

-              Easy to implement, low-touch integration for speed-to-market.

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This platform delivers an enhanced customer experience, reduces inbound calls to the CSPs call centres and happier, more informed customers. That’s why companies like Telefonica, BT, Liberty Global and Three are using Soft-ex.

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If you would like to learn how to increase loyalty and retain customers more effectively via the online bill, then contact us today to organize a demonstration of this agile and innovative solution in action. Simply email sales@soft-ex.net.

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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 Bill Presentment & Analytics solutions, has successfully implemented its proprietary Intelligent Telecommunications Management System Platform (ITMS™) in the AWS GovCloud (US).

The AWS GovCloud (US) is an AWS Region designed to address the specific regulatory and compliance requirements of U.S. government agencies at the federal, state, and local levels, as well as those of contractors, educational institutions, and other U.S. customers that run sensitive workloads in the cloud. Beyond the assurance programs applicable to all AWS Regions, the AWS GovCloud (US) Region allows customers to adhere to U.S. International Traffic in Arms Regulations (ITAR), Federal Risk and Authorization Management Program (FedRAMP), and Department of Defense (DoD) Cloud Computing Security Requirements Guide (SRG) Impact Levels 2, 4, and 5.

“Migrating to the AWS GovCloud is the first step in our pursuit of a FedRAMP certification for WidePoint’s ITMS™ platform,” stated Todd Dzyak, President and CEO of WidePoint Integrated Solutions Corp. “FedRAMP is the new standard for government-wide mission-enabling, secure, and cost effective cloud-based IT solutions. This initial implementation of ITMS™ in the AWS GovCloud is a first for our industry and definitively positions WidePoint’s TM2 solutions ahead of the competition as it is the only solution to fully align with the new federal policies.”

Jin Kang, Chief Executive Officer and President of WidePoint Corporation, added: “By moving to the most secure, cloud hosting solution available, we are in an even stronger position to expand existing client relationships and add new customers. Additionally, attaining FedRAMP compliance will increase our operational efficiency. Once we complete the FedRAMP certification and accreditation and move all federal clients to the new platform, we will be able to leverage the FedRAMP Authority to Operate (ATO) across all government clients. We will no longer be required to pursue separate ATO’s with each individual agency, which will make our processes significantly more efficient. We believe this move will provide greater leverage to our operating model and will increase the competitive advantage we already reap from our long list of credentials and accreditations.”

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 bill presentment and analytics. For more information, visit widepoint.com.

Investor Relations:

Liolios

Matt Glover or Charlie Schumacher

949-574-3860, WYY@liolios.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 and Bill Presentment & Analytics solutions, has been invited to present at the Sidoti & Company Spring 2019 Investor Conference, which is being held on March 28, 2019 at the Marriott Marquis, Times Square in New York City.

WidePoint management is scheduled to present at 9:10 a.m. Eastern time (6:10 a.m. Pacific time) in Estate 5, the Gotham Room. The presentation will be webcast live and made available for replay here. Management will also hold one-on-one meetings with investors and analysts at the conference.

To receive additional information or to schedule a one-on-one meeting with WidePoint management, please contact Liolios at WYY@liolios.com or 949-574-3860.

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 bill presentment and analytics. For more information, visit widepoint.com.

Investor Relations:

Liolios

Matt Glover or Charlie Schumacher

949-574-3860

WYY@liolios.com

‍

WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Bill Presentment & Analytics solutions, today reported results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 and Recent Operational Highlights:

• Secured $1.6 million contract expansion with the U.S. Customs and Border Protection (CBP) agency, increasing the number of devices managed by 50% from 30,000 to 45,000
• Teamed with Leidos on the NASA Nest contract to provide Managed Mobility Services in support of the agency’s mission
• Added two new members to the Board of Directors, expanding the total number of directors to seven, including six independent directors and one inside director
• Relocated company headquarters to Fairfax, VA as part of consolidation strategy

Fourth Quarter 2018 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 24% to $24.8 million
• Gross profit increased 25% to $4.5 million
• Net loss narrowed to $0.4 million
• Adjusted EBITDA, a non-GAAP financial measure, increased to $1.0 million, marking the company’s sixth consecutive quarter of positive adjusted EBITDA

Twelve Month 2018 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 10% to a record $83.7 million
• Gross profit increased 12% to $15.3 million
• Net loss narrowed to $1.5 million
• Adjusted EBITDA totaled $1.8 million

Fourth Quarter 2018 Financial Summary

(in millions, except per share amounts)December 31, 2018December 31, 2017(Unaudited)Revenues $24.8 19.9Gross Profit $4.5$3.6Gross Profit Margin18%18%Operating Expenses$3.7 $4.3Loss from Operations $0.7 $(0.7)Net Loss$(0.4) $(0.8)Basic and Diluted Earnings per Share (EPS) $(0.00) $(0.01)Adjusted EBITDA $1.0$0.3

Fiscal Year 2018 Financial Summary

(in millions, except per share amounts)December 31, 2018December 31, 2017(Unaudited)Revenues $83.7 75.9Gross Profit $15.3$13.7Gross Profit Margin18%18%Operating Expenses$15.5 $17.2Loss from Operations $0.2 $(3.5)Net Loss$(1.5) $(3.5)Basic and Diluted Earnings per Share (EPS) $(0.02) $(0.04)Adjusted EBITDA $1.8$(0.9)

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.

Financial Outlook

For the fiscal year ending December 31, 2019, the company anticipates revenues in the range of $90.0 million to $93.0 million, and adjusted EBITDA of $1.9 million to $2.0 million. The company’s financial outlook statements are based on current expectations.

Management Commentary

“The fourth quarter was a strong finish to what was a pivotal year for WidePoint as we delivered strong financial performance, expanded key customer relationships, as well as secured and implemented several contracts with new customers,” said WidePoint’s CEO, Jin Kang. “All of these initiatives enabled us to achieve our primary goals in 2018 of not only stabilizing the business but beginning the process of driving strong, sustainable, and profitable growth.

“Our financial performance in the fourth quarter was highlighted by a 24% increase in revenues, a 25% increase in gross profit, and positive adjusted EBITDA of $1.0 million; marking our sixth consecutive quarter of positive adjusted EBITDA. From a business development standpoint, we continue to execute on our strategy of maintaining solid relationships with our systems integrator partners and customers to upsell and pursue new business. This is evidenced by our recent contracts with Leidos and CBP. Over the course of the past year, we made significant progress in bolstering our credentials and improving our compliance with various government organizations to increase our competitive advantage.

“Due to the success we’ve had stabilizing the business and the momentum we’ve generated, we’re excited and optimistic about 2019. We look forward to continuing with our strategy to profitably grow the business and return greater value to our shareholders.”

Conference Call

WidePoint management will hold a conference call today (March 21, 2019) at 4:30 p.m. Eastern time (1:30 p.m. local time) to discuss these results

WidePoint President and CEO Jin Kang, Chief Sales and Marketing Officer Jason Holloway, and CFO Kito Mussa will host the conference call, followed by a question and answer period.

U.S. dial-in number: 877-407-9210

International number: 201-689-8049

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 Liolios 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 April 21, 2019.

Toll-free replay number: 877-481-4010

International replay number: 919-882-2331

Replay ID: 45084

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 bill presentment 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 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.

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