WYY - Earnings call transcript Q4 2017

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Operator

Greetings and welcome to the WidePoint Corporation Fourth Quarter and Full Year 2017 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Kim Rogers, Managing Director at Hayden IR.

Kim Rogers

Omar. you, Thank thank WidePoint's and results. joining today us Good quarter you and discuss fourth financial full to afternoon for year XXXX With Solutions Jason President Kang; me and Financial Chief Marketing WidePoint's Officer. Executive of President Kito today Jin WidePoint's Mussa, Officer Officer, Chief Cybersecurity Officer and and as and Chief Holloway, Chief as Executive Sales Corp; and well are WidePoint's year an overview of results. full provide and will Jin quarter the financial results will Kito the Jason a will marketing sales the and update, of provide and quarter. fourth review we'll that At call open point, the for question-and-answer.

risk such circumstances any required Company after quarterly Annual number on The the or Risk law. uncertainties. due conference releases. of over turn guidance the Actual historical arise undertakes similar call using to and any Jin, These statements forward-looking in I WidePoint's statements made intended discussed materially anticipates, predicts, except remind of Form statements. differ without forward-looking Litigation limitation, uncertainties, from Harbor financial Before in XXXX. may, update SEC to statements believe, reflect the including which this Act facts, factors all order involve revise forward-looking may as forward-looking that factors sections than obligation expressions XX-Q call of pursuant forward-looking statements XX-K, the risk including or to Expressions to and conference something expect, expressions by any to that will, those expressions, Factors call, and other are this of of events no reflect forecasts, Form I'd Safe plans, the Securities Company's press and including provisions during reports a terminology future the its like identify other to are participants and on Report goals, filings to Private any Reform results and may

the opening ahead, for call remarks. WidePoint's CEO, over Jin? Now I'll go Please turn to Jin Kang

Jin Kang

strategy thank am and corporate have progress year, you today. pleased board all the our the with afternoon to CEO last everyone, on I Company the net you, executed took my as appointment. the and Kim, I and my we helm we Since us successfully losses. the for of shared Thank team have Great. good joining stabilize July that reduce upon made I with and in

actions quarter resulted a cost GAAP As operating reduced result we've our expenses XXXX, year the in I some and for to losses our XX% and the quarter, fourth to for operating Kito with full of full notably of net in the minutes of the fourth narrowing We few details from the our accomplishments. exiting our during to savings gross EBITDA. highlight quarters will a margin reduced third increased want taken performance, X%. our of the financial but XX%. This expenses Most year fourth the by by we've the take XX%. positive provide adjusted

improvements sequentially performance of of commitments GAAP pleased a have think We re-compete that improved hard and quarter purchase their from reduced without and for on particularly under improved even I’m our in the by force. commitments we bottom the delivered we air these calls. and XXXX, fourth on and $X.X delivering made We half earnings losses XXXX WidePoint and work and positive year-over-year. believe EBITDA large and have the We line two positive QX we for compared the results. We XXXX. first were to QX and the million delivering last the adjusted top we ended make net financial order I in

as order received order, $X.X in this million $XX.X during million scheduled March would force quarter. the the have air fourth was quarter $X.X but QX, This the that the by purchase to purchase the fourth Xth on year. million expect received for to improved of We the in come we award revenues amount from if have it

our Now made Mobility toward to TMX. growth have framework moving or Management on resources strategy, our good our we to support progress Trusted staff strategically and aligning

our of Telecom our assets. strength Presentment our call, All during and earnings solutions TMX mobility and TLM; managing framework Bill QX Management, Management, combines discussed Lifecycle Analytics, and on As concentrated the sets customers IDM; BP&A. Identity three securing

new market. that see As we traction contracts the evidenced can by announced, in is gaining the we’ve TMX recently

Please we new a pursuing customers pipeline have sales and be business We’re nicely. that long that cycle. is with commercial growing reminded

However, our provide size we will are by I strategy the that will on front. summary that longer opportunities his the remarks, quality but and encouraged activities in highlight am I of sales a term Jason some seeing. of prospects prepared and specific

selling cross-selling TMX opportunities. actively represent are which We as higher very These revenues. our means considerable are opportunities we up-selling margin and offering, attractive they are gross

is framework TMX highly Our a offering. differentiated

capabilities that all set solution only As assets. comprehensive components of into of of our management, WidePoint strength wide the leveraging provider securely and is manages clients' core enterprise mobile three the we mobile a our are enables secure

