Financial Data and Key Metrics Changes - For Q3 2021, revenue was 57.5 million in the same quarter last year, primarily due to the loss of carrier service revenues from the U.S. Department of Commerce contract [33] - For the nine months ended September 30, 2021, revenue decreased to 152 million in the same period last year, driven by the wind-down of the Census project and lower accessory sales [34] - Gross profit for Q3 2021 was 5.6 million in Q3 2020, while gross margin improved to 16.5% from 9.8% [35] - GAAP net income for Q3 2021 was 0.06 per diluted share, down from 0.13 per diluted share in Q3 2020 [39] - Cash at the end of the quarter was 16.8 million in contract awards, although results were partially impacted by unexpected events [21] - The company is enhancing its Identity Management Solution and investing in a new commercial certificate authority to increase capabilities in the commercial market [13] Market Data and Key Metrics Changes - The company is focusing on K-12 educational institutions and the beverage production vertical, recognizing significant opportunities due to increased cybersecurity needs [22][25] - The acquisition of IT Authorities (ITA) is expected to strengthen the company's position in various growth markets and enhance its customer base [10] Company Strategy and Development Direction - The company aims to continue its strategy for profitable growth through both organic and inorganic means, with a focus on acquiring stable and profitable companies [46][47] - The management is cautious about the current acquisition environment, noting that many companies are demanding high multiples [46] Management's Comments on Operating Environment and Future Outlook - The management acknowledged macroeconomic headwinds, including supply chain disruptions and federal budget uncertainties, which have delayed several opportunities [7][8] - Despite challenges, the management remains optimistic about future growth and the ability to capitalize on near-term opportunities [52] Other Important Information - The company has initiated a share repurchase program, increasing the amount available for future purchases to $4.6 million [48] - CFO Kellie Kim announced her retirement, effective early next year, and will assist as a consultant post-retirement [43][51] Q&A Session Summary Question: How did the ITA acquisition affect your EBITDA? - ITA was acquired on October 1, so the financial results do not reflect any contribution from ITA for Q3, but a small contribution is expected in Q4 [54] Question: Do you intend to make additional acquisitions? - The company is focused on finding quality companies that are immediately accretive and is currently reviewing various acquisition opportunities [55] Question: What are the sizes of opportunities in new vertical markets? - The K-12 sector represents a large opportunity due to its status as a major employer, and the beverage industry also presents significant potential [56][60]
WidePoint(WYY) - 2021 Q3 - Earnings Call Transcript