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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)
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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.
Thanks once again, Methinks.
Sounds pretty steady.
Highlights From Yahoo.finance.
WYY
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WidePoint Corporation
Mon, March 27, 2023 at 9:05 PM GMT+1·11 min read
WidePoint Corporation
In this article:
WYY
-2.13%
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FAIRFAX, VA / ACCESSWIRE / March 27, 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), reported results for the fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 and Recent Operational Highlights:
Executed a new contract to provide Mobile and Telecom Managed Services to a Standard & Poor's 500 Food & Beverage company; WidePoint was selected to replace one of its competitors
Executed two new contracts with leading telecommunications companies under its strategic agreement with CSG International
Announced that its subsidiary Soft-ex Communications has been formally launched in the Ingram Micro Cloud Marketplace for its innovative Voice Analytics solution which helps drive Microsoft Teams usage and adoption
Entered into a strategic agreement with a leading cybersecurity and identity management company to transition all of their federal government customers to WidePoint's IdM delivery system
Entered into a reseller agreement with BK Technologies Corporation for the resale of BK's InteropONE PTToC (Push-To-Talk Over Cellular) service to the U.S. Department of Homeland Security and the U.S. Department of State
Achieved Intelligent Technology Management System (ITMS) has achieved "FedRAMP in Process" status
WidePoint's Public Key Infrastructure (PKI) Identity & Access Management solution is in compliance with the new phishing-resistant MFA Guidance issued by CISA, the Cybersecurity & Infrastructure Security Agency of the U.S. Department of Homeland Security
15 total contractual actions resulting in over $5.7 million in funding for the next 12 months: $360,000 in new Commercial contracts, and $5.3 million in Government contracts, including $141,000 in new contracts and $5.2 million in renewals
Fourth Quarter 2022 Financial Highlights:
Revenues were $23.3 million
Managed Services and billable fees revenue increased to $8.4 million
Gross margin was 15%
Net loss totaled $8.9 million, or a loss of $(1.02) per diluted share
Adjusted EBITDA, a non-GAAP financial measure, was $561,000
As of December 31, 2022, cash and cash equivalents equaled $7.5 million
Full Year 2022 Financial Highlights:
Revenues grew 8% to $94.1 million
Managed Services and billable fees revenue increased to $28.1 million
Gross margin was 15%
Net loss totaled $23.6 million, or a loss of $(2.70) per diluted share
Adjusted EBITDA, a non-GAAP financial measure, was $1.1 million
Management Commentary
"We finished off 2022 on a high note, as we met both guidance targets with full year revenue of $94.1 million and Adjusted EBITDA of $1.1 million thanks to the continued operational excellence of our team in conjunction with our growing sales pipeline," said WidePoint CEO, Jin Kang. "That same momentum has carried over into 2023 as we're seeing strong renewal rates with existing customers thanks to the continued upsell and cross-selling opportunities we provide, supplemented by net new federal government and commercial enterprise customers wins we're procuring. We are making significant progress across all fronts of our business with a leaner workforce and remain well-capitalized and financially sustainable. Looking ahead, our team will continue to steadfastly execute our organic growth strategy, while meticulously vetting M&A targets for our inorganic initiative."
From Seeking Alpha.
WidePoint Corporation (NYSE:WYY) Q4 2022 Earnings Conference Call March 27, 2023 4:30 PM ET
Company Participants
Jin Kang - Chief Executive Officer & President
Jason Holloway - Chief Revenue Officer
Robert George - Chief Financial Officer
Conference Call Participants
Scott Buck - H.C. Wainwright
Operator
Good afternoon. Welcome to WidePoint's Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Matthew and I'll 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 major investors. If your questions were not taken today and you'd 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 future performance of WidePoint Corporation that involve risks 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-K filed with the Securities and Exchange Commission. Finally, I'd like to remind everyone that this call will be made available for replay via link in the Investor Relations section of the company's website at www.widepoint.com.
Now, I'd 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 fourth quarter and full year ended December 31, 2022.
I am pleased to share with you all that we ended 2022 on a high note as we met our guidance targets for full year revenue of $94 million and adjusted EBITDA of $1 million while simultaneously experiencing several encouraging events within our core business. It's safe to say that the investments we have made throughout the past year have optimally positioned us toward a positive trajectory in 2023 as we are starting to reap the fruits of closed deals that have been in the pipeline for quite some time in addition to operating with a leaner workforce.
As I shared on our last call, though we reduced our staffing cost by 10%, our ability to close new contracts was not affected as we continue to invest in sales and marketing. In fact, we are projected to outpace the total revenue and adjusted EBITDA figures of 2022 this year.
We are also forecasting to be cash flow positive for 2023 as the majority of our capital projects have reached their logical completion as well as increases in our more profitable managed services revenue. We're making this bold forecast because our robust sales pipeline continues to grow.
In parallel with winning new customers and new net deals, our team has been doing a phenomenal job of fulfilling our contractual obligation to our existing customers. And we have been successful in expanding the scope of services as well as winning renewals with them.
The numbers speak for themselves as we have officially retained over 97% of all customers on a revenue basis. A big driver for this success is due to several upsell and cross-sell opportunities we can provide to our customers in tandem with our track record of service delivery excellence and the growing need for the types of solutions that we provide.
On brand with the theme of a strong 2023 for WidePoint, there are other encouraging events that we are excited about. For one, our capital investments has significantly decreased as almost all of our infrastructure has been revamped. We have approximately $1.4 million worth of CapEx this year compared to the roughly $3.4 million we had in 2022.
From a working capital standpoint, we are fully operational with existing cash on hand and are not in need of any near-term financing. Given the status of the economy with surging interest rates and a myriad of uncertainties around the broader corporate America, cash is certainly king. We're very fortunate to be in the situation we're in and the trajectory of our business given our ability to be financially sustainable.
Additionally, we are in much more opportune position today when gauging the impact of the macroeconomic obstacles that were previously mentioned in our path toward progression. As illustrated through our robust sales pipeline and our customers' willingness to expand their working relationship with us and a healthy core operating business, it's safe to say that many of the issues of the past are no longer a material problem for us at present. Though there are still supply chain disruptions, impasse at the federal government debt ceiling and rise in interest rates, these factors are manageable given the certain status of our organization. WidePoint will continue to stay the course as we remain steadfast in our efforts to both organic and inorganic growth.
Furthermore, as we announced, we had a press release toward the end of November 2022, our Intelligent Technology Management System, or ITMS, has achieved FedRAMP in-process status. As a reminder, FedRAMP was established in 2011 to provide a cost-effective, risk-based approach for the adoption and use of cloud services by the federal government. FedRAMP empowers agencies to use modern cloud technology with an emphasis on security and protection of federal information.
We've been working diligently with a contracted third-party assessment organization and the Bureau of Alcohol, Tobacco, Firearms and Explosives to review and test the 616 security controls and sub-controls necessary to achieve FedRAMP authorization at the FISMA Moderate level. We have until May 2023 to complete the assessment to earn the FedRAMP authorization status. FedRAMP authorization status will put us in rare company and will position WidePoint ahead of our competition and open up new contract opportunities for us. We will keep you all posted on our progress.
We are also completing the installation and configuration of our hot coop site hardware and software. We will soon enter the testing stage for our hot COOP site. Testing will include both on-site testing at WidePoint facility and testing a secondary hosting facility. We are targeting the testing during the second quarter of this year. The move in final installation will occur no later than Q4 of 2023.
