WYY - Earnings call transcript Q4 2019

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Operator

Good afternoon. Welcome to WidePoint's Fourth Quarter and Full-Year 2019 Earnings Conference Call. My name is Jess and I will be your operator for today's call.

Joining us for today's presentation is WidePoint's President and CEO, Jin Kang; Chief Sales and Marketing Officer, Jason Holloway; and Executive Vice President and CFO, Kellie Kim.

Following their remarks we will open up the call for questions from WidePoint's publishing analysts and major institutional investors.

not contact or at WidePoint's are additional would wyy@gatewayir.com. questions please information, Investor your taken you today like If Relations team

anticipated. WidePoint's may during this Before like The and matters that includes These WidePoint the Corporation call, the and XX-K the this call. materially statements that regarded Safe conference could uncertainties regarding in provide cause events of and call differ Form actual cautions performance described made future from Securities we that are forward-looking Harbor statements risks I those forward-looking risks uncertainties discussed company's Commission. statement in to results include involve and the Exchange begin with to would filed future

will Investor for in I a link section via Relations be available website Finally, to this like would at the replay the remind of company's everyone www.widepoint.com. call that

call like CEO, now turn Mr. to Kang. would Sir, Jin and I to proceed. please the WidePoint's President over

Jin Kang

our pivotal the was revenues financial with line by XXXX. a been year us you and operator and good you, quarter to joining quarter of of in fourth and business. with which The the XX% results perspective, increase adjusted million in is full-year a Thank review highlighted XXXX everyone. $XX.X XXXX. quarter strong EBITDA fourth afternoon Thank for our what a finish for quarter financial million, for today was to From has $X the to same

but for our financial instances XXth year. the consecutive the positive quarter some ensure of marked success our of financial Additionally, fourth The with the revenue exceeded targets only we and not year, quarter our QX history. highest along throughout fourth matched, that adjusted company in XXXX quarter positive EBITDA in the results

XX% the million For XXXX, original in and revenue revenue guidance above increased above our December. in we $XX targeting to $XXX.X were the well million, full-year

adjusted $X.X range million EBITDA right XX% higher in came at our guidance our which than and top end Our of adjusted is in EBITDA at the XXXX.

that we net year-ago. the recognize obviously a revenue, of expectations to which and updated end improvement both full-year the pleased we increases recognized were our our the at a in it's in we driven income XXXX, the is the during substantial year. loss the revenue We're worth But and what services. in quarter of which exceeding we which from Additionally, is net million This discussed similar fourth by $X.X the of much last carrier third noting we be witnessed last call. quarter to trend

is necessary As management a reminder, that a carrier mobility component services. business of services margin is low

which profile, the and which So secure help artificially contracts revenues to type we our while work, material prospective and points DHS should clients. may suppress CDW be contracts us allow and for are business. margin ones They with important these contracts reasons procure to as like of beneficial taking proof does more have us market allow excellent on our us apparent, to these serve to effectively this

the about support to speak U.S. the the I'll with our outweigh So shy principle grow the the benefit our cost. from XXXX Department which Coast to with and working away alongside while of a the not due this frequently of we're we're XXXX, it on increased section work don't can more business, U.S. actively services Commerce work as moment. carrier census, doing Guard In to we in

years, be net first in full-year of level income adjusted consider in achieving more seven of not When drive bottom for had to could line priorities exists that grow $X.X the cover made the to the market two WidePoint EBITDA me few We've and to today, in improvements substantial uncertainty profitability. line. over driving and the million years, the past positive let you Now our top the timely. we

$X.X generated couple a by stable from in positioned becomes handle with one establishing our you when of cash and we obstacles growth well the apparent goals that that current business, and for million fact present that business of accomplished operations to with primary we've the macro And created this potential one XXXX, a environment. profitability it is during opportunities the continued

the unsure but our we've WidePoint, world remain of stability good believe created to due Much the may at optimistic on in be we to is there future. footing, reason

a the of in some that past that in look few with So mind, months. occurred major let's developments at the take

of since November RFP XXXX. for scheduled at discussed Contract, and which Subsequent to the Services the our all each up for come of the recent Wireless been When we CWMS. call recent contract have released or conference This of Managed for the most Cellular last the calls. end originally DHS to length we’ve on RFP waiting our in year, is was recompete

the the this all at of award multiple of as you eager March, timing on will we’ve of know, the have this made be clarity all us that already been has press Now, we which know understandably release, beginning saw and some the contract. contract issued aware extensions the final Those malleable you of results. received to

the it we exactly packaged anticipated. was way originally However, not

had clauses are felt X, issued, detail it March to to We department the those for which in cancel already were but altered. recompete. rationale On needed the Q&A that discuss can XXXX opted curious, during to the contractual more say be who there after been DHS the the RFP suffice

schedule DHS has will of the previous Instead, and changes, result releases. as will adhere new DHS issuing original chosen be the RFP not a to As recompete set open business conduct announced an solicitation a small in the to these market aside.