We provide communicating and and to are protect to go-to-market intentional We now environment. management restricted deploy secure analyze assets, our and assets very and our manage, management senior the identity have capabilities market unique in our team communications strategy to solutions place. that

and call And that management assure our to Kito growth will Jason profitability. our sales are delivering committed that, are the members grow will top-line with business value. shareholder and you executive we over our our follow motivated our delivering know, we to performance. additional may of turn improve to our Jason? improve discuss highly to With such, to details strategy all financial very I shareholders. team as you to on can I As long-term strategy

Jason Holloway

shareholders. Good you, Thank afternoon fellow Jin.

using a and opportunity. base our to variety means our customer expand been market of have expand We

platform Trusted in team up-selling approach. year, Samsung, and moved integrators For we system from to example, with integrated and meaningful opportunities mobility security, a large last This and its CDW our benefit the Management around a company leadership company approach. offerings is and TMX cross-selling Mobility full using see team transition its this and the Since management. to major a capabilities portfolio them we partnering like the in from that leverages integrates WidePoint

with only pipelines Management, Identity the This in one provider offerings Bill mobility the and already Lifecycle space As we not years. Presentment Analytics, of approach secured differentiator. healthiest the critical seen over Telecom Jim sales is are a Management and last producing across is which mentioned, the several

to and to are with help efficiency. For management see merge carriers enterprise opportunity U.S. our increase example, we expansive as expanding increased an where security, can them relationship our integrated set enhanced an systems where single tools provide customers to we platform their help their into visibility

complement enterprise and government systems to large their partner We their offerings also additional providers with look to to and customers. technology solutions, integrators

relationship become a these driving integrators with leverage their to MPSA are Professional Agreement of education. or use government resources. business, developing large sales marketing largest We recently we and signed both sell to commercial can and that to way solution we beyond. part We technology products We for forward and look XXXX the providers the opportunities. direct and Services Master close and of And services one further system in set. of and government This approach globally sales identify

business a subject the experts, sales executives team manage For experts and matter of sales account core entire to this, product lifecycle. we have development

sales outsourcing offerings our and sales partners lead We and generate their of perspective with approach indirect development a also through our can service certain business reach third team party and in clients. our understand product markets generation believe to they portion are activities using We new connect utilize an to target by partners. leads

In partnerships market addition, clients potential strategic to opportunities. additional larger continue us we valuable with that provide firm and alliances and to access

of with our other of team that may up a bid companies we larger as As services result, part projects on competitors or to one a more offering. and include

new of and alliance this of services, products approach. of execution example Our was providers is technology an the the of the and one MPSA largest

existing The closely over into to Lastly, additional is energized team clients With which will them educate the we to as ready working call that, Kito. XXXX. with deliver are TMX revenue well as more at higher margins. hand to fully in on translate I clients WidePoint capabilities, and can our our from

Kito Mussa

and the can net our compared our losses GAAP quarter to Annual fourth this on our in with prior with then positive finished I’ll call. narrowed a back was million just X.X from additional level results XXX,XXX over details in last Jason. you, you Form X.X revenues EBITDA find as year. to it Commission quarter then which million fourth filed Securities We XXXX million our of earnings our in and to X.X adjusted Exchange provide the to Also negative Report the Thank overview and and U.S. guidance of turn X% XX-K, reported year first increase results information Jin. last to high

to efforts XXXX our positive adjusted EBITDA for in net prior fourth quarters. the GAAP largely and lower were quarter savings cost attributable Our loss of the

in expenses saving decreased as to decreased from in accessory driver in increased for of to X.X% million revenue million quarter, compared impact XXX,XXX. reselling cost as earnings XX.X the quarter will due decrease or savings. this million in year in million general for X.X was XXXX. revenue X.X higher numbers, million not and the revenue quarter million recognition marketing million sales XXXX to to and of report discuss XXXX. quarter from large quarter actions increased charges and quarter in or sales as the severance XX% third over improvement fourth XXX,XXX XXXX. accessory XX% previous profit in X.X the administrative Now XXXX office to due during fourth of compared one-time and the gross from and the significant mobile and measures our in for quarter fourth decreased X.X a to orders and was the driven cost Operating we taking to of in profit of call. fourth XXX,XXX When in of third to approximately the expenses expense part in savings labor mobile by last operating the to XXXX by fourth quarter was compared fourth XX.X Gross X.X into from and XXXX. The approximately of as XX% The Cost revenue

is X.X would of Excluding over operating one-time our a XX%. expenses, expenses million, been decrease have approximately which

line. the Now capital let’s position. We ended X.X in our working financial and credit quarter million X.X fourth with X.X talk cash, million our available million in on approximately about

end the Our was to cash the and the due the fourth of at collection of year. delays end related near low billing position quarter

