PEABODY, Mass., Aug. 3 /PRNewswire-FirstCall/ — PHC, Inc., d/b/a Pioneer Behavioral Health (NYSE Amex: PHC), a leading provider of inpatient and outpatient behavioral health services, today announced that it has retained Hayden IR, a national, New York-based investor relations consulting firm, effective August 15, 2010, to develop and implement a strategic investor relations program to raise its visibility and strengthen its relationships with the investment community.
“We have achieved a compelling strategic position in an emerging industry, and we are situated to benefit from the enactment of Healthcare reform legislation as more individuals will have access and a means for reimbursement of our programs,” commented Bruce A. Shear, Pioneer’s President and CEO. “We continue to grow our patient census, driving organic growth, and we believed this is the optimum time to retain Hayden IR to assist us in formulating and executing a broad program to articulate the inherent value of our business model to the investment community.”
With offices in New York, Phoenix, Minneapolis and San Diego, Hayden IR provides a comprehensive range of investor relations services to a growing list of clients. For more than a decade, Hayden IR has been a recognized leader in driving market recognition and creating sustainable competitive advantages for more than 100 micro- and small-cap companies. Hayden delivers expertise and professionalism in such areas as investor management, relationship building, awareness campaigns, online presence and corporate identity.
Brett Maas, Managing Partner at Hayden IR, added, “Pioneer Behavioral Health’s proven business model and compelling growth profile will be attractive to our audience of professional investors. Pioneer’s growth has reached the point where additional revenues should more directly impact the bottom line, and this leverage in the business model creates a compelling near-term opportunity for growth-oriented investors. With pending CMS certification, the Seven Hills Behavioral Institute in Henderson, Nevada has the potential to add as much as more than five cents per year to the Company’s earnings per share and we plan to broaden the Company’s audience of potential investors in advance of this anticipated growth. The Company also has a solid balance sheet which will be attractive to value-oriented investors. Additionally, ongoing consolidation in the industry creates additional opportunities for Pioneer to accelerate its growth, which would lead to higher valuation multiples going forward. We are excited to represent Pioneer Behavioral Health and look forward to a productive relationship.”
About PHC d/b/a Pioneer Behavioral Health
PHC, Inc., d/b/a Pioneer Behavioral Health, is a national healthcare company providing behavioral health services in five states, including substance abuse treatment facilities in Utah and Virginia, and inpatient and outpatient psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and telephonic-based referral services that includes employee assistance programs and critical incident services. Contracted services with government agencies, national insurance companies, and major transportation and gaming companies cover more than one million individuals. Pioneer helps people gain and maintain physical, spiritual and emotional health through delivering the highest quality, most culturally responsive and compassionate behavioral health care programs and services. For more information, visit www.phc-inc.com.
Statement under the Private Securities Litigation Reform Act of 1995
This press release may include “forward-looking statements” that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the Company’s annual report on Form 10-K for the most recently ended fiscal year.
Stocks end July with big gain; Dow gains 7.1 pct
By · CommentsOn a positive note the market ended July with 7.1% gains in the DOW.
NEW YORK (AP) — Stocks had a fitting end to a choppy July as prices seesawed their way to a narrowly mixed finish. The market still had its best month in a year.
Investors had an ambivalent response Friday to the government’s gross domestic product report, which showed that economic growth slowed in the April-June quarter. The Dow Jones industrial average fell almost 120 points in early trading, then ratcheted up and down until the close. The Dow ended down just a point, and the other big indexes had similarly small moves.
The day was much like the rest of July, which saw investors alternately buying on strong earnings reports and selling on weak economic numbers. The Dow rose 7.1 percent for the month. The Dow and the Standard & Poor’s 500 index both had their best months since July 2009 and their first winning months since this past April.
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NEW YORK, July 6, 2010 (GLOBE NEWSWIRE) — interCLICK, Inc. (Nasdaq:ICLK), a digital audience intelligence and targeting company, today announced Dave Hills and Frank Cotroneo have been named to its Board of Directors. Both leaders bring extensive expertise and a track record of C-Level success across a range of public and Fortune 500 companies.
Dave Hills is General Partner at KPG Ventures, a venture capital and private equity firm. He is the former President & Chief Executive Officer of LookSmart, a publicly-traded online advertising and technology company. Mr. Hills previously served as President, Media Solutions at 24/7 Real Media, a leading global digital marketing company which was acquired by WPP in 2007. From 1980 to 2001 he served in various sales leadership capacities culminating in the role of Chief Operating Officer and President of Sales at About, Inc., a network of topic-specific Web sites.