asides, certain and limits an to more level concept, with in known with a the to DHS them contract. this you set provide take For effort for playing contracts, the those federal the These field. CWMS help route opted small as businesses business occasionally now of for unfamiliar contracts. small government businesses compete That's that contracts to competition small with win

extremely excellent on for source, to deeply quantity and sole process. indefinite award, well-positioned we contract. we integrated the good to issued WidePoint new this discussed The for IDIQ currently indefinite requirements us past of meet for meantime, our reasons stand contract of WidePoint to performance And DHS solicit news intent cellular procurement the all an solutions, a delivery, In is services. have interim solicitation for the re-win including notice calls, that managed wireless the this an all prior or

notice for date. the confirmed department to an The CWMS of contract from serve be that conducts the as award award IDIQ source period the while will for XX the acquisition will uninterrupted interim replacement the the provide support DHS, sole contract. anticipated of performance months This

being. we been has this While regarding anticipated. uncertainty this eliminated the not is contract The results the exactly time for

the in by prepared of end we and leverage our place the ever solutions our to deeply XX We we relationship, that business a of best resecuring longer chance year. remain possible as April, ensure replacement quality, for to contract just of term. and should contract this The contract high is seasoned the have a this for members staff date our October integrated anticipated have award as XX-month strong

date change. this and it may However, tentative is a

Now like that project updates of to this share into well U.S. take the some to opportunity on the XXXX Census. I'd XXXX, we're year, our biggest

in the the with American we CDW-G population. mentioned, in Bureau Census U.S. assist November, decennial of its As partner survey to I

roughly this Our half role in conduct million survey. a being used is manage to project to mobile devices this

Census providing configured Telecommunication used solution tested have device to or a the our we service Bureau. to and far, customized, as System, Intelligent Management So for ITMS be

utilized canvassing decommission where deploy, third during XXXX. track help system over successfully devices the We project quarter address XX,XXX support we the our of activate, to and

our XX,XXX Additionally, throughout us enumerators. the and helped project to staff provided over training support address canvassing

support desk the help are to ramping full up currently our We census project. decennial

project service any project. worth to to a as It's that would the organization, large noting difficult It size Census is U.S. the a be in of and largest expertise, undertake the U.S.. regardless their infrastructure such device adapt for

it ideal core proof to and that of one effectively. as quickly is serves us, our an For for scale point and ability competencies, our

of to deliver of flexibility clients, involved industry. aren't our differentiator quality regardless Our is high by contract our overlooked all organization's directly often ability in who and that key service of a is size those to our

consistently of expand our this ensuring capabilities we're customers continue and familiar beat However, something and one competition intimately our our it's reasons their efficiently. operate is able are the to to with, organizations while

our team for focusing Her organization Soft-ex. to us an today. addition with few on return excellent But our has job share announced a we with that Sparling we turn at to some she's months, call far. they concluded at latter has is to fantastic changes the Kellie we'll made part in progresses, As search year, materialize. like I'd the other now, continue of attention our the the of during to year had last to his his WidePoint allowed done back for our Kellie attention of but updates been Ian found to XXXX. only CFO full as we December In addition as so a responsibility Kim, who on

strengthened a moment very Ian more Executive functioning up and take been organization Thank our to you for transition. for of efficiently. our result, done. stepping a a time job thank you a As leadership is much to well I during has want even

on to initiatives In overview the the financials. I'm us first, major and of an take in our Kellie XXXX. come of some turn give Jason XXXX will to Jason? to prospects through moments, a sales over few going But call to our for us

