Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
WidePoint to Virtually Present and Participate at the H.C. Wainwright 25th Annual Global Investment Conference
From Yahoo.
FAIRFAX, VA / ACCESSWIRE / August 30, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), will be virtually presenting and holding one-on-one meetings at the H.C. Wainwright 25th Annual Global Investment Conference on September 11-13, 2023 at the Lotte New York Palace Hotel in New York City.
WidePoint's management is scheduled to virtually present on Monday, September 11, 2023 at 7:00 AM Eastern time, with virtual one-on-one meetings to be held throughout the conference. The presentation will be available for replay here.
To receive additional information or to schedule a one-on-one meeting, please email WYY@gateway-grp.com.
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading technology Managed Solution Provider (MSP) dedicated to securing and protecting the mobile workforce and enterprise landscape. WidePoint is recognized for pioneering technology solutions that include Identity and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS). For more information, visit widepoint.com.
Thank you. This one will miss us, thank God! ... Just now in the process of getting my roof replaced from Ian.
Good luck with hurricane "Idalia" going to hit Florida, tomorrow!
From Fidelity:
WidePoint Cybersecurity Awarded New $1.7M Identity And Access Management Contract
BENZINGA 9:35 AM ET 8/22/2023
Symbol Last Price Change
WYY 1.9165up +0.0965 (+5.3022%)
QUOTES AS OF 10:16:09 AM ET 08/22/2023
WidePoint Corporation (NYSE:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), announced today that it was awarded a new 3-year, $1.7 million Identity and Access Management contract by an agency of the U.S. Department of Transportation.
Under this contract, WidePoint will be providing the Agency of the DoT our most secure identity management solution. Also offered is a full set of operations and maintenance support services related to our quantum resistant identity management solution.
Jin Kang, WidePoint's CEO, stated: "WidePoint is proud to announce that our pioneering security offering has been selected to support a critical U.S. Department of Transportation Agency. This is a proof point of how our capital investment in our hybrid issuance is beginning to bear fruit." WidePoint will deliver the certificates and support services needed to secure the Agency's identity and access management, devices, systems and infrastructure.
Jason Holloway, WidePoint's Chief Revenue Officer, noted: "In today's zero trust reality, WidePoint's IAM provides the most secure identity, device and service authentication. This contract award is further proof that the most discerning organizations understand that WidePoint's IAM is the solution of choice for enhanced security. We had to compete against a number of major competitors in order to win the confidence of this critical DoT agency. To that end, the Team at WidePoint answered the challenge and was able to secure this 3-year contract and begin forging an additional strategic relationship within the federal space."
Maybe that's what I was hearing... the calm of confidence. Hope so.
He seems to me to be confident without being over-confident.
There are several benefits that he highlighted in his speech and a couple of drawbacks and SA was very keen on their performance.
See what happens with the share price.
Thanks for posting this. Maybe it's just me, but Jin seemed less positive.
WidePoint Corporation (WYY) Q2 2023 Earnings Call Transcript
Aug. 15, 2023 5:34 PM ETWidePoint Corporation (WYY)
SA Transcripts profile picture
Seeking Alpha Transcripts
139.97K Followers
WidePoint Corporation (NYSE:WYY) Q2 2023 Earnings Call Transcript August 15, 2023 8:00 AM ET
Company Participants
Jin Kang - Chief Executive Officer & President
Jason Holloway - Chief Revenue Officer
Robert George - Chief Financial Officer
Conference Call Participants
Operator
Good afternoon. Welcome to WidePoint’s Second Quarter 2023 Earnings Conference Call. My name is John, and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang; Chief Revenue Officer, Jason Holloway; and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from WidePoint publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact WidePoint's Investor Relations team at wyy@gateway-grp.com.
Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation. That involves risk and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission.
Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com.
Now, I would like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.
Jin Kang
Thank you, operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the second quarter ended June 30, 2023. I’m pleased to share that WidePoint has been executing our strategic plan as we have seen anecdotal evidence of our business steadily improving. And this has, of course, been supported by our financial performance being modestly ahead of our internal forecast. The kicker here is that, we've been seeing general improvements within our business, even though we are operating with a leaner team following our recent reduction in force initiative. This has led to our 24th consecutive quarter of positive adjusted EBITDA, which is an accomplishment we're hoping to continue going forward and a milestone we're proud of.
A big contributing factor to our ability to operate optimally has to do with our team always looking to make system and processes more efficient. In parallel with the reduction in force, our way of operating efficiently has led WidePoint in becoming a lean and lean corporate organization. We're continuing to meet or exceed customer service level agreements and are renewing materially all of our customers that are up for contract renewals and in some cases, even expanding the scope of services we provide. This is a testament of our robust technological solutions and most certainly the team behind the scenes. In particular, we continue to see growth in the mobility and cyber security sectors and remain steadfast in our trusted mobility management solutions.