Jim, employees as million taken right back that our swing. XXXX XXX that costs a positioned emphasize to growth are scale and a as positive Company $X.X over forward. the negative with in I half K company, to we it in result to want terms reiterate plus of first the to properties turn pleased revenue cost to of the size EBITDA I a cut the basis, I’d of company of these That adjusted we anticipated went million to Before on This have results. and meet savings like in going $X.X from second we a actions very said, represents an year. pleased, half both a

turn it Now, I’d back over like to to Jin.

Jin Kang

Thank open will you questions At Kito, would for thank the like from participants. calls our you, Operator, the up open and this time, Jason. I you to questions? for please up calls

Operator

we with your questions. a Crawford, is [Operator this conducting Mike At first FBR. will question-and-answer-session. B. Our question from proceed time, Riley be Instructions] Please

Mike Crawford

carrier million first ways that's In the versus one around for grow overall? your there to revenues services your an expectation same you'll year, revenues the that under you're fees going $XX $XX are thus managed managed gross your main services services XXXX to XXXX later. in your managed million for increase million revenue almost at and the the service the least $XX margin Is and and that last at for

Kito Musa

to basically that Hi, going way that revenue And would that so of answer area is that, the Mike, fee on is we is Kito. the be largest we gross this want that margin service impacts an the managed can yes, our have forward, the grow.

we're mentioned services, something to services; stress forward. as emphasis to do to continue but carrier not we ask on trying less that we're clients As obviously, those to for place before, that, going want going it's we however, provide

Mike Crawford

bit turning steady little then, you whereas commercial with business in year-over-year So thanks overall And the with federal or decline government federal growth as at primarily well? the Okay, see government? Kito. it enterprises the did least commercial a as held see do your do you

Kito Musa

work the some Yes, Mike, conscious six reason on. we money months numbers put over decision reduce last is And saw that commercial the the a there in the were you are we've accurate. because the stop side or essentially to made why attrition those losing work

too I commercial year. So go were sales much And some the work, those detail but don't pipeline. of work see XXXX the government growing things commercial next about we over and to both into want over federal our

a mix and customers. However we good have both federal of commercial

Mike Crawford

as you on services that And comment agreement move a iteration prepared final pilot for the Department for status agreement? phase and with could of then of question, beyond when on the Okay. been might that's RFP next Homeland well maybe those Great. your Security any of

Kito Musa

I there will, question. Okay, -- think I -- how to my but answer I'll don't were try there there know -- many was, the questions best like

doing Guard because budget they we to back headquarters X Guard, So the to is The is September is scheduled through this have going what entire going this the challenges now we see, out implement they're to U.S. pilot having are for is pilot project until some the Coast Coast XXth. really well. This element. that Guard September year. process. of The bringing in go It's the the process the Coast will the latest

information so that's latest the we have. And that

get in government may so although, Then there is impact work this earlier and kind have that’s it that course impact very it trying does in work, and shouldn’t difficult resolution, is. Now, and the our have say. come on where a looming current of we're new but thing any to any it’s of to continued later, shutdown on

to BPA, terms are contract year, They through this In in process. XXth ends of re-compete year. a December the DHS the of our, CWMS going this December of XXth

to year. XXXX. go the the with can for the out in pushing come current workout May end met And no this draft danger as selection take source to final that current with put but the work committee at of other the RFP we are helped November of them In of have out put of further, all like quarter statement is somewhere may We there work. past of of we that quarters the until second together, a their December option looking

that until contract federal So get up the government has to in new the time place.

such things we Federal for call to by ourselves ATO. authorization the have And of all and putting competitors the operate they’re And we lots and us out able do complete happy Information positioning of in say operate in re-compete as are our these X to is major with process. what are to into DHS Systems will to Management We this they RFP moderate, for all to components this the hard as that FISMA do has acquisition there security. Act, being very have with also ATO

in answer for your we So are the re-compete. Mike? a position pretty that we’re confident good questions, Does that

Mike Crawford

very Thank Yes. you much.