Frank Cotroneo has more than 28 years of business and senior management experience. Mr. Cotroneo most recently served as Chief Operating Officer and Chief Financial Officer of NetSpend Corporation, a provider of prepaid debit card services. He is the former Chief Financial Officer of Axciom Corporation, former CFO of H&R Block, and former CFO of MasterCard International.
“We’re thrilled to be adding these two outstanding leaders to our Board of Directors,” said Michael Mathews, interCLICK’s CEO on behalf of the company’s Board and senior management team. “We look forward to benefiting from Dave and Frank’s business strategy and financial management expertise as we pursue our growth agenda.”
About interCLICK
interCLICK is an audience intelligence and targeting company, developing and executing data-driven campaign strategies for major digital agencies and marketers. Fueled by its proprietary software, interCLICK empowers its clients to reach desirable audiences efficiently, in brand-safe environments, and at tremendous scale. interCLICK is headquartered in New York City and has offices in Chicago, Los Angeles, San Francisco, Dallas and Miami. For more information about the interCLICK Network, visit http://www.interclick.com .
CONTACT: interCLICK, Inc.
Roger Clark, CFO
(646) 395-1776
roger.clark@interclick.com
Hayden IR
Investor Relations Contact
Brett Maas
(646) 536-7331
brett@haydenir.com
FAIRFIELD, N.J., May 28, 2010 (BUSINESS WIRE) –
Cover-All Technologies Inc. (OTC Bulletin Board: COVR.OB), a Delaware corporation (“Cover-All” or the “Company”), today announced that John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, will present at the Noble Financial Sixth Annual Equity Conference at 8:30 a.m. ET on June 7, 2010. This by-invitation-only conference will be held June 7-8, 2010 at the Seminole Hard Rock Hotel, Hollywood, Fla. Registered conference attendees may request 1-on-1 meetings with Cover-All management who will be available during the day on June 7. Please contact your Noble Financial representative to schedule a meeting.
Cover-All recently reported its 13th consecutive profitable quarter and Mr. Roblin will discuss the Company’s strong financial performance. He will also discuss the Company’s recent acquisition of Moore Stephens Business Solutions LLC (MSBS), a provider of business intelligence and advanced analytics solutions to the insurance industry based in New York. This acquisition allows Cover-All to expand into the business intelligence marketplace, adding approximately $6 million in annualized revenue, and will fuel Cover-All’s organic growth, giving it new solutions to sell to a much larger installed base. The Company is also expanding its My Insurance Center(TM) offering with exciting new capabilities that will further accelerate organic growth.
The presentation will be webcast – audio / video / PowerPoint – live, and available for viewing at www.cover-all.com (click on the “Company” tab, then “Investor Relations”) or through the Noble Financial websites at www.ontrack10.com or www.nobleresearch.com. Cover-All recommends registering at least 10 minutes prior to the start of the presentation to ensure timely access. Participants will need the SilverLight viewer (a free download from the presentation link) to participate. In addition, the webcast, transcript and written materials will be archived on the Company’s website
for 90 days following the event.
About Noble Financial
Noble Financial Capital Markets was established in 1984 and is an equity
research driven, full-service investment banking boutique focused on small-cap, emerging growth companies. The company has offices in New York, Boston, New Jersey, St Louis and Boca Raton.
About Cover-All Technologies Inc.
Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry — first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value.
With extensive insurance knowledge, experience and commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way the property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com.
Cover-All(R), My Insurance Center(TM) (MIC) and Insurance Policy Database(TM) (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.
Forward-looking Statements
Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 19, 2010, copies of which are available from the SEC or may be obtained upon request from the Company.
SOURCE: Cover-All Technologies Inc.
Cover-All Technologies Inc. Ann Massey, 973-461-5190 Chief Financial Officer amassey@cover-all.com or Hayden IR Brett Maas, 646-536-7331 Principal brett@haydenir.com Connect with Brett Maas
Accretive Health & ReachLocal IPOs hit today
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Hat Tip to the WSJ
Hospital-revenue manager Accretive Health Inc.’s IPO was rising in its first day of trading, while Internet marketing-service firm ReachLocal Inc.’s initially dropped only to recover and trade higher.
Both companies cut their prices to get their initial public offerings done, an increasingly common trend this month amid widespread stock volatility.