Jason Holloway

Jin. you, Thank

entire of of the year. Jin address successful half factors: driven year by our the canvassing revenue of census XXXX footprint integrator was two our occurring capacity In each services mentioned, strategy our the to the in XXXX, quarter systems throughout As the current sales new and we support growth and announced execution expand the in predominantly by which in power up-selling second and speak markets. with customers cross-selling our ability our to leverage our deployments expand contracts material to to partners of our

CBP. of This expand received WidePoint sales Shortly a the partner U.S. expansion and by brand was we Border and awareness. approximately we Customs work of During that the Leidos and integrator expanded XXXX the the bid on of quarter, part had partnered their leverage With contract. is successfully with to customer, wireless and which from million business us this their NEST ability XX%. we $X.X a footprint already Protection winning major contract, announced order a with a new increased our in or win first their our afterwards, systems well-capitalized teams example to NASA was for CBP,

quarter, wireline million contract our able second X-year a customer, our over service period. provider. CNA, offerings to identity with also is communications to management. This to were $X In global service we renewed our QX, expand contract and with longtime subsidiary During line its top include Soft-ex a adding the a wireless telecommunications management

the we to and base. CSP for As telecom onsite in with analytics solutions client CSP's work tandem and the deliver cloud

government later as line. top the And In we and current several we secured federal renewals customers, we million from QX, well More an aggregate in which work had with which modifications to included expanded in $X.X that million awards, contract new July, International. announced we've contract added and as clients. extensions $XX.X CSG received our with with customers contracts expansions of current recently,

Soft-ex end evolve clients. launched providers communications traditional the digital for and customer a service deliver Toward been new and we and of goal providers XXXX, this has joint improve with their help and a to customer retention. both project CSG partnership CSG customer existing management of to platform service The into loyalty

to ways of we've bill done by CSG that customer is few the marketing customers convert their a the into is guaranteed almost One that is The to one bill read. of working tool. documents alongside

exciting perfect targeted our work and tool program, to clients the been with generation CSG with Successfully to expanding a several opportunities. implementing convert we've digital tackle So item lead new into that billing it's advertising.

a the in remain received and TMX million of be of million space in the commercial long market deals, million. and with This times $X very very XXXX, pipeline Throughout we our federal by optimistic the extensions both and federal lead awards, strong up-selling sales was tend In finished Traditionally, the market we QX, $X.X of is market. commercial well mix growing opportunities. with in CSP quite the to new contracts. totaling $X.X and strategy

respect Regarding the ECA records Identity the set to to Management continue issuance we credentials. company Group, our with of

given Obviously, the PKI year of executive have our search a took was since volume well in increase team sales credentials both as material our successful the as a We increases current the over year-over-year XXXX management in perspective. revenues, from and XXXX. seen

federal the typically However, things customers particular years, these for large customer a announced contracts commercial of Many expansions were there a are X among with depending long-term. that contracts are many the of contracts They all of is these are last X whether and we two to on worth or highlighting. client.

money Expansions a a we two over WidePoint, they them their the this, and they we service clients frequently critical provide a and customer to operations with how work with sticky very good process. in for simplifies but because that's our are lengths are And client's saves that us. necessary testament business. are XX% expand just contract we're and first, at reasons: don't retention WidePoint's as because is stay

nearly the company, are means now. a but business recurring. long-term. essentially for any revenues That with Second, our sticky Those these built revenues. We've predictable they’re qualities contracts all majority pertinent especially of are are great

Going forward, intention we’ve continuing trends. these every of

by Our to effective goals organic be in drive has that so continue to strategy do utilizing are to continued XXXX for growth to and us. the

overhead. it will WidePoint great We've critical systems CDW-G expanding as well-capitalized to our sales our Leidos teams allows dynamic and on Project for the success minimizing remain and and on with with had strategic NASA our our Census NEST evidenced the of established work integrators partners through relationships flexible the as leveraging partnerships, by us well remain current Contract work a as channel by

generating forget Commercial closely that and our have been this relationship which not already end, Director let's our we've with Director To several about Gartner Sales working a tuned very renewed next be for Gartner, brand in seen for services. with corporation Also, multinational discussing provides partnership American Marketing of analysts. our with strategy in the few major we months Stay XXXX. call which that a the conference in will traction BXB of us new first

our the changing our and by knows one channels recent be coupled prospects the the given base, optimistic on and no been events, in momentum how contracts remain about there beyond, reason landscape to nature of WidePoint's we over we've past with client sales is affected While believe and a building contracts the exactly XXXX brought by few months. macro will

scalable secure large help world is them that enterprises much and assets remote as of their the they quickly We ensure assets working, enterprises mobile accessible navigate these the we're landscape. solutions to help. organizations used. of mobile TMX and are make of people. helping to the Additionally, has are core shifted where suddenly help The authorized being are the complexity help for large transition, only can how ready looking by properly well-vetted, the we are understand And and