One intriguing point to note is that, businesses are still leveraging the remote working model and appears that for a good chunk of them the model is here to stay. From our vantage point, it is quite encouraging as that trend will continue to provide tailwinds for WidePoint and more opportunities for us to capitalize on. That said, there are a flurry of unpredictable macroeconomic trends that could potentially impact our operations. First, as you all may have heard in the news, the Federal Government is again royal in the budget debate and is facing possible government shutdown, which could hamper our operations in that sector. We continue to carefully navigate this environment as we have done for many years, and we will continue to mitigate any risks.
Second, the labor market still remains very tight despite many large tech companies executing layoffs. We are managing this situation but may see some staffing cost increases as we strive to maintain our key personnel. We will mitigate this risk by concentrating our sales effort to capture higher margin managed services revenue. Lastly, supply chain challenges still exist and have been affecting our mobile and accessories fulfillment business. With that said, the encouraging piece of news is that, this challenge has been largely manageable. Thanks to our team's ability to remain nimble.
Although there is the possibility of the delivery timeline pushing to the right, we are confident that our staff can react swiftly and mitigate those supply chain risks. Despite these macro variables, as you may know, we have remained laser focused on controlling the controllables and a major part of that narrative has been the investment we have been making back into our business. After the past several quarters of making strategic investments back into our business, I am pleased to share that we see the light at the end of the tunnel as we expect the majority of our capital expenditures to conclude by the end of the year. One of the bigger programs has, of course, been our intelligent technology management system or ITMS achieving FedRAMP in process status. We're in the latter innings of dealing with the final government entities, which are reviewing our status as we expect this to be completed by the end of the year.
Next, our coop site improvement have largely been completed and is in the testing phase. Furthermore, as we said we would on the last call, remote issuance of certificates also known as soft search, along with our remote vetting process have been completed and will allow WidePoint flexibility in modes of certificate issuance that will result in increased higher margin revenues. Additionally, as we also mentioned on the last call, the development of a hybrid issuance capability which will allow our clients to retain their personally identifiable information or PII in their possession has been completed as well. We are already issuing identity certificates using this new capability. As a result of some of these investments, we've become a stickier solution provider for a number of our preexisting clients, but we've also won a number of incremental deals from net new customers as well.
I'd like to now hand the mic over to Jason so he can talk about some of the activities going on within the sales and marketing front. Jason?
Jason Holloway
Thank you, Jin and good afternoon everyone. While the execution of our sales and marketing strategy continues as planned, I want to focus my remarks today on three topics. First, Q2 Awards. As we reported on July 11, in the second quarter of 2023 WidePoint saw more than 80 contractual actions across our business units, including new awards, renewals, contract extensions and exercise option periods, totaling approximately $46 million in contract value. These wins encompass our managed mobility service, analytics and billing as a service, identity and access management and information technology as a service solutions.
Second, pipeline. Q2 saw increased interest from both government and commercial entities in all of our technology management as a service solutions. We have numerous meaningful new opportunities in the works that we look forward to closing and reporting on in the months ahead. And third, there's a demand for a more secure future. As many of you know, in the United States the first half of 2023 was nonstop news headlines about cyber breaches, ransomware attacks and cyber-crime. With 2,200 cyber-attacks per day, a cyber-attack happening every 39 seconds on average, and a data breach costing an average of $9.44 million, cyber-crime is predicted to cost $8 trillion in the United States by the end of the year. And this is not to even mention the threat to human security and lives posed by cyber-attacks and identity and access management failure.
New solutions and partnerships are needed to more effectively guard against this ever-changing threat landscape. I am also proud and excited to share that building on our K-12 pilot projects and the WidePoint’s experience and expertise, our team is now working with government and industry partners to develop and deploy a more secure offering based on our pioneering PKI solution. To shift public and private sector enterprises to adopt new secure solutions in a monumental effort. Imagine a war room of strategists working together to combat terror. Cybercrime is such a threat. WidePoint is joining forces with the experts and leaders needed to shift this work. It will not happen overnight, but Q2, 2023 will be one of our markers for when the partnerships truly started coming together. In the months ahead, we will report back with incremental material developments and successes.
With that, I will hand the call over to Bob.
Robert George
Thank you, Jason. Good afternoon, everyone. I'm pleased to share the details of our second quarter 2023 financial results. For the second quarter, our revenue was $26.8 million, an increase of $3.7 million or 16% from the $23.1 million reported for the same period last year. Revenues for the six-month period ended June 30, 2023, were $52.1 million, an increase of $6.8 million or 14% from the $45.5 million in the same period last year.