Accretive opened at $12.74 a share on the New York Stock Exchange, up 6% from its IPO price of $12. A total of 10 million shares, 3.3 million less than originally planned, were sold at a price below its expected $14 to $16 range. Accretive continued to rise; it was recently changing hands at $13.54, up 13%.
ReachLocal initially traded down but bounced back above its IPO price. It opened at $12 a share on the Nasdaq Stock Market, down 7.7%, and was recently at $14.70, up 13% from its IPO price of $13. It sold 4.2 million shares below its expected range of $17 to $19.
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– Industry Leader in Self-Service Kiosk Solutions to Discuss Growth Strategy and New Initiatives at Presentation on May 26, 2010 –
JACKSONVILLE, Fla., May 6 /PRNewswire-FirstCall/ — Global Axcess Corp (OTC Bulletin Board: GAXC; the “Company”), an independent provider of self-service kiosk solutions, today announced that George McQuain, the Company’s chief executive officer, will present at the B. Riley & Co. 11th Annual Investor Conference at 8:30 a.m. (PDT) on May 26, 2010. The conference will be held May 24 – May 26 at the Loews Santa Monica Beach Hotel, 1700 Ocean Avenue, Santa Monica, Calif. Global Axcess management will be available during the day on May 26 for one-on-one meetings. Please contact your B. Riley representative to schedule a meeting.
Global Axcess recently reported its 13th consecutive profitable quarter and Mr. McQuain will discuss the Company’s strong financial performance in 2009, which has positioned it for continued revenue and net income growth in 2010. He will also discuss the Company’s recent entry into the self-service DVD kiosk market and highlight the Company’s aggressive plans to drive its national DVD kiosk expansion activity.
Investors and other interested parties may access the live presentation at http://www.wsw.com/webcast/brileyco14/gaxc/. The webcast will be archived for 90 days following the presentation and will be available on the Company’s website at www.globalaxcess.biz.
About the B. Riley & Co. 11th Annual Investor Conference
The two-day, invitation-only annual event, brings together a targeted audience of leading institutional investors, financial services professionals and other qualified investors. The conference will feature presentations by approximately 120 companies in a broad range of sectors, including: technology, consumer, retail, and financials. For more information, visit www.brileyco.com.
About Global Axcess Corp
Headquartered in Jacksonville, Florida, Global Axcess Corp was founded in 2001 with a mission to emerge as the leading independent provider of self-service kiosk services in the United States. The Company provides turnkey ATM and other self-service kiosk management solutions that include cash and inventory management, project and account management services. Global Axcess Corp currently owns, manages or operates more than 4,500 ATMs and other self-service kiosks in its national network spanning 43 states. For more information on the Company, please visit http://www.globalaxcess.biz.
Investor Relations Contacts:
Sharon Jackson: 904-395-1149
IR@GAXC.biz
Hayden IR:
Brett Maas or Jeff Stanlis: (646) 536-7331
Brett@haydenir.com / Jeff@haydenir.com
This press release may contain forward-looking statements. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as: “believes,” “expects,” “may,” “will,” “should,” or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Various important risks and uncertainties may cause the Company’s actual results to differ materially from the results indicated by these forward-looking statements. For a list and description of the risks and uncertainties the Company faces, please refer to Part I, Item 1A of the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 3, 2010, and other filings that have been filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, and such statements are current only as of the date they are made.
SOURCE Global Axcess Corp
Google Profits up 37%
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Google profits are up 37% but the stock still slides because people are worried about them not being as cautious as they were during the slower times?
Or is it just because the stock is up big time since the economy was first hit hard and now people are taking some profits for themselves off this stock.
Check out the full release here on Yahoo Finance.
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FAIRFIELD, N.J.–(BUSINESS WIRE)–Cover-All Technologies Inc. (OTC Bulletin Board: COVR.OB – News), a Delaware corporation (“Cover-All” or the “Company”), today announced the acquisition of Moore Stephens Business Solutions LLC (MSBS), a provider of business intelligence and advanced analytics solutions to the insurance industry based in New York, New York.
Acquisition Highlights:
- Cover-All, through its wholly owned subsidiary, Cover-All Systems, Inc., has acquired substantially all of MSBS’s assets (excluding working capital) for an aggregate purchase price of $2,450,000, with no assumed indebtedness.
- Approximately 96% of the purchase price consists of cash and a promissory note, and the remaining approximately 4% consists of Cover-All’s common stock.
- The acquired business is expected to be immediately accretive to Cover-All’s 2010 earnings with an operating margin comparable with Cover-All’s historic operating margin.
