3SOF

Notice volume for last trading day something is about to happen. This is last major news release beside Quarterly report

Press Release Source: Operational Research Consultants, Inc.

GSA Awards First E-Authentication BPA to Operational Research Consultants, Inc.
Monday January 9, 10:43 am ET  
Award Includes PKI and HSPD-12 Compliant Products and Services

FAIRFAX, Va., Jan. 9 /PRNewswire-FirstCall/ -- WidePoint Corporation's (OTC Bulletin Board: WDPT - News) wholly-owned subsidiary Operational Research Consultants, Inc. (ORC), the leading provider of federal public key infrastructure (PKI) and credential managed services, announced today that it has been awarded a Blanket Purchase Agreement (BPA) with a ceiling of $100 million by the General Services Administration (GSA). Under the BPA, ORC will provide digital certificates, credentialing services, managed PKI services and Homeland Security Presidential Directive (HSPD-12) compliant products and services.

As the first Access Certificates for Electronic Services (ACES) BPA issued under the GSA Information Technology (IT) Schedule 70 E-Authentication category (SIN 132-60), this BPA provides for authentication products and services for purposes of physical and logical access controls, electronic signature, performance of e-business transactions, and delivery of Government services.

As a GSA Shared Service Provider (SSP) with an Authority To Operate (ATO), ORC's award was based on achieving rigorous qualifications including security certification and accreditation (C&A), cross certification with the Federal Bridge Certification Authority (FBCA) and the ability to provide robust PKI services. ORC operates a government-compliant authentication-based system for electronic communications between the government and members of the general public at Assurance Levels 1 through 4. This BPA augments ORC's unique expertise as the first federal provider of Personal Identity Verification (PIV)-ready solutions.

Under the terms of the BPA, ORC's ACES certificates are intended for use by the Federal government, state and local units of government, Native American tribal units, educational institutions, and non-government entities, including the general public and commercial business entities.

Steve Komar, CEO of WidePoint, said, "This BPA will save the federal government significant time, resources and expenses in acquiring PKI and credentialing solutions as mandated under HSPD-12. ORC has almost 15 years of experience in designing, developing and implementing information assurance solutions for the federal government. This BPA award confirms the company's reputation as an elite provider of a wide range of information assurance solutions from HSPD-12 planning and integration to managed credentialing services. We look forward to delivering the means necessary for federal agencies to meet the 2006 PIV-II deadline."

About WidePoint

News that was not posted.
Seem to have lost track of the stock.




Press Release Source: WidePoint Corporation

WidePoint Year-End Revenue up 139% to $13.2M; Company Cites Significant Balance Sheet Improvements, Files for Amex Listing.......
Monday April 3, 9:40 am ET


WASHINGTON, DC--(MARKET WIRE)--Apr 3, 2006 -- WidePoint Corporation (OTC BB:WDPT.OB - News), a technology-based provider of products and services to the government sector and commercial markets, announced today that revenue for the fiscal year ended Dec. 31, 2005 rose 139% to approximately $13.2 million.


The company also reported a significant improvement in year-to-year operating results, reflected in an approximate improvement of $1.1 million in earnings before interest, taxes, depreciation, amortization and non-recurring non-cash expenses associated with our Chesapeake and financial instruments entries (EBITDA), versus our calendar year 2004, with the full-year 2005 EBITDA loss totaling approximately $12,000. Reported net loss for the 2005 year included non-recurring non-cash charges of approximately $5.4 million from the recognition of warrants issued in connection with a preferred stock financing, and approximately $1.9 million of non-recurring non-cash charges resulting from the release of performance-based charges in common stock issued to the former shareholders of Chesapeake Government Technologies, Inc. These non-recurring non-cash charges totaling approximately $7.3 million should have no effect on future financial statements. Primarily as a result of these items, the company reported a net loss for the year ending December 31, 2005 of approximately $7.4 million, or ($0.30) per share, compared with a net loss of approximately $4.3 million, or ($0.26) per share, for the year ending December 31, 2004.