Now I will provide a further breakdown of our second quarter and six-month revenues. In the second quarter, our carrier services revenue was $14.2 million, an increase of $1.7 million from the $12.5 million in the same period in 2022. For the six months ended June 30, 2023, our carrier services revenue was $27.8 million, an increase of $2.4 million from $25.4 million in the same period in 2022. The increase for both the three-month and six-month results is due to increased carrier activity that we are seeing across our customer base.
In second quarter, our managed services revenues increased marginally relative to the same period last year at $6.9 million and $6.7 million, respectively. For the six months ended June 30, 2023, our managed services revenue is $13.8 million, which is relatively constant from period to period. In the second quarter, billable services fees were $1.9 million, an increase of $900,000 from $1 million in the same period in 2022. For the six months ended June 30, 2023, billable services fees were $3.1 million, an increase of $1 million from the $2.1 million in the same period last year. For both the three and six month periods, the increase in billable services fees was the result of more billable positions with a particular government customer and an increase in implementation services in our Soft-ex subsidiary.
In the second quarter, reselling and other services was $3.8 million, an increase of $900,000 from the $2.9 million in the same period last year. For the six months ended June 30, 2023, reselling and other services was $7.3 million, an increase of approximately $3.3 million from the $4 million in the same period last year. The increase for both periods was due to the resale of new capabilities for three federal customers. We do want to highlight that reselling and other services are transactional in nature and the amount and timing of revenue could vary significantly from quarter-to-quarter.
Gross profit for the three month period ended June 30, 2023 was $3.9 million or 15% of revenues, as compared to $3.3 million, or 14% of revenues in 2022. Gross profit for the six month period ended June 30, 2023, was $7.7 million, or 15% of revenues, as compared to $7.2 million, or 16% of revenues in 2022. The more significant metric of gross profit percentage excluding carrier services was 31.2% for the second quarter of 2023, which is consistent with 31.5% in the same period last year. For the six-month period ended June 30, 2023, gross profit percentage excluding carrier services was 32%, compared to 36% in the same period last year. The lower gross margin percentage excluding carrier services is related to corresponding costs from the resale of the new capabilities provided to the three government customers I previously mentioned, and increased amortization expenses related to the capital investments in our delivery platforms that are reaching completion and now beginning to be amortized. We note that our gross profit percentage will vary quarter to quarter due to our revenue mix.
In the second quarter, general and administrative expenses were $3.9 million, or 15% of revenues, compared to $3.8 million, or 17% of revenues in the same period of 2022. The change in general and administrative dollars was not significant. However, general and administrative expenses are lower as a percentage of revenue. General and administrative expenses for the six month period ended June 30, 2023 are $7.9 million or 15% of revenue, as compared to $7.6 million, or 17% of revenue in 2022. We expect to see general and administrative costs as a percentage of revenues lower in the future.
For the second quarter of 2023, our net loss was $842,000, compared to a net loss of $13.8 million in the same period last year. Net loss for the six month period ended June 20, 2023, was $1.8 million, compared to a net loss of approximately $14.1 million in the same period last year. The principal difference in the net loss from the three and six month periods in 2023, compared to the same periods in 2022 was a non-cash goodwill charge of $16.3 million that was taken in the second quarter of 2022, and to a lesser extent, the increased amortization expenses previously mentioned.
Moving to our balance sheet, I'm encouraged about where WidePoint stands from a liquidity perspective, as we've done an exceptional job in managing our cash, and because of our access to a $4 million receivables factoring facility. With that said, we end of the quarter with $7.8 million in cash, which was in part due to an accelerated timing of cash receipts ahead of some vendor payments on the last day of the quarter.
This completes my financial summary. For a more detailed analysis of our financial results, please reference our Form 10-Q, which was filed on August 14.
So with that, I will turn the call back over to Jin.
Jin Kang
Thank you, Bob and Jason. On band with the prior quarters, we've been continuing to receive and review interesting M&A opportunities that could be incrementally beneficial to our existing operations. There are no substantive updates for me to share with you at this time, but we'll be sure to keep you all apprised if and when an opportunity crystallizes.
As I mentioned at the outset of the call, though operations have been improving and heading in the right direction, there are certain variables that are outside of our control, which I described earlier, and that can potentially impact our operations. To that point, we are trending toward the bottom of our aforementioned adjusted EBITDA guidance, and on target for revenues. The reason behind this stems from us experiencing growth in our value-added resale business, which explains for the higher revenue, but lower adjusted EBITDA. Since it's a lower margin offering, nonetheless, we are still confident that we will be exiting the year on a cash flow positive run rate basis. More specifically, we believe we will be improving cash flow year-over-year by approximately $3.5 million.