To be clear, we currently have a cold COOP site that meets our service level agreements. However, the hot COOP site will put us ahead of our competitors and will provide additional resiliency of our delivery system.
With that overview completed, I will now turn the call over to Jason to provide you with some details on the investment we are making in the sales and marketing front. Jason?
Jason Holloway
Thanks, Jin and good afternoon, everyone. I wanted to start by sharing that there are many encouraging activities taking place in both the government and commercial sectors of our go-to-market strategy. With respect to our government vertical, I am pleased to share that we have recently entered into a strategic partnership agreement with our major identity management solution provider.
The goal is to provide ongoing credentialing support to 3 major federal agencies. However, details of engagement are currently under NDA. We hope to share the details in our upcoming earnings calls and of course, we will be sure to notify the public via appropriate Reg FD channels as soon as we are able.
Additionally, as you may have seen in one of our recent press releases, we announced that we signed a reseller agreement with BK Technologies Corporation for the resale of BK Technologies' InteropONE Push-To-Talk Over Cellular service. We plan to use our Cellular Wireless Managed Services CWMS IDIQ contract as a vehicle to sell BK's InteropONE service to the U.S. Department of Homeland Security and U.S. Department of State agencies.
InteropONE is designed to enable all first responders to communicate regardless of which cellular network they use or Push-to-talk Over Cellular service they subscribed to or even first responders who do subscribe to a Push-to-talk Over Cellular service, providing interoperable communications during emergency incidents with no other communications platforms meets the need.
As it relates to our CWMS IDIQ contract with DHS with the task orders that we have received to date, we are approaching 80% of the contract ceiling. Additionally, we are anticipating some follow-on task orders that could potentially reach or exceed the original ceiling of $500 million.
I'll now shift gears to the commercial sector, where we are also seeing immense progress. As we mentioned on the last call, our agreement with CSG International has recently translated to our top line and has resulted in the execution of deals for Soft-ex. Our relationship with CSG has brought us material contracts with a national media company and a national telecommunication carrier.
Additionally, we are currently in the implementation process for a national cable company. Moreover, one of the more prominent partners we struck a deal with was with an S&P 500 food and beverage company for our mobile and telecom managed services. Not only was this a significant win for WidePoint but it was even more impactful given the fact that we replaced one of our competitors which was being used by this food and beverage titan.
As a status report from the last earnings call, I am proud to share that the progress we have made of implementing our quantum resistant Multifactor Authentication Solution or MFA into K-12 schools has been successful so far. The feedback that we have received to date has been very positive, so much so that we are currently developing a custom commercial enterprise software certificate to be used not only in the K-12 but to all of the existing identity and access management commercial customers. Our goal is to have the new capability rolled out by the end of Q3. I will provide an update on the next earnings call.
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 fourth quarter and full year 2022 financial results.
For the fourth quarter, our revenue was $23.3 million, a decrease of $1.1 million or 5% from the $24.5 million reported in the same quarter last year. For the full year ended December 31, 2022, our revenue was $94.1 million, an increase of $6.8 million or 8% from the $87.3 million reported last year.
Now I'll provide further revenue breakdown. For the fourth quarter, our carrier services revenue was $13.8 million which is consistent with the $13.4 million of carrier services for the same period last year. For the full year ended December 31, 2022, our carrier services revenue is $53.3 million, an increase of $3.6 million or 7% from the $49.7 million reported last year. This is primarily due to a federal customer increasing the lines it managed by about 75%.
For the fourth quarter, our managed service revenue was $8.4 million, a moderate increase of $460,000 or 6% from the $7.9 million reported for the same quarter last year. For the full year ended December 31, 2022, managed service revenue is $28.1 million, an increase of $2.9 million or 11% from $25.2 million in 2021.
The increase is a result of the acquisition of IT Authorities or ITA which added $5.1 million as a result of the full year results in 2022 compared to only 1 quarter results in 2021 as a result of the acquisition timing in 2021. The increase was partially offset by lower sales in our legacy lines of business.
For the fourth quarter, reselling and other revenues decreased by $2 million to $1.1 million from $3.1 million in the same period in 2021, reflecting lower overall selling and other revenues in our legacy lines of business. Reselling and other services are transactional in nature and as a result, the amount and timing of revenue will vary significantly from quarter-to-quarter.
For the full year ended December 31, 2022, reselling and other services revenue increased by $300,000 as a result of the acquisition of ITA which added $2.4 million for the full year of 2022 compared to only 1 quarter of ITA results in 2021 as a result of the acquisition timing in 2021. The increase was partially offset by lower sales from our legacy lines of business.
Gross profit for the fourth quarter is $3.6 million or 15% of revenues compared to $4 million or 16% of revenues in 2021. The lower gross margin is primarily related to lower relative margins in the ITA business.
Gross profit for the full year ended December 31, 2022, is $14.6 million or 15% of revenues compared to $16.4 million or 19% of revenues in 2021. The lower gross margin percentage is related to the increase in lower-margin carrier services this year and higher cost of sales relative to revenues in the ITA business compared with our legacy business lines. The increased costs are also a result of higher labor costs to support professional services. Our cost of revenues may fluctuate due to our revenue mix.
For the fourth quarter, general and administrative expenses of $3.6 million or 15% of revenues compared to $4 million or 16% of revenues for the same period in 2021. The decrease in general and administrative expenses relative to 2021 is primarily the result of costs incurred in 2021 associated with the ITA acquisition.
For the full year ended December 31, 2022, general and administrative expenses were $14.7 million or 16% of revenue compared to $12.7 million or 15% of revenues from 2021. The increase in general and administrative expenses is primarily due to recognition of a qualified payroll tax credit of $1.3 million in 2021 and increased general and administrative costs related to a full year of ITA expenses compared to only the fourth quarter of expenses in 2021.
For the fourth quarter of 2022, our GAAP net loss was $8.9 million or negative $1.02 of diluted EPS compared to GAAP net loss of $524,000 or negative $0.06 of diluted EPS in the same period last year. The main driver of the change in earnings was an increase to valuation allowance on the deferred tax assets related to our NOL carryforwards of $8.5 million in the fourth quarter of 2022.
For the full year ended December 31, 2022, our GAAP net loss was $23.6 million or negative $2.70 of diluted EPS compared to GAAP net income of $341,000 or $0.04 of diluted EPS in 2021. The main driver of the change in earnings was a goodwill impairment charge of $16.3 million reflected in the second quarter and the increase of the valuation allowance on the deferred tax assets of $8.5 million related to NOL carryforwards in the fourth quarter of 2022.
On a non-GAAP basis, our adjusted EBITDA for the fourth quarter of 2022 was $561,000 compared to $548,000 in the same period last year. For the full year ended December 31, 2022, our non-GAAP adjusted EBITDA was $1.1 million compared to $3.7 million in 2021.
Shifting to cash flow and the balance sheet. Our current ratio at the end of December 31, 2022, is 1.1:1 compared to 1.3:1 at December 31, 2021. We exited the year with $7.5 million in cash and cash equivalents. And with our expanded capacity and our revolving credit facility, we have $7 million of available borrowing capacity, subject to the terms and conditions of that credit facility. We believe that our operating cash flows, cash on hand, available credit line and other financing options gives us ample liquidity.
This completes my financial summary. For a more detailed analysis of our financial results, please reference our Form 10-K.
So with that, I'll turn the call back over to Jin.
Jin Kang
Thank you, Bob and thank you, Jason. Now I will quickly touch upon our M&A activities. As a player in the trusted mobility management space, we want to be able to further strengthen our capabilities here to become an industry leader.
