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<SEC-DOCUMENT>0000897069-07-000817.txt : 20070321
<SEC-HEADER>0000897069-07-000817.hdr.sgml : 20070321
<ACCEPTANCE-DATETIME>20070321131357
ACCESSION NUMBER:		0000897069-07-000817
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070315
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070321
DATE AS OF CHANGE:		20070321

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WIDEPOINT CORP
		CENTRAL INDEX KEY:			0001034760
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				522040275
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33035
		FILM NUMBER:		07708536

	BUSINESS ADDRESS:	
		STREET 1:		ONE LINCOLN CENTER
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181
		BUSINESS PHONE:		630-629-0003

	MAIL ADDRESS:	
		STREET 1:		ONE LINCOLN CENTER
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ZMAX CORP
		DATE OF NAME CHANGE:	19970530
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>sks412a.htm
<DESCRIPTION>3/15/07
<TEXT>
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<TITLE></TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date
of earliest event reported): March 15, 2007 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WIDEPOINT CORPORATION</B><BR>
(Exact Name of Registrant as Specified in Charter)  </FONT></P>


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<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Delaware</B></FONT></TD>
     <TD WIDTH=34% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>000-23967</B></FONT></TD>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>52-2040275</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or Other Jurisdiction of</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Commission File Number)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(I.R.S. Employer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Incorporation)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Identification No.)</FONT></TD></TR>
</TABLE>
<BR>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>One Lincoln Centre, Oakbrook Terrace, Illinois</B></FONT></TD>
     <TD WIDTH=40% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>60181</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of Principal Executive Office)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registrant&#146;s
telephone number, including area code: <B>(630) 629-0003</B> </FONT></P>

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     <HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Written
communications pursuant to Rule 425 under the Securities Act (17 CFR           230.425)  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR           240.14a-12)  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act           (17 CFR
240.14d-2(b))  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act           (17 CFR
240.13e-4(c))  </FONT></TD>
</TR>
</TABLE>
<BR>


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<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.02&nbsp;&nbsp;&nbsp;Results of
Operations and Financial Condition </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March 15, 2007, the Registrant issued a press release announcing certain financial results
for the quarter and year ended December 31, 2006. A copy of the Registrant&#146;s press
release is attached hereto as Exhibit 99.1 to this Current Report. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, on March 15, 2007, the Registrant conducted a conference call to discuss its
financial results for the quarter and year ended December 31, 2006.  A copy of the
transcript of such conference call is set forth as Exhibit 99.2 to this Current Report. </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits </FONT></H1>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>(d)</B>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibits</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press
Release Issued by the Registrant on March 15, 2007 </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.2 </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Transcript
of Conference Call Conducted by the Registrant on March 15, 2007  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/s/ James T. McCubbin</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: March 20, 2007</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>James T. McCubbin</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Vice President and Chief Financial Officer</FONT></TD></TR>
</TABLE>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>sks412b.htm
<DESCRIPTION>99.1 PRESS RELEASE
<TEXT>
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<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.1 </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><BR><BR><BR><BR>
One Lincoln Centre<BR>
18 W 140 Butterfield Rd.,<BR>
Suite 1100<BR>
Oakbrook Terrace, IL  60181<BR>
(630) 629-0003 Phone<BR>
(630) 629-7559 Fax<BR>
<U>http://www.widepoint.com</U> </FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=41% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Investor Relations Contact:</I></B><BR>
Hawk Associates, Inc.<BR>
Frank Hawkins and Cale Smith<BR>
Phone:  (305) 451-1888<BR>
E-mail:  <U>info@hawkassociates.com</U><BR>
<U>http://www.hawkassociates.com</U></FONT></TD></TR>
</TABLE>
<BR><BR>

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<TR VALIGN=TOP>
<TD WIDTH=50%>&nbsp;</TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
<B>News Release:</B><BR><B>FOR IMMEDIATE RELEASE</B> </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=6>WidePoint Year-End Revenue Up 35% to<BR>
$18.0M, Q4 Revenue Up 80%</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Center Italic-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4><I>Conference Call
Scheduled for 4:30 PM EST </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FAIRFAX, Va. &#150; March 15, 2007
&#151; </B>WidePoint Corporation (AMEX: WYY), a leading provider of information technology
assurance and identity management services, today announced financial results for the
fiscal year ended December 31, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenue for fiscal year 2006
increased 35% to $18.0 million from $13.3 million in 2005. Revenue for the fourth quarter
increased to $7.2 million, a gain of 80% over the $4.0 million in revenue in the
comparable period in 2005. The increase in revenue was primarily the result of contract
awards issued to the company for work related to Homeland Security Presidential Directive
No. 12 (HSPD-12) and further sales growth from the continuing adoption and support of the
Department of Defense external certificate authority (ECA) program. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company&#146;s public key
infrastructure (PKI) credentialing and managed services segment experienced revenue growth
of 213% to $1.8 million from $560,000 in fiscal year 2005. WidePoint sold approximately
30,000 credentials in the fourth quarter, bringing the total number of credentials sold in
2006 to approximately 38,000, as compared to 4,500 credentials sold in all of 2005. The
credential growth during the fourth quarter was largely due to contract awards for the
company&#146;s HSPD-12 work made in the second half of 2006. Revenue in the consulting
services segment in 2006 was $16.2 million, up 28% from $12.7 million in 2005, due largely
to growth in the resale of software and services in support of the Department of Defense
ECA program. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint also reported a significant
improvement in year-over-year operating results. The company generated approximately
$508,000 in positive cash flow from operations in 2006, up 107% from $246,000 in 2005.