For the fourth quarter ended Dec. 31, 2005, the company reported revenue of approximately $4.0 million, a gain of 31% over the $3.1 million in revenue reported during the fourth quarter of 2004. The company also reported a net loss of approximately $7.1 million, or ($0.27) per share, compared with a net loss of approximately $3.5 million, or ($0.20) per share, during the fourth quarter of 2004.

The company further announced that it has filed an application to list its common stock securities on the American Stock Exchange in conjunction with the company's filing of its Form 10-K for the year ended December 31, 2005.

WidePoint CEO Steve Komar said, "2005 was an important repositioning and building year for WidePoint. Several key accomplishments will enable us to leverage our accelerating year-to-year growth into substantially improved financial results in 2006. We have expanded our sales and marketing efforts in order to further boost revenue in 2006, and are negotiating strategic alliances to expand our distribution channels. We invested in product enhancements to maintain our competitive advantage. We have stabilized our financial position and improved our liquidity. We now have an excellent business opportunity to provide solutions that will satisfy wide-reaching government mandates for eAuthentication and Public Key Infrastructure (PKI) identity management initiatives in the federal marketplace associated with the Homeland Security Presidential Directive 12. We believe these events and trends will be increasingly recognized as a result of our proposed listing on the American Stock Exchange."

Jim McCubbin, CFO of WidePoint, said, "The sharp revenue increase in 2005 revenue reflected the acquisition of Operational Research Consultants (ORC), corresponding growth of ORC's eAuthentication and PKI services and improvements in our commercial operations. Also important were the improvements in our balance sheet. We resolved several non-recurring expenses that would otherwise have followed us into future periods. We completed capital investments in our PKI services and increased our asset base to approximately $10.6 million while managing the business around a neutral EBITDA level for the year.

"As a result of the conversion of a significant number of our warrants, our cash position increased significantly by more than $3.6 million for the year, and we paid down all of our approximately $1.6 million in short-term borrowings from the beginning of the year," McCubbin said. "With the completion of these milestones in 2005, we are positioned to financially support the execution phase of our business model for 2006."

A copy of the company's Annual Report filed on Form 10-K with the Securities and Exchange Commission for the year ended December 31, 2005 can be found at http://www.widepoint.com/who/investor_info.asp.

The company will hold a conference call at 4:15 p.m. EDT, Tuesday, April 4 to discuss the 2005 financial results and the company's future activities. To participate, call (913) 981-5543 any time after 4:05 p.m. EDT on April 4. A webcast of the call will be available at http://hawkassociates.com/widepoint/company.htm.

About WidePoint Corporation

WidePoint is a technology-based provider of products and services to the government sector and commercial markets. WidePoint specializes in providing systems engineering, integration and information technology services. WidePoint's wholly owned subsidiary, ORC is at the forefront of implementing government compliant eAuthentication identity management managed services and associated systems engineering/integration. ORC has earned four major U.S. federal government certifications offering the highest levels of assurance for transactions over the Internet and has been awarded the first Basic Purchasing Agreement (BPA) under the newly created Authentication category established under the General Services Administration's (GSA) Information Technology Professional Services FSC Group 70 contract. This BPA, awarded by GSA with a $100 million ceiling, enables all federal, state and local governments to procure ORC's identity management solutions.

WidePoint's profile of customers encompasses U.S. federal government agencies, including the Department of Defense, the Department of Homeland Security and the Department of Justice as well as major transnational corporations such as SAIC and Northrup Grumman as well as several major pharmaceutical companies. For more information, visit http://www.widepoint.com.

An investment profile about WidePoint may be found at http://www.hawkassociates.com/widepoint/profile.htm.

For investor relations information regarding WidePoint, contact Frank Hawkins or Cale Smith, Hawk Associates, at (305) 451-1888, e-mail: [email protected]. An online investor relations kit including copies of WidePoint press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.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; and (iv) the declaration and payment of dividends. 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.



