John Kolb. Overview Current price: $0.83 52 week range: $0.15- 0.99 Market cap: 60.7M Sector: information technology Debt ratio 17.13% Current ratio 1.29.
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Presentation on theme: "John Kolb. Overview Current price: $0.83 52 week range: $0.15- 0.99 Market cap: 60.7M Sector: information technology Debt ratio 17.13% Current ratio 1.29."— Presentation transcript:
Overview Current price: $0.83 52 week range: $0.15- 0.99 Market cap: 60.7M Sector: information technology Debt ratio 17.13% Current ratio 1.29
Overview WidePoint is the leading provider of certificate-based security solutions and mobile telecom expense management systems to the federal government. Provides reoccurring revenue products targeting unexploited multi-billion dollar markets.
Overview WidePoint intends to continue significantly expanding its revenue base by growing, acquiring and cross-marketing emerging but proven public-sector technologies that have a high probability of wide scale adoption in the commercial sector. WYY maintains numerous contract vehicles, major government certifications, key IT partnerships and a top secret security clearance http://www.hawkassociates.com/clients/profile/?client_id=1 7
Recent News Q3 2009 net income of $515,000 vs. net loss of $335,000 last year Revenue growth of 28% YOY Increase gross margin 24% vs. 17% YOY WidePoint Corporation Subsidiary iSYS Awarded New Order For U.S. Courts System WidePoint Corporation Announces First Contract Award From DEA WidePoint Corporation Subsidiary iSYS Announces $10 Million In Contract Expansions And Renewals
Management outlook Expect double digit growth in all three operating segments Fourth consecutive quarter of net income and three quarters of EPS growth for next quarter Opportunities within Mobile Telecom Managed Services continues to look promising in the federal sector Pleased to see development at the state and local municipal market Expect the programs and our affiliations with our partners to further support and widen our sales reach and long-term growth.
Management outlook Telecom Managed Services segment was up 28% on revenue of nearly $6.8 million for the quarter. The PKI Credentialing and Managed Services segment recorded a 34% revenue increase to almost $1.6 million Consulting Services segment was up 26% to $3.0 million for the quarter This was the result of both new contract awards and renewals along with expansion work.
Growth From 2004-2008 Revenue growth of 540% Protexx WidePoint acquired Protexx in August 2008 This includes their flagship 2048 bit encryption software, which is believed to be impenetrable by hackers. WYY expects double digit growth for their future outlook
Strengths Top secret security clearance Reoccurring revenue products Recession proof Strong relationship with customers
Weaknesses High stock volatility due small market cap Little diversification of clients Cash flows No analyst coverage
Opportunities Business Segment ORC estimates 3 million subscribers in its mature life stage and figures a $300 million annual reoccurring market. Expansion in municipal state and local markets Plans to expand its footprint through partnerships or acquisitions by offering unique products that relate to its current portfolio
Threats Integration of future acquisitions Highly competitive market Ability to secure government contracts Top three customers account for 26%, 20%, and 14% of revenue Contracts terminable at will
Risks Top three customers account for 26%, 20%, and 14% of revenue Transportation Security Administration U.S. Department of Homeland Security U.S. Department of Defense Our contracts with the U.S. Government, and many contracts with other entities, permit the government client to modify, curtailor terminate the contract at any time for the convenience of the government, or for default by the contractor.
Target Price Current $2.2 5 year $3.03 (7% Growth)
Reasons to invest WYY is a young company with a bright future ahead. They are continuing to grow their market share with the federal, state and local governments and expect double digit growth in the near future WYY is also focusing on reaching out into commercial markets with its consulting business The reward outweighs the risk involved with a small cap stock Company is beginning to be profitable and has low debt levels