As the reason with mobile, stands And devices increase. devices need on working relies increase. thereby secure number also the and more the encryption it end-to-end of that may remotely to more to world could these

been these the and we to So, if year. opportunities enterprises we additional year times. sales Overall, there an our anything, be excellent our us believe large trying for for forward throughout continuing may to throughout business it's help initiatives look

With will the that, call I over Kellie. to hand

Kellie Kim

Thank you, Jason.

consecutive As produced release, noted in the finished our EBITDA earnings adjusted for we the full-year positive positive year revenues, XXth with full-year XXXX. a and for the the income and quarter earned record net

results primarily $XX.X XXXX. $XX.X the million Year-over-year up Turning was last from quarter fourth full-year reported of increase our the by and was million, to growth revenue quarter services. Fourth driven XX% from in year. carrier revenue for

quarter, $X.X by was revenues the million to fourth was compared the for Gross gross X% quarter in in carrier million Our the fourth XXXX. in from the decrease in of discussed. fourth quarter of gross margin margin The profit fourth quarter driven in increase XXXX. services previously $X.X XX.X% to increased the XX.X%

from In $X.X the XX% XXXX, in fourth last fourth million operating by quarter to $X.X quarter increased expenses of the year. million

As of XX.X% expenses XXXX. in revenue, up to of the percentage of amounted quarter revenue, a fourth as to compared XX.X% operating slightly

in $XXX,XXX XXXX. EBITDA an loss of adjusted GAAP XXXX XXXX, fourth quarter fourth with year. the the loss $XX,XXX, non-GAAP of basis, the line $X from last in a improvement a On million of quarter quarter net was was For fourth for

million, The in services in decline a resale U.S Project. due billable managed increases performance a decline offset $XX.X carrier was to managed primarily partially X% carrier in driven had services, by full-year XXXX This year-ago. by offset overview detailed Now XX% XX% primarily services decrease a in services. the was increase in fees. million performance. more was to which in of let's We was record revenue, revenue Census The by of services products financial growth slightly $XXX.X which give from was up you the due

XXXX. in XXXX. gross in to XX.X% increased the higher carrier be very XXXX, was full-year compared services reflects $XX.X in compared drop million in XXXX. XXXX from to The mix from accounted XX.X% revenue XX% We in services revenue, XXXX, For to XXXX. revenue Gross million XX% carrier $XX.X margin profit gross margin and in consider revenue of margin for XX% to low in of

Operating from expenses increased to X% million $XX.X in $XX.X XXXX. million

percentage to and depreciation full-year compared a in of due operating expense XXXX was expenses general XX.X% XX.X% increases and and As to revenue, to increase for amounted administrative operating amortization in XXXX. mainly relative revenue XXXX The expense. of expense in to

net $XXX,XXX, in For million which a was to year. of compares the full-year income net $X.X prior loss the XXXX,

adjusted to in X.X% of million or $X.X $X.X non-GAAP revenue million XXXX. compared was EBITDA revenue X.X% Our of or

to to working million cash. Net sheet, $X our Shifting the and balance with draw the year credit million on in capital $X.X of exited approximately $X facility. we available million down

In policy sheet. within and XX-K. led addition, of the of generation asset associated details material on found accounting to a balance be adoption of in The the may which the leases liability our new has

Due use cash open a in repurchased total saw a approximately the outlay we our we program. XXX,XXX excess repurchase opportunity to In market $XXX,XXX. shares our of cash cash to for position, to the XXXX, strong stock implement

purchased additionalXX,XXX $XX,XXX since XXXX. December approximately shares an XX, for We have

preserve March on suspend balance we our to X, coronavirus cash to However, by the the uncertainty opted the pandemic. repurchase to due stock program caused

summary. financial This completes my

which financial was For a XX-K, filed reference analysis call. to our prior of this results, please more detailed our Form