Contact:
     Contact Information
     Hawk Associates, Inc.
     Frank N. Hawkins, Jr. or Julie Marshall
     Phone: (305) 451-1888
     E-mail: Email Contact
     http://www.hawkassociates.com
     http://www.americanmicrocaps.com
     
     WidePoint Corporation
     One Lincoln Centre
     18 W 140 Butterfield Rd.
     Suite 1100
     Oakbrook Terrace, IL 60181
     (630) 629-0003 Phone
     (630) 629-7559 Fax
     http://www.widepoint.com
     


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Source: WidePoint Corporation

If you spend a few minutes on WDPT, you'd realize that they are at the center of a hardware security focus for the largest enterprise in the world, the US Government.
The fundamentals sound pretty good.

Volume: 1,294,056
Avg Vol (3m): 282,617

Technicals
Close Above the 13-day EMA
Percentage Gainer

Last Price Quote is:
3.60%above 13-day EMA
6.00%above 50-day EMA

Hi setravis
Forgot about this one since it was first posted. It looks like it might be testing the ascending triangle soon for a possible breakout. I'm putting this on my watchlist. Thanks for the update
Goodluck trading

JMHO, looks like she is ready to pop!

Volume: 2,011,498
Avg Vol (3m): 283,595

Technicals
Last Price Quote is:
3.60%above 13-day EMA
6.00%above 50-day EM

Form 10-Q for WIDEPOINT CORP


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15-May-2006

Quarterly Report



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion and analysis of the financial condition and results of operations of the Company should be read in conjunction with the financial statements and the notes thereto which appear elsewhere in this quarterly report and the Company's Annual Report on Form 10-K for the year ended December 31, 2005.

The information set forth below includes forward-looking statements. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth below. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

WidePoint Corporation ("WidePoint" or the "Company") is a technology-based provider of product and services to both the government sector and commercial markets. We specialize in providing systems engineering, information technology services and information assurance in the form of identity management services. Our subsidiary, Operational Research Consultants, Inc. ("ORC"), is the leading provider of E-Authentication federal credentialing and federal compliant Public Key Infrastructure ("PKI") managed services to the federal government. We intend to grow over the next few years through a combination of organic growth, the acquiring of selective strategic assets and by operational efficiencies among our subsidiaries.

On October 25, 2004, we completed the acquisition of ORC. ORC specializes in IT integration and secure authentication processes and software, and providing services to the United States Government. ORC has been at the forefront of implementing Public Key Infrastructure (OPKIO) technologies. PKI technology is rapidly becoming the technology of choice to enable security services within and between different computer systems utilized by various agencies and departments of the U.S. Government. Based on asymmetric key cryptography, PKI technology uses a class of algorithms in which a user can receive two electronic keys, consisting of a public key and a private key, to encrypt any information and/or communication being transmitted to or from the user within a computer network and between different computer networks. The user provides his or her public key to any and all desired persons or entities. The user does not share the private key with anyone else. The public key will encrypt all information and/or communication from any sender and the private key will allow only the holder of the private key to unlock and decrypt such information and/or communication. Thus, the algorithms used in PKI technologies help to achieve authentication of users and information, integrity of all data and communications, non-repudiation or rejection of data and communications, and support confidentiality of data and communications. PKI also speeds up and simplifies the delivery of products and services by providing electronic approaches to processes that historically have been paper based. These electronic solutions depend on PKI for identification and authentication; data integrity; confidentiality of information and transactions; and non-repudiation to facilitate mission-related and transactions internal to an organization and with external organizations. ORC is currently the only fully-approved entity that has been designated by the United States Government as fully compliant to issue certificates as an External Certificate Authority for the U.S. Government. As such, ORC is authorized to issue all permissible certificate types and services in accordance with Defense Information Systems Agency and National Security Agency standards, necessary for the interoperable, secure exchange of information between U.S. Governmental agencies, contractors, and international allies such as members of NATO.

With the addition of the customer base and the increase in revenues attributable from the ORC acquisition, WidePoint's opportunity to leverage and expand further into the federal marketplace has improved dramatically. ORC's past client successes, top security clearances in their facilities and with their personnel, and additional breadth of management talent have expanded the Company's reach into markets that previously were not accessible to WidePoint. WidePoint intends to continue to leverage the synergies between the newly acquired operating subsidiaries and cross sell those technical capabilities into each separate marketplace serviced by its respective subsidiaries. Further, WidePoint is continuing to actively search out new synergistic acquisitions that we believe will further enhance the present base of business, which has been augmented by our recent acquisitions and internal growth initiatives.



