WidePoint Corporation

Good afternoon and welcome to White Point's first quarter 2023 earnings conference call. My name is Ali and I will be your operator for today's call. Joining us for today's presentation are White Point's President and CEO, Jin Kang, Chief Revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from White Point's publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact White Point's Investor Relations team at www.gatewayir.com. Before we begin the call, I would like to provide White Point's safe harbour statement. That includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference Cull may include forward-looking statements regarding future events and the future performance of White Point 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-Q, followed 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. Now, I would like to turn the call over to WidePoint's President and CEO, Mr. Jim 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 first quarter ended March 31, 2023. We concluded Q1 much better than we had anticipated, both quantitatively and qualitatively. A big contributing factor to our stronger than expected Q1 was due to sales deals crossing the finish line sooner than expected. One of the more prominent deals we've previously shared is the SoftEx deal with CSG International. that continues to gain increased traction and has contributed significantly to our top line. We have signed three key deals with our partner CSG, as announced in our press releases, and we have been ahead of schedule in completing the implementations. We have also received three new task orders for key third-party software applications for the text capture capabilities with our federal government clients. A bump up in several orders with CSG being filled sooner than expected, which has also played a role in the stronger than anticipated quarter. A major catalyst that has helped us accomplish some of these wins was a result of our clients reengaging with us post-COVID and our diligence in vetting new mobile capabilities, such as the text capture capabilities for our federal clients. As you may have read in the news, preservation of text messages and other data for archival purposes for those in public office has become a topic that is front and center. We have capitalized on this opportunity, and we see great potential ahead. I was particularly encouraged because we were able to achieve these wins despite several gating factors, which includes continual investments being made back into our business. the historically slower Q1, and especially following the right sizing of our workforce. As it pertains to the last point, the right sizing we initiated in Q4 is having a clear, positive impact on our profitability as we experienced a full quarter of the benefits and continue to operate with a leaner staff. Additionally, though the pandemic has ebbed, the modes of working in the post-pandemic environment are drastically different. as more workers are accessing their corporate IT infrastructure from remote locations. We see this as an ongoing tailwind for our business, as there will be continuous pressure for companies to secure and manage their mobility assets. Next, as I stated on our last call, our Intelligence Technology Management System, or ITMS, has achieved FedRAMP in-process status. There is no new status to share with you at this time, other than we expect to complete the assessment to earn the FedRAMP authorization status, which again will open up new contract opportunities for us. Speaking of new opportunities, we have continued to invest in our technology infrastructure to capture new opportunities. Some highlights in our investments include unified communication analytics solution set that has been recently approved for Microsoft Commercial Marketplace and has been launched in the Ingram Micro Marketplace. Ingram Micro Marketplace is the world's largest one-stop shop for cloud-based solutions. Remote issuance of certificates, also known as soft certificates, will allow YPoints to issue identity certificates over the air. This, along with our remote vetting process, will allow YPoint flexibility in modes of certificate issuance that will result in increased higher margin revenues. This capability is scheduled to complete in Q3. Development of a hybrid issuance capability will allow our clients to retain their personally identifiable information, or PII, in their possession. These clients are required by law to maintain control of their PII and therefore were off limits to us, that is, up till now. Our hybrid issuance capability will now allow us to issue identity certificates and allow our clients to keep possession of their PII. This capability is scheduled to complete in Q3. As you can see, a majority of our capital projects have either been completed or are in the last stages of completion. I am pleased to share that the associated expenses for these investments will slow down starting from Q4 of this year. Given the progress we've made so far this year, despite the gating factors, it boosts our confidence when looking at our 2023 full-year forecast. I'll dive deeper into our forecast for the rest of the year later on in the call. But first, I will turn the call over to Jason to provide you with some details on the sales and marketing front. Jason?

Thanks, Jen, and good afternoon, everyone. To echo Jen's sentiment, there are a multitude of exciting developments with respect to our sales and marketing initiatives that I would like to share with you all today. To simply put it, the execution of our sales and marketing strategy is going as planned. To date, we have displaced a number of our major competitors within the managed mobility space and identity and access management space, thanks to our robust technology. Beginning with managed mobility, We continue to close commercial deals along with expanding our DHS CWMS IDIQ contract. We are very pleased with our strategic partners as they continue to bring us a multitude of managed mobility opportunities based on our excellent past performance as well as our accreditation that give us a clear advantage over our competitors. Commercial entities are coming to the realization that the cheapest price isn't always the best choice. It's about the total breadth of services along with security at the forefront. We should start realizing revenue from these efforts in Q2 and into Q3. Recently, we partnered with a very large identity and access management, or IAM, company to absorb a portion of their existing clients within the federal sector. The partnership is proceeding on track and I will have further details on our upcoming calls. Additionally, I recently attended a three-day event where a larger number of K-12 schools were in attendance to which our discussion around our digital soft certs was well received. Our IAM pilots are still progressing and as stated previously, we are targeting the end of Q3 to have our digital soft certs capabilities completed. Not only do we plan to market these solutions to K-12, but to commercial entities as well. I am also excited to report that we are working on a proof of concept for the General Services Administration, or GSA, in order to demonstrate our derived credential capability. As a result of this project, multiple opportunities have surfaced. We are hopeful we can make progress as a result of this project and look forward to keeping you all apprised of our success. To provide you all with additional context, we are working with the most influential technology researching firm regarding our IAM and soft certs for K through 12 and the commercial sector. This firm has been instrumental in sharpening our message, and we are also planning on including certain key individuals from the firm in strategic upcoming meetings. This strategic relationship also bodes well with our large systems integrators in which we partner to resell our solutions. As you can see, we're leveraging the continued momentum we've been building up from the past quarter as they have resulted in executed deals or are in the process of being completed. I will look forward to providing additional updates on upcoming calls. With that, I will hand the call over to Bob.