WidePoint Corp. (WYY, Financial) filed Quarterly Report for the period ended 2009-06-30.
WidePoint is a technology-based provider of products and services to the government sector and commercial markets. WidePoint specializes in providing systems engineering integration and information technology services. WidePoint\'s wholly owned subsidiary ORC is at the forefront of implementing government-compliant eAuthentication identity management managed services and associated systems engineering/integration. ORC has earned four major U.S. federal government certifications offering the highest levels of assurance for transactions over the Internet. WidePoint\'s profile of customers encompasses U.S. Federal Government agencies including the Department of Defense the Department of Homeland Security and the Department of Justice as well as major U.S. defense contractors and several major pharmaceutical companies. WidePoint Corp. has a market cap of $38.5 million; its shares were traded at around $0.66 with and P/S ratio of 1.1.
Depreciation. Depreciation expense for the three month period ended June 30, 2009, was approximately $41,000 (or less than 1% of revenues), as compared to approximately $39,000 of such expenses (or less than 1% of revenues) recorded by the Company for the three month period ended June 30, 2008. This increase in depreciation expense over those for the three month period ended June 30, 2008, was primarily attributable to greater amounts of depreciable assets. We do not anticipate any material changes within depreciation expense in the short-term. However, as our revenue base increases within our MTEM and PKI segments, there may be a need from time to time to increase the purchase of equipment in support of new revenue streams that may raise our depreciation expenses.
General and administrative. General and administrative expenses for the six month period ended June 30, 2009, were approximately $3,113,000 (or 15% of revenues), as compared to approximately $3,158,000 (or 19% of revenues), recorded by the Company for the six month period ended June 30, 2008. This decrease in general and administrative expenses for the six months ended June 30, 2009, was primarily attributable to a decrease in stock compensation expense under SFAS No. 123R as a result of options issued to employees in connection with the iSYS acquisition in January 2008.
Depreciation expense. Depreciation expense for the six month period ended June 30, 2009, was approximately $84,000 (or less than 1% of revenues), as compared to approximately $76,000 (or less than 1% of revenues), recorded by the Company for the six month period ended June 30, 2008. This increase in depreciation expenses for the six month period ended June 30, 2009, was primarily attributable to the greater amounts of depreciable assets.
Net cash provided by operating activities for the six months ended June 30, 2009, was approximately $1.0 million, as compared to cash provided by operating activities of $2.3 million for the six months ended June 30, 2008. This decrease in cash generated from operating activities for the six months ended June 30, 2009 was primarily a result of a decrease in unbilled accounts receivable. Net cash used in investing activities for the six months ended June 30, 2009, was approximately $0.1 million, as compared to $5.0 million used in investing activities for the six months ended June 30, 2008. The decrease in net cash used in investing activities was primarily attributable to no acquisition activity during the period. Net cash used in financing activities amounted to approximately $2.4 million in the six months ended June 30, 2009, as compared to cash provided by financing activities of approximately $5.6 million in the quarter ended June 30, 2008. This decrease in net cash provided by financing activities primarily related to the reduction of acquisition indebtedness and Cardinal Bank loans. As a result of the Companys capital raising in 2008 and profitability in 2009, the Company has had excess liquidity to absorb the pay-down of short-term and long-term debt, while still maintaining sufficient levels of capital resources to fund operations.
As of June 30, 2009, the Company had a net working capital of approximately $3.5 million. The Companys primary source of liquidity consists of approximately $3.0 million in cash and cash equivalents and approximately $7.5 million of accounts receivable and unbilled accounts receivable. Current liabilities include approximately $5.3 million in accounts payable and accrued expenses. The reduction in Current liabilities for the six months ended June 30, 2009 was predominately associated with the payment of sellers notes.