WidePoint ended the year with approximately $2.8 million in cash with working capital
increasing 22% in 2006 to approximately $3.7 million from $3.0 million in 2005. For 2006,
the company reported a net loss of $435,000, or $0.01 per share, compared to a net loss
for 2005 of $7.4 million, or $0.30 per share. The net loss for 2005 included several
non-recurring non-cash charges related to stock issuance and preferred stock financing. </FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WYY<BR>Page 1 of 3</B></FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint CEO Steve Komar said,
&#147;WidePoint achieved several decisive milestones in 2006. Despite timing delays in
contract awards associated with the HSPD-12 mandate, we finished the year strong and
remain optimally positioned to capitalize on several long-term opportunities. In addition
to six high-visibility contract wins in the second half of the year, our investment in our
PKI segment started to pay off in the fourth quarter of 2006. We increased our sales and
marketing reach dramatically during 2006 through strategic alliances with strong,
recognized partners and secured prominent positioning within the GSA channel. We believe
we are still the only company that has satisfied all of the certification requirements to
serve the medium- to high-level federal assurance market, enabling us to maintain a
critical advantage as we enter a pivotal year with both the HSPD-12 and ECA
programs.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint CFO Jim McCubbin said,
&#147;In 2006 we realized a significant ramp in sales in the fourth quarter related to
recent contract wins. While we expect this momentum to continue in the long term, we
expect a high level of variability in the near term on a quarter to quarter basis as the
HSPD-12 program migrates from the contract award phase in the first half of 2007 to a
rollout and implementation phase that commences in the second half of 2007. This should be
further bolstered by the ECA program as it continues to escalate in 2007 and beyond.&#148;
McCubbin further stated, &#147;We look forward to competing for the two million users that
the Director of Identity Policy Management in the GSA&#146;s Office of Government Policy
has recently estimated will be issued within the next 23 months.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company will hold a conference
call at 4:30 p.m. Eastern, Thursday, March 15 to discuss the year-end financial results
and the company&#146;s future activities. To participate, call (800) 657-1263 any time
after 4:15 p.m. Eastern Time on March 15. International callers should dial (973)
633-8200. While in conference, if callers should experience any difficulty or require
operator assistance, they can press the (*) followed by the (0) button. This will call an
operator to the line. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An audio file of the call will be
available for download within 24 hours at http://www.hawkassociates.com/wyymore.aspx. A
transcript of the call will be available at the same location on Monday, March 19. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>About WidePoint</B><BR>WidePoint is a leading provider of
information technology assurance and identity management services to the government sector
and commercial markets. WidePoint specializes in providing systems engineering,
integration and information technology services. WidePoint&#146;s wholly owned subsidiary,
ORC, is at the forefront of implementing government-compliant eAuthentication identity
management managed services and associated systems engineering and integration. ORC has
earned four major U.S. federal government certifications offering the highest levels of
assurance for transactions over the Internet. </FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WYY<BR>Page 2 of 3</B></FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint&#146;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 <U>http://www.widepoint.com</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An investment profile about WidePoint
may be found at <U>http://www.hawkassociates.com/wyyprofile.aspx</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For investor relations information
regarding WidePoint, visit <U>http://www.hawkassociates.com</U> and
<U>http://www.americanmicrocaps.com</U>, or contact Frank Hawkins or Cale Smith, Hawk
Associates, at (305) 451-1888, e-mail: <U>info@hawkassociates.com</U>. To receive these
releases via e-mail, subscribe at <U>http://www.hawkassociates.com/email.aspx</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>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&#146;s financing plans; (ii) trends affecting the company&#146;s financial
condition or results of operations; (iii) the company&#146;s growth strategy and operating
strategy; (iv) the declaration and payment of dividends; and (v) the risk factors
disclosed in the Company&#146;s periodic reports filed with the SEC. The words
&#147;may,&#148; &#147;would,&#148; &#147;will,&#148; &#147;expect,&#148;
&#147;estimate,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;intend&#148; 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&#146;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 factors disclosed in the company&#146;s Forms 10-K and 10-Q
filed with the SEC.</I> </FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.2 </FONT></P>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint Corporation<BR>
Year-End 2006 Earnings Conference Call<BR>
March 15, 2007 </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  Good  afternoon.  My name  is  Stacy  and I will  be  your
 conference Operator  today.  At this time I would like to welcome  everyone to
 WidePoint  Corporation  Year End 2006 conference call. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
lines have been placed on mute to prevent any background noise.  After
the speakers&#146; remarks there will be a question and answer period. If you would like
to pose a question during this time, please press star then the number one on your
telephone keypad. If you would like to withdraw your question, press the pound key. Thank
you.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is now my pleasure to turn the floor over to your host, Cale Smith. Sir, you may begin
your call. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Cale Smith:</B>  Thank  you,  Stacy.  Good  afternoon  everyone.  This is Cale
Smith of Hawk Associates.  Welcome to the WidePoint Fourth Quarter and Year-End 2006
