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WidePoint(WYY) - 2021 Q2 - Quarterly Report
WYYWidePoint(WYY)2021-08-16 20:01
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Financial Performance - Revenues for the three months ended June 30, 2021 were approximately 20.0million,adecreaseofapproximately20.0 million, a decrease of approximately 34.8 million (or 64%) compared to 54.8millionin2020[99]−Carrierservicesrevenuedecreasedto54.8 million in 2020[99] - Carrier services revenue decreased to 11.9 million from 44.9million,adeclineof44.9 million, a decline of 33.0 million, primarily due to the completion of the U.S. Department of Commerce contract supporting the 2020 Census[99] - For the six months ended June 30, 2021, revenues were approximately 40.6million,adecreaseofapproximately40.6 million, a decrease of approximately 53.8 million (or 57%) compared to 94.4millionin2020[109]−NetlossforthethreemonthsendedJune30,2021wasapproximately94.4 million in 2020[109] - Net loss for the three months ended June 30, 2021 was approximately (204,700), compared to net income of approximately 488,600inthesameperiodlastyear[107]ProfitabilityandExpenses−GrossprofitforthethreemonthsendedJune30,2021wasapproximately488,600 in the same period last year[107] Profitability and Expenses - Gross profit for the three months ended June 30, 2021 was approximately 3.9 million (or 20% of revenues), compared to 5.1million(or95.1 million (or 9% of revenues) in 2020, driven by higher margin managed services revenue[102] - Cost of revenues for the six months ended June 30, 2021 was approximately 31.9 million (or 79% of revenues), down from 84.4million(or8984.4 million (or 89% of revenues) in 2020[112] - Sales and marketing expenses for the three months ended June 30, 2021 were approximately 0.5 million (or 3% of revenues), an increase from 0.4million(or10.4 million (or 1% of revenues) in 2020[104] - General and administrative expenses for the six months ended June 30, 2021 were approximately 6.6 million (or 16% of revenues), down from 7.2million(or87.2 million (or 8% of revenues) in 2020[115] Cash Flow and Capital Management - For the six months ended June 30, 2021, net cash used in operations was approximately 0.4 million, a decrease from approximately 1.6millionnetcashprovidedforthesameperiodin2020[126]−CashusedininvestingactivitiesforthesixmonthsendedJune30,2021,wasapproximately1.6 million net cash provided for the same period in 2020[126] - Cash used in investing activities for the six months ended June 30, 2021, was approximately 1.3 million, primarily for computer hardware and software purchases and capitalized internally developed software costs[128] - Cash provided by financing activities for the six months ended June 30, 2021, was approximately 654,700,reflectingproceedsfromtheissuanceofcommonstockthroughATMsalesof654,700, reflecting proceeds from the issuance of common stock through ATM sales of 1.1 million[131] - The company sold 100,687 shares under the ATM program during the six months ended June 30, 2021, with a remaining capacity of 18.6millionasofJune30,2021[122]−Thecompanymayneedtoraiseadditionalcapitaltofundmajorgrowthinitiativesand/oracquisitions,withnoassurancethatadditionalcapitalwillbeavailableonacceptableterms[121]ForeignExchangeandInflation−ThegradualdepreciationoftheEurorelativetotheUSdollardecreasedthetranslatedvalueofthecompany′sforeigncashbalancesbyapproximately18.6 million as of June 30, 2021[122] - The company may need to raise additional capital to fund major growth initiatives and/or acquisitions, with no assurance that additional capital will be available on acceptable terms[121] Foreign Exchange and Inflation - The gradual depreciation of the Euro relative to the US dollar decreased the translated value of the company's foreign cash balances by approximately 42,800 for the six months ended June 30, 2021[133] - Management believes inflation has not materially affected operations to date, but there may be inflationary pressures in the future due to the pandemic[134] Internal Controls - There were no changes in the company's internal control over financial reporting during the three-month period ended June 30, 2021, that materially affected internal controls[139] Strategic Initiatives - The company aims to expand its critical mass to fund investments in technology solutions and introduce new sales and marketing initiatives to improve sustainability and growth[94]