- On a trailing 12 months basis, MSBS generated over $6 million in revenue.
- The combined organization will total more than 55 customers, all of which are part of the same target market.
- Seth Rachlin, currently CEO of MSBS, will join Cover-All’s management as an executive vice president and serve as Managing Director of Cover-All’s new Business Intelligence unit. The unit, including the outstanding staff of MSBS, will continue to be based in their New York City office.
MSBS serves the insurance industry exclusively, providing Business Intelligence and advanced analytics solutions. Leveraging their Insurance Analytic Framework (IAF), which delivers accurate, available and actionable key metrics and dimensions specific to the insurance industry, MSBS has established a dominant presence in an otherwise underserved market. With the integration of these capabilities into the Cover-All portfolio, the combined company will be well positioned to deliver additional value to the existing customers of both companies, as well as benefit from an unrivaled and unique competitive advantage in its combined offerings.
While delivering three consecutive years of record revenues and profits, Cover-All has also been focused on building an innovative insurance information platform (My Insurance Center) utilizing leading-edge technologies and an information-centric architecture. These capabilities combined with exciting new offerings to My Insurance Center expected to be completed in late 2010, have positioned the Company for continued strong growth and profitability.
The acquisition of MSBS represents an additional pillar of the Company’s broader growth strategy as it looks to expand its customer base by offering additional leading-edge capabilities. Cover-All’s strategy includes continued focus on identifying immediately accretive opportunities that fit within its strategic vision.
“Thanks to our innovative strategy, customer focus, and talented results-oriented staff, I believe Cover-All has reached the point where we are ready for break-out growth, and this acquisition is evidence of that fact,” commented John Roblin, Chairman and CEO of Cover-All. “With our strong balance sheet and cash position, we are now able to shift our focus from stabilization to cultivation, and execute on the second part of our carefully planned growth strategy – a strategy which includes immediately accretive acquisitions which in turn, serve to fuel our organic growth and expanded offerings.”
“This acquisition presents an excellent opportunity for MSBS to move to the next level as we join the Cover-All family,” said Seth Rachlin, CEO of MSBS. “Building on our hard work over the past four years, we will now have additional resources to expand capabilities and our footprint.”
The acquisition creates a new opportunity for existing, as well as potential customers of both companies to leverage the power of an integrated solution that merges highly-focused Insurance Business Analytics with My Insurance Center, Cover-All’s revolutionary Policy Life-Cycle Management solution set. Additionally, the combined entity will look to leverage Cover-All’s proven business model of generating recurring revenue with a flexible cost structure, to drive further improvements to MSBS’s margins.
Cover-All continues to expand its reputation as a leader in developing innovative solutions for the insurance industry by focusing on the value of information. Following a philosophy of information-centric technology, Cover-All’s My Insurance Center has been built around the notion of leveraging the availability of data to drive business value. Similarly, MSBS has established an equally dominant position in their niche, focusing on a likeminded philosophy, developing the tools and know-how to assimilate data into powerful Business Intelligence. Further, both Cover-All and MSBS have established meaningful relationships within a similar market segment (but without any overlap) which will give rise to tremendous cross-selling opportunities.
Cover-All was advised by LMC Capital LLC, a boutique investment banking firm dedicated exclusively to the insurance industry.
Conference Call Information
Management will conduct a live teleconference to discuss this acquisition at 4:30 p.m. EDT on April 12, 2010. Anyone interested in participating should call 877-941-2069 if calling from the United States, or 480-629-9713 if dialing internationally. A replay will be available until April 19, 2010, which can be accessed by dialing 800-406-7325 within the United States and 1-303-590-3030 if dialing internationally. Please use passcode 4282019 to access the replay. In addition, the call will be webcast and will be available on the Company’s website at http://www.cover-all.com/.
About Moore Stephens Business Solutions
Moore Stephens Business Solutions (MSBS) is committed to being the leading provider of performance and data management solutions to the global insurance industry. MSBS seeks to bring together deep industry knowledge and proven frameworks with technology expertise in the deployment of non-proprietary, commercial software solutions. MSBS strives, above all, to be thought leaders on how Enterprise Data Management and Business Intelligence capabilities can deliver value to insurance carriers, reinsurers, MGAs and brokers. The interest in performance and data management solutions within the insurance industry is growing rapidly as companies try to keep pace with competition, prepare for a softening market, and better understand the level of market penetration and service being provided to its customers and by its partners. MSBS has delivered over 140 performance and data management solutions that have enabled clients to make data accurate, available, and actionable.
