WidePoint Corporation

Good afternoon, ladies and gentlemen. Thank you for holding. Your conference call will begin in just a couple of minutes. Thank you. Thank you. Thank you. Good afternoon. Welcome to White Point's third quarter 2021 earnings conference call. My name is Paul and I will be your operator for today's call. Joining us for today's presentation are WidePoints President and CEO, Jin Kang, Executive Vice President and Chief Sales and Marketing Officer, Jason Holloway, and Executive Vice President and CFO, Kelly Kim. Following their remarks, we will open the call for questions from WidePoints publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact WidePoint's investor relations team at wyy at gatewayir.com. Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-K filed with the Securities and Exchange Commission. Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com. I would like to turn the call over to White Point's President and CEO, Mr. Jin Kang. Sir, please proceed.

Thank you, Operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the third quarter ended September 30, 2021. The third quarter marked a period of productivity as we successfully completed the acquisition of ITA, made progress across our sales and marketing initiatives, engaged in new strategic customer wins, upgraded our already robust portfolio of solutions, and continued to successfully execute our strategy for profitable growth. Although we were encouraged by these events, we were again faced with macroeconomic headwinds that rooted from the pandemic. The flurry of ubiquitous current events regarding supply chain limitations, the status of federal government's budget impasse, the inability to still meet face-to-face with prospective customers, and Increased demand for top talent from the labor market have all affected our business directly and indirectly. With the uncertainty of the federal government budget, virtually all new task orders and contract awards have been halted as government does not have the necessary fund authorizations to engage in any new projects. Additionally, the supply chain disruption that has been severely impacting logistics and transportation has diminished our ability to fulfill some of our customers' orders for equipment and to gain access to accessories needed for our business. As a result of these uncontrollable events happening concurrently, we have seen several opportunities inevitably become delayed. Nevertheless, our team is laser-focused on controlling what's within our grasp as we continue to adapt to these external circumstances. What's remained consistent throughout all this is our approach of continuing to operate the business profitably and being prudent with our spending and cash management. One example of this was our purchase of IT authorities or ITA. Thanks to our meticulous M&A approach, we were able to acquire a company that is not only profitable but was accretive to our current operation from day one. ITA significantly strengthens our footprint within each growth market by offering a multitude of cross-sell and up-sell synergies within IT operations, identity management, and more. In addition to benefiting from their more attractive recurring managed services revenue, we were able to immediately tap into their expanding commercial customer base with our enhanced offerings and has already resulted in signed deals. Thanks to ITA's deep expertise in Microsoft ecosystem and their well-established partners with them, we'll be able to further strengthen our relationship with Microsoft. We continue to maintain our Microsoft co-sell certification status and are, in fact, combining ITA and our soft access efforts to attain the Microsoft silver and gold certifications, which gives us quite an edge. I'll let Jason speak more about this so I don't steal his thunder. But the point I emphasize here is that due to our judicious spending habits and scrupulous approach, we were able to find a diamond in the rough. This has been on brand with what we've continuously preached, and we intend to apply this prudent spending philosophy in all we do to ensure profitability. Additionally, on par with previous quarter, we have continued to make strategic investment back into our technical infrastructure, which we believe will make our services and our solutions even more appealing to a greater number of current and prospective clients. First, as it relates to our identity management solution, we continue to enhance this service to not only make it more robust, but also make it more pertinent to our broader customer base. We are investing in standing up a new commercial certificate authority, or CA, offering. This effort will increase our capability to sell into the commercial markets and quickly implement our PKI-based multi-factor authentication solutions for our new customers. We continue to make progress in setting up a hot COOP site that will allow us to recover quicker than our current warm COOP site. This will allow us to reduce our physical office footprint and allow us the flexibility to place our operation centers where it is more financially advantageous. Second, as we previously mentioned on the last call, we continue to make progress toward our FedRAMP certification. We have prepared and submitted the FedRAMP Readiness Assessment Report for our government counterparts review and approval. Once approved, we will be listed on the FedRAMP marketplace as FedRAMP ready, and we'll begin the next phase of the process, which is the security assessment report. Please stay tuned for further updates on this front in the coming months. Third, we continue to improve our intelligent telecommunications management system platform service offering by enhancing automated algorithms in order to provide better graphical business intelligence and analytics. Our development team is also working on improving the user interface and experience. Next, within our digital billing and analytics, or DB&A division, we have continued to invest to take advantage of the dramatic shift from traditional voice platform to unified communications, such as Microsoft Teams. We have enhanced the capability within our software to work within the unified communication environment and report platform performance in both dedicated and hybrid environments. The initial launch was in October, and we look forward to working with our partners and customers to continue to innovate as these UC solutions continue to evolve. We were pleased to achieve the first step in formalizing a relationship with Microsoft by being appointed Microsoft Co-Sell Ready status, and we look forward to developing our relationship with both Microsoft and its channel partners. And finally, we've made considerable progress with our green initiatives. As a reminder, From the last call, our subsidiary, White Point Mobile Corporation, received the R2-V3, or Responsible Recycling Certification, through the Sustainable Electronics Recycling International, or CERI. This certification affirms that our green initiatives for recycling our customers' legacy assets meet the global industry standards for responsible testing, repair, reuse, and recycling. I am proud to share that this specific business segment is beginning to take off, and I am certain that we will continue to see it profitably grow as revenues begin to ramp up. Overall, it has been encouraging to see what we're capable of achieving, even with several unexpected obstacles being thrown our way. Our team is poised and committed to continue successfully executing a strategy for profitable growth through organic and inorganic means. I will now turn the call over to Jason to provide you with some details on the investment we are making on the sales and marketing front and the sales momentum we've been building since the start of the year. Then our CFO Kelly Kim will walk us through the financial results of the third quarter. Jason.

