WidePoint(US:WYY)2021-11-15 21:02Revenue Performance - Revenues for the three-month period ended September 30, 2021, were approximately $22.2 million, a decrease of approximately $35.3 million (or 61%) compared to $57.5 million in 2020[110] - For the nine-month period ended September 30, 2021, revenues were approximately $62.9 million, a decrease of approximately $89.1 million (or 59%) compared to $151.9 million in 2020[124] - Carrier services revenue decreased to $13.1 million from $45.0 million, a decline of $31.9 million, primarily due to the completion of the U.S. Department of Commerce contract supporting the 2020 Census[110] Profitability - Gross profit for the three-month period ended September 30, 2021, was approximately $3.7 million (or 16% of revenues), compared to $5.6 million (or 11% of revenues) in 2020, driven by higher margin managed services revenue[117] - Net income for the nine months ended September 30, 2021, was approximately $916,000, down from approximately $2.0 million in the same period last year[134] Expenses - Cost of revenues for the three-month period ended September 30, 2021, was approximately $18.6 million (or 84% of revenues), down from $51.9 million (or 90% of revenues) in 2020[116] - General and administrative expenses for the nine months ended September 30, 2021, were approximately $8.7 million, representing 14% of revenues, a decrease from $10.9 million (7% of revenues) in 2020[131] - Sales and marketing expenses for the nine-month period ended September 30, 2021, were approximately $1.5 million (or 2% of revenues), compared to $1.4 million (or 1% of revenues) in 2020[130] - Depreciation and amortization expense for the nine months ended September 30, 2021, was approximately $768,000, down from approximately $814,800 in 2020[132] - Income tax expense for the nine months ended September 30, 2021, was approximately $329,300, with an effective tax rate of 26.5%, compared to $242,800 and 10.6% in 2020[133] - Net other expense for the nine months ended September 30, 2021, was approximately $(176,500), a decrease from $(224,300) in 2020, reflecting lower interest expenses[132] Cash Flow and Capital - Cash used in operating activities for the nine months ended September 30, 2021, was approximately $3.5 million, compared to $6.0 million net cash provided in the same period of 2020[141] - Cash used in investing activities for the nine months ended September 30, 2021, was approximately $1.9 million, primarily for computer hardware and software purchases[143] - Cash provided by financing activities for the nine months ended September 30, 2021, was approximately $681,000, reflecting proceeds from common stock issuance through the ATM sales program[146] - The company sold 100,687 shares under the ATM program during the nine months ended September 30, 2021, with a remaining capacity of $18.6 million as of September 30, 2021[139] - Net working capital increased to approximately $14.6 million as of September 30, 2021, compared to $13.0 million at December 31, 2020, driven by proceeds from common stock issuance[138] Strategic Initiatives - The company completed the acquisition of ITA on October 1, 2021, for a purchase price of $4.75 million in cash and 75,000 warrants[107] - The company aims to expand its marketplace share and improve sustainability by investing in technology solutions and new sales and marketing initiatives[105] - The company plans to enhance its expertise in delivering ITaaS solutions and expand its presence in the commercial enterprise sector, particularly with small and mid-sized businesses[111] Managed Services - Managed service fees for the nine-month period ended September 30, 2021, were $20.2 million, down from $25.3 million, a decrease of $5.1 million[125]