conference call. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the phone today are Steve Komar,  CEO of  WidePoint,  Jim McCubbin, the company&#146;s
Chief Financial Officer, and Dan Turissini, WidePoint&#146;s Chief Technology Officer and
CEO of subsidiary ORC.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I&#146;d
like to begin by reading the company&#146;s Safe Harbor statement and then we will hear
from Steve, Jim and Dan before they take your questions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
afternoon's discussion contains  forward-looking  statements that involve known and
unknown risks, uncertainties or other factors not under the company&#146;s control. Those
risks may cause actual results, performance, or achievements of the company to be
materially different than the results, performance or other expectations implied by these
forward-looking statements. These factors include, but are not limited to, those detailed
in the company&#146;s periodic filings with the Securities and Exchange Commission.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now,
here&#146;s Steve with his opening remarks. </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B>  Thank  you  Cale,   appreciate  it  and  good  afternoon  to
 everyone attending our call.  We appreciate it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
would  like  to  formally  welcome  you to  WidePoint  Corporation's Fourth Quarter 2006
Investor Call and as always, we thank you again for your time and continued interest in
WidePoint.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jim
McCubbin and Dan  Turissini  have  already  been  introduced.  The three of us will make
sequential comments and then we will open the floor for a question and answer period
following that.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
my perspective, as has been the practice in past calls, I will limit my comments to an
overview of the business and a summation of several of the key initiatives with which we
are engaged. Dan and Jim will then expand on those points in their respective discussions
and comments, following mine. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I&#146;d
like to approach my comments from two fronts. The first would be in respect to the
financial results for the fourth quarter and the full year 2006, and the second would be
some more general comments in terms of business positioning and outlook for the
enterprise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
to fourth quarter and full year 2006, a few selected financial highlights. If any of the
listeners have seen our press release this morning or our recently submitted 10-K, I
assume that some of these numbers will not be a surprise to you. However, in summary for
the full year 2006, WidePoint achieved $18 million &#151; all of these numbers are
approximate and rounded &#151; $18 million in gross revenues, which is an increase of 35%
from the comparable period, full year 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significantly,
 earnings before interest and taxes as well as non-cash expenses improved by $1.7 million
from the prior year; this is for the full year 2006 versus 2005. 2005 was essentially a
break-even so our results for 2006 are $1.7 million positive.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also
significantly, our full year gross margin improved 21% for 2006, almost double its rate in
the year 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  experienced   strong  fourth   quarter   performance  as  we  had anticipated.&nbsp;&nbsp;&nbsp;&nbsp;          An
indication of that is the fact that of the 38,000 credentials we issued in
          2006, over 80% of those were issued during the fourth quarter. Jim, of course,
          will dissect these and other numbers for you in his financial analysis and
          comments.  </FONT></P>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moving
to business  positioning  and outlook on the company,  from the position standpoint or in
terms of positioning, I&#146;d mention some key focal points and initiatives that we&#146;ve
consciously targeted for identity management businesses.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
an external  standpoint,  we have revalidated the PKI certificate market opportunity and
its user base potential which continues to be an impressive number.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Externally
we also  strengthened our industry partner  alliances.  The focus here has been on
expanding our sales and marketing reach and breadth to respond to the market&#146;s
opportunity as it arises through 2007.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
an  internal  perspective,  we have and will  continue to further supplement our in-house
technical support and implement implementation resources thereby assuring our ability to
respond to revenue opportunities as they arise. This is a bit of an expensive enterprise
&#150;exercise, excuse me &#151; but one that we feel is critical to maximizing the
revenue opportunity for WidePoint and ORC.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shifting
to outlook, what I&#146;d like to do is state candidly that PKI implementation rates to
date have been less than we expected. There&#146;s a situation that is now complicated by
the 2007 federal budgeting process delays as well as general confusion in the federal
agency contracting process in terms of process, response times and life cycle. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
 and I do believe that it is very  important  for us to state this, and by we I mean your
management team, we believe that our competitive position and advantage has not
deteriorated as a function of these delays. Number two, we have experienced only minimal
downward pressure on schedule pricing for both HSPD-12 and/or ECA credentials and
services.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
a projection  standpoint or a belief standpoint,  we believe that credential issuance
will surge dramatically during the second half calendar year 2007. And in addition, we
remain confident that we are building an attractive and growing identity management
enterprise.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Having
said that, I will conclude my opening comments. Thank you for your time. We&#146;re going
to change our sequence a little bit today. I think it&#146;s more natural for Dan to
discuss the identity management and credentialing business as an expansion of my comments.