Thank you, Jim, and good afternoon, everyone. In total, we secured more than $16.8 million in contract awards in identity management, managed mobility services, and telecom lifecycle management across contracts wins with federal government and commercial enterprise customers. Although we expected stronger results, we were partially set back due to the unexpected events that Jen mentioned. Nonetheless, we were encouraged to find that sales opportunities that were near the finish line or in the process of getting there did not end up disappearing but were instead delayed. Thanks to the ability of our team to adapt and be proactive, we were proud of the results given the circumstances. An underlying theme that we noticed this quarter was the influx of organizations that have begun to elevate their cybersecurity protocols resulting from the high profile malware and ransomware breaches that are becoming more common day by day. One industry that we've particularly been working closely with is the K through 12 educational institutions, as they have begun to witness an alarming rise of cyber attacks. Once we realized the magnitude of this situation, we quickly reacted and begun to heavily participate in tech forums, initially at the local level of a major municipality and now the state level of a Midwestern state. I personally have been attending these forums to edify schools that currently operate in a virtual or hybrid format about the importance of cybersecurity in this day and age of what solutions YPOINT can offer to help. As a result, we have begun to see early signs of our participation at these tech forums paying off, as these schools are wanting to escalate these problems to the legislative level with the goal of gaining funding from the entire state to leverage our identity management as a service solution. On brand with what Jen was mentioning earlier, given this opportunistic event, our team not only proactively went to present at these forums, but we also came up with a phased approach which segments the potential users into tier one, two, three, four, and five groups to sell our identity management solution on a pure subscription monthly recurring model. Tier one customers are critical users such as systems administrators, super users, executives with high user privileges. Tier two is senior managers with elevated privileges. Tier three comprises of managers with moderate privileges. Tier four is general users with minimal privileges And Tier 5 is external users. With the prevalence of cyber attacks and the robust solutions we possess to combat that, our goal is to duplicate and scale this model nationally, state after state. We have already experienced success using this approach with our previous press release regarding the Higher Education Institute we secured. Furthermore, another vertical that we've been working closely with is the commercial enterprise beverage production vertical. Analogous to the phased tier approach for the educational institutions, we are implementing the same strategy for this vertical as we are certain it will be the most effective and efficient plan of attack. We've come to realize that these high profile breaches are widespread across almost every industry. The benefit to us is that it certainly opens the door for many business development opportunities, which we intend to capitalize on. Next, similar to how we mentioned on the previous earnings call, our indirect sales strategy continues to be based on the same tactics we've successfully implemented in the past several quarters, which is to team with large entrenched systems integrators and expand our relationships. with both prominent players in the commercial and federal sectors. This past period, we have slightly refined our traditional approach of working with systems integrators. Not only do we look for prominent systems integrators, but we are also now on the search for strategic partners that have access to new niche businesses that cannot normally be tapped into. A recent example of us executing one of these deals is our engagement with a service disabled veteran owned small business or SDV OSB called 22 Vets. 22 Vets has an extensive reach into the K through 12 vertical and will play an integral role in potentially achieving legislative funding at the state level given the SDV OSB status. Ultimately, Our goal through this revamped approach is to find new opportunities in areas that cannot be simply tapped into by any company. In addition to this new strategic relationship with 22 Vets, we are still actively working with our other SI partners, and we look forward to sharing the news of our recent win. To supplement our sales and marketing tactics, we have continued to make investments with our branding and name recognition. As I shared on the last earnings call, we were recently listed in the 2021 Gartner Magic Quadrant for managed mobility services, which was a big win for WidePoint, as over 70% of the Fortune 1000 and over 10,000 mid-sized and large enterprises rely on Gartner for their advice and guidance in key technology areas. We continue to proactively work with Gartner regularly basis to raise our company profile in the MMS sector. All in all, we are making notable progress on all fronts of the sales and marketing end and have several deals currently in the pipeline that we look forward to sharing the status of when we are able. Our philosophy of being calculative and proactive has truly proven to deliver a high ROI. As Jen briefly mentioned, We have hit the ground running with ITA post-acquisition close, and we immediately begun to leverage numerous cross-sell and upsell opportunities. One specific win I'd like to share is our contract agreement with a large marketing and multimedia rights holder for some of the most prestigious sports venues across the country. To start, We will be providing our IT as a service to this entity and we are confident that they will engage us for additional services. With the additional resources from ITA and an improved sales and marketing initiative, we are approaching a broader addressable market with more tools under our belt. Although we are still limited by some of the macroeconomic headwinds, I am optimistic that brighter days are ahead and that what we're doing now will set us up for additional revenue opportunities in the near future. With that, I will hand the call over to Kelly. Kelly?