It is an exciting time at WidePoint, as the investments we have made into the business have begun to bear fruit. We've seen a small sample set of that recently, as Jason shared, but the more compelling thing to note is, what is in store for our organization. As we shared, in addition to increased client retention, augmented scope of work with some of those clients, fueled by sales and marketing tactics as discussed by Jason, we believe that we are approaching an inflection point in our growth story. It is certainly an invigorating moment in our corporate history.
With that said, we are ready to take questions from our analysts and major shareholders. Operator, will you please open the call for questions?
Question-and-Answer Session
Absolutely. At this time, we will be conducting a question-and-answer session. [Operator Instructions] While we pole for questions, I'd like to start with a couple of questions. The first, regarding FEMA. There have been tragic news coming out of Lahaina, Hawaii, and questions about the FEMA budget in the news. How does the current federal government budget discussions affect FEMA? The overall federal government budget and WidePoint.
A - Jin Kang
Thank you, operator. The news out of Lahaina is tragic, and we pray for the people of Hawaii during this time. On the federal government front, they are again embroiled in a budget discussion, and FEMA's budget, which is part of the Department of Homeland Security, is caught up in that process. Good news is that, current WidePoint's contracts are all funded and very little risk to our current revenue run rate. However, any new projects could be delayed, pushing revenue streams to the right, potentially.
Operator
Thank you. And the second question, can you provide more color on your FedRAMP status?
Jin Kang
Sure, can. The current status is that, we are awaiting the Alcohol, Tobacco, Firearms, and Explosives, or ATF, to provide an Authorization to Operate, or ATO. The ATO is currently with the ATF's CIO's office for final signature. Once signed by the CIO's office, it goes to the General Services Administration for final review and approval and FedRAMP authorization status. GSA's final review usually takes a few weeks to complete. However, GSA has informed us that they have received record numbers of applications this year and that the review process has lengthened a little bit. With that said, we believe that this process will be completed in Q4 of this year.
Operator
Thank you. [Operator Instructions] At this time, this concludes our question-and-answer session. If your question was not taken, please contact WidePoint's IR team at wyy@gatewayir.com. I'd now like to turn the call back over to Mr. Jin Kang for his closing remarks.
Jin Kang
Thank you, operator. We appreciate everyone taking the time to join us today. As the operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release. Thank you again and have a great evening.
Will WYY be present?
White House Rolls Out Cybersecurity initiatives as Schools Face Devastating Hacks
https://news.yahoo.com/white-house-rolls-cybersecurity-initiative-090100447.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAL-rE4lV_DBkLrLyFG989Q7uf0LBHkR2z--hlEJ9TDtOETCq-G2b5cdat7fQxvuKAeCeqSEfa3dXlm0-4ZRqTprA32FEBCtcWXblUmTxBITumtphEOg2PstsgWo0oDi0fVi5vZOhHOZFFSneTBRrNp4gsjlOh1lbzbnsezXrJvAn
https://www.widepoint.com/widepoint-engages-k-12-schools-to-offer-identity-access-management-solutions/
WidePoint's Subsidiary IT Authorities Awarded New $2.7 Million IT Managed Services Provider Contract
FAIRFAX, VA / ACCESSWIRE / August 7, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), announced that its subsidiary IT Authorities (ITA) has been awarded a new three-year IT managed services contract worth $2.7 million by a national Sports Marketing, Media & Technology company, which is an expansion from a successful pilot program. ITA will provide IT-as-a-Service Network & Infrastructure Monitoring and management, with 24x7x365 help desk support.
Jason Caras, the CEO of IT Authorities stated: "IT Authorities is proud to provide top-tier managed services for this national sports marketing firm that has grown from $30 million in revenue to a staggering $750 million with a network of offices across the country. As this expansion persists, IT Authorities is committed to overseeing, managing and catering to their IT and security requirements."
Jin Kang, WidePoint's CEO, stated, "WidePoint's subsidiary, IT Authorities, is being recognized for excellent service with this expanded contract. We look forward to continued expansion of our contract with this industry-leading firm as they continue to experience exponential growth. And as more organizations seek to outsource technology management activities, WidePoint is positioned well for delivering these essential services. ITA is also providing new opportunities for cross-selling and upselling of WidePoint security and managed mobility services."
About WidePoint
WidePoint Corporation (NYSE American:WYY) is a leading technology Managed Solution Provider (MSP) dedicated to securing and protecting the mobile workforce and enterprise landscape. WidePoint is recognized for pioneering technology solutions that include Identity and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS). For more information, visit widepoint.com.
WidePoint Investor Relations:
Gateway Group, Inc.