That said, we have filtered down a list of candidates and we are seriously vetting these companies for potential M&A activity. To further assist with our efforts of manifesting our inorganic growth strategy, we are engaged with several investment banks and we'll continue to work diligently with them.
Again, as I mentioned earlier in my remarks, with the uncertain status of the broader economy and rising interest rates, the markets for M&A have become frothier as more companies begin searching for strategic alternatives. All in all, we have entered the new year with momentum and we are continuing to build upon that.
Our move to a functionally aligned organization structure is largely complete as we have been able to focus resources, remove redundancies, operate more efficiently, improve synergies and cut costs, all of which have improved our financial performance as it relates to revenues, expenses, adjusted EBITDA and the bottom line.
With that said, we believe these actions should show year-over-year improvements in financial performance. As is our usual process, we plan to provide guidance during our first quarter earnings call in May.
We are confident that our sales pipeline consisting of commercial customer contracts, meaningful federal, state and local government sector customer contracts and our continued approach to team with large strategic partners will result in the successful execution of our financial projections.
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] Your first question is coming from Scott Buck from H.C. Wainwright.
Scott Buck
First one, I was hoping you could give us a little bit more color on the current selling environment, given the increased level of macro uncertainty. And if you could kind of break it out between potential corporate customers versus government or municipalities.
Jin Kang
Sure. Thanks for that call, Scott. I think the environment is getting tougher with the rising interest rates and so forth. And I think it's getting to the point where some of our managed mobility services is going to be key here. But before I say anything, our CRO, Jason Holloway, is on the call with us and I'll have him take that question. Jason, do you want to take it away?
Jason Holloway
Yes, sure. Thanks, Jin. I would say that right now, opportunities for the first time in a long time are really balanced. I would say on the federal and government side of the house, WidePoint now has such a strong past performance history that I think that along with all of the GSA schedule and all of the federal accreditations that we have in place, it's really given us a leg up over our competition. So as you may have heard in the past on our previous earnings calls, we talk a lot about partnering with large systems integrators. And that's something that we continue to do because once again, we check boxes that they don't.
Earlier in this call, Jin talked about the progress that we're making on our FedRAMP accreditation on the managed mobility inventory and asset management and everything that's related to our proprietary software platform. Again, that's really given us a huge key differentiator over our competition and has really given us a very strong position on the government side. The downside is -- is that everything with the government, as you know, moves at glacier speed. So the sales cycle on that side is a little longer than it is on the commercial.
As we switch to the commercial side, we've seen a huge uplift there. And that is due to, again, Jin talking about all of the capital investments that we made in '22. We're putting this stuff into production in '23. But I think more importantly, it's also the strategic team agreements that we've signed like as I discussed earlier in the call in my prepared remarks, with BK Technologies. That also has given us a huge leg up. So I think we're making a lot of headways there. And again, we just -- we stand on top of our accreditations and that gives us a leg up over our competition. So hopefully, I answered your question.
Scott Buck
Yes, that's very helpful. Appreciate that. My second question is, I was hoping just to get a little bit more color on what you're looking for in potential M&A target. How do you prioritize the walk list, I guess?
Jin Kang
Yes. So thank you again for that question, Scott. As I mentioned in my prepared remarks, with the rise of the interest rates and so we see the environment turning to a more of a buyers' market. So I think that, that should be good for us.
In terms of our targets of opportunity, we are looking for companies that gives us both a vertical and horizontal integration opportunities. Vertical, meaning companies that will extend and deepen our capabilities in the identity management and managed mobility services and the digital billing and analytics, those areas and of course, our IT as a service. And horizontal, meaning looking for companies that essentially do the same thing that we do. And we will bring them on to our delivery system and eliminating the redundancies, making those deals immediately accretive.
We're looking for companies that are established with revenues and near breakeven. And by being -- again, as I said, if we remove the redundancies and integrate them within our organization and put them on to our -- what we believe is a superior delivery platform, we can make those deals immediately accretive. And so those are the types of opportunities that we're looking for and they're out there. And I think the market is getting frothier as companies are looking for other alternatives now.
Operator
We received a question from an investor. Can you please talk a bit about Q1 so far and speak to any seasonality?
Jin Kang
Sure. Thank you for that call, operator. In terms of our Q1, we are still going through the process of closing our books and we haven't got the full picture of Q1. But we can tell you that historically, Q1 is generally our slower quarter due to various things like federal government spending, debt limit crisis and so forth. So we are continuing to invest in transitioning some customers from one of our strategic partners in the identity management business. And that will bear fruit probably about towards the end of the second quarter or third quarter.
We are also continuing to invest in sales and marketing, so that should increase some of our costs. And some of our revenue streams like the accessory sales and recycling business revenues are a bit lumpy. So it's hard to predict at this time. And of course, lastly, there's also increases in fringe benefit cost. If you're familiar with federal and state unemployment taxes, FUTA and SUTA. If you looked at your 1044 and your pay stub, you've probably seen that. And that -- those payments usually happen in the first quarter. So that could lead to a softer Q1. But as I said, our Q2 through the rest of the year looks fairly robust. And so as we get more -- a clearer picture on the Q1, we will put out a press release on that and also provide guidance, as I said, in mid-May of this year.
Operator
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.
Operator
Thank you for joining us today for WidePoint's fourth quarter and full year 2022 conference call. You may now disconnect.
Earnings news release:
https://feeds.issuerdirect.com/news-release.html?newsid=7243977181591171
WidePoint Corporation Signs Reseller Agreement with BK Technologies Corporation for InteropONE PTToC Service
From Yahoo
FAIRFAX, VA / ACCESSWIRE / March 8, 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), today announced that it has entered into a reseller agreement with BK Technologies Corporation (NYSE American: BKTI), for the resale of BK's InteropONE PTToC (Push-To-Talk Over Cellular) service to the U.S. Department of Homeland Security and the U.S. Department of State. InteropONE is the only PTToC (Push-To-Talk Over Cellular) service that enables operational interoperability to first responders through on-demand creation of user groups without requiring network pre-provisioning or gateways.
Under WidePoint's single award Cellular Wireless Managed Services (CWMS) IDIQ contract, WidePoint plans to offer BK's InteropONE service to all DOS and DHS agencies including U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement (ICE), The United States Coast Guard, Federal Emergency Management Agency (FEMA), Transportation Security Administration (TSA), U.S. Secret Service and others.
InteropONE facilitates multi-agency incident response and mutual aid in planned or unplanned incidents such as large public events, disaster relief, criminal intelligence, and mass violence, where a lack of communications can slow or hinder the response. Incident command staff can dynamically manage PTToC communications from a smartphone, by "inviting" participants to engage in the incident. Invited participants simply need a smartphone with a data subscription to any carrier network. InteropONE is designed to enable all first responders to communicate regardless of which cellular network they use or PTToC service they subscribe to, or even first responders who do not subscribe to a PTToC service, providing interoperable communications during emergency incidents when no other communications platform meets the need.
Jin Kang, President and CEO of WidePoint Corporation stated: "Federal contract vehicles, such as WidePoint's CWMS contract, provide federal agencies a clear pathway to purchasing InteropONE. Our relationship with DHS is quite wide and deep with over 100,000 smartphones under management; InteropONE is currently undergoing field trials with our customers, which have generated favorable initial feedback. We're pleased to establish a strategic partnership with BK Technologies and believe our ability to offer their PTToC offering will broaden our customer relationships and grow our business."
