Widepoint Corporation (WYY) saw its loss widen to $2.43 million, or $0.03 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.14 million, or $0.01 a share.
Revenue during the quarter went down marginally by 2.44 percent to $18.26 million from $18.71 million in the previous year period. Gross margin for the quarter contracted 411 basis points over the previous year period to 13.18 percent. Operating margin for the quarter stood at negative 13.80 percent as compared to a negative 7.13 percent for the previous year period.
Operating loss for the quarter was $2.52 million, compared with an operating loss of $1.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.74 million compared to negative $0.88 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 9.56 percent for the quarter compared to negative 4.71 percent in the last year period.
"Over the past three months, I've conducted a strategic review of our business to gain a deep understanding of our products and services, our employees and management, our clients and partners. I see a lot of opportunities ahead for WidePoint," stated Jeffrey O. Nyweide, WidePoint's chief executive officer and president. "As a company, we are committed to capitalizing on our foundation of core expertise and innovation to pursue high growth opportunities in both mobile telecommunications and cybersecurity. Throughout 2017, we will continue to streamline and consolidate our infrastructure to support an organization that can scale both revenues and profitability."
Working capital drops significantly
Widepoint Corporation has witnessed a decline in the working capital over the last year. It stood at $4.98 million as at Dec. 31, 2016, down 37.91 percent or $3.04 million from $8.03 million on Dec. 31, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, down from 1.46 on Dec. 31, 2015.
Debt comes down significantly
Widepoint Corporation has recorded a decline in total debt over the last one year. It stood at $0.64 million as on Dec. 31, 2016, down 57.09 percent or $0.86 million from $1.50 million on Dec. 31, 2015. Total debt was 1.36 percent of total assets as on Dec. 31, 2016, compared with 2.95 percent on Dec. 31, 2015. Debt to equity ratio was at 0.02 as on Dec. 31, 2016, down from 0.05 as on Dec. 31, 2015.
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