Following that we&#146;ll turn to Jim for the financial assessment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dan,
if you would. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Thank you.
Good afternoon. Based on a number of comments and questions that we&#146;ve gotten over
the last quarter, I&#146;ve been asked to again, put my arms around and help you put your
arms around the opportunity and the space that we&#146;re living in. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you may be  aware,  if you  look at the  Gartner  reports  and many other reports out
there, there is a dramatic increase annually. Again, we&#146;ve doubled the individual
impact in a monetary value of identity fraud for individuals in our country. And that
only touches a small part of the overall impact, the monetary value of the impact. It&#146;s
also loss of data, loss of information and loss of time recovering from any kind of
identity fraud. It&#146;s become a commonplace problem and an increasing problem.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
in  response to this the  government  has set  specifications  and there are three
high-level policy authorities that govern how we&#146;re going to protect information
over the Internet. Those three authorities include the DoD authority which, of course,
represents the DoD and the ECA programs covering military and military contractors. We
have the federal PKI Common Policy which covers the federal, other than military,
environment and their contractors. And then with that, and cross-certified with that, we
have the Federal Bridge Certificate Authority which sets the stage and the specifications
for federal, public, and private entities in this environment.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Today,
 we  are  still  the  only  credential  provider/ID  management provider across all of
these entities and we are seeing significant growth and interest in all of these areas.
And, as you know, in the past we&#146;ve talked about focusing today on DoD and ECA and
the federal and the HSPD-12 environment. We&#146;re already seeing activity outside of
that environment in the public and private sector and that&#146;s under our ACES
program.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 significance  is,  as you can  imagine  and as you can see as you read, with the TWIC
program coming on board and eventually going to hold a digital credential so we see
electronic passwords going out, state ID cards and other government ID cards are being
planned. There is a huge opportunity now for both industry and the government to take
advantage of these specifications and move forward.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
Steve had said, there has been a slight hiccup with the FY &#145;07 budget which has been
going through a continuing resolution and now just back down to an &#145;06 budget line
item. But we are going to see, we believe, in the June timeframe the federal money swept
up and recollected to work on these programs, some significant upbeat in what we&#146;re
doing in the federal space. This is also been confirmed by, if you look at the GSA
government wide policy, stuff that&#146;s been in the paper recently, GSA has stated that
they&#146;re looking that two million of the people that need to be vetted and carded with
these credentials will be contracted for this year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
what we are looking for is probably a convergence  of the federal, state and even the
private sector environment and where we were looking for that in stages, possibly that&#146;s
going to happen more abruptly and more quickly starting the second half of this year. We
are already seeing a lot of activity from the RFP point of view in the federal government
and, as I said, quite a bit of activity in the commercial space, especially those in the
commercial space dealing with the government.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have successfully completed a pilot with the health services industry and they are going
to, this summer, leave the pilot phase and go full into a production phase as soon as they
can get that approved. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And
then I&#146;m happy to announce that over the last couple of, three to four weeks, we have
also secured two additional contracts. We are currently in final negotiations, so we
can&#146;t name the folks, however one is another agency, the other is a commercial entity
dealing with the federal government. And this is going to bring to us, this year, at least
14,000 new users with the ability to touch, over the next 18 months to 24 months, 50,000
users. So that&#146;s the start, we believe, of what&#146;s happening in this fiscal year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
you know, the GSA shared  services  contract is out and we are well positioned in there
on a number of teams to move forward with that capability as well as our current
capability.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And
the other thing to let you know is that at this point in time we are still one of the very
few in five different agencies, currently in full production, and I think the only
commercial entity that is in full production on deploying these credentials in the
government on the contracts we announced previously. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
we&#146;re very happy with the progress technically and the progress in our positioning.