Operator

is a proceed [Operator Please we question-and-answer are As Donaldson from reminder, Investor. now a conducting Sam Private session. your question. Instructions] Our with next question [ph],

Unidentified Analyst

at turnaround on the that team, very Kito to you very about we that’s something Jason handle you bring point conference COD What's dead, me will I then together. as you think of maybe the last that? is years ever the really. we Well, and you I appears it just with Congratulation, pleased in it. is working. And too, think two that the your I Jin in going in at we’re phone, The call, and it strategy but would and one that. my past. ask government one tunnel to latest light by its any pleased that. was Coast said, of that will Guard, own more in your appreciate the I you're everybody the have act estimate see said from to whether though acceptable end thing appears

Jin Kang

customers Certificate-on-Device, public both advantage and Right, private a and think so the of. technology take government I that’s that federal

some pushing are of We the work still to done. get

the is service. majority our development to software this talking Certificate-on-Devices complete. And customers done using and with and maybe What our those since we been we've capability potential some have this are is that that development, existing that, particular effort with are folks. capability is We demonstrating using providing customers, these

is that So what the we're hope as in doing solution now we go. is we're, investment that to ready

staff operating what onboard, will we capability we customers O&M hire on get projects. provide necessary up do and we will and staff that turn the maintenance is those As and we support will to that

we're place. good So very I think a in

all coming devices there mobile think these interest strong is are some network. our how we are the identify that -- looking that do I the Certificate-on-Device in our reasonable onto folks because

So, going think we're to out are would our we you anything pitching Jason and reasonable that? to customer, interest. we this there, are some like to I getting add

Jason Holloway

Sure, Sam. hey

that to and technology thing along the trust we've other And convergence the with ITMS be to Jim platform. what a mobility said to wanted I this of The doing that add we're converge the taken have actually into proactive. is management also opportunity very

management Group telecommunications the organizations there actual convergence of we brought Telecom has that two we have an itself. together. the right have Identity Cyber Lifecycle Management the intelligence now the with the been or So Management Group between along system technology And Group, the

So the this has we in also by been position really to something market. see very, very in And differentiator this there. a is us strong that us where going key that is -- this is for putting

the So the platform give again, to for a integrated take to single it's to us robust just very have marketplace. going to opportunity us

Unidentified Analyst

I any All I'm Thanks is getting Bye keep gentlemen, say very can not much. going. bye. younger.

Jason Holloway

Thank you.

Kito Musa

you. Thank

have don't longer wait Sam. You to much

Samuel Donaldson

you. Okay, Thank Jin.

Operator

Rich Our Private Please next with from question Molenski, Investor. your comes proceed question.

Unidentified Analyst

the first quarter? Guys, think can to you was fourth the was Any in more And in is Is quarter the expect, that flow or million you the showing quarter, to we contract booked even going March. cash us one the announced indication congratulations business quarter that contract on improvements. the quarter? that really positive second though do be give in you are positive $X.X that looking on terrific you thing

Kito Musa

a so years, we're that's able The is re-win this booked quarter. for we our is than to the been be it's fourth fourth first in reported. contract even would have would if going that, to more very is, been talking to And you're And little quarter be many into about, what in we Kito. just that work. quarter, color have Hi, numbers that something have on happy come that better

million this the is much services quarter between pretty the up And to first in are show the fourth same. our going so, our managed run-rate $X.X quarter, all and of

of some from so aside of think it So I such, be accessory and sales the will comparable. bit a

think go yet. So Ferrari and I buy Lamborghini out or I a wouldn't just

Rich Molenski

contract, without pretty an numbers. show it's improvement that you that flow in Yes, That’s no positive getting cash million. innovative X.X impressive still

totally be job, think expenses this year look forward it’s I good exciting. and So to I to

Operator

And end remarks. the closing for session. reached have I back like call we gentlemen, Jin and to the of Kang to the question-and-answer Ladies turn would

Jin Kang

operator. you us look forward appreciate call. for Thank Thank you quarter quarter our a thank connecting our May. We in joining you, you to on And great join us today. all and time taking evening. everyone XXXX we on again today with fourth first to the call We have

Operator

conference. This concludes today’s

disconnect this for time. may You your lines participation. your you Thank at

WidePoint (WYY) 21 Mar 182017 Q4 Earnings call transcript