Tuesday, November 16, 2021 5:10:28 AM
https://finance.yahoo.com/news/widepoint-reports-third-quarter-2021
FAIRFAX, VA / ACCESSWIRE / November 15, 2021 / WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Identity Management, Telecommunications Lifecycle Management, Digital Billing & Analytics, and IT as a Service, today reported results for the third quarter ended September 30, 2021.
Third Quarter 2021 and Recent Operational Highlights
Awarded new contract to deliver Identity and Access Management credentials to a District of Columbia government branch
Secured more than $16.8 million in Identity Management and Managed Mobility Services contract awards
Awarded new contract with a major U.S. research university to deliver DoD Compliant Identity Management credentials
On October 1, 2021 acquired IT Authorities, a globally ranked Managed Service Provider (MSP), Managed Security Services Provider (MSSP), and Cloud Services Provider (CSP)
Reinstated Stock Repurchase Plan and increased size of Repurchase Plan to up to $5.0 million of its common stock
Third Quarter 2021 Financial Highlights
Revenues were $22.3 million
Managed Services revenue was $9.2 million
Gross margin improved to 16.5%
Net income was $535,000 or $0.06 per diluted share (reflects a benefit of $1.3 million due to payroll tax credit)
EBITDA, a non-GAAP financial measure, was $1.2 million
Adjusted EBITDA, a non-GAAP financial measure, was $1.5 million
As of September 30, 2021, cash and cash equivalents equaled $18.1 million
Nine Months 2021 Financial Highlights:
Revenues were $62.9 million (reflects a reduction of $3.7 million due to carrier credits)
Managed Services revenue was $26.5 million
Gross margin improved to 19.7%
Net income was $916,000 or $0.10 per diluted share (reflects a benefit of $1.3 million due to payroll tax credit)
EBITDA, a non-GAAP financial measure, was $2.6 million
Adjusted EBITDA, a non-GAAP financial measure, was $3.2 million
Management Commentary
"The third quarter marked a period of productivity, as we successfully completed the acquisition of ITA, made progress across our sales and marketing initiatives, engaged in new strategic customer wins, upgraded our already robust portfolio of solutions, and continued to successfully execute our strategy for profitable growth," said WidePoint's CEO, Jin Kang. "Although we were faced with macro-economic headwinds, our team was able to weather the storm and focus on controlling the factors within our grasp, by remaining prudent with our expenditures and concentrating on tackling high ROI opportunities. Additionally, we are working to immediately reap the benefits of ITA's capabilities and resources from the get-go. Our team is ramping up joint synergy opportunities by upselling and cross-selling our portfolio of solutions to their base of customers which have already resulted in executed deals. As we near the end of the calendar year, I am confident in our team's ability to capitalize on all the near-term opportunities across the board, as we look to continue executing our strategy for profitable growth through organic and inorganic means."
Financial Outlook
The company has updated guidance for the full year 2021. Excluding revenue from ITA, the company expects revenues to be in a range from $80 million to $84 million and adjusted EBITDA to be in a range from $3.1 million to $3.3 million. Additionally, ITA forecasts its fourth quarter 2021 revenues to be approximately $2 million with adjusted EBITDA of $100,000. The company's financial outlook is based on current expectations and actual results could differ materially depending on market conditions and the factors set forth under the "Safe Harbor Statement" below.
Increase to Reinstated Share Repurchase Program
As previously announced, the Company has reinstated its prior share repurchase program which was suspended on March 9, 2020 as a precaution due to the COVID-19 pandemic. Following such reinstatement, the Board of Directors increased the size of the repurchase program to $5.0 million, increasing the amount currently available for repurchases to $4.6 million. Under the share repurchase program, repurchases of the issued and outstanding shares may be made from time-to-time in open market and privately negotiated transactions. WidePoint currently has 9.1 million shares outstanding.
Any share repurchases will be made in compliance with the SEC's Rule 10b-18, subject to market conditions, available liquidity, cash flow, applicable legal requirements, and other factors. This program does not obligate WidePoint to acquire any particular amount of common stock and the program may be suspended or discontinued at any time. WidePoint intends to finance the purchases with existing cash balances.
CFO Transition
Kellie Kim, Executive Vice President and Chief Financial Officer, notified the Company on November 11, 2021, of her plans to retire to devote more time to her family and other personal interests. Ms. Kim will remain in her current role until the completion of 10-K filing in 2022 and remain fully engaged as CFO and actively participate in the process to evaluate a full slate of candidates. She will continue to assist the Company as a consultant following her departure as CFO.
Conference Call
WidePoint management will hold a conference call today, Monday, November 15, 2021, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
WidePoint's President and CEO Jin Kang, Executive Vice President and Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO, Kellie Kim will host the conference call, followed by a question and answer period.
U.S. dial-in number: (888) 506-0062
International number: (973) 528-0011
Passcode: 143707
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 29, 2021.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 43440
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.
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