About Cover-All Technologies Inc.
Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry – first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value.
With extensive insurance knowledge, experience and commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way the property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com
Cover-All®, My Insurance Center™ (MIC) and Insurance Policy Database™ (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.
Forward-looking Statements
Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on March 30, 2009, copies of which are available from the SEC or may be obtained upon request from the Company.
Contact:
Cover-All Technologies Inc. Ann Massey, 973-461-5190 Chief Financial Officer amassey@cover-all.com or Investors: Hayden IR Brett Maas, 646-536-7331 Principal brett@haydenir.com
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Full-Year Revenues Increase 22.2% and Q4 2009 Revenues Increase 12.5%; Full-Year Income Totals $1.4 Million; a $2.5 Million Positive Swing versus 2008 Loss; and Net Income for Q4 2009 Up Over 75% vs. Prior Year
WASHINGTON, March 31 /PRNewswire-FirstCall/ — WidePoint Corporation (NYSE Amex: WYY), a specialist in wireless mobility management and cybersecurity solutions, today announced financial results for the three months and full year ending December 31, 2009.
Full Year 2009 Highlights
- Net revenue for the year ended December 31, 2009 increased 22.2% to $43.3 million from $35.5 million in last year’s comparable period.
- Gross profit increased 44.3% to $9.5 million (21.9% gross margin), compared to $6.6 million (18.6% gross margin) last year.
- Operating income was approximately $1.7 million, a $2.4 million improvement from an operating loss of approximately $0.7 million during 2008.
- WidePoint reported its first profitable year, with net income of approximately $1.4 million, or $0.02 per diluted share, compared to a net loss of approximately $1.1 million, or ($0.02) per diluted share, in last year’s comparable period.
- The Company generated approximately $5.1 million in operating cash flow for the year and finished the year with $6.2 million in cash and cash equivalents as of December 31, 2009.
Fourth Quarter 2009 Highlights
- Net revenue for the quarter ended December 31, 2009 increased 12.5% to $11.4 million from $10.2 million in last year’s comparable period.
- Growth was driven by a 30% year-over-year increase in Wireless Mobility Management segment revenue and a 50% increase in Cybersecurity Solutions revenues.
- Gross profit increased 9.1% to $2.6 million (22.5% gross margin), compared to $2.4 million (23.2% gross margin).
- Operating income was approximately $580,000, an 18.4% increase, compared to operating income of approximately $490,000 in last year’s comparable period.
- Net income increased 80.9% to approximately $515,000, compared to net income of approximately $285,000, in last year’s comparable period.
Subsequent to Year End 2009
- In January 2010, WidePoint through a wholly owned subsidiary, Advanced Response Concepts Corporation, acquired the assets and relationships of VUANCE, Inc’s. Government Solutions Division, which focuses on security solutions for locating, credentialing, and managing critical personnel and “first responders” in emergency management situations.
Steve Komar, CEO, WidePoint commented, “This was a solid conclusion to an outstanding year, as we grew revenue both sequentially and year-over-year for every quarter this year, and expanded our gross profit and operating income steadily throughout the year. We also generated $5.1 million in operating cash flow to strengthen our balance sheet. Our Wireless Mobility Management segment continues to gain traction within the federal government, and we are increasing our presence in state and local government entities as well, due to our proven ability to manage mobile phone assets to optimize environments while substantially reducing expenses. In addition, our Cybersecurity Solutions segment, due in large part to our PKI-based Credentialing expertise, has grown significantly in the last year, expanding 50% compared to last year. Our progress during the last 12 months provides us with a growing degree of confidence that 2010 will represent another record year for WidePoint and its shareholders.”
Full-Year 2009 Results
Net revenue for the full year ended December 31, 2009 increased $7.8 million to $43.3 million, up 22.2%, compared to $35.5 million for last year’s comparable period. For the full year, gross profit increased 44.3% to $9.5 million, representing 21.9% gross margin; as compared to gross profit of $6.6 million, equating to an 18.6% gross margin realized last year.
Total operating expenses were $7.8 million, or 18.0% of revenue, for the full year ended December 31, 2009 compared to $7.3 million, or 20.6% of revenue, for the comparable period last year. WidePoint’s operating income was approximately $1.7 million compared to an operating loss of ($0.7) million in the same period last year. Net income was approximately $1.4 million, or $0.02 per basic and diluted share, compared to a loss of ($1.1) million, or ($0.02) loss per basic and diluted share, in the year ago period.