Jin. like turn would back to it I that, with to So

Jin Kang

Thank you, Jason. Kellie, and thank you,

more I to of open a address curious. shareholders important many know will the points I which our about questions, few Before we call are

to we begin to required certification. provide assuming DHS the The announced FedRAMP full FedRAMP and will the is we CWMS progress The sponsorship certification. win, anticipate first is the currently a certification FedRAMP tied Once award that our recompete. receiving our on is

We Fed seeking are customer our sponsorship the also of Defense. and through a Department

our and we for products we the While eventual for documentation are the FedRAMP and work wait our system necessary process. sponsorship, preparing certification

our We get us have one help who prepare with work partners to and products these is to in of a ahead. certification matter engaged FedRAMP expert subject documents

On the which certification. or the of the good system process, one from FedRAMP and to is ITMS posture we to has authorization of testament a The of maintain still sponsorship received. quality security operate delivery the that to ATO our meet DHS, is our ability our requirements news

the DHS We have from and ATOs both of Department Commerce.

So year deal XXXX In great and of momentum. and now WidePoint, was speed. a for successful part NEST large overall, we running NASA census to full which at enter the with XXXX are another due the projects,

However, material there's economy obviously a great global the time. second us. deal unprecedented. had in of have a impact this of COVID-XX, effects the at on on all been uncertainty world the has And order

the have those Board it have for into concluded will guidance team reasons, of issuing and we For more full-year management the to prudent broader situation. the the Directors until insight suspend that be

is clarity do as be the we We about to extraordinary understand we the to eager not to circumstances, for for can, situation XXXX outlook into But learn our we can. provide intention investors XXXX, to believe full-year as are that a when due expectations our much and financial it the providing constructive.

how we do quarter have for insight more we of providing will guidance XXXX. currently progressed, first has the the quarter However, be so first into

and EBITDA For first range $XX million anticipate $X.X to million between we quarter, revenue million, expect $X.X million. between adjusted and the $XX we to be and

we enough is do to have our it forward, soon as clarity to reinstitute so. guidance intention as Going annual

the has insulated cannot predict our effects broader like, good business to look is that suspect the there we what we year far. reason from coming believe relatively been so While will

working site run logistical times. to flexible at used organization perspective, a from different different global working is we a locations off for designed conditions. that We're From already

transition pain enterprises we actually may to are opportunities work those no experiencing to are major And alluded remotely. for a as remarks, help Jason for there So us us to his in working shift remote from complications environment. more as points the there be rapid to that

be continuing stable relatively to able that customer to that a is weather which dynamic incredibly cash well. should XXXX, generate have to in as base an business, well was conditions fortunate the We're market profitable as and robust

That no and there's solutions information less is COVID-XX, a for be the enterprises. we of effects the While in we today. than immune impacted the federal theory, industry on predominantly to demand other And insolvency. we large how That our means at see is of industries. commercial have lower serve least things risk should based

state almost of is evolving Obviously, world daily. the the

performance. that economy to all the we change. and the believe downturn it So could and certain the interruption accordingly. closely on a to protracted our our increase, our subject possible all executing to are adjust is monitor But shareholders to We'll of see for we of for products We this in the customers but could demand is affect chain continue strategy in well situation supply and betterment prepared all, continue XXXX. long also in our

that will covered, take open the we questions to our are ready shareholders please you Operator, and from major With analysts. questions? for call

Operator

Certainly. Instructions] FBR. go to Mike We'll B. Crawford Riley [Operator with first

Mike Crawford

your in just world? the any Thank on the infested can in have comment operations you. last weeks guide, how coronavirus To extent the few or changed you

Jin Kang

Yes. for and we that more basis in we you. Thank diligently Thank know been of Hi, you you remote. make sure working more have organization terms the making And resilient cover our to question. that Mike.

working and -- of -- most do our are All folks to lot off-site, that. of luckily our folks a of our able we're

we I advantages and to think technology And taking of we're handsets well -- our the take field well-placed take insulated. are able where home advantage be are all to We able computers home, questions. our and relatively various of to

-- Crossings, Corps et I building is Engineers, who National large agencies count And USACE As shelters; customers. example, hospital our emergency now customers for some and NIAID, USAID for cetera. and customers of CDC, Allergy Border said, our of like DHS Human Infectious Disease among Health federal customers, I Disease; mean, Centers Control of Prevention; and and some Services; we Institute are Army commercial CBP, and

that's little additional contrary, our smartphones. be receiving down be so reliance agency think devices risk And devices. on the we may And and well I in on think there relying missions, shutting they these some are mobile some doing I because mobile well, there's the additional we're as on what that but we're may placed, or