John Suzuki, CEO for BK Technologies, commented: "The federal government is a large PTToC service user, as more government personnel carry a smartphone than carry a land mobile radio. InteropONE allows these users to initiate and participate in Push-To-Talk (PTT) group communications on demand. When DHS agents conduct a mission, typically they are joined by other state and local public safety agencies; InteropONE enables DHS agents to form onsite group communications with any smartphone device on any cellular service worldwide in five minutes or less. With WidePoint's deep DHS relationships and BK Technologies' InteropONE offering, this is an ideal strategic partner for both companies."
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 & 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.
About BK Technologies
BK Technologies Corporation (NYSE American: BKTI) manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies SaaS business focuses on new, innovative public safety smartphone services that will make the first responders safer or more productive. BK Technologies is honored to serve these heroes when every moment counts. For more information, visit bktechnologies.com.
We need a realisation of WYY's tech
by many more companies who need to see that the TPM is the way forward and when they do, which will probably be brought on by MSFT and other suppliers releasing such an opportunity to the public F.O.C, then things could go ballistic.
JMHO.
While it sounds promising, it won't move the SP much without financial terms. We'll have to see it improve results, then maybe.
WidePoint Signs Mobile and Telecom Managed Services Contract with S&P 500 Food & Beverage Company
From Yahoo
FAIRFAX, VA / ACCESSWIRE / March 6, 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 executed a new contract to provide Mobile and Telecom Managed Services to a Standard & Poor's 500 ("S&P 500") and FTSE4Good Food & Beverage company.
WidePoint will provide a Telecom and MMS solution that encompasses:
Managing communications with vendors through their respective tooling channels (tickets, phone and/or chat)
Invoice processing (Wired and Wireless)
Reviewing and verifying invoice payments
Identifying and resolving billing disputes
Identifying cost savings
Identifying zero usage users
Analyzing CDR data with monthly/quarterly/ad-hoc reports
Quarterly / Yearly Audits
Vendor Management
Jin Kang, CEO of WidePoint, stated: "WidePoint is pleased that our Mobile Telecom Managed Services solution was selected to replace one of our competitors by one of the biggest national players in the food & beverage sector. This win marks the third occurrence in the past few months where WidePoint has displaced a major competitor. We credit our success to our superior cybersecurity solution and posture as well as a better delivery system, our Intelligent Technology Management System (ITMSä). We are honored to have this visionary food and beverage company as a client and look forward to long and mutually productive business relationship."
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.
From $2.04 to $185 in one trade. This sure has gotten old.
Microsoft are supplying the public
with encryption through Bitlocker and WidePoint could be supplying institutions, such as schools and possibly others, with the same type of encryption. This is logical as MSFT has worldwide access to people's computers and WYY is a bit smaller!
The MSFT price has doubled in under a year.
I questioned that assertion
that WYY are the only company offering such a service as K-12 to the schools as Microsoft offers a service to people with a TPM 2.0 in their computer but I am not looking any further into buying the MSFT service, just yet.
I will ask MSFT what their service entails in the near future but we may be near TPM adoption for the whole industry.
Sorry to hear that you still have problems and I hope that they will be repaired, soon.
Overall, Kang was saying that he wants to buy more shares at the present ridiculous price, that WYY has no debt, plenty of good, recurring business and they are still the only company providing the type of business in the country.
He described the K-12 project and how it works which is using the TPM 2.0 and providing a service to the schools to make best use of it.
Thanks, I have not seen it.
Unfortunately, my internet service got wiped out by hurricane Ian and has not been restored yet, so I'm on VERY limited internet access and bandwidth restrictions. I see them working on the new fiber hub up the street (the old hub went under 5 feet of saltwater), so I'm hoping for service restoration within the next month. I'll do some searching once things get back to normal.
Until then, thanks for the heads-up.
Have you seen the interview
of Jin Kang by Alpha Wolf Trading on 10.22,22?
I recommend it as he goes into detail about the progress of the K-12 project with the schools and they talk about all of the government contracts held by WYY.
Is this a hint that a similar project is underway so that the government will use a version of the K-12 through WYY.
That could be big!
Interesting newsletter and great comments on WYY. Thanks for bring it to the board's attention.
Here's the specific section on WYY:
new buy recommendation from noted financial publication published since 1984 non-paid
https://saadvisory.com/update/archive/Dec-09-2022.htm
WidePoint’s Subsidiary Soft-ex Launched as Ingram Micro Cloud Marketplace Global Partner for Innovative UC Voice Analytics Solution
https://finance.yahoo.com/news/widepoint-subsidiary-soft-ex-launched-142500652.html
FAIRFAX, VA / ACCESSWIRE / December 7, 2022 / 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 its subsidiary Soft-ex Communications has been formally launched in the Ingram Micro Cloud Marketplace for its innovative Voice Analytics solution which helps drive Microsoft Teams usage and adoption.
The Ingram Micro Cloud Marketplace is the world's largest one-stop shop for cloud-based solutions, enabling businesses to easily purchase, provision, manage, and invoice leading cloud applications via a central ecommerce platform. The addition of Soft-ex, a Microsoft Gold Partner, allows partner organizations to purchase their Voice Analytics solution through the channel of their choice. The Marketplace platform automates purchasing and provisioning processes, providing buyers with seamless setup and management of the Soft-ex solution. Accelerated global adoption of Microsoft Teams has been one of the most exciting business developments in recent years and the Soft-ex solution delivers advanced UC Voice Analytics to assist enterprises to optimize adoption, performance, infrastructure and costs while also delivering an enhanced customer experience.
Abby Hanson, U.S. Microsoft Modern Workplace Sales Practice Leader at Ingram Micro, commented: "In this new and dynamic hybrid working environment, Soft-ex's Voice Analytics helps drive the adoption and usage of Microsoft Teams and highly compliments our Modern Workplace sales proposition. For MSPs (Managed Service Providers) it delivers incremental high margin revenues and stickiness to enterprise clients for retention at contract renewal. For the enterprise, it delivers centralized visibility and advanced self-serve analytics for Teams Voice & Collaboration. We at Ingram Micro are excited to be partnering with Soft-ex."
Ian Sparling, CEO at Soft-ex stated: "Ingram Micro is leading the way in how cloud solutions are now purchased and we are delighted to be named an Ingram Micro Cloud Marketplace partner. Our SaaS solution has been identified by Ingram Micro as satisfying a requirement to optimize the Teams Voice experience and we are well positioned to help create a differentiator for Ingrams MSPs. Soft-ex remains focused on delivering compelling solutions and enhanced digital experiences for our joint clients. We look forward to deepening our relationship with the Ingram Micro sales teams and their MSP channel partners."
Jin Kang, CEO of WidePoint noted: "Soft-ex continues to expand the availability of its solutions. The Ingram Micro Cloud Marketplace will provide broad exposure for Soft-ex and help drive new client adoption. WidePoint is excited by this partnership and how it deepens our relationship with such important companies as Ingram Micro and Microsoft."
About WidePoint
WidePoint Corporation (NYSE: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.
About Soft-ex
Soft-ex, part of the WidePoint Group, is a leading supplier of SaaS based Analytics & Billing as a Service (ABaaS) 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 are a Microsoft Gold partner and proud to serve our clients and partners across the globe. For more information, visit soft-ex.net.