We would hope that the money gets released out of OMB real soon and we get to move further
down the line. And that is looking promising for the end of this year and looking at a
very prosperous FY &#145;08 as we move forward. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
with that, I know Jim&#146;s going to give you more of a financial history so, I&#146;ll
turn it over to Jim and wait for your questions after the talk. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>  Thank you, Dan.  Hello  everyone.  Thank you for again,  joining us
on our 2006 year-end review and conference call. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006
was a very  productive  year for us at WidePoint as Steve and Dan have already pointed
out.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the  financial  front,  the year ran  materially to plan with a few exceptions related to
the delays associated with federal government&#146;s lack of a final budget and the award
and subsequent cancellation and re-bidding of the GSA&#146;s HSPD-12 contract which in
combination, slowed down the awards and ramp-up of the HSPD-12 program. These were events
clearly outside of our control.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;But
with that and in light of those issues, we ended the year with approximately $18 million
in revenues, an increase of $4.7 million as compared to revenues of approximately $13.3
million for the year ended December 31<SUP>st</SUP>, 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Looking
 at our  two  segments,  our  PKI  credentialing  and  managed services segment
experienced revenue growth of approximately 213% with revenues increasing approximately
$1.2 million from approximately $600,000 for the year ended December 31<SUP>st</SUP>,
2005 to approximately $1.8 million for the year ended December 31<SUP>st</SUP>, 2006.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
revenue  growth was primarily the result of the  continuing  early adoption of the
federal government&#146;s HSPD-12 program and the continuing adoption of the ECA program
by the Department of Defense and its federal contractors.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
sold approximately 38,000 credentials for the year ended December 31<SUP>st</SUP>, 2006
compared to 4,500 credentials for the year ended December 31<SUP>st</SUP>, 2005. We would
like to note that we believe in the long-term, credential sales should materially grow as
the federal government rolls out the programs to enroll approximately two million users
over the next 23 months as confirmed and stated by the General Services Administration. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the short-term  though,  we do anticipate a greater  variability in revenue growth as we
await contract awards that have been delayed as a result of some of the budget issues and
the appropriation cycle.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
that, we&#146;re hopeful that those contracts will be made during the spring of 2007 and
we can continue to advance on a very profitable and growing 2007. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further,
 per plan,  our  average  credential  pricing  in the  fourth quarter did decrease as
bulk buyers entered into larger quantity purchasing agreements with the company which
drove down the average price, but resulted in a tremendous amount of increased credential
sales. We believe that in short-term, there will be a greater variability in average
price as the price for bulk buyers will at times influence the average cost of larger
contracts for credentials that are awarded and delivered.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
believe average pricing per user will range over time from the $45 to $65 range with a
total range of pricing points still between $27 and $150 per user. We would like to bring
to your attention that even with the decrease in average price, and we expect it and
realize net margins on credentials in the fourth quarter of close to 48% net. This
percentage is fully burdened with SG&amp;A costs demonstrates the stability of the ASP
model as we expand our basic credentials within our credential price range. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are very pleased with the profit potential downstream as the size of this potential
marketplace comes online. So gentlemen, at 48% with the ramp-up in this market space, it
clearly demonstrates the power of the managed service and how the ASP model can come
online at just 30,000 credentials. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moving
on,  our  consulting  services  segment  experienced  increased revenues of approximately
$3.5 million from approximately $12.7 million for the year ended December 31st, 2005 as
compared to approximately $16.2 million for the year ended December 31<SUP>st</SUP>,
2006. The increase in revenues for the year ended December 31<SUP>st</SUP>, 2006 compared
to the year ended December 31<SUP>st</SUP>, 2005 was primarily the result of the resale
of software and services in support of the DoD&#146;s continued expansion of the ECA
program. We expect to witness some of the same volatility and growth opportunities within
this segment in and within 2007.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
we move down the  income  statement,  as a result of the  company's revenue growth, we
further witnessed gross profit for the year ended December 31<SUP>st</SUP>, 2006 of
approximately $3.7 million, an increase of $2.3 million as compared to a gross profit of
approximately $1.4 million for the year ended December 31<SUP>st</SUP>, 2005.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Looking
at SG&amp;A, we also saw  stabilization in expenses  including the provision for 123R of
approximately $400,000 along with an increase in bid and proposal work of approximately
$200,000 that we witnessed.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also witnessed a decrease of the percentage of revenues from 27% on revenues to 23% of
revenues within SG&amp;A. Excluding the impact of 123R, the percentage increase would have
been even lower at 21% on a relative measure. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
as a result of the above the net loss for the year ended  December 31st, 2006 was
approximately $400,000; a decrease of $7 million as compared to the net loss of
approximately $7.4 million for the year ended December 31<SUP>st</SUP>, 2005.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
summary, the company completed the 2006 fiscal year with improved balance sheet, cash of
approximately $2.8 million, working capital exceeding $3.7 million, no long-term debt,
stock holders equity of $7.0 million, and revenues of $18 million. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of these actions and the  performance  in 2006, we believe we can continue to
build a financial base on which to continue to execute our business strategy into 2007
and beyond.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thank
you.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B>  Thank  you  Jim  and  Dan.  I  think  that  concludes  our
 individual comments and if I can get Stacy to help us out, we can start the question and
answer period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank you. At this
time I would like to remind everyone if you would like to pose a question, press star then
the number one on your telephone keypad. We&#146;ll pause for just a moment to compile the
Q&amp;A roster. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once
again, that&#146;s star then the number one on your telephone keypad. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your first
question is coming from Jeff Miller from JMG Capital. Sir, please go ahead.</FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Thank you. I just want to  confirm,  first of all,  in Q4 &#146;06 the
SG&amp;Aas a percentage of revenues, did you say it was 23%? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin</B>:  I believe the combination of SG&amp;A, yes, was 23%. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Okay and I think
gross margins were 17.8% for the quarter and you&#146;re saying that is slightly down
&#151; I think it was 27.4% in Q3 &#145;06 &#151; because of the lower pricing and the
bulk contracts. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> In Q4, that
would be correct. Overall in the segment, the gross margin that we saw on segmentation was
up materially in the PKI managed service sector. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And in the
consulting sector it was down a little bit because of large software resale as part of the
ECA program. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> But we have a
lot of variability because of the size of the company and the kind of financial contracts
that we get at times. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> In net the
point that I was making was that gross margins will materially be &#151; should
continually to improve &#151; as the PKI segment becomes a larger and larger portion of
the business. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Right, and
you&#146;re saying that you&#146;ve got two million potentially additional credentials to
be issued from one program going into &#145;07. Then you also have a couple other
contracts where you have, you said 14,000 new users and then at least another 50,000 the
next 12 to 24 months. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> That&#146;s
correct, and then with the opportunity for even more; their users. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And then, as I
said on the gross margin, we witnessed in the fourth quarter a net margin, okay?