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As a result of these actions WidePoint's total revenues increased by approximately $14,000 from $2.67 million for the period ending March 31, 2005 to $2.68 million for the period ending March 31, 2006. Our PKI credentialing and managed services segment experienced revenue growth of approximately 262% with revenues increasing approximately $138,000 from $85,000 for the period ending March 31, 2005, to $223,000 for the period ending March 31, 2006 as a result of continuing early adoption of the Federal Governments mandate under the Homeland Security Directive No. 12 ("HSPD-12"). We issued 1,733 certificates for the period ended March 31, 2006 as compared to 783 certificates for the period ended March 31, 2005. Our consulting services segment experienced declining revenues of approximately $123,000 from $2,584,000 for the period ending March 31, 2005 as compared to $2,461,000 for the period ending March 31, 2006 as a result of delays in awards and renewals of several contracts, which we expect to enter into during the second and third quarters of 2006.
A number of factors, including the progress of contracts, revenues earned on contracts, the number of billable days in a quarter, the timing of the pass-through of other direct costs, the commencement and completion of contracts during any particular quarter, the schedule of the government agencies for awarding contracts, the term of each contract that we have been awarded and general economic conditions may subject our revenues and operating results to significant variation from quarter to quarter. Because a significant portion of our expenses, such as personnel and facilities costs, are fixed in the short term, successful contract performance and variation in the volume of activity as well as in the number of contracts commenced or completed during any quarter may cause significant variations in operating results from quarter to quarter.

With our recent acquisition of ORC we rely upon a larger portion of our revenues from the Federal Government directly or as a subcontractor. The Federal Government's fiscal year ends September 30. If a budget for the next fiscal year has not been approved by that date, our clients may have to suspend engagements that we are working on until a budget has been approved. Such suspensions may cause us to realize lower revenues in the fourth quarter and/or first quarter of the year. Further, a change in presidential administrations and in senior government officials may negatively affect the rate at which the Federal Government purchases and implements the services that we offer.

As a result of the factors above, period-to-period comparisons of our revenues and operating results may not be meaningful. You should not rely on these comparisons as indicators of future performance as no assurances can be given that quarterly results will not fluctuate, causing a possible material adverse effect on our operating results and financial condition.

In addition, most of WidePoint's current costs consist primarily of the salaries and benefits paid to WidePoint's technical, marketing and administrative personnel. As a result of our plan to expand WidePoint's operations through a combination of internal growth initiatives and merger and acquisition opportunities, WidePoint expects such costs to increase. WidePoint's profitability also depends upon both the volume of services performed and the Company's ability to manage costs. As a significant portion of the Company's cost is labor related, WidePoint must effectively manage these costs to achieve and grow its profitability. To date, the Company has attempted to maximize its operating margins through efficiencies achieved by the use of its proprietary methodologies, and by offsetting increases in consultant salaries with increases in consultant fees received from its clients. The uncertainties relating to the ability to achieve and maintain profitability, obtain additional funding to partially fund the Company's growth strategy and provide the necessary investment to continue to upgrade its management reporting systems to meet the continuing demands of the present regulatory changes affect the comparability of the information reflected in the financial information presented above.

Results of Operations

Three Months Ended March 31, 2006 as Compared to Three Months Ended March 31, 2005

Revenue. Revenue for the three month period ended March 31, 2006 was approximately $2,684,000 as compared to approximately $2,670,000 for the three month period ended March 31, 2005. The increase in revenue was primarily attributable to an increase in our Public Key Infrastructure ("PKI") credentialing and managed services segment, which was partially offset by a slight decline in our consulting services segment as a result of delays in the award and renewal of several contracts which the Company anticipates to occur during the second and third quarters of 2006. Our PKI credentialing and managed services segment experienced revenue growth of approximately 262% with revenues increasing approximately $138,000 from $85,000 for the period ending March 31, 2005 to $223,000 for the period ending March 31, 2006 as a result of continuing early adoption of the federal government's mandate under the Homeland Security Directive No. 12 ("HSPD-12"). Our consulting services segment experienced declining revenues of approximately $123,000 from $2,584,000 for the period ending March 31, 2005 as compared to $2,461,000 for the period ending March 31, 2006 as a result of delays in awards and renewals of several contracts, which we expect to enter into during the second quarter of 2006.