About Ingram Micro
Ingram Micro helps businesses realize the promise of technology. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables business partners to operate efficiently and successfully in the markets they serve. Unrivaled agility, deep market insights and the trust and dependability that come from decades of proven relationships set Ingram Micro apart and ahead. Discover how Ingram Micro can help you realize the promise of technology. More at www.ingrammicro.com.
WidePoint to Present at the Ladenburg Thalmann Virtual Tech Expo 22 on Wednesday, December 7, 2022
https://finance.yahoo.com/news/widepoint-present-ladenburg-thalmann-virtual-
FAIRFAX, VA / ACCESSWIRE / November 28, 2022 / WidePoint Corporation (NYSE American:WYY), the innovative technology Managed Solution Provider (MSP) specializing in Identity and Access Management (IAM), Telecommunications and Managed Mobility Services (MMS), Analytics & Billing as a Service (ABaaS), and IT as a Service (ITaaS), will be presenting and holding one-on-one meetings at the Ladenburg Virtual Tech Expo 22on Wednesday, December 7, 2022.
The one-day Expo will feature virtual presentations from the management of approximately 50 Technology and Media companies covering ad-tech, cloud, communications, connectivity, cybersecurity, defense, digital mining, e-commerce, software and services, fintech, media, mobility, payments and semiconductors.
WidePoint management is scheduled to present on Wednesday, December 7th at 9:00 a.m. Eastern time, with virtual one-on-one meetings to be held throughout the conference.
To receive additional information or to schedule a one-on-one meeting, please email WYY@gatewayir.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.
WidePoint Intelligent Technology Management System (ITMS) Achieves "FedRAMP in Process" Status
https://finance.yahoo.com/news/widepoint-intelligent-technology-management-system
FAIRFAX, VA / ACCESSWIRE / November 21, 2022 / 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 the company's Intelligent Technology Management System (ITMS™) has achieved "FedRAMP in Process" status.
The FedRAMP Program Management Officer updated the status for WidePoint's proprietary Intelligent Technology Management System (ITMS™) from "FedRAMP Ready" to "FedRAMP In Process" on the FedRAMP Marketplace with the U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as the sponsoring agency.
The Federal Risk and Authorization Management Program (FedRAMP®) was established in 2011 to provide a cost-effective, risk-based approach for the adoption and use of cloud services by the federal government. FedRAMP empowers agencies to use modern cloud technologies, with an emphasis on security and protection of federal information.
WidePoint is working with a contracted Third-Party Assessment Organization (3PAO) and ATF to review and test the 616 security controls and sub-controls necessary to achieve FedRAMP Authorization at the FISMA moderate level. WidePoint will have six months to complete the assessment to earn a FedRAMP Authorization status. Once the FedRAMP Authorization is issued, ITMS™ will enter a continuous monitoring phase. WidePoint will continue to work with a 3PAO to annually review a subset of security controls, submit assessment reports to ATF, conduct penetration testing, and assess any required security control changes.
Jin Kang, WidePoint's CEO, noted, "The FedRAMP Authorized status will mean that WidePoint meets all of the stringent security requirements as prescribed by the federal government for cybersecurity. Receiving the Authorized status makes WidePoint much more likely to get additional business from government agencies as well as improves our profile with commercial customers."
Todd Dzyak, WidePoint COO, added, "The FedRAMP Authorized status will enable WidePoint to leverage the authorization package across federal government agencies without having to go through a separate certification and accreditation process for each and every agency. The FedRAMP Authorized status will mean better security, faster implementation, less expense, and most of all least amount of cybersecurity risk for our customers."
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 & 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.
Nice steady quarter.
WidePoint Corporation (WYY) Q3 2022 Earnings Call Transcript
https://seekingalpha.com/article/4557756-widepoint-corporation-wyy-q3-2022-earnings-call-transcript
WidePoint Corporation (NYSE:WYY) Q3 2022 Earnings Conference Call November 14, 2022 4:30 PM 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 Third Quarter 2022 Earnings Conference Call. My name is Matthew, 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 the call for questions from WidePoint's 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@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 involve risks 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 [Audio gap] via a link on the Investor Relations section of the company's website at www.widepoint.com.
Now, I'd 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 the financial results for the third quarter ended September 30, 2022. Overall, we had a strong quarter that is not only reflected across our financial results, but also qualitatively in our business, as there were several contract wins, encouraging growth within our sales pipeline, continued investments being made back into our business, and synergies from the internal realignment that, I spoke about on our last call.
From a financial standpoint, we recognized sequential quarterly growth in revenue and EBITDA, which we attribute to the strategic decisions that have been made from the past several quarters, coming to fruition.
From an EBITDA perspective, we foresee this trend carrying over to the fourth quarter and into 2023. The primary catalyst for EBITDA improvement will stem from the realignment, we've made as discussed last quarter.
Bob will provide a detailed financial performance in his prepared remarks later on in the call. But first, I'm obliged to talk about the macroeconomic effects such as the status of the labor market, supply chain disruptions, impasse of the federal government budget, and interest rate hikes all impacting our business.
As I'm sure you're aware, many technology companies even the titans in our space like Microsoft, Google, Meta are all announcing layoffs given the status of the economy. That said, WidePoint too has been somewhat impacted by the headwinds facing the rest of corporate America. But we continue to remain resilient and operationally efficient, with our existing workforce.
One example of this is represented in our senior management team holding regular meetings, to evaluate our business priorities and effectuate organizational adjustments and realignments accordingly. We have made an absolute core priority to ensure that, we are being prudent with the capital we have on hand in order to maximize shareholder value.
To that point, we have made a dual effort of cutting expenses by reducing approximately 10% of our workforce, which should yield approximately $1.6 million in annual savings. In addition, we are reducing executive base salary compensation in Q4 by 10%.
I'm very confident that, even with the reductions in our labor force, we'll be able to produce an impressive output resulting in higher return in investment. The rationale behind this statement results from a leaner organization's ability to deliver the necessary obligation to existing customers, as well as our sales team, continuing to execute on the business development front.
Speaking of our customers, I'd like to spend some time on sharing the landscape surrounding our federal government and commercial customers. On the federal government front, while there are several material opportunities in our sales pipeline, the time line and budget for those opportunities continue to be delayed.
As you might have already known, the federal government is on a continuing resolution that provides temporary funding until 16th of December. A full budget is yet to be signed. And because we are in an election year, a final resolution on the federal government budget impasse may extend into 2023. While this impasse has little or no impact on our current business, it will very likely delay awards of any new federal government contracts. This is true for WidePoint and most, if not all other organizations that have federal government as a customer.
Assuming that a new federal budget is signed into law in the coming months, we are optimistic that we will close on these material contracts on the federal government front in 2023. Additionally, as I alluded to on our last call, the Bureau of Alcohol Tobacco Firearms and Explosives will be sponsoring WidePoint's ITMS platform for FedRAMP authorization. The sponsorship means our Intelligent Technology Management System or ITMS moves from the FedRAMP Ready status to the in-process status. The full security assessment is expected to take approximately six months.
The next step in this process will be for the government agency to review our FedRAMP package and conduct interviews to clarify any items in our package. We are prepared to respond to their data request and foresee a smooth path ahead. Once the review process is completed, the agency will designate WidePoint as being FedRAMP authorized. The authorized status will mean that WidePoint meets with all of the stringent security requirements as prescribed by the federal government for cybersecurity.
Receiving the authorized status makes WidePoint much more likely to get additional business from federal government agencies as well as improve our profile with commercial customers. The FedRAMP authorized status will mean better security, faster implementation, less expense and most of all least amount of risk for our customers.