That&#146;s with SG&amp;A fully burdened on the PKI segment of about 48%. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Right, yes.  That's
great. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>James
McCubbin:</B> Okay.  So it  demonstrates  the power of the ASP model as we really do come
online. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Great and with
that going forward, can you give us any guidance in terms of what you expect then for a
blended SG&amp;A, you know, the type of, any type of revenue or some stuff that you are
expecting. I know it&#146;s going to be kind of chunky, but it&#146;s a nice jump in Q4
&#145;06 to $7.2 million&#133;. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> No, we really,
we&#146;re not giving guidance right now. What we&#146;re doing is trying to tell
everybody about the opportunities that we&#146;re awaiting and their size and I&#146;m
trying to give you some past performance measures now that we&#146;re starting to get some
metrics. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> But it is
going to be variable a bit or, as you put it, chunky.  So... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> And when do you
think that the OMB is going to approve or release money, sometime spring of this year or
is it going to be in the back half? </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> There was an
Omnibus Appropriations Bill that just went through a few weeks ago. OMB is in the
process, as I&#146;ve been told, spreading that money out to the agencies. From what we&#146;ve
been told and is public, the GSA is looking at re-competing and making award on the GSA
HSPD-12 program in early spring. We believe that what we&#146;re seeing with the other
agencies they&#146;ll be running around the same timeframe trying to work towards their
timetable of meeting some October deadlines.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSA
has further come out and publicly stated that they would like to see, or they expect to
see, the issuance of credentials to two million users within the HSPD-12 program over the
next 23 months. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> I think to  clarify,
 Dan  mentioned,  June as a possible  (inaudible) release of monies, so... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B>  Whether it's
 mid-spring or June,  your guess is as good as ours.  But it's somewhere in the course of
the coming quarter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Okay, great. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And we are
still winning some small projects that Dan did just announce to you. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Informally, in
which case it says we&#146;re continuing on our level of success at, you know, being
acknowledged for being probably the preeminent vendor within the space. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Okay. Let me see
if you can answer this question. With 30,000 new credentials being issued in Q4, I mean,
can we expect that&#133;I mean, that is a substantial jump from previous quarters,
obviously. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> That was
related to some of the contract wins that we received in the end of September and October
of last year. So what&#146;s important to point out is you saw how quickly we could bring
that online. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And scale it
which is a nice, you know, thing that we can exhibit to you but that also is going to lead
to a little variability. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Sure. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And you will
see that variability or chunkiness in &#145;07 as these contract awards are made, we
believe, in the mid part of &#145;07 or earlier. And then you&#146;re going to see a ramp,
we&#146;re hoping in the second half. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Okay.  So, the
 contracts  then that were  related to the Q4  licenses are those all finished then,
there's no more residuals going... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> No. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> They&#146;re not.
So, going forward then, you still have some license credentials for &#145;07 that going to
be reflected from those original contracts and then adding to that hopefully sometime in
June plus the smaller contracts. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin</B>: Yes, or earlier
possibly. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Okay. And I guess
another question too is that you&#146;re seeing some more competitors now come into this
space obviously in a public, private, federal, and also state levels. Can you give me the
top two or three competitors that you&#146;re seeing now in the space, who you&#146;re
competing with? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B>  Well  there's  two
 pieces  we're  competing  with  because  we are an end-to-end provider. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> So, on the backend if
you will, in the credential hosting  environment the common names are VeriSign, Digital
Signature Trust and Cybertrust. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the overall hosting  environment it's the end-to-end  service,  you know, anybody that
shows up &#151;the Northrops, the Lockheeds, everybody. But what&#146;s important to note
there is a lot of the backend are front-ended by those same groups of people and that&#146;s,
and in many cases, that&#146;s our backend. So we&#146;re positioned both as an
end-to-end provider of the entire service but also as the backend service provider to
some of the integrators.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right and I can  imagine  that  you're  going to be cheaper and if
you have to  integrate  two  people for one for  backend  and one for the  front-end...is
 that fair in terms of being competitive for contracts?  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B>  We haven't had a
problem competing financially or technically. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>  Right.  Okay, thank
you very much guys. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Thank you Jeff. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>   Thank you.  Your next
 question  is coming  from Sean Carey of XO Risk Management.  Please go ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sean Carey:</B> Gentlemen, fantastic
quarter.  Congratulations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Thank you, Sean. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sean Carey:</B> Thanks. I had a
quick question for Jim. At the tail end of last year a lot of people were expecting to see
contracts because of the deadline for October 26<SUP>th</SUP>. The delay in getting those
contracts, would you say this is governmental, sort of, bureaucracy and, you know, the GSA
not getting their house in order and so on? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> This is Dan.  I'll
 give  you my  thoughts  on that  since  I've  been involved with the federal government
for about 22 years. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 answer is  partially  yes.  There are two  other  wildcards  that really affected this.