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Cost of sales. Cost of sales for the three month period ended March 31, 2006, was approximately $1,967,000, or 73% of revenues, a decrease of approximately $306,000 from cost of sales of approximately $2,273,000, or 85% of revenues, for the three month period ended March 31, 2005. The decrease in cost of sales was primarily attributable to the compensation expense of approximately $370,000 from the earnout of 544,397 escrowed shares for the three month period ending March 31, 2005 that did not recur during the three month period ending March 31, 2006.
Gross profit. As a result of the above, gross profit for the three month period ended March 31, 2006, was approximately $717,000, or 27% of revenues, an increase of approximately $320,000 over gross profit of approximately $397,000, or 15% of revenues, for the three month period ended March 31, 2005.

Sales and marketing. Sales and marketing expense for the three month period ended March 31, 2006, was approximately $204,000, or 8% of revenues, an increase of approximately $28,000, as compared to approximately $176,000, or 7% of revenues, for the three month period ended March 31, 2005. The increase was materially attributable to increased sales and marketing expenses which we initiated during the three month period ending March 31, 2005 to expand our sales efforts associated with our PKI credentialing and managed services offerings and to expand our sales staff.

General and administrative. General and administrative expenses for the three month period ended March 31, 2006, were approximately $780,000, or 29% of revenues, an increase of approximately $52,000, as compared to approximately $728,000, or 27% of revenues, incurred by the Company for the three month period ended March 31, 2005. The increase in general and administrative expenses for the three months ended March 31, 2005, was primarily attributable to our adoption of FAS 123R and the effect of recognizing approximately $61,000 in stock option expense.

Depreciation. Depreciation expense for the three month period ended March 31, 2006, was approximately $7,000, or less than 1% of revenues, an increase of approximately $800, as compared to approximately $6,200 of such expenses, or less than 1% of revenues, recorded by the Company for the three month period ended March 31, 2005. The increase in depreciation expense for the three month period ended March 31, 2006, was primarily attributable to greater amounts of depreciable assets.

Interest income. Interest income for the three month period ended March 31, 2006, was $18,349, or less than 1% of revenues, an increase of $17,579 as compared to $770, or less than 1% of revenues, for the three month period ended March 31, 2005. The increase in interest income for the three month period ended March 31, 2005, was primarily attributable to greater amounts of cash and cash equivalents along with higher short-term interest rates that were available to the Company on investments in money market accounts.

Interest expense. Interest expense for the three month period ended March 31, 2006, was $1,596, or less than 1% of revenues, a decrease of $51,187 as compared to $52,783, or 2% of revenues, for the three month period ended March 31, 2005. The decrease in interest expense for the three month period ended March 31, 2006 was primarily attributable to WidePoint's decrease in interest expense associated with its recent secured senior lending facility with RBC-Centura which was utilized in association with the purchase of ORC.

Gain on Financial instrument. There was no gain on financial instrument for the three month period ended March 31, 2006 as a result of the elimination of the financial instrument when all of the Barron warrants were exercised in December of 2005. The gain from financial instrument for the three month period ended March 31, 2005, was approximately $996,000. The gain on financial instrument represents the decrease during the three months ended March 31, 2005 in the estimated fair value of the warrants issued to Barron Partners, L. P. in connection with the preferred stock financing. The estimated fair value of the warrants decreased principally because the estimated volatility of the Company's stock declined. This decline in turn resulted from the relatively narrow trading range of the Company's stock in the quarter as compared to past history. A less volatile stock provides a lower probability that the warrant holder will be able to eventually realize a gain on exercise. The effect of the decreased estimated volatility was partially offset by the increase in the value of the Company stock underlying the warrants, as well as the increased market interest rates during the quarter, which have an upward effect on the warrant value.



