WidePoint Corporation (WYY) saw its loss narrow to $0.15 million in the quarter ended compared with $1.76 million, a year ago.
Revenue during the quarter surged 30.13 percent to $22.11 million from $16.99 million in the previous year period. Gross margin for the quarter contracted 10 basis points over the previous year period to 18.26 percent. Operating margin for the quarter stood at negative 0.57 percent as compared to a negative 9.60 percent for the previous year period.
Operating loss for the quarter was $0.13 million, compared with an operating loss of $1.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.34 million compared to negative $1.10 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 1.54 percent for the quarter compared to negative 6.45 percent in the last year period.
"Our third quarter's financial results were satisfyingly strong. We grew our top line by 30% year over year and we were operationally profitable on an Adjusted EBITDA basis," stated Steve L. Komar, WidePoint's chief executive officer. "We remain confident that we will continue to make progress with our financial model, and we are particularly excited by the opportunities we see for our identity management solutions and our telecom lifecycle management solutions in both the Federal and Commercial market spaces. We continue to be optimistically excited about the direction that our partnership with AT&T is leading us, especially given their focused thrust into the Internet of Things (IoT). Coupling this opportunity with the continued positive progress we are making with the United States Coast Guard (USCG), leads us to believe that 2017 should continue to demonstrate even more positive financial improvements, and leveraging and scaling within our business model."
Working capital declines
WidePoint Corporation has witnessed a decline in the working capital over the last year. It stood at $7 million as at Sep. 30, 2016, down 22.06 percent or $1.98 million from $8.98 million on Sep. 30, 2015. Current ratio was at 1.39 as on Sep. 30, 2016, down from 1.50 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 42 days for the last year period. Days sales outstanding went down to 75 days for the quarter compared with 91 days for the same period last year.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 45 days for the quarter from 50 for the same period last year.
Debt comes down significantly
WidePoint Corporation has recorded a decline in total debt over the last one year. It stood at $0.84 million as on Sep. 30, 2016, down 76.95 percent or $2.82 million from $3.66 million on Sep. 30, 2015. Total debt was 1.71 percent of total assets as on Sep. 30, 2016, compared with 6.97 percent on Sep. 30, 2015. Debt to equity ratio was at 0.03 as on Sep. 30, 2016, down from 0.11 as on Sep. 30, 2015.
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