The Company generated approximately $5.1 million in operating cash flow for the year ended December 31, 2009, and it had $6.2 million in cash and cash equivalents as of December 31, 2009 compared to $4.4 million in cash and cash equivalents at December 31, 2008. Shareholders’ equity increased to $14.8 million at December 31, 2009, compared to $12.7 million at December 31, 2008.
Fourth Quarter Financial Results
Net revenue for the three months ended December 31, 2009 increased $1.2 million, or 12.5%, to $11.4 million from $10.2 million in last year’s comparable period. This was primarily due to annual growth in the Wireless Mobility Management and Cybersecurity Solutions segments, which increased 30% and 50%, respectively.
Gross profit for the Quarter increased 9.1% to $2.6 million, representing 22.5% gross margin, compared to $2.4 million (23.2% gross margin) last year. Total operating expenses increased 6.7% to $2.0 million for the quarter ended December 31, 2009 compared to $1.9 million for the year-ago period. However, operating expenses as a percentage of sales declined 90 basis points to 17.5% from 18.4% in the year-ago period. WidePoint reported operating income of approximately $580,000 in the fourth quarter, up approximately 18.4% from approximately $490,000 in the fourth quarter last year.
Net income was approximately $515,000, compared to net income of approximately $285,000, in the year-ago period.
WidePoint CFO Jim McCubbin added, “During the Quarter ended, we reported solid gains in the quarter with improved revenue and gross margin momentum. We grew revenue by 12.5%, primarily in our Wireless Mobility and Cybersecurity Solutions segments as we expanded our marketing efforts and as various federal government agencies continue to sponsor and expand their programs. Gross profit, for the quarter, increased by 9.1% year over year primarily related to a greater mix of higher margin services offered by these same two segments. This led to improved operating and net margins despite the higher cost of revenue, and continues to demonstrate the leverage in our operating model. Lower-margin Consulting Services declined approximately 3% to $10.4 million from $10.7 million primarily due to a reduction in software reselling activities.”
Mr. Komar continued, “Subsequent to our Quarter and Year end, we acquired VUANCE, Inc’s. Government Solutions Division software and services solution. We are currently re-positioning this WidePoint new market solution to be co-marketed with our existing PKI Credentialing service, and believe this acquisition significantly enhances our leadership position in the area of First Responder Authentication Credentialing. It also improves our ability to meet the accelerating demands from the Department of Homeland Security, as well as broadens our penetration of state and local first responder markets across the country.”
Mr. McCubbin concluded, “WidePoint made significant strides in expanding our profitability this year and we expect to continue that trajectory in 2010. For 2010, management expects to:
- Increase consolidated revenues by 20-30%
- Expand gross margins and operating margins. Management has targeted gross margins in the range of 22-26% and operating margins in the range of 6-8%
- Maintain or decrease selling, general and administrative costs as a percent of total revenue
- Accelerate the growth rate of net income.”
Mr. Komar concluded, “We have already identified or are bidding on the projects necessary to achieve our 2010 goals, and we believe additional upside exists which could potentially allow us to exceed these aggressive targets.”
Conference Call Information
A conference call and live webcast will take place at 4:30 p.m. Eastern Time, on Wednesday, March 31, 2010. Anyone interested in participating should call 1-888-846-5003 if calling within the United States or 1-480-629-9856 if calling internationally. There will be a playback available until April 6, 2010. To listen to the playback, please call 1-800-406-7325 if calling within the United States or 1-303-590-3030 if calling internationally. Please use pin number 4265655 for the replay.
The call will also be accompanied live by webcast over the Internet and accessible at http://viavid.net/dce.aspx?sid=00007249.
About WidePoint
WidePoint is a specialist in providing wireless mobility management and cybersecurity solutions utilizing its advanced information technology products and services. WidePoint has several wholly owned subsidiaries holding major government and commercial contracts including, Operational Research Consultants, Inc., iSYS, LLC, Protexx, Advanced Response Concepts, Inc., and WidePoint IL. WidePoint enables organizations to deploy fully compliant IT services in accordance with government-mandated regulations and advanced system requirements. For more information, visit http://www.widepoint.com.