The most significant, I believe, has been the continuing resolution. The FY &#145;07
budget was never formally approved so they could not spend at the FY &#145;07 rate of
expenditure. And that FY &#145;07 was really the first year any of these organizations
had budgeted for HSPD-12/PKI.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
other thing,  and everybody's  aware of it, is the war in Iraq and that has siphoned a
lot of money out of the government and, especially in the DoD environment, and it&#146;s
a bureaucratic waiting game.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
this has all been taken into account with the FY &#145;08 budget cycle. So, a lot of the
preparation you&#146;re seeing right now contractually is to set up the contracts, use
some of this end of year money to begin down that 18 to 24 month path, and then
you&#146;re going to see a lot of money come out of the FY &#145;08 environment put onto
these contracts to accelerate that deployment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Just to add a
comment; we&#146;re talking about federal fiscal year which is September. So, in
Dan&#146;s comment in terms of fourth quarter and first quarter of this calendar year,
then the year that the quarters that have been impacted because of these changes in the
budgeting process and &#145;08 will begin in September of &#145;07. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sean Carey:</B> Great.  Thank you very
much guys. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Okay, thank you,
Sean. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank  you.  Your  next
 question  is  coming  from  Ted  Karkus  from Forrester Financial.  Please go ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Greetings gentlemen.
 It's been a little while.  How are you? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>  How are you doing,
Ted? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Great, got a
couple of questions for you. I&#146;m reviewing my notes from the last quarterly
conference call, the third quarter conference call that we had in November. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the time, we were  discussing how there has been six awards to date and how ORC had won
five of the six worth about 75,000 users and VeriSign had one for about 25,0000 users.
Since that time can you tell me approximately how many awards there have been and what
the size of them have been since the last conference call until now? Did it pretty much
dry up or have there been a few more? Did ORC get any of them?  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Honestly,
until these two that we just picked up, albeit not the largest ones out there, I am
unaware of any other procurement actions that have gone through. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay, so it&#146;s
not that ORC is missing out on any of the business that&#146;s been awarded, there was
just a slowdown relative to expectations in the government rolling out these awards,
correct? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> That's correct. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay and you said  these
two new  awards  were I'm sorry for how many, for how many users? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> For this year,  as
soon as we  negotiate  the terms  we're going to be funded for 14,000 and then with
options for up to 50,000 through the next year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay, and
according to my notes in the last quarter, the awards for the five awards were for 75,000
users for ORC. You mentioned 30,000 in the fourth quarter, is that 30,000 the 30,000 of
75,000 and there&#146;s still another 45,000 remaining to fill? Is that a fair way of
looking at it? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> To be deployed,
that's correct. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay, so those
will be deployed, so this additional 45,000 will we see deployment of that, I guess, I
assume we saw there will be some deployment of that in the first quarter calendar year
that&#146;s just ending now. Can you give me an idea of the remaining 45,000, how long
it&#146;s going to take to deploy all of that? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> I would
expect them all to be deployed this fiscal year because it is earmarked for this fiscal
year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Right. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> The money
that was supposed to pay for it was under the continuing resolution which we expect the
money to come out of OMB in the next couple of months. So, I think there&#146;ll probably
most likely be a calendar Q3 event. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay so
that&#146;s a calendar Q3. So the bottom line, in order to deploy this 45,000 that you
were awarded last quarter, you first have to see funding in order to move forward with it,
correct? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> That's correct. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay, so
you&#146;re waiting for that and hopefully by Q3 you&#146;ll see that kick in as well as
these two new awards. Again, they&#146;ll be kicking, they&#146;ll get in terms of the
calendar year just in terms of last years awards and the awards you just received,
we&#146;ll see a nice uptick the second half of this year just from what you&#146;ve
already locked in assuming it&#146;s funded. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> That's correct. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay. So now the
next thing is you guys laid it out beautifully in the third quarter there were roughly
three to five million users that you&#146;re going after between HSPD-12, the same with
the DoD contracts, the same with the state citizens transacting with the government. It
all added up to a nice number of 12 to 15 million users with a three to five year
deployment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than the fact that we&#146;re losing six months here, is the outlook for the same 12 to 15
million users over the next three to five years just starting a quarter or two later? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Absolutely,
and what you saw there was the two million was re-quoted out of GSA. That does not include
the DoD in that contractors nor does it include the first responder and private
environment. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> All right. So is
it fair to say, obviously everyone&#146;s a little disappointed, it shows in the stock
price in terms of what&#146;s happened the last six months and where we were talking in
the fall that you were hopefully looking for a big fourth quarter of 2006. Is it fair to
say that the kinds of numbers that you were looking for in the fourth quarter of 2006, we
should and could see those big kinds of numbers, not the ten thousands kind of numbers but
the hundreds of thousands of users kinds of numbers, potentially kicking in the second
half of the year. Is that basically what you&#146;re looking for? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> That's our
expectation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> All right. So, my
last question basically is that really nothing has changed other than the fact that
we&#146;ve gotten pushed out three to six months because the government is a little slower
than anticipated in funding and deploying. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Write your
Congressman. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> Okay, thanks very much,
gentlemen. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Thank you, Ted. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank you.  Once again,
 if you would like to pose a  question,  press star then the number one on your telephone
keypad. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your
 next   question  is  coming  from  Hinda   Mizrahi  from  Barron Partners.&nbsp;&nbsp;&nbsp;&nbsp;          Please
go ahead.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Hinda Mizrahi:</B> Hi.