-- we're our desk well that two volumes some help up And call of I insulated, relatively or noticed think things over the last, a we’ve for we go but customers. seen so have week these are

seen volume customers call commercial go also have down. we However,

of that have are that's perhaps a because think lot remotely are also little the down volumes of lot accessories the are volumes a call are we go order they're working leave. folks I either going or orders a bit seen our we up, and getting And for down. taking a going mixed signals because

things So hourly. are almost changing,

are keeping So close very on situation. the we eye a

very So that. of stay And all workforce off-site, able tuned. But our infrastructure in ability thank manage making mobile for in be to far been our that terms for our department to IT we work sure is of so it's our to place smooth.

Mike Crawford

you. Thank Okay.

Jin Kang

Does that your answer question?

Mike Crawford

Yes, Thank yes. you.

back DHS. getting the So to

phone you with I that So just pure identity more cycle would other customer. you -- management life opposed are you imagine as penetrated to would management, solutions credentialing would the and the embed more with that

And so that are believe that continue included there that RFPs? in doing the any this work now DHS metrics awaited you will you for place you're of to around be aspect can

Jason Holloway

Right.

working What scope I certificate certificates that but I authority And lock, their bit So, have we to certificates, progress that And is the that in they service. is, we I a lifecycle DHS. of got as what have handling authority. acting contractor wouldn't they order these use management issue of the been for we work. are little been of with issuance of our a motor making on pay good, a is pretty we is hammerlock us say that that a they all we’ve DHS, fee when the a and certificate have [ph] telecom think think -- use digital means is,

on So today, issuer. progress are to the the making won't we name credential progress, suffice here but I front. that name say, we're are it we with working making

Mike Crawford

business that Okay. the $X Thank rate you. win, SaaS question. the incremental customer? talked carrier just or the run -- last doing analytics that million, X-year you're you about that is X with When is the And already a this with

Jin Kang

I reupping it add think is, you're of that? you did task and orders. Jason want our the was of with part the that much to contract the to talking about about and talking Jason, DHS rewin software-as-a-service to is

Jason Holloway

what provider. it it's with renewed is, Yes, Jin, it's with with the CSP contract and Soft-ex where that's that

Jin Kang

Okay.

Jason Holloway

ahead, that yes So -- sorry -- go Jin.

Jin Kang

Okay.

is one -- Mike. actually with not that's Sorry more our about for work of that, Telecom. our software-as-a-service, British one. a providing And for software-as-a-service. And model That it's but that licensing

so contract a and actually of renewal work. that that's of small a expansion And the it's

And recently that contract. resigned X-year Telecom that's so and for a just that's we -- British

Mike Crawford

Thank you great. Okay, very much.

Jin Kang

that the forms census returned delayed. essentially, one extension to news weeks two on the is to have responses release for I Okay. now you but the there they There two gave other weeks, status delayed like the thing for then that. be little census I'd probably what's that response like the happened would I pieces mention the on saw to all and census a more is give it now. coronavirus, And been on believe being has for

from usual upon are We guidance the business based latest as census.

all our customer of and and staff to training are we staging devices. we're are We providing support hiring

asked prepare For schedule. are roll to to now, on being we out

so changing data. the will stay situation of We collecting enumerators that the delayed, enumeration the tuned. out and schedule daily, of the to go think will However, still a is but lot be the do

be will the down schedule the data the census. portion think squeezed of during I analysis

feel it that point as far But know. be this we we stream at be. the should as could So interrupted not revenue

as on updates provide will any they you we come. So, that

Operator

move [Operator Spartan Instructions] Management. will at We Sine to Barry Capital next

Barry Sine

good Jin Hey, afternoon, and welcome aboard, Kellie.

Kellie Kim

Well, that. thank very you Appreciate Barry. much,

Barry Sine

manage in first XX-K to so companies the out a for that are not timely going lot your quarter, congratulations And getting feet. of

Jin Kang

Thank you.