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; (iv) the declaration and payment of dividends; and (v) the risk factors disclosed in the Company’s periodic reports filed with the SEC. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk factors disclosed in the company’s Forms 10-K and 10-Q filed with the SEC.
| For More Information: | ||
| Jim McCubbin, EVP & CFO | Brett Maas or Dave Fore | |
| WidePoint Corporation | Hayden IR | |
| 7926 Jones Branch Drive, Suite 520 | (646) 536-7331 | |
| McLean, VA 22102 | brett@haydenir.com | |
| (703) 349-2577 | ||
| jmccubbin@widepoint.com | ||
| -tables follow- | ||
| WIDEPOINT CORPORATION AND SUBSIDIARIES | |||
| Consolidated Balance Sheets | December 31, | ||
| 2009 | 2008 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 6,238,788 | $ 4,375,426 | |
| Accounts receivable, net of allowance of $52,650, $0 and $0, respectively | 7,055,525 | 5,282,192 | |
| Unbilled accounts receivable | 1,334,455 | 2,301,893 | |
| Prepaid expenses and other assets | 359,563 | 267,666 | |
| Total current assets | 14,988,331 | 12,227,177 | |
| Property and equipment, net | 538,811 | 431,189 | |
| Goodwill | 9,770,647 | 8,575,881 | |
| Intangibles,net | 1,381,580 | 2,236,563 | |
| Other assets | 75,718 | 110,808 | |
| Total assets | $ 26,755,087 | $ 23,581,618 | |
| Liabilities and stockholders’ equity | |||
| Current liabilities: | |||
| Related party note payable | $ - | $ 2,140,000 | |
| Short term note payable | 102,074 | 97,158 | |
| Accounts payable | 7,120,168 | 2,465,394 | |
| Accrued expenses | 2,304,995 | 2,548,106 | |
| Deferred revenue | 768,504 | 1,667,969 | |
| Short-term portion of long-term debt | 520,855 | 486,707 | |
| Short-term portion of deferred rent | 54,497 | - | |
| Short-term portion of capital lease obligation | 112,576 | 107,141 | |
| Total current liabilities | 10,983,669 | 9,512,475 | |
| Deferred income tax liability | 313,782 | 156,891 | |
| Long-term debt, net of current portion | 604,048 | 1,117,230 | |
| Deferred rent, net of current portion | 7,312 | - | |
| Capital lease obligation, net of current portion | 67,632 | 95,248 | |
| Total liabilities | 11,976,443 | 10,881,844 | |
| Stockholders’ equity: | |||
| Common stock, $0.001 par value; 110,000,000 shares authorized; 61,375,333 and 58,275,514 shares issued and outstanding, respectively | 61,375 | 58,276 | |
| Stock warrants | 24,375 | 38,666 | |
| Additional paid-in capital | 67,874,394 | 67,194,788 | |
| Accumulated deficit | (53,181,500) | (54,591,956) | |
| Total stockholders’ equity | 14,778,644 | 12,699,774 | |
| Total liabilities and stockholders’ equity | $ 26,755,087 | $ 23,581,618 | |
| WIDEPOINT CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations |
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| For the Years Ended
December 31, |
|||
| 2009 | 2008 | ||
| Revenues, net | $ 43,344,053 | $ 35,458,953 | |
| Cost of revenues (including depreciation and amortization of $950,947 and $846,340, respectively) | 33,845,685 | 28,877,994 | |
| Gross profit | 9,498,368 | 6,580,959 | |
| Sales and marketing | 1,145,955 | 901,007 | |
| General and administrative (including stock compensation expense of $146,782 and $563,108, respectively) | 6,456,870 | 6,246,914 | |
| Depreciation expense | 179,413 | 160,565 | |
| Income (loss) from operations | 1,716,130 | (727,527) | |
| Other income (expenses): | |||
| Interest income | 27,690 | 134,531 | |
| Interest expense | (176,424) | (336,638) | |
| Other expense | (49) | (3,927) | |
| Net income (loss) before provision for income taxes | 1,567,347 | (933,561) | |
| Deferred income tax expense | 156,891 | 156,891 | |
| Net income (loss) | $ 1,410,456 | $ (1,090,452) | |
| Basic net income (loss) per share | $ 0.02 | $ (0.02) | |
| Basic weighted-average shares outstanding | 59,419,383 | 56,673,952 | |
| Diluted net income (loss) per share | $ 0.02 | $ (0.02) | |
| Diluted weighted-average shares outstanding | 60,608,984 | 56,673,952 | |
| WIDEPOINT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations |
For the Three Months Ended
December 31, |
|||||
| 2009 | 2008 | |||||
| Revenues, net | 11,437,596 | 10,165,884 | ||||