Matt Glover or John Yi
949-574-3860
WYY@gatewayir.com
SOURCE: WidePoint Corporation
View source version on accesswire.com:
https://www.accesswire.com/772409/WidePoints-Subsidiary-IT-Authorities-Awarded-New-27-Million-IT-Managed-Services-Provider-Contract
WidePoint Awarded $3.2 Million Mobility Managed Services Contract from the Federal Communications Commission
https://finance.yahoo.com/news/widepoint-awarded-3-2-million
FAIRFAX, VA / ACCESSWIRE / July 20, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), announced today that it was awarded a $3.2 million contract for wireless mobility services by the Federal Communications Commission (FCC). The period of performance is one-year base phase followed by four-year option periods.
WidePoint will be responsible for mobile lifecycle and telecom expense management services for all FCC managed mobile devices. Core tasks include:
Wireless Contract Administration Services
Inventory Management
Invoice Management and Audit Services
Rate Plan Optimization
Smartphones, Cellular Devices, and Accessories Provisioning
Reporting and Analytics/Management Solutions
Bill Payment Services
Device and Line of Service Ordering on Behalf of The FCC
Device Disposition/Exchange-Sale/Recycling Services
Device Logistics Services
WidePoint will also obtain and manage cellular services from wireless carriers for the FCC.
Jin Kang, WidePoint's CEO, stated: "WidePoint is proud that our MMS and TEM expertise, performance track record and Intelligent Telecommunications Management System were recognized by the FCC. We are excited that the FCC is returning as a client after our initial contract work from 2013-2016. WidePoint looks forward to delivering mobile lifecycle and telecom expense management services for the FCC and expanding our work in support of yet another U.S. Government agency."
WidePoint Awarded $46 Million in IT and Security Contracts During Q2 2023
https://feeds.issuerdirect.com/news-release.html?newsid=5024824493943336
FAIRFAX, VA / ACCESSWIRE / July 11, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), announced today that it was awarded approximately $46 million in IT and security contracts during the second quarter of 2023.
Jin Kang, WidePoint's CEO, stated: "In the second quarter of 2023, WidePoint saw more than 80 contractual actions across our business units including new awards, renewals, contract extensions and exercised option periods. These wins encompass our Managed Mobility Services, AbaaS, Identity & Access Management and Information Technology as a Service solutions."
Highlights include:
More than 80 contractual actions resulting in $45,908,000 in contract value.
$3 million in commercial contracts
$43 million in government contracts
Under the U.S. Department of Homeland Security Cellular Wireless Managed Services (CWMS) 2.0 IDIQ contract, multimillion dollar awards from federal agencies including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Cybersecurity and Infrastructure Security Agency (CISA), the United States Coast Guard and the Transportation Security Administration (TSA), among others
Numerous renewals and orders for WidePoint's Identity & Access Management offerings
Contract renewals for Soft-ex's Analytics & Billing as a Service solution
Product and service contracts for IT Authorities
Jason Holloway, WidePoint's Chief Revenue Officer, noted: "WidePoint continues to evolve and expand our cross-selling initiatives. We are excited to see new and current clients choose WidePoint solutions to secure and manage their work environments and maximize their technology investments."
I like the contract with Cybersecurity and Infrastructure Security Agency (CISA).
$WYY - Up 23% Pre-Market/ Current Price $2.24
Awarded $46 Million in IT and Security Contracts During Q2 2023
WidePoint Opens New Identity & Access Management Credential Issuing Locations
https://finance.yahoo.com/news/widepoint-opens-identity-access-management
FAIRFAX, VA / ACCESSWIRE / May 31, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), has opened two new locations for issuing Identity & Access Management credentials.
WidePoint provides information assurance and authentication services for business-to-government, government-to-government, and citizen-to-government entities. WidePoint ECA credentials are issued to more than 18,000 unique companies including Fortune 500 companies, small businesses, colleges and universities, private & public research organizations, healthcare organizations, banks and financial institutions.
Jin Kang, WidePoint's CEO, stated: "WidePoint is honored to be trusted by these diverse organizations and to see the demand for WidePoint U.S. Department of Defense certified credentials increase. As more government and commercial personnel and contractors seek expedited services, we are expanding our credentialing team in Fairfax, Virginia and opening locations in Columbus, Ohio and Hampton, Virginia."
WidePoint now offers credential issuance appointments at these locations:
Columbus, Ohio:
ECA Medium Hardware Credentials
NFI PIV-I Credentials
ECA PIV-I Credentials
Fairfax, Virginia:
ECA Medium Hardware Credentials
NFI PIV-I Credentials
ECA PIV-I Credentials
Hampton, Virginia:
ECA Medium Hardware Credentials
NFI PIV-I Credentials
ECA PIV-I Credentials
"WidePoint has been issuing U.S. Government authentication credentials since 1999," said Jason Holloway, WidePoint's Chief Revenue Officer. "We are excited to open these new credential issuing locations for ECA and PIV-I Credentials. By appointment, WidePoint now supports same day issuance in and around Columbus, Fairfax and Hampton. These geographic locales represent established and growing communities of users."