Congratulations on a good quarter. I just had a question and maybe it was my
misunderstanding. I thought the PKI is also for non-government agencies that want, that
need to access government agencies for procurement or, you know, even supplies. Is that so
or is that my misunderstanding? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>  Can you repeat that? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Hinda Mizrahi:</B> I thought that
PKI requirement was not just for government agencies but for outside or civil agencies
that needed to access government agencies for procurement, you know supplies and things
like that. Is that my misunderstanding? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> No,
that&#146;s correct. That&#146;s what we refer to the public and the private sector.
It&#146;s the contractor&#146;s environment. It&#146;s the public environment eventually
that are going to need to do things like EPA forms, things like your social security
administration stuff, and a host of other things. It&#146;s being focused right now in the
government arena and businesses that deal with the government on a daily basis. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Hinda Mizrahi:</B> And that, but,
I&#146;m just trying to figure why that&#146;s relying on the government funding if
that&#146;s required. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Because the
initial piece is being funded by the government and being pushed out by the government.
And, as I said, one of the awards we received recently was from a contractor who said,
&#147;Well we&#146;ll just take the bull by the horns and we&#146;ll go forward
anyhow.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Hinda Mizrahi:</B> So even though the
civil part is still aligned in government funding? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Daniel Turissini:</B> Right. And
you&#146;ve got to remember that most of, even these contractors, they&#146;re funded
through government contracts and they&#146;re funded the same way. So if they put, they
budgeted for something in &#145;07 and weren&#146;t awarded that extra money to do those
things because of the continuing resolution, they&#146;re in the same boat as the
government. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the end of the day,  the first two years of this is all going to be expensed back to the
government either directly or indirectly.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Hinda Mizrahi:</B> Uh-huh, okay.  Okay,
thank you very much. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  Thank  you.   Your  next
  question  is  coming  from  David   Pinsky, shareholder.  Please go ahead, sir. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>David Pinsky:</B> Yes,
congratulations on a great quarter. I&#146;m looking here and it says that your year end
revenue was up 35% fourth quarter revenue was up 80% yet the stock price goes up only one
penny today. What will it take to stop the stock from sliding and to really move forward?
I know last year you had a number of contracts that went through and the stock still
didn&#146;t&#146; move. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well, we can
report on the business but as it goes to the stock price, we don&#146;t have direct
control over that. All we can do is build a strong enterprise and hopefully be awarded
that by the stock market and the participants who make that price. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So,
I mean, if we could do something with the stock price and control it that would be
wonderful. But that&#146;s not what we&#146;re here to do. We&#146;re here to grow the
business. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>David Pinsky</B>: Right,  with the stock
 down 33% in the last six  months are there any plans for any stock buy backs since
you're so confident of your company? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well,
we&#146;re deploying all the working capital that we have to build out the business. I
mean, why would we go and, the investment capital that we have would be better served
building the business than trying to, try to artificially prop a stock price by using the
stock buy backs. I mean we&#146;re here to build a business. We feel very strong about
building that business. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Dave, the answer
is there is no such plan at the present time and it&#146;s my belief that there
aren&#146;t sufficient liquid assets in the company to do an effective job of that. I
don&#146;t that we&#146;re interested in leveraging that strategy at this point. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>David Pinsky:</B> Thank you. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  Thank you.  Once again,
 if you would like to pose a question,  please press star then the number one on your
telephone keypad. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 appears to be no more  further  questions  at this  time.  I'll turn the floor over to
Steve Komar for any closing remarks.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steven Komar:</B> Thank you Stacy.
To everyone who tuned in, I just want to say thanks and thank you for your interest and
continuing faith in the company and the management team. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
felt we had a presentable  fourth  quarter.  We're looking  forward to the challenges of
the first and second quarter and then we believe to some very, very attractive
opportunities in the second half of the year and beyond and we look forward to sharing
that news with you as we go. Thank you again for your time.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank you. This
concludes today&#146;s WidePoint Corporation conference call. You may now disconnect your
lines. </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>






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