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Other. There was no other income for the three month period ended March 31, 2006. Other income for the three month period ended March 31, 2005, was $2,150, or less than 1% of revenues. Other income was primarily attributable to finder's fees.
Net loss. As a result of the above, the net loss for the three month period ended March 31, 2006, was approximately $258,000 as compared to the net income of approximately $433,000 for the three months ended March 31, 2005.

The following table sets forth selected segment and consolidated operating results and other operating data for the periods indicated. Segment operating income consists of the revenues generated by a segment, less the direct costs of revenue and selling, general and administrative costs that are incurred directly by the segment. Unallocated corporate costs include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment.


                                                                     Three Months Ended
                                                                          March 31,
                                                               -------------------------------
                                                                    2006            2005
                                                               --------------- ---------------
Consulting services:
Revenues                                                       $ 2,461,010     $ 2,584,418
Operating income                                                    29,940         151,083
Total assets                                                     2,787,582       2,779,229
PKI Credentialing and Managed Services
Revenues                                                       $   222,896     $    85,114
Operating loss (includes amortization expense of $45,838,
and $14,550, respectively)                                          34,179          20,922
Total assets                                                     1,077,253         713,051
Certificates issued                                                  1,733             783
Total Company
Revenues                                                       $ 2,683,906     $ 2,669,532
Operating loss                                                     267,957 (1)     507,269 (2)
Depreciation expense                                                 6,976           6,170
Interest income (expense), net                                      16,753         (52,013 )
Gain from financial instruments                                         --         996,263
Other income                                                            --           2,150
Net (loss) income                                              $  (258,180 )   $   432,961
Total Corporate assets                                         $ 5,312,197     $ 4,060,572




(1) Includes $55,270 in amortization expense in cost of sales associated with the purchase of ORC, which is not allocated among the segments and includes $208,448 in unallocated corporate costs in general and administrative expense.

(2) Includes $370,190 in compensation expense in cost of sales associated with the Chesapeake acquisition, which is not allocated among the segments, includes $55,270 in amortization expense in cost of sales associated with the purchase of ORC, which is not allocated among the segments and includes $211,970 in unallocated corporate costs in general and administrative expense.



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Liquidity and Capital Resources
The Company has, since inception, financed its operations and capital expenditures through the sale of preferred and common stock, seller notes, convertible notes, convertible exchangeable debentures, senior secured loans and the proceeds from the exercise of the warrants related to a convertible exchangeable debenture. During 2005 and through the quarter ended March 31, 2006, operations were materially financed with working capital, senior debt and the proceeds from a convertible preferred stock issuance.

Cash used in operating activities for the quarter ended March 31, 2006, was approximately $324,500 as compared to cash provided by operating activities of approximately $169,600 for the quarter ended March 31, 2005. The decrease in cash balances available for operating activities for the quarter ended March 31, 2005, was primarily a result of a reduction in accounts payable as we paid professional fees, broker dealer commissions, and consulting fees associated with our Form S-1 filing, financial restatements, and warrant exercises. Capital expenditures in property and equipment were approximately $11,000 for the quarter ended March 31, 2006, as compared to capital expenditures in property and equipment of approximately $1,000 for the quarter ended March 31, 2005.

As of March 31, 2006, the Company had a net working capital of approximately $2.9 million. WidePoint's primary source of liquidity consists of approximately $1.9 million in cash and cash equivalents and approximately $2.6 million of accounts receivable. The decrease in accounts receivable was primarily the result of the Company's seasonally reduced revenues billed in the quarter ending December 31, 2005 as compared to quarter ending March 31, 2006 and improvements in our collection times. Current liabilities include approximately $1.5 million in accounts payable and accrued expenses. The material decrease in liabilities is predominately the result of the payment of several non-recurring fees and commissions associated with the Company's Form S-1 filing, financial restatements, and warrant exercises which occurred in 2005 and the elimination of the financial instrument as of December 31, 2005.