Pivoting to the commercial enterprise front, we continue to see growth in our sales activities for both our existing and prospective customers amidst the economic slowdown. We are having a steady stream of sales meetings with both prospective and existing customers that should turn into top line revenue growth in the coming quarters.
I'm happy to share that our strategic relationship with CSG International that we consummated before the COVID-19 pandemic is beginning to bear fruit. We have recently signed on a new customer through our relationship with CSG for our digital billing and analytics solution. We are currently going through our implementation process and we should begin to recognize revenue from this customer beginning in Q1 2023. We also see additional customers on the horizon through our relationship with CSG International. The Software as a Service revenue from these customers should improve our overall gross margins.
Lastly, before I hand the mic over to Jason, I wanted to touch on the launch of our next-generation Intelligent Technology Management System or ITMS from earlier in the quarter. ITMS is the improved and relaunch of our intelligent telecommunications management system. Our intelligent technology management platform expands our service from telecommunication management to encompass other technology components such as IT asset management, expense management including utility management, workflow management with multilevel configurations, forward and reverse logistics management as well as cybersecurity. ITMS is providing unparalleled visibility to our clients' IT infrastructure and usage through a comprehensive reporting tools and dashboard reporting.
Thanks to the extensive work we've completed with the federal government, we've been able to develop this robust technology that expands our footprint within the trusted mobility solution market. We've garnered strong initial interest and look forward to continuing to expand our go-to-market efforts here.
With that overview completed, I will now turn the call over to Jason to provide you with some details on the investments we are making on the sales and marketing front. Jason?
Jason Holloway
Thank you, Jim and good afternoon, everyone. Before I speak on our customer wins, I want to piggyback off Jim's remarks around our organic growth strategy of investing back into our sales and marketing initiatives in a budget-friendly manner. We recognize that right now isn't the best of times within the global economy, which is why we've proceeded with making the necessary moves of cutting our expenses without it affecting our ability to operate optimally.
Further to be good stewards of our working capital, after being prudent with our capital investment projects for the past several quarters, I am pleased to share that the expenditure here will be slowing down, as most of the investments already made will ensure the relevance of our products and solutions.
For example, we completed our commercial CA that we're using for the bottling industry and K-12 schools. We have completed an internal upgrade to our cybersecurity infrastructure that will scale well into the future. Lastly, we also worked with an existing client to create new functionality to the way we deploy our certificates internally.
Next, I'll touch on some of the customer wins I am able to share with you at this time. Our identity and access management solution continues to impress customers and has been a point of entry for us to conduct even more business with prospects as it provides us with an opportunity to land and expand the scope of work with our robust slate of solutions.
As you may have already seen in the press release, we issued in late September, we announced that we engaged with several K-12 schools to conduct a pilot implementation for our quantum-resistant multifactor authentication solution or MFA. The number of K-12 schools that are currently included in our pilot stands at 12, representing roughly 35000 students. Each student, school staff, parents and IT endpoints all represent potential revenue opportunities for WidePoint. The number of schools participating in our pilot project is steadily growing. We foresee these schools will become fully operational in 2023.
I personally have been spearheading this initiative and have been quite active in participating in large K-12 tech forums to educate the community about the importance of our identity and access management solution and how it is the cornerstone of any organization's cybersecurity posture.
With that said, I want to take a step back and delve further into our IAM solution, as this technology truly is a game changer for this level of PKI. We have developed a proprietary issuance process for personal vetting that drastically reduces the amount of time our clients have to spend to receive a digital identification while at the same time maintaining the highest level of multifactor security.
This will be a big differentiator, as our clients continue to look for time and cost savings, while improving their cybersecurity posture. Additionally, as it relates to the beverage company I mentioned on the last call, we continue to work closely with them and have proceeded to expand the initial scope of work. We continue to work a number of net new, identity and access Management as a Service deals, and are optimistic that we will have additional wins to discuss on the next call.
Next, as I am sure you might have already seen via the press releases we issued, there were several wins we announced in conjunction with our subsidiary IT Authorities. First, IT Authorities won five new commercial contracts, across a multitude of industries including healthcare, financial and higher education for its IT modernization and managed service provider solutions.
Second, IT Authorities was awarded a new managed service provider contract from a leading sports marketing and media company. Third, we also announced that IT Authorities has been awarded two new professional services contracts, for turnkey IT infrastructure and modernization by the same leading company.
Not only were these new wins across several industries impressive, but the key point to note is that it gets our foot in the door, for the broader WidePoint entity to cross-sell and upsell our slate of solutions to these customers. We have already acted upon many of the synergies, but we believe that there is still a significant number of untapped opportunities that we intend to capitalize on in the near future.
To that end, I have made it my personal goal to ensure that we are leveraging all synergies across IT Authorities and WidePoint's umbrella of technological solutions. We've also continued to move full steam ahead, with our indirect sales strategy, which is the team with large entrenched systems integrators and expand our relationships with both prominent players in the commercial and federal sectors.
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 third quarter and the year-to-date September 22, financial results. For the third quarter, our revenue was $25.3 million, an increase of $3.1 million or 14% from the $22.2 million recorded for the same period last year. For the nine months ended September 30, our revenue was $70.8 million, an increase of $7.9 million or 13% from the $62.9 million reported for the same period last year.
Now I'll provide a further breakdown of revenues. For the third quarter, our carrier services revenue is $14.1 million, an increase of $1 million or 8% from $13.1 million reported for the same period last year. The increase is primarily due to a large federal customer increasing the number of lines of service we manage, by approximately 75%. Otherwise, carrier services revenue remained relatively constant from period to period.
For the nine months ended September 30, our carrier services revenue is $39.5 million, an increase of $3 million or 9% from the $36.3 million reported for the same period last year. This is primarily due to the large federal customer increasing the number of lines of service we manage by approximately 75%, and from carrier credits of approximately $1.7 million included in the first quarter of 2021 and that did not occur during the first nine months of 2022.
For the third quarter, our managed service revenue is $7.6 million, an increase of $2.2 million or 41% and from the $5.4 million reported for the same quarter last year. This increase is driven by $1.8 million of managed services revenue from our IT Authority subsidiary, which was not included in the same period in 2021 and $400,000 of increased recycling service and accessory sales over the same period in 2021.
For the nine months ended September 30th, managed services revenue is $21.5 million, an increase of $1.3 million or 6% from the $20.2 million in the same period of 2021. This is due to $5 million of managed services revenue from our IT Authority subsidiary, which was not included in the first nine months of 2021, which was partially offset by lower managed services and accessory sales and a legacy technology life cycle management business.
For the third quarter, reselling and other revenues remained consistent with the same period in 2021 at approximately $2.8 million. For the nine months ended September 30th, reselling and other services revenue is $6.8 million an increase of 100% from $3.4 million last year. The increase was driven by a large resale of unified endpoint management software licenses to a single federal customer in the amount of $1.7 million in the second quarter of 2022.
Additionally, the increase was also bolstered by $2.3 million of reselling to mostly commercial customers from our IT Authority subsidiary, which was not included in our 2021 results. These two increases were partially offset by slightly lower reselling in other areas of the business.
Gross profit for the third quarter was $3.8 million or 15% of revenues compared to $3.7 million or 16% of revenues in 2021. The lower gross margin is related to the increase in lower-margin carrier service revenue relative to the same period in 2021.