To learn more or to schedule an appointment, visit Schedule Appointment.
About WidePoint
WidePoint Corporation (NYSE American:WYY) is a leading technology Managed Solution Provider (MSP) dedicated to securing and protecting the mobile workforce and enterprise landscape. WidePoint is recognized for pioneering technology solutions that include Identity and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS). For more information, visit widepoint.com.
WidePoint are now listed on the Russell microcap.
Stocks on this index can be seen as "diamonds".
https://www.investopedia.com/terms/r/russell-microcap-index.asp
"The Russell Microcap Growth Index measures the performance of the microcap growth segment of the U.S. equity market. It includes Russell Microcap companies that are considered more growth oriented relative to the overall market as defined by Russell's leading style methodology. Similarly, the Russell Microcap Value Index includes Russel Microcap companies that are considered more value-oriented."
WidePoint Corporation (NYSE:WYY) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET
https://seekingalpha.com/article/4604809-widepoint-corporation-wyy-q1-2023-earnings-call-transcrip
Company Participants
Jin Kang - Chief Executive Officer & President
Jason Holloway - Chief Revenue Officer
Robert George - Chief Financial Officer
Operator
Good afternoon, and welcome to WidePoint's First Quarter 2023 Earnings Conference Call. My name is Ali, and I will be your operator for today's call.
Joining us for today's presentation are WidePoint's President and CEO, Jin Kang; Chief Revenue Officer, Jason Holloway; and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from WidePoint's publishing analysts and investors. If your questions were not taken today and you would like additional information, please contact WidePoint's Investor Relations team at wyy@gatewayir.com.
Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation. That involves risk and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission.
Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com.
Now I would like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.
Jin Kang
Thank you, operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the first quarter ended March 31, 2023. We concluded Q1 much better than we had anticipated, both quantitatively and qualitatively. A big contributing factor to our stronger-than-expected Q1 was due to sales deals crossing the finish line sooner than expected. One of the more prominent deals we've previously shared is the Soft-ex deal with CSG International that continues to gain increased traction and has contributed significantly to our top line.
We have signed 3 key deals with our partner, CSG, as announced in our press releases, and we have been ahead of schedule in completing the implementations. We have also received 3 new task orders for key third-party software applications for the text capture capabilities with our federal government clients. A bump up in several orders with CSG being filled sooner than expected, which has also played a role in the stronger-than-anticipated quarter. A major catalyst that has helped us accomplish some of these wins was a result of our clients re-engaging with us post-COVID and our diligence in betting new mobile capabilities such as the text capture capabilities for our federal clients. As you may have read in the news, preservation of text messages and other data for archival purposes for those in public office has become a topic that is front and center.
We have capitalized on this opportunity, and we see great potential ahead. I was particularly encouraged because we were able to achieve these wins despite several gating factors which includes continual investments being made back into our business, the historically slower Q1 and especially following the rightsizing of our workforce.
As it pertains to the last point, the rightsizing we initiated in Q4 is having a clear positive impact on our profitability as we experienced a full quarter of the benefits and continue to operate with a leaner staff. Additionally, though the pandemic has added the modes of working in the post-pandemic environment are drastically different as more workers are accessing their corporate IT infrastructure from remote locations. We see this as an ongoing tailwind for our business as there will be continuous pressure for companies to secure and manage their mobility assets.
Next, as I stated on our last call, our Intelligence Technology Management System, or ITMS, has achieved FedRAMP In Process status. There is no new status to share with you at this time other than we expect to complete the assessment to earn the FedRAMP Authorization status which, again, will open up new contract opportunities for us. Speaking of new opportunities, we have continued to invest in our technology infrastructure to capture new opportunities. Some highlights in our investments include Unified Communication Analytics solution set that has been recently approved for Microsoft commercial marketplace and has been launched in the Ingram Micro Marketplace. Ingram Micro Marketplace is the world's largest one-stop shop for cloud-based solutions.
Remote issuance of certificates, also known as soft certificates will allow WidePoint to issue identity certificates over the air. This, along with our remote vetting process, will allow WidePoint flexibility in modes of certificate issuance that will result in increased higher-margin revenues. This capability is scheduled to complete in Q3. Development of a hybrid issuance capability will allow our clients to retain their Personally Identifiable Information, or PII, in their possession. These clients are required by law to maintain control of their PII and therefore, were off limits to us, that is up till now. Our hybrid issuance capability will now allow us to issue identity certificates and allow our clients to keep possession of their PII. This capability is scheduled to complete in Q3. As you can see, a majority of our capital projects have either been completed or are in the last stages of completion. I am pleased to share that the associated expenses for these investments will slow down starting from Q4 of this year. Given the progress we've made so far this year, despite the gating factors, it boosts our confidence when looking at our 2023 full year forecast, I'll dive deeper into our forecast for the rest of the year later on in the call.