The Company's business environment is characterized by rapid technological change, experiences times of high growth and contraction and is influenced by material events such as mergers and acquisitions that can substantially change the Company's outlook.

Since 2002, WidePoint has embarked upon several new initiatives to counter the current negative environment within our industry and expand our capacity to restore revenue growth. The Company requires substantial working capital to fund the future growth of its business, particularly to finance accounts receivable, sales and marketing efforts, and capital expenditures.

There are currently no commitments for capital expenditures. Future capital requirements will depend on many factors, including the rate of revenue growth, if any, the timing and extent of spending for new product and service development, technological changes and market acceptance of the Company's services.

On October 25 and 29, 2004, WidePoint completed financings with Barron Partners L.P. ("Barron"), a private equity fund that engages in investing primarily in private investments in publicly traded entities, for an aggregate amount of $3,580,000, under a preferred stock purchase agreement and related agreements. Net proceeds from the financing after costs and expenses, including fees of finders and agents, were approximately $3,030,000. WidePoint issued an aggregate of 2,045,714 shares of its Series A Convertible Preferred Stock that are convertible into an aggregate of 20,457,143 shares of its Common Stock at a conversion rate equal to $0.175 per share. In addition, WidePoint issued to Barron a warrant to purchase up to an additional 10,228,571 shares of its Common Stock at an exercise price of $0.40 per common share. The shares of Common Stock which may be acquired by Barron upon its conversion of its Series A Convertible Preferred Stock and/or the exercise of its warrant are subject to contractual restrictions which restrict the ability of Barron and its affiliates to acquire shares of Common Stock which equal no more than 4.99% of the outstanding shares of WidePoint's Common Stock at any time. This contractual restriction may be removed upon 61 days notice to WidePoint from Barron, but in the event Barron elects to remove this restriction, then Barron and its affiliates agreed that Barron and its affiliates can only vote the shares of Common Stock held by Barron and its affiliates which result in Barron and its affiliates having no more than 22% of the total voting power of all outstanding shares of WidePoint's Common Stock at any time. As a result of the Barron financing transaction, WidePoint issued warrants to Westcap Securities, Inc., a registered broker-dealer and WidePoint's placement agent in such transaction, to purchase 511,428 shares of Common Stock at an exercise price of $0.40 per share, which warrants expire in October 2009.



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Pursuant to the registration rights agreement, between Barron and WidePoint, related to the stock issuances described in the preceding paragraph, WidePoint filed a registration statement on January 5, 2005, covering the resale of the shares of Common Stock issuable upon conversion and/or exercise of the Series A Convertible Preferred Stock and the warrants issued to Barron. Under the agreement, if the registration statement was not declared effective by April 23, 2005 and thereafter kept effective through October 20, 2007, subject to permissible blackout periods and registration maintenance periods, then WidePoint would be required to pay Barron a maximum penalty of up to $20,000 for each month the registration statement was not effective. Barron waived this penalty provision through February 9, 2006, when the registration statement was declared effective by the SEC.
WidePoint believes that its current cash position is sufficient to meet capital expenditure and working capital requirements for the near term. However, the growth and technological change of the market make it difficult to predict future liquidity requirements with certainty. Over the longer term, the Company must successfully execute its plans to increase revenue and income streams that will generate significant positive cash flows if it is to sustain adequate liquidity without impairing growth or requiring the infusion of additional funds from external sources. Additionally, a major expansion, such as occurred with the acquisition of ORC or any other major new subsidiaries, might require external financing that could include additional debt or equity capital. The Company obtained a one year senior line of credit from RBC-Centura Bank in October 2004 for up to $2.5 million dollars, collateralized against accounts receivables, that also allows for the expansion of this line of credit up to $5.0 million upon the successful completion of an additional acquisition. No borrowings under the line of credit were outstanding at March 31, 2006. The interest rate on the line of credit is variable, and is based upon the prime lending rate. Our failure to comply with the restrictive covenants under our revolving credit facility could result in an event of default, which, if not cured, amended, or waived, could result in us being required to repay these borrowings before their due date. To date any covenants with which we have not been compliant have either been amended or waived or we have been allowed to continue to utilize the line of credit. At March 31, 2006,2005 we currently are not in compliance with two of our covenants, which includes our EBITDA to debt ratio covenant and our net income covenant. RBC-Centura has extended our line of credit until June 1, 2006 and continues to let us draw from this line. Presently we have no borrowings under our line of credit but if we were to effect borrowings and were forced to refinance these borrowings on less favorable terms, our results of operations and financial condition could be adversely affected by increased cost and rate. In addition, the Company raised approximately $3.6 million dollars in connection with the aforementioned equity investments by Barron Partners, LP, that were used in the acquisition of ORC. Further, the Company raised approximately $4.1 million dollars in connection with the attached warrants associated with the aforementioned equity investments by Barron Partners, LP during the year ended 2005. There can be no assurance that additional financing, if required, will be available on acceptable terms, if at all, for future acquisitions and/or growth initiatives.