Kellie Kim

was Thank a you pleasure. again. The was fantastic. It process

Barry Sine

a managed. And breakdown quarter. page the see very as did into have in bit I if little why business. break out the delve you're for for significant you at services just the the between reported the year that a you you quarter and in margin, The and and and look on a to categories was talk want carrier, revenue three breakdown XX-K, why Could decline you carrier year? the more declined really called XX-K, you the XX out I for about We reselling revenue is do reason quarter low the that decline for and managed break down. managed And for managed. the in into the managed down,

Kellie Kim

I questions. appreciate the Certainly. Barry,

In managed services and to services we fees, XX have services. and also accessories fees page in in us. managed XX-K other in for out in with terms managed the of reselling categories: who sale Included service is services, three customers managed of fees billable spell existing services primarily

when fluctuation that does and in So quarter-to-quarter there a vary accessories is from year-to-year.

And there managed its a by in so, growth muted in the was sale. services of timing accessory the sort although

two pretty we increase in and in had repeat in a DHS of to that's in several good sales So agency XXXX XXXX. accessory

So -- in this That XX-K. the reason time. give ending is with XX-Q. In the December, able the fourth I'm at the quarter something not primarily that's out we're to to considering out breakout break that that

And so stay tuned for that.

Barry Sine

candor. that Okay. the you've what going I to done. questions I period on Jin, ask your in mind. you you really your you That's everybody agencies follow-up I of this if uncertainty. about government to helpful. some appreciate don't really might struggling benefit Couple communicate serve is how already obviously that of comments, was appreciate

of if So they're the fixed devices reminder, agency? revenue, increases is by if or your using. say, number that does the let's CDC of increase your us revenue a contracts give or typically vary devices Does regardless on you your can it agency, an say number

Jin Kang

charge increase our model, because build is model them our -- cost business per our revenue our month. It device per that we does

revenue of up, as our increases. devices go the that will respectively, So number increase corresponding

Barry Sine

interested side, a you in down flip enterprises. challenges called of the current have the have in I'm page -- in know as out you've already on then commercial potential again, particularly XX And situation, I And example an as did result commercial. on the a of XXXX. American Airlines Okay. year K,

could us in of of XXXX sense drove decline give little looking at, that what you're you commercial more and So terms commercial a in in what revenue?

Kellie Kim

that question. Barry I take will

and did back not were pursued the it lines XXXX, the So for low over sense was evaluated in in current businesses those contracts and businesses, where took -- when goes continuation. make margin continue, XXXX even to not business they before of management the to

a tail consulting was revenue in XXXX still the low lot was So discontinued. in commercial margin left of and there XXXX business

didn't we renewal. pursue the So

in the so And really the business in XXXX. drop commercial that's

Barry Sine

customer then called do I business, And our you've what them, can losing refresh looking out American prospect if like the Airlines, you you think additional with forward, the for memory.

Jin Kang

In what the the commercial, digital the and all certificate of maintenance. was for their terms them did of we issuance we American provided Airlines for infrastructure

to And because so American Airlines bring that in-house. the that went decided away one work

of issues, it bringing at secure environment that the they more business, O&M And all the this but like facilities -- the we it software moving by is certificate side. and they on took their still lost it -- to they because piece, authority will be which their the to keep year. hardware could the We to they this so maintain competitor, the that it make wanted but piece. the of this security They XXXs believe I Boeing having sure with believed wasn't time a to that

Barry Sine

your There's comment Jin, then, all about And census election on your mail talk, by already basis. the during an on example, for contract. Okay.

eliminate XX-year be if like your in to revenue census to that out field -- and the sounded to a went the they you comment a sending centers exposure, there of it would that takers eliminated So if virtual the they happened? risk of hit they

Jin Kang

conducted now revenue enumerators these is actually why because definitely online. they out send hit. the would census reason be the of get of is But they a all folks, census forms when the the sort That and

provide in option sending a website information. your You to, do have same paper you or to there's that the go of that can forms

is, the thinking is so not the the -- is, enumerators it to because to reasons. door-to-door is will to they not have to so it's the response, take a similar One that everybody they seriously going everyone respond census. think for get I connection and several -- they're send they're what So census Internet have have to

by up And pandemic. some still -- be that because because enumerators folks track half the fall last to million they out up the devices. so to these the XXX,XXX at virus a going of of estimate the it's rolling going feel count, some already census on trained to I think, training that they're plus they've are But wayside -- they're

go roll they're to use services right, a that devices portal our huge the believe and these But going hit that only if you're out. to we fees. census could to to managed that, So, be data, decide the we're they online going accept

