FAIRFAX, VA / ACCESSWIRE / August 16, 2021 / WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Identity Management (IdM), Telecommunications Lifecycle Management, and Digital Billing & Analytics solutions, today reported results for the second quarter ended June 30, 2021.

Second Quarter 2021 and Recent Operational Highlights

• Secured more than $36 million in Identity Management and Managed Mobility Services contract awards
• WidePoint's subsidiary, Soft-Ex Communications, was awarded Co-sell Ready status by Microsoft, enabling Soft-Ex to engage and collaborate on global sales opportunities with Microsoft's sales teams and channel partners
• Recognized as an honorable mention vendor in the 2021 Gartner Magic Quadrant for Managed Mobility Services, Global
• WidePoint subsidiary, WidePoint Mobile Corp., has achieved the R2v3 certification through SERI, Sustainable Electronics Recycling International. This certification helps accelerate the adoption of WidePoint's device recycling program and ensures that its customers' retired equipment, will be recycled by using the global best practices for protecting the environment and human health, while ensuring all customer data is protected

Second Quarter 2021 Financial Highlights

• Revenues were $20.0 million (reflects a reduction of $1.1 million due to carrier credits)
• Managed Services revenue was $8.1 million
• Gross margin improved to 20.0%
• Net loss was $(205,000) or $(0.02) per diluted share
• EBITDA, a non-GAAP financial measure, was $311,000
• Adjusted EBITDA, a non-GAAP financial measure, was $531,000
• As of June 30, 2021, cash and cash equivalents equaled $14.9 million

Six Month 2021 Financial Highlights:

• Revenues were $40.6 million (reflects a reduction of $3.7 million due to carrier credits)
• Managed Services revenue was $17.4 million
• Gross margin improved to 21.4%
• Net income was $381,000 or $0.04 per diluted share
• EBITDA, a non-GAAP financial measure, was $1.36 million
• Adjusted EBITDA, a non-GAAP financial measure, was $1.8 million

Management Commentary
"The second quarter marked a period of steady operational progress for WidePoint, as we continued to make focused and judicious investments in our staff and technology, in addition to further enhancing our sales and marketing resources and processes," said WidePoint's CEO, Jin Kang. "In particular, we have been making significant investments toward improving our solution delivery infrastructure to increase our gross margins, and to have tangible solutions that can increase our total addressable market and be leveraged by our commercial enterprise and federal government customers. In conjunction with the investments in our solution delivery infrastructure we are also revamping our sales and marketing tactics to capture all possible synergies with customers and to maximize our organic growth efforts. Moreover, even with Census phasing out from a financial perspective, we continue to reap indirect benefits, as we've been receiving an increase of inbound requests for demos and RFPs, that should translate to topline growth. Although we remain laser-focused on executing our near-term initiatives, we are somewhat restricted by macro headwinds, such as the pandemic with the lingering Delta variant strain, but we are cautiously optimistic on our long-term outlook, due to the growing tailwinds within our mobile ecosystem, in conjunction with our organic and inorganic growth strategies."

Second Quarter 2021 Full Financial details are available on www.widepoint.com

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Financial Outlook
The company is reiterating guidance provided during the Q1 2021 earnings call. However, carrier services revenues can fluctuate greatly due to customer usage patterns, carrier invoice timing, and other events effecting device usage. We remain focused on revenue diversification, in addition to increased gross margins and bottom-line profitability. 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.

Conference Call
WidePoint management will hold a conference call today Monday 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: (844) 369-8770
International number: (862) 298-0840
Passcode: 42392

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 30, 2021.

Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 42392

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.

Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA and Adjusted EBITDA, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Safe Harbor Statement
This press release contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition that are subject to risks and uncertainties. All statements other than statements of historical fact included herein are forward-looking statements. You can identify these statements by words such as "aim," "anticipate," "assume," "believe," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "potential," "positioned," "predict," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management's beliefs and assumptions. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, the impact of the COVID-19 pandemic on our business and operations; our ability to successfully execute our strategy; our ability to sustain profitability and positive cash flows; our ability to gain market acceptance for our products; our ability to win new contracts, execute contract extensions and expansion of services of existing contracts; our ability to compete with companies that have greater resources than us; our ability to penetrate the commercial sector to expand our business; our ability to retain key personnel; and the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 24, 2021. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Relations:
Gateway Investor Relations
Matt Glover or John Yi
949-574-3860
WYY@gatewayir.com

SOURCE: WidePoint Corporation

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