Revenue Performance - Revenues for the three-month period ended June 30, 2020, were approximately $54.8 million, an increase of approximately $32.7 million (or 148%) compared to $22.1 million in 2019[86] - Revenues for the six-month period ended June 30, 2020, were approximately $94.4 million, an increase of approximately $50.4 million (or 115%) compared to $44.0 million in 2019[99] - Carrier services revenue increased to $44.9 million from $14.0 million, primarily due to the U.S. Department of Commerce contract supporting the 2020 Census[86] Profitability - Gross profit for the three-month period ended June 30, 2020, was approximately $5.1 million (or 9% of revenues), compared to $4.1 million (or 18% of revenues) in 2019[90] - Gross profit for the same period was approximately $10.0 million, or 11% of revenues, down from $8.3 million or 19% in 2019, due to lower margin carrier services[104] - Net income for the three-month period ended June 30, 2020, was approximately $488,600, compared to a net loss of approximately $307,761 in the same period last year[97] - Net income for the six months ended June 30, 2020 was approximately $972,500, a significant increase from $76,300 in the same period last year[109] Expenses and Costs - Cost of revenues for the six months ended June 30, 2020 was approximately $84.4 million, representing 89% of revenues, compared to $35.7 million or 81% in 2019[103] - General and administrative expenses were approximately $7.2 million, or 8% of revenues, up from $6.7 million or 15% in 2019, reflecting increased overhead costs[106] - Depreciation and amortization expense increased to approximately $529,600 from $484,600 in 2019, reflecting a larger depreciable asset base[107] Cash Flow - Cash provided by operating activities was approximately $1.6 million, down from $3.5 million for the same period in 2019, attributed to longer collection times from government customers[114] - Cash used in investing activities was approximately $685,000, primarily for computer hardware and software purchases related to secure identity management technology[116] - Cash used in financing activities was approximately $301,400, reflecting line of credit advances and payments totaling approximately $1.9 million[118] Working Capital and Tax - As of June 30, 2020, net working capital was approximately $6.6 million, an increase from $5.0 million at December 31, 2019, driven by revenue increases[112] - Income tax expense for the six months ended June 30, 2020 was approximately $230,300, with an effective tax rate of 19.1%, compared to 55% in the prior year[108] Strategic Initiatives - The company is pursuing FedRAMP certification for ITMS™ and upgrading secure identity management technology[83] - The company aims to expand its marketplace share and improve sustainability through strategic repositioning and potential acquisitions[82] - The activities supporting the 2020 Census are scheduled to wind down in the fourth quarter of 2020, which will likely reduce carrier service revenue in future periods[99] Operational Changes - The company transitioned to a work-from-home environment for the majority of employees in mid-March 2020[83]
WidePoint(WYY) - 2020 Q2 - Quarterly Report