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WidePoint is a technology-based provider of products and services to the government sector and commercial markets. WidePoint specializes in providing systems engineering integration and information technology services. WidePoint\'s wholly owned subsidiary ORC is at the forefront of implementing government-compliant eAuthentication identity management managed services and associated systems engineering/integration. ORC has earned four major U.S. federal government certifications offering the highest levels of assurance for transactions over the Internet. WidePoint\'s profile of customers encompasses U.S. Federal Government agencies including the Department of Defense the Department of Homeland Security and the Department of Justice as well as major U.S. defense contractors and several major pharmaceutical companies. WidePoint Corp. has a market cap of $38.5 million; its shares were traded at around $0.66 with and P/S ratio of 1.1.
Highlight of Business Operations:
General and administrative. General and administrative expenses for the three month period ended June 30, 2009, were approximately $1,577,000 (or 15% of revenues), as compared to approximately $1,477,000 (or 16% of revenues) recorded by the Company for the three month period ended June 30, 2008. This increase in general and administrative expenses over those for the three months ended June 30, 2008, was primarily attributable to slight increases in general and administrative costs incurred to support our increasing revenue base. We anticipate that our general and administrative costs may rise slightly in the future as our support costs rise to facilitate our expectations of a greater revenue base as we continue our efforts to comply with pending additional financial compliance requirements.Depreciation. Depreciation expense for the three month period ended June 30, 2009, was approximately $41,000 (or less than 1% of revenues), as compared to approximately $39,000 of such expenses (or less than 1% of revenues) recorded by the Company for the three month period ended June 30, 2008. This increase in depreciation expense over those for the three month period ended June 30, 2008, was primarily attributable to greater amounts of depreciable assets. We do not anticipate any material changes within depreciation expense in the short-term. However, as our revenue base increases within our MTEM and PKI segments, there may be a need from time to time to increase the purchase of equipment in support of new revenue streams that may raise our depreciation expenses.
General and administrative. General and administrative expenses for the six month period ended June 30, 2009, were approximately $3,113,000 (or 15% of revenues), as compared to approximately $3,158,000 (or 19% of revenues), recorded by the Company for the six month period ended June 30, 2008. This decrease in general and administrative expenses for the six months ended June 30, 2009, was primarily attributable to a decrease in stock compensation expense under SFAS No. 123R as a result of options issued to employees in connection with the iSYS acquisition in January 2008.
Depreciation expense. Depreciation expense for the six month period ended June 30, 2009, was approximately $84,000 (or less than 1% of revenues), as compared to approximately $76,000 (or less than 1% of revenues), recorded by the Company for the six month period ended June 30, 2008. This increase in depreciation expenses for the six month period ended June 30, 2009, was primarily attributable to the greater amounts of depreciable assets.
Net cash provided by operating activities for the six months ended June 30, 2009, was approximately $1.0 million, as compared to cash provided by operating activities of $2.3 million for the six months ended June 30, 2008. This decrease in cash generated from operating activities for the six months ended June 30, 2009 was primarily a result of a decrease in unbilled accounts receivable. Net cash used in investing activities for the six months ended June 30, 2009, was approximately $0.1 million, as compared to $5.0 million used in investing activities for the six months ended June 30, 2008. The decrease in net cash used in investing activities was primarily attributable to no acquisition activity during the period. Net cash used in financing activities amounted to approximately $2.4 million in the six months ended June 30, 2009, as compared to cash provided by financing activities of approximately $5.6 million in the quarter ended June 30, 2008. This decrease in net cash provided by financing activities primarily related to the reduction of acquisition indebtedness and Cardinal Bank loans. As a result of the Companys capital raising in 2008 and profitability in 2009, the Company has had excess liquidity to absorb the pay-down of short-term and long-term debt, while still maintaining sufficient levels of capital resources to fund operations.
As of June 30, 2009, the Company had a net working capital of approximately $3.5 million. The Companys primary source of liquidity consists of approximately $3.0 million in cash and cash equivalents and approximately $7.5 million of accounts receivable and unbilled accounts receivable. Current liabilities include approximately $5.3 million in accounts payable and accrued expenses. The reduction in Current liabilities for the six months ended June 30, 2009 was predominately associated with the payment of sellers notes.
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