WidePoint Corporation (AMEX:WYY) Q4 2022 Earnings Call Transcript

Jin Kang: Sure. Thank you for that call, operator. In terms of our Q1, we are still going through the process of closing our books and we haven’t got the full picture of Q1. But we can tell you that historically, Q1 is generally our slower quarter due to various things like federal government spending, debt limit crisis and so forth. So we are continuing to invest in transitioning some customers from one of our strategic partners in the identity management business. And that will bear fruit probably about towards the end of the second quarter or third quarter. We are also continuing to invest in sales and marketing, so that should increase some of our costs. And some of our revenue streams like the accessory sales and recycling business revenues are a bit lumpy.

So it’s hard to predict at this time. And of course, lastly, there’s also increases in fringe benefit cost. If you’re familiar with federal and state unemployment taxes, FUTA and SUTA. If you looked at your 1044 and your pay stub, you’ve probably seen that. And that — those payments usually happen in the first quarter. So that could lead to a softer Q1. But as I said, our Q2 through the rest of the year looks fairly robust. And so as we get more — a clearer picture on the Q1, we will put out a press release on that and also provide guidance, as I said, in mid-May of this year.

Operator: At this time, this concludes our question-and-answer session. If your question was not taken, please contact WidePoint’s IR team at wyy@gatewayir.com. I’d now like to turn the call back over to Mr. Jin Kang for his closing remarks.

Jin Kang: Thank you, operator. We appreciate everyone taking the time to join us today. As the operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today’s earnings release. Thank you again and have a great evening.

Operator: Thank you for joining us today for WidePoint’s fourth quarter and full year 2022 conference call. You may now disconnect.