| Cost of sales | 8,858,906 | 7,802,760 | ||||
| Gross profit | 2,578,690 | 2,363,124 | ||||
| Operating expenses | ||||||
| Sales and marketing | 318,042 | 225,506 | ||||
| General and administrative | 1,632,200 | 1,604,388 | ||||
| Depreciation expense | 48,414 | 43,361 | ||||
| Total operating expenses | 1,998,656 | 1,873,255 | ||||
| Income from operations | 580,034 | 489,869 | ||||
| Other income (expense) | ||||||
| Interest income | 5,403 | 28,758 | ||||
| Interest expense | (30,746) | (74,492) | ||||
| Other expense | - | (2,229) | ||||
| Total other income (expense) | (25,343) | (47,963) | ||||
| Income before income taxes | 554,691 | 441,906 | ||||
| Deferred income tax expense | 39,223 | 156,891 | ||||
| Net income (loss) | 515,468 | 285,015 | ||||
| WIDEPOINT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows |
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| For the Years Ended December 31, | |||
| 2009 | 2008 | ||
| Cash flows from operating activities: | |||
| Net earnings (loss) | $ 1,410,456 | $ (1,090,452) | |
| Adjustments to reconcile net earnings (loss) to net cash provided by operating activities | |||
| Deferred income tax expense | 156,891 | 156,891 | |
| Depreciation expense | 244,980 | 218,052 | |
| Amortization expense | 885,380 | 788,852 | |
| Amortization of deferred financing costs | 9,576 | 8,571 | |
| Share-based compensation expense | 146,782 | 563,108 | |
| Loss on disposal of equipment | 49 | 3,927 | |
| Changes in assets and liabilities, net of business combination – | |||
| Accounts receivable and unbilled accounts receivable | (805,895) | 1,436,910 | |
| Prepaid expenses and other assets | 123,096 | 145,411 | |
| Accounts payable and accrued expenses | 3,802,779 | (1,123,802) | |
| Deferred revenue | (899,465) | 1,571,295 | |
| Net cash provided by operating activities | 5,074,629 | 2,678,763 | |
| Cash flows from investing activities: | |||
| Purchase of asset/subsidiary, net of cash
Acquired |
(171,191) | (5,192,020) | |
| Software development costs | (30,397) | (123,490) | |
| Proceeds from sale of office equipment | — | 250 | |
| Purchases of property and equipment | (258,249) | (96,300) | |
| Net cash used in investing activities | (459,837) | (5,411,560) | |
| Cash flows from financing activities: | |||
| Borrowings on notes payable | 400,737 | 3,800,000 | |
| Principal payments on notes payable | (3,027,334) | (2,315,060) | |
| Principal payments under capital lease obligation | (116,583) | (120,307) | |
| Costs related to renewal fee for line of credit | (12,000) | — | |
| Costs related to financing purchase of subsidiary | — | (13,713) | |
| Proceeds from issuance of stock | — | 4,080,000 | |
| Costs related to issuance of stock | — | (169,088) | |
| Proceeds from exercise of stock options | 3,750 | 14,400 | |
| Net cash (used in) provided by financing activities | (2,751,430) | 5,276,232 | |
| Net increase in cash | 1,863,362 | 2,543,435 | |
| Cash and cash equivalents, beginning of period | 4,375,426 | 1,831,991 | |
| Cash and cash equivalents, ending of period | $ 6,238,788 | $ 4,375,426 | |
| Supplementary cash flow information: | |||
| Cash paid for– | |||
| Interest | $ 321,780 | $ 178,088 | |
| Income taxes | $ — | $ — | |
| Supplementary Disclosure of non-cash Investing and Financing Activities: | |||
| Promissory Note issued for iSYS Acquisition | $ — | $ 2,000,000 | |
| Value of 1.5 million common shares issued as consideration in the acquisition of iSYS | $ — | $ 1,800,000 | |
| Value of 690,510 and 184,817 earnout shares issued as additional consideration in the acquisition of iSYS | $ 517,882 | $ 38,812 | |
| Insurance policies financed by short term notes payable | $ 152,479 | $ 142,657 | |
| Capital leases for acquisition of property and equipment | $ 94,402 | $ 41,473 | |
SOURCE WidePoint Corporation
Ka-ching! Shoppers keep registers humming
By · CommentsHere is an upbeat story about the consumers boosting spending for a 5th straight month. Can this be the start of a slow recovery?
Check out the story on Yahoo here.
Also, don’t forget to give back and check out the list of charities that you can give back to at Brett Maas dot Org.