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 second quarter ended June 30, 2019.

Second Quarter 2019 and Recent Operational Highlights:

• Awarded $5.3 million in federal government contract renewals and modifications
• Soft-ex, a WidePoint subsidiary, awarded $6.0 million contract renewal with a global communications service provider to deliver both cloud and onsite telecom solutions to government and multinational corporations
• Secured more than $1.3 million in Trusted Mobility Management (TM2) contracts, the majority of which are high-margin, commercial contracts
• Received Authority to Operate (ATO) from a major customer to implement WidePoint’s Intelligent Telecommunications Management System (ITMS™), which represents the second significant step toward achieving a FedRAMP certification

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

• Revenues increased 26% to $22.1 million
• Gross profit increased 14% to $4.1 million
• Net loss totaled $(308,000)
• Adjusted EBITDA, a non-GAAP financial measure, increased to $0.6 million, marking the company’s eighth consecutive quarter of positive adjusted EBITDA, and in line with forecast

Six Month 2019 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 17% to $44.0 million
• Gross profit increased 17% to $8.3 million
• Net income totaled $76,000
• Adjusted EBITDA totaled $1.6 million

For additional financial details please refer to www.widepoint.com

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 is reiterating its revenue guidance of $90.0 million to $93.0 million, representing growth of 8% to 12%. The company is also reiterating its adjusted EBITDA guidance of $2.75 million to $3.5 million, which represents an improvement compared to fiscal 2018. The increase in adjusted EBITDA 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 Financial Accounting Standards Board (FASB) guidance regarding the treatment of capital lease. The company’s financial outlook is based on current expectations.

Management Commentary

“The second quarter was a continuation of the strong performance we established at the start of the year as we delivered another solid period of financial results, expanded several contracts with current customers, and continued to improve upon our already industry-leading credentials,” said WidePoint’s CEO, Jin Kang. “From a financial perspective, the quarter was highlighted by a 26% increase in revenues, a 14% increase in gross profit, and our eighth consecutive quarter of positive adjusted EBITDA.

“Operationally, we successfully re-secured and expanded several contracts with current customers in both the government and commercial sectors. These contract expansions and the positive effects they have on our financial results show that our cross-selling and upselling strategies continue to be an effective means of increasing our topline as we simultaneously remain conscientious of their effects on our bottom-line. Additionally, we received an ATO from a major customer to implement ITMS™, which is a major step toward ultimately receiving a FedRAMP certification.

“Overall, we remain confident that we will be able to continue to execute on our primary strategic initiatives throughout the course of the year to accelerate growth, improve margins, and drive higher profitability in the long-run.”

Conference Call

WidePoint management will hold a conference call today (August 14, 2019) at 4:30 p.m. Eastern time (1:30 p.m. Pacific 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: 844-369-8770

International number: 862-298-0840

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 21, 2019.

Toll-free replay number: 877-481-4010

International replay number: 919-882-2331

Replay ID: 51160

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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.

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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 received multiple renewals and modifications to existing contracts with current federal government customers, with the aggregate value totaling approximately $5.3 million.

Included in the contract renewals and modifications are a six-month extension for both wireless and wireline services with a current customer; and modifications for increased support of wireless services, equipment, and accessory purchases for lines of service from two separate customers. WidePoint expects to recognize all revenues from these modifications over the next twelve months.

“The contract renewals and modifications we received from current federal customers validate both the quality of our Trusted Mobility Management, or TM2, framework and our ability to maintain excellent relationships with our customers by providing first-rate service and effective solutions,” said Jin Kang, WidePoint CEO. “These modifications indicate that our cross-selling and up-selling tactics continue to be effective and that we’re able to negotiate favorable contract renewals. We look forward to capitalizing on this momentum as we continue to expand our footprint in the federal space and build on our growing success and prospects in the commercial markets.”

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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.

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Investor Relations:

Matt Glover and Charlie Schumacher

Gateway Investor Relations

(949) 574-3860

WYY@gatewayir.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, announced today that a global communications service provider (CSP) has renewed its contract with WidePoint’s subsidiary, Soft-ex Communications Ltd. The contract renewal is scheduled to last three years and is valued at $6.0 million.

Under the agreement, Soft-ex will deliver its Optimiser solution, which consists of both cloud and onsite telecom analytics solutions, to all business segments of the CSP’s global client base. This client base includes government and multinational corporations and consists of new as well as current clients already benefitting from deployments of the Soft-ex hosted solution.

“Soft-ex has a long-standing track-record of working with global CSPs to deliver value-add services to their customer base,” said Ian Sparling, President and Chief Executive Officer at Soft-ex and WidePoint Interim CFO. “Our solutions benefit these customers by giving them access to a unified communications reporting and analytics platform. Optimiser consolidates their information and enables them to better understand and manage telecom costs, infrastructure and performance. The added insight increases efficiency and ultimately results in a compelling ROI for the enterprise customer.”

Jin Kang, WidePoint CEO, added: “This contract renewal with a key strategic partner both proves the complementary nature of our solutions with CSP cloud platforms and serves as a testament to the success of our commercial alliance. The combination of this contract and the recent denial of the protest of the NASA NEST award provides us with solid momentum going into the second half of 2019. We look forward to the next phase of working with this strategic partner and the positive impact this relationship will have on our business as we collaborate on technologies and innovative solutions and target new, joint opportunities.”

About Soft-ex

Soft-ex Communications Ltd., a subsidiary of WidePoint, is a leading supplier of Interactive Billing & Analytics solutions that provide unique online data intelligence for CSPs and Enterprises for IOT (including fixed, mobile, PABX and data communications). Soft-ex has customers and partners in over 90 countries globally. Customers include British Telecom (BT), eir, Three, Liberty Global, Capita, BASF, Lloyds, Royal Bank of Scotland (RBS), Standard Life and Unilever, among many others. For more information, visit www.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 bill presentment and analytics. For more information, visit widepoint.com.

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Investor Relations:

Matt Glover and Charlie Schumacher

Gateway Investor Relations

(949) 574-3860

WYY@gatewayir.com

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CX strategies are continually evolving to adapt to the needs of not only today’s customer, but also the customer of tomorrow. The requirement to deliver an interactive, engaging and integrated customer experience is forcing operators to move towards a blended, data led, customer focused business strategy. Moreover, CX is predicted to become the single greatest purchasing indicator for most consumers by 2020, providing telecoms with an incredible opportunity to differentiate themselves from competitors and catch up to the rest of the market.

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We look forward to seeing you there!

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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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