But first, I will turn the call over to Jason to provide you with some details on the sales and marketing front. Jason?
Jason Holloway
Thanks, Jin, and good afternoon, everyone. To echo Jin's sentiment, there are a multitude of exciting developments with respect to our sales and marketing initiatives that I would like to share with you all today. To simply put it, the execution of our sales and marketing strategy is going as planned. To date, we have displayed a number of our major competitors within the managed mobility space and Identity and Access Management space, thanks to our robust technology. Beginning with managed mobility, we continue to close commercial deals along with expanding our DHS CWMS IDIQ contract.
We are very pleased with our strategic partners as they continue to bring us a multitude of managed mobility opportunities based on our excellent past performance as well as our accreditation that give us a clear advantage over our competitors. Commercial entities are coming to the realization that the cheapest price isn't always the best choice. It's about the total breadth of services along with security at the forefront. We should start realizing revenue from these efforts in Q2 and into Q3. Recently, we partnered with a very large Identity and Access Management, or IAM, company to absorb a portion of their existing clients within the federal sector.
To date, the partnership is proceeding on track, and I will have further details on our upcoming calls. Additionally, I recently attended a 3-day event where a larger number of K-12 schools were in attendance to which our discussion around our digital soft search was well received. Our IAM pilots are still progressing and as stated previously, we are targeting the end of Q3 to have our digital soft search capabilities completed. Not only do we plan to market these solutions to K-12 but to commercial entities as well. I am also excited to report that we are working on a proof of concept for the General Services Administration, or GSA, in order to demonstrate our derived credential capability.
As a result of this project, multiple opportunities have surfaced. We are hopeful we can make progress as a result of this project and look forward to keeping you all apprised of our success. To provide you all with additional context, we are working with the most influential technology researching firm regarding our IAM and soft search for K-12 and the commercial sector. This firm has been instrumental in sharpening our message, and we are also planning on including certain key individuals from the firm in strategic upcoming meetings. This strategic relationship also bodes well with our large systems integrators, in which we partner to resell our solutions.
As you can see, we're leveraging the continued momentum we've been building up from the past quarters as they have resulted in executed deals or are in the process of being completed. I look forward to providing additional updates on upcoming calls.
With that, I will hand the call over to Bob.
Robert George
Thank you, Jason. Good afternoon, everyone. I'm pleased to share the details of our first quarter 2023 financial results. Thanks to the continuous ability of our team to execute, we achieved our 23rd consecutive quarter of being EBITDA positive. In the first quarter, our revenue was $25.3 million, an increase of $2.8 million or 13% from the $22.5 million reported for the same period last year.
Now I'll provide a further breakdown of our first quarter revenues. Our carrier services revenue was $13.6 million, an increase of approximately $700,000 from the $12.9 million in the same period in 2022. The increase was primarily due to a large federal government client increasing the number of phone lines we manage by approximately 75% in the second quarter of 2022.
In the first quarter of 2023, our managed services revenue, combined with our billable services fees revenue, remained relatively consistent with the same quarter last year at $8.1 million and $8.4 million, respectively. Reselling and other services revenue was $3.6 million, an increase of $2.5 million from $1.1 million in the same period last year. The increase was primarily due to the resale of text capture capabilities provided by a third-party partner to two large federal clients. While reselling and other services are transactional in nature, we expect to have additional sales of these new technical capabilities throughout the year, although the amount and timing of revenue could vary significantly from quarter-to-quarter.
Gross profit for the first quarter was $3.8 million or 15% of revenues as compared to $3.9 million or 17% of revenues in 2022. The more significant metric of gross profit percentage, excluding carrier services, was 33% for the first quarter in 2023 compared to 41% in the same period last year. The lower comparative gross margin percentage, excluding carrier services, was almost entirely related to the resale of the third-party partner capabilities previously mentioned. As a reminder, our gross profit percentage will vary quarter-to-quarter due to our revenue mix.
For the first quarter, general and administrative expenses were $3.7 million or 15% of revenue compared to $3.7 million or 17% of revenues in the same period of 2022. We believe our general and administrative expenses will be consistent with 2022 levels, but lower as a percentage of revenue as the result of the organizational efficiencies achieved in 2022.
For the first quarter of 2023, our GAAP net loss was $950,000 or $0.11 of diluted loss per share compared to a GAAP net loss of $393,000 or $0.04 of diluted loss per share in the same period last year. The main driver of the change in earnings was an increase in depreciation and amortization expenses as capital projects were completed later in 2022 and began to be amortized in 2023. On a non-GAAP basis, our adjusted EBITDA for the first quarter of 2023 was $20,000 compared to $344,000 in the same period last year. The lower EBITDA was a result of investments being made in preparation to deliver under new contracts later in the year.