Gross profit for the nine-month period ended September 30, 2022 was $11 million or 16% of revenues compared to $12.4 million or 20% of revenues in 2021. The lower gross margin percentage is related to the increase in lower margin carrier services revenue relative to the same period in 2021 and lower margin in our IT Authority subsidiary experienced in the first half of 2022, which was a result of increased labor costs.
For the third quarter, general and administrative expenses of $3.6 million or 14% of revenue compared to $2.1 million or 9% of revenues in the same period in 2021. The increase in general and administrative expenses relative to 2021 is primarily a result of the employee retention tax credit or the ERTC of approximately $1.3 million that was recorded in the third quarter of 2021 and not reflected in 2022 and $600,000 of additional general administrative expenses related to ITA, which was not included in the Q3 2021 results.
For the nine-month period ended September 30, 2022, general and administrative expenses are $11.2 million 23% of revenues compared to $8.7 million or 14% of revenues in the same period in 2021.
The increase in general and administrative expense is due in part to an additional $1.8 million of general and administrative expenses related to ITA and the absence of the ERTC of $1.3 million reflected in the nine months ended 2021.
For the third quarter of 2022, our GAAP net loss was $541,000 in or a negative $0.06 of diluted earnings per share compared to GAAP net income of $535,000 or a positive $0.06 of diluted earnings per share in the same period last year. The main driver of the change in earnings was the ERTC of $1.3 million reflected in the third quarter of 2021.
For the nine-month period ended September 30, 2022 our GAAP net loss is $14.7 million or negative $1.68 of diluted earnings per share compared to GAAP net income of $916,000 or $0.10 of diluted earnings per share in the same period last year. The main driver of the change in earnings was the goodwill impairment of $16.3 million net of the tax benefit of $3 million and the ERTC of $1.3 million.
On a non-GAAP basis our adjusted EBITDA for the third quarter was $152,000 compared to $1.5 million in the same period last year. For the nine months ended September 30, 2022 our non-GAAP adjusted EBITDA was $503,000 compared to $3.2 million in the same period last year.
Shifting to cash flow and the balance sheet. Our current ratio at the end of September is 1.1:1 compared to 1.3:1 at December 31 2021. We exited the quarter with $5.1 million in cash and cash equivalents and with our extended capacity in our revolving credit facility we have $7 million available borrowing capacity.
Furthermore, although we have the ATM at our disposal we have no current plans to execute any orders on the ATM, but we'll be opportunistic if situations are favorable. We believe that our operating cash flows cash on hand available credit line and equity options give 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. Now I will take a few minutes to speak about our M&A activities. Similar to what we've previously shared we remain extremely diligent in our plan for profitable growth and the inorganic path will inevitably play a significant role in our expansion strategy. Although, I have no material updates to share right now I can say that our team continues to have dialogue with prospective M&A targets and we'll keep you all posted via the appropriate Reg FD channels.
To conclude, as we shared in our earnings release we have decided to maintain our top- line revenue guidance, but have made a slight change to our adjusted EBITDA range which is now between $1 million and $1.2 million. For the first nine months of 2022, we recognized approximately $500,000 adjusted EBITDA and we are confident in our team's ability to hit our fourth quarter goals.
The reason for our confidence stems from seeing strong adjusted EBITDA growth at the start of Q4 over the past 1.5 months. We expect this trend to continue as we finish off the calendar year and anticipate falling within our aforementioned adjusted EBITDA range.
As always WidePoint remains a stable resilient company with a strong balance sheet and no long-term debt. Our capital projects are ramping up. And with our recently implemented organizational realignment, we are expecting a significant amount of slowdown with our cash burn over the coming quarters.
We have a robust sales pipeline that we look forward to converting to top-line results and expect to tap further into the IT Authority's well of synergies. 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
Certainly. Ladies and gentlemen, the floor is now open for questions. [Operator Instructions] I will read the following pre-submitted questions. In your second quarter call, you mentioned you had material sales opportunities in your pipeline. Can you share any new status on those opportunities?
Jin Kang
Thank you, operator. The sales opportunities are still in our Q. But as I stated in our prepared remarks, the federal government is on a continuing resolution. And as a result of that the federal government opportunities are pushing to the right. The commercial and say local government opportunities are also there and we should see them come to fruition in 2023. We do have a few opportunities that could close in Q4 and Q1 especially in our higher-margin digital billing and analytics business. So please stay tuned.
Operator
Thank you. Your next question, based on your revised guidance, it looks like you'll do $500000 in adjusted EBITDA. How firm is that estimate? And do you see that trend continuing for the quarters in 2023?
Robert George
The adjusted EBITDA forecast is our best estimate based on what we've seen so far. And as stated in our prepared remarks, we took some steps to realign our organization to reduce cost and we have seen strong EBITDA growth so far in Q4. So we expect to fall EBITDA guidance as stated earlier in our prepared remarks.
Operator
Thank you. Your next question, do you have any guidance for 2023 in terms of top line revenue and EBITDA?
Jin Kang
We are in the process of forecasting our new budget for 2023. So, our Q4 run rate gives us some level of confidence that we will be cash flow positive in 2023. We will provide guidance for 2023, when we are finished with our forecasting model and when we are able.
Operator
Thank you. 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 would 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.
Operator
Thank you for joining us today for WidePoint's Third Quarter 2022 Conference Call. You may now disconnect.
WidePoint PKI Technology Delivers on CISA Phishing-Resistant Guidance
https://finance.yahoo.com/news/widepoint-pki-technology-delivers-cisa-
FAIRFAX, VA / ACCESSWIRE / November 10, 2022 / WidePoint Corporation (NYSE American:WYY), the Trusted Mobility Solutions company, announced today that the company's Public Key Infrastructure (PKI) Identity & Access Management solution delivers on new guidance issued by CISA, the Cybersecurity & Infrastructure Security Agency of the U.S. Department of Homeland Security.
CISA released two fact sheets to highlight threats against accounts and systems using certain forms of Multi-Factor Authentication (MFA). CISA urges all organizations to implement phishing-resistant MFA to protect against phishing and other known cyber threats. Public Key Infrastructure (PKI) is at the top of the phishing-resistant MFA technologies.
Jason Holloway, WidePoint's Chief Revenue Officer, stated: "WidePoint is a pioneering provider of Identity & Access Management Solutions. WidePoint credentials are authorized to provide trusted individual or business identity information for use by the DoD, FirstGov and participating government agencies. We support CISA's commitment to securing organizations against phishing attacks and are excited to see how these recommendations align with increased interest in our PKI solutions."
As part of the WidePoint Identity & Access Management solution, PKI is currently deployed throughout government agencies and commercial enterprises that require the capability to easily deploy and revoke access. WidePoint's PKI solutions and associated services eliminate the lead-time needed to become operational while waiting for in-house development efforts.
Jin Kang, WidePoint's CEO, stated: "WidePoint PKI technology is known to be the strongest form of phishing-resistant MFA solutions. WidePoint is one of just two companies recognized by the U.S. Department of Defense (DoD) as an External Certificate Authority (ECA) provider. This allows WidePoint to issue PKI based digital credentials to securely facilitate access to the IT services offered by the federal government."
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 Sets Third Quarter 2022 Conference Call for Monday, November 14, 2022 at 4:30 p.m. ET
From Yahoo
WidePoint Corporation
WidePoint Corporation
Mon, November 7, 2022 at 2:25 PM
In this article:
WYY
-1.22%
FAIRFAX, VA / ACCESSWIRE / November 7, 2022 / WidePoint Corporation (NYSE American:WYY), the Trusted Mobility Solutions company, will hold a conference call on Monday, November 14, 2022 at 4:30 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2022. 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.