Barry Sine

terms Okay. there's in about And lot opportunity, or of that a students, talked folks also then you home home. of an working at are either school, in at

for said, major of iPads want to district I students. potential want school a send you to to So opportunity and that that's out came our say challenge we however, to all a ask One you. let's about,

laptops. producing But be BestBuys that shortages well Is the that stock I'm is shortages you're an wondering, take issue seeing? out responsibility, your responsibility? You Apple I'm of -- guys devices on. and on hearing of positioned had that or contract already Is that there getting a will to customer's like phones got

Jin Kang

supply China I they manufacturing in devices, these And downturn that there be as they're of chain developing know impact. is cannot in don't or what these countries devices other said is supply Well, producing a my a out there. the developed, get that is if terms they're remarks I from but negative where protracted the where could mobile

answer We have is equipment, and there for a Absolutely. yes. But not part definitely devices that that be. could a as won't to question of an any if getting us? could so the represent your supply there's said doesn't that of and is, opportunity accessories first mean you downturn long, But there the and it us. chain, experienced impact But in your disruption is, protracted issues

out devices. We and study secure devices those towards remotely, allow to putting are are the helping workforce also remotely, and that geared them -- mobile work that our devices

And right so our that's in wheelhouse.

Barry Sine

you'll more Okay. me. question, And one if indulge

Jin Kang

Of course.

Barry Sine

not you issued, range. the very to million that the business the out $XX But you're be terms revenue Just in in guidance. XQ of fully Why it throw of quarter guidance the into quarter of range And closing going to of weigh days. million understandable full-year wide terms on when wide XX% a that's guidance, you're going to where $XX next week?

Kellie Kim

more and in them. We census volume, is airtime know is. uptake March Well, month, carrier don't we know we but carrier huge have in projects, up estimations, ramping services And with involved it what there we the the services. the of one know a

vary will and gap variance yes just And it that terms revenue or … continue of because so of huge in will will, projection that. the But our

Jin Kang

activations numbers don't Yes, the of timing those them, the I devices and mean, these start of yet. all when have they're we to going using of

to be. number revenue a so of portion is the measure piece going is it carrier got it's to has with could And difficult to all we've good services the service pretty on where be. managed the be where handle going and it a where huge to that carrier do -- services But where

Barry Sine

had, you usage So see the customers to to wait have data get the what it light? of was or heavy carriers back your from kind to whether

Jin Kang

Correct.

on exactly. You the hit nail right the head yes, there,

Barry Sine

you questions. those all Understood. taking Okay. Thank for

Jin Kang

You're like welcome. there's people It I get it electronically. roughly far have did for information. some the looks completed census, additional XX million so

And still due of did there's for couple census the they dates So plenty to go. the a for extend weeks.

this big going go that my So a out guess to let's that goes. is requirement the and there's enumerators But information. collect to be see how there for

Operator

our question-and-answer time, no conclude At are other there will session. that questions this holding,

WidePoint's taken, the IR If was Mr. like Kang contact for turn any not wyy@gatewayir.com.. to now question at back to I team call closing your remarks. please

Jin Kang

There one currently And Thank that is entry a are contract is I was here. item a There that bidding was to other like cover. Jess. minute this on. -- you, last we

company a is Dynamics. as It announced Corp. that company, you That Leidos. are that, Marine team be the the under for company with also I award General with are II. and was called We is following currently protest contract awarded And NGEN-R was to that known we teamed are NGEN contract to contract if the General was a award as for Dynamics. contract, called Navy, a said,

we still hopeful get award. may a are we part of that And that so

are However, the our because relationship contract we Leidos and very well. them on relationships we we are that with Contract utilizing is have NEST working with and NASA going

get we so to are team on And that well. as trying

goes, of regardless so on And may provide the NGEN management contract. mobility opportunity we how protest services have enterprise to this II an

that. So finish me let with

time and us thank again, operator, so, appreciate we to everyone the today. you, And taking join

address not we our As questions contact team. the any operator that were did please there mentioned, today, if IR

You very and the Thank earnings can today's Thank next you And you please full find practice have and social hope again at your evening. release. at all their of see quarterly much. contact careful earnings the and information bottom to be a great you distancing call.

Operator

full-year conference joining for and XXXX call. we thank Ladies quarter gentlemen, and for you today us WidePoint's fourth

disconnect. now may You

WidePoint (WYY) 24 Mar 202019 Q4 Earnings call transcript