Shifting to cash flow and the balance sheet. Our current ratio at the end of March 31, 2023, and December 31, 2022, was 1.1:1. We closed the first quarter with $4.6 million in cash, which is down from $7.5 million at December 31, 2022. The reduction in cash was a result of temporary delays in billing as a result of process realignments in our TLM business. Given the tightening credit posture of regional banks, we do not expect to renew our revolving credit agreement with Atlantic Union Bank in June of this year. As an alternative, we entered into a factoring agreement with Republic Capital Access, a recognized leader in factoring in the government services sector. This factoring facility provides up to $4 million of receivable sales at any point in time and can be expanded to $10 million if needed. The factoring agreement gives us more flexibility to execute our strategic plan. We believe our operating cash flows, cash on hand and available funding through our factoring agreement gives us ample liquidity.
This completes my financial summary. For a more detailed analysis of our financial results, please reference our Form 10-Q, which was filed prior to this call.
So with that, I'll turn the call back over to Jin.
Jin Kang
Thank you, Bob and Jason. Before I dive into the overview of the remainder of the year, I'd like to talk a bit about M&A. In keeping with what I shared last quarter, we have carefully narrowed down a list of potential candidates and are thoroughly evaluating these companies for potential M&A opportunities. To support our inorganic growth strategy, we are actively collaborating with multiple investment banks and will persistently work alongside them. As mentioned previously, given the uncertain state of the broader economy, and the increase in interest rates, the M&A market has become more competitive as companies explore strategic alternatives.
We look forward to the continued progress with our inorganic growth strategy and we'll be sure to notify the public accordingly when the time is right.
Looking ahead at the rest of the year, we are expecting revenues to range between $103 million and $108 million and adjusted EBITDA range between $1.1 million and $1.5 million. We are expecting a GAAP net loss of between $2.8 million and $3.2 million or $0.32 to $0.36 loss per diluted share, respectively. A major contributor to the loss per share is noncash depreciation and amortization, which has increased as a result of investments being placed into service. Furthermore, I am proud to share that we expect to finish off the year cash flow positive.
Our positive outlook for the remainder of this year is driven by a combination of factors. Firstly, our sales and marketing efforts, along with our business development strategy, continue to grow, which has undoubtedly contributed to our ongoing success. Second, we have been successful in resigning and retaining our clients as we consistently provide them with valuable and indispensable solutions. It is worth noting that we often expand the range of services we offer to our existing clients, solidifying our position as a reliable and preferred choice. These collective factors indicate that we are witnessing favorable trends moving forward.
With that said, we are ready to take questions from our analysts and major shareholders. Operator, will you please open the call for questions?
Question-and-Answer Session
Operator
[Operator Instructions] And while we wait, we have had a question that was sent in to us earlier today. If the debt limit problem is not solved, I understand there may not be any new orders. But to the extent you keep supplying them with products and services under the contract, are there funds available to pay WidePoint?
Jin Kang
Thanks for that question, operator. I doubt that anyone has a certain answer to this question as we are in uncharted territory. However, our supposition is that the Feds will continue to have revenue coming in into their coffers from various sources. They will undoubtedly prioritize the use of such revenue, where WidePoint's customers fall on that priority list is hard to determine. However, our work is funded, which means that funds have been obligated to our contracts, we are the federal government's internal accounting systems.
We don't understand all of the intricacies of their accounting system, but we strongly believe that we should be paid and will be paid for services rendered and products delivered. There may be some slowing of payments if the government shuts down and reopens, but we are in a pretty safe position.
Operator
At this time, as we have no questions in the queue at this moment, I will hand it back over to Mr. Kang for any closing remarks you may have.
Jin Kang
Thank you, operator. We appreciate everyone taking the time to join us today. As the operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release. Thank you again, and have a great evening.
WidePoint Sets First Quarter 2023 Conference Call for Monday, May 15, 2023 at 4:30 p.m. ET
https://finance.yahoo.com/news/widepoint-sets-first-quarter-2023
WidePoint Corporation
WidePoint Corporation
Mon, May 1, 2023 at 2:00 PM GMT+1
In this article:
FAIRFAX, VA / ACCESSWIRE / May 1, 2023 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity & Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), will hold a conference call on Monday, May 15, 2023 at 4:30 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2023. Financial results will be issued in a press release prior to the call.
WidePoint's management will host the conference call, followed by a question and answer period.
It's a pleasure, Bull.
Seems like they are building the corporation into a very strong force that will be in the right place at the right time to cope with the oncoming development into the whole world using the TPM in all internet operations. They will deal with the mobile side of the business together with other areas of business and there may be another powerful corporation that deals with other areas of the internet.
All IMO.