Date: Monday, November 14, 2022
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in number: 877-545-0523
International number: 973-528-0016
Access Code: 469816
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 Monday, November 28, 2022.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 46936
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.
I thought that something had happened.
I am glad that the damage was not more severe and also that you are all sate and ready to deal with the problems that IAN caused.
Good luck!
Thanks for keeping the lights on Methinks, I've been offline since IAN rolled through here. We are using a cellphone as a WIFI hotspot, so we finally have some limited connectivity.
If you have any interest, heres' my "I'm back" post from a couple of weeks ago.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170205303
WidePoint Secures More than $6.9 Million in MMS Contracts During the Third Quarter of 2022
https://www.accesswire.com/722015/WidePoint-Secures-More-than-69-Million-in-MMS-Contracts-During-the-Third-Quarter-of-2022
FAIRFAX, VA / ACCESSWIRE / October 25, 2022 / WidePoint Corporation (NYSE American:WYY), the Trusted Mobility Solutions company, announced today that it was awarded more than $6.9 million in Managed Mobility Services (MMS) contracts during the third quarter of 2022.
Jin Kang, WidePoint's CEO, stated: "WidePoint saw 44 contractual actions for our MMS solutions in the third quarter of 2023, including new awards, renewals, contract extensions and exercised option periods. These MMS contract wins are in addition to contracts for our Identity and Access Management (IAM) and Information Technology as a Service (ITaaS) solutions, announced earlier in Q3 2022."
Highlights include:
44 total contractual actions resulting in over $6.9 million in funding for the next 12 months
$2.46 million in Commercial contracts including $544,000 in new contracts and $1.92 million in renewals
$4.45 million in Government contracts including $1.95 million in new contracts and $1.82 million in renewals
Under the U.S. Department of Homeland Security Cellular Wireless Managed Services (CWMS) 2.0 IDIQ contract, the Cybersecurity and Infrastructure Security Agency (CISA) issued a new Task Order with expanded scope of services that extends until March 2026
A cross-sell MMS contract to a major long-term client of WidePoint subsidiary, IT Authorities
Multiple renewals with commercial contracts
Jason Holloway, WidePoint's Chief Revenue Officer, noted: "The quarter saw an increase in cross-selling business development and synergies being realized. Our pipeline continues to expand across all of our solutions as new and current clients turn to WidePoint to help manage their mobility programs."
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.
SOURCE: WidePoint Corporation
“9:32a ET 7/19/2022 - Benzinga
WidePoint Says Awarded More than $53.2M In Contracts In Q2 2022
https://www.accesswire.com/709024/WidePoint-Awarded-More-than-532-Million-in-Contracts-During-the-Second-Quarter-of-2022
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.”
“10:27a ET 7/13/2022 - Dow Jones
WidePoint Shares Climb 13% on U.S. Coast Guard Task Order
By Kathryn Hardison
WidePoint Corp. shares rose 13%, to $2.66, on Wednesday after it said the U.S. Coast Guard awarded it a task order for cellular wireless managed services until 2026 with an award of up to $73.4 million.
The task order has an obligated base period of performance of six months with funding of $7.9 million. It spans from May 1 through Oct. 31, 2026.
WidePoint focuses on identity and access management, mobility managed services, telecom management, information technology as a service, cloud security and digital billing and analytics.
Shares were down 32% for the year.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
(END) Dow Jones Newswires
July 13, 2022 10:27 ET (14:27 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.”
Outstanding Shares
8,733,938
08/15/2022
SP is ridiculously undervalued when applying the above numbers imo.
“10:27a ET 7/13/2022 - Dow Jones
WidePoint Shares Climb 13% on U.S. Coast Guard Task Order
By Kathryn Hardison
WidePoint Corp. shares rose 13%, to $2.66, on Wednesday after it said the U.S. Coast Guard awarded it a task order for cellular wireless managed services until 2026 with an award of up to $73.4 million.
The task order has an obligated base period of performance of six months with funding of $7.9 million. It spans from May 1 through Oct. 31, 2026.
WidePoint focuses on identity and access management, mobility managed services, telecom management, information technology as a service, cloud security and digital billing and analytics.
Shares were down 32% for the year.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
(END) Dow Jones Newswires
July 13, 2022 10:27 ET (14:27 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.”
73 million / 4 years / OS = 2.09 of added value per year on that order till Oct 2026.
Global Zero Trust Security Market Report 2022: High Demand for Improved Visibility due to the Rise in IoT Traffic Among Enterprises Presents Opportunities
https://www.globenewswire.com/news-release/2022/10/07/2530105/28124/en/Global-Zero-Trust-Security-Market-Report-2022-High-Demand-for-Improved-Visibility-due-to-the-Rise-in-IoT-Traffic-Among-Enterprises-Presents-Opportunities.html
Excerpt - The global Zero trust security market size is expected to grow from an estimated value of USD 27.4 Billion in 2022 to USD 60.7 Billion by 2027, at a Compound Annual Growth Rate (CAGR) of 17.3% from 2022 to 2027. Some of the factors that are driving the market growth includes an increase in the frequency of target-based cyber-attacks. However, design and implementation challenges to deploying zero trust security solutions is expected to hinder the market growth.
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https://www.widepoint.com/widepoint-expands-portfolio-of-secure-technology-management-service-offerings/
Excerpt - Kang added, “We are excited by the increased interest in our solutions and how our strategic partnerships are helping to introduce the value of WidePoint to robust pipelines of opportunities. In a landscape that is now defined by ‘Zero Trust,’ WidePoint’s solutions are trusted.”
The Trust Behind Your Digital Identity
https://orc.widepoint.com/
What We Do
Certificates & Credentials
WidePoint-ORC is a trusted government identity management partner, issuing U.S. Government authentication credentials since 1999. Our experience spans all facets of identity proofing, credential issuing and the underlying public key cryptographic technology.
WidePoint-ORC PIVotal ID 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.”
Portfolio
WidePoint-ORC has leveraged its experience providing superior support to the U.S. Federal Government to become one of the nation’s premier systems engineering firms with a specialization in Information Assurance (IA) and Security. WidePoint-ORC is an authorized certificate authority for:
U.S. Department of Defense External Certificate Authority (ECA)
GSA Shared Service Provider (SSP) Program
Non-Federal Issuer PIV-Interoperable (PIV-I)
WidePoint-ORC provides the Trust Behind Your Digital Identity.
Security Solutions
WidePoint-ORC has a long and successful track record of assisting organizations in achieving their enhanced security goals through:
Information Assurance
Acquisition Management
Program Management
Auditing
Systems Engineering
We’ve done the R&D, testing and accreditation to deliver security solutions that can be implemented immediately without the high costs of in-house development or unnecessary analysis and evaluation.
Why Choose ORC
WidePoint-ORC is an elite provider of information assurance and authentication services for business-to-government, government-to-government, and citizen-to-government. We have operational experience in all facets of identity proofing, credential issuing and public key technology. We’re beyond theoretical – We’re operational.
Our flexible Common Identity Enabling Infrastructure (CIEI) enables enterprise and application owners to migrate toward a secure network identity model. Our CIEI provides seamless integration of four services:
Identity Management
eAuthentication
Access Management
Provisioning & Workflow
WidePoint-ORC PIVotal ID 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
200 million in annual contract revenue (Q2 x 4 = 212 million per year), 8.7 million float … is the market sleeping on this?
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