Off-Balance Sheet Arrangements

The Company has no existing off-balance sheet arrangements as defined under SEC regulations.

Changed Ticker Symbol...

WDPT.OB is no longer valid. It has changed to "WYY"

This stock now trades on the AMEX....... 



Yesterday's closing chart.......

Press Release Source: WidePoint Corporation


WidePoint's ORC Subsidiary Joins Lockheed Martin-Led TWIC Team
Friday November 9, 8:30 am ET


ORC Will Provide Certificate Manufacturing and Management Services for TSA's Transportation Worker Identification Credential (TWIC) Program


FAIRFAX, VA--(MARKET WIRE)--Nov 9, 2007 -- Operational Research Consultants, Inc. (ORC), a wholly owned subsidiary of WidePoint Corporation (AMEX:WYY - News), today announced that it will support Lockheed Martin on the Transportation Security Administration (TSA)'s Transportation Worker Identification Credential (TWIC) program. To further secure the nation's transportation system, the TWIC program involves the rapid, nationwide deployment of biometric identification credentials to maritime workers.


The TWIC credential will enhance port security by requiring all workers with unescorted access to secure areas of vessels and maritime facilities to complete a security threat assessment successfully and carry a biometric credential.

"ORC is pleased that Lockheed Martin has selected ORC to support this very important initiative," said Daniel E. Turissini, CEO of ORC. "We're proud that our PIVotal ID© technology will serve such an integral task in securing our country's critical transportation infrastructure."

About WidePoint

WidePoint is a technology-based provider of products and services to the government sector and commercial markets. WidePoint specializes in providing systems engineering, integration and information technology services. WidePoint's wholly owned subsidiary, ORC, is at the forefront of implementing government-compliant eAuthentication identity management managed services and associated systems engineering/integration. ORC has earned four major U.S. federal government certifications offering the highest levels of assurance for transactions over the Internet.

WidePoint's profile of customers encompasses U.S. Federal Government agencies, including the Department of Defense, the Department of Homeland Security and the Department of Justice as well as major U.S. defense contractors and several major pharmaceutical companies. For more information, visit http://www.widepoint.com.

An investment profile about WidePoint may be found at http://www.hawkassociates.com/wyyprofile.aspx.

For investor relations information regarding WidePoint, contact Frank Hawkins or Cale Smith, Hawk Associates, at (305) 451-1888, e-mail: [email protected].

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; and (iv) the declaration and payment of dividends. 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 disclosed in the company's Forms 10-K and 10-Q filed with the SEC.



Contact:
     Investor Relations Contact:
     Hawk Associates, Inc.
     Frank Hawkins and Cale Smith
     Phone: (305) 451-1888
     E-mail: Email Contact
     http://www.hawkassociates.com
     
     WidePoint Corporation
     One Lincoln Centre
     18 W 140 Butterfield Rd.,
     Suite 1100
     Oakbrook Terrace, IL 60181
     (630) 629-0003 Phone
     (630) 629-7559 Fax
     http://www.widepoint.com
     


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Source: WidePoint Corporation