WPCS Announces Over 60% Revenue Growth for Fiscal 2015 Second Quarter and Six-Month Periods
(firmenpresse) - SUISUN, CA -- (Marketwired) -- 12/23/14 -- WPCS International Incorporated (NASDAQ: WPCS), which specializes in contracting services for communications infrastructure, today announced its fiscal 2015 second quarter and year-to-date six month financial results for the period ended October 31, 2014. During both periods revenue increased over 60% as compared to the same periods in fiscal year 2014.
Sebastian Giordano, Interim CEO of WPCS, commented, "Suisun City Operations for our contracting services segment continues to do exceedingly well and we expect this trend to continue for the foreseeable future, offering our Company a steady baseline of revenue and cash flow. Concurrently with continued growth in our operations, the restructuring of our other business lines is moving forward, as planned. Both Australia and Seattle Operations have been sold and, more recently, we made a strategic decision to sell our ownership in BTX. We continue to pursue the sale of our China joint venture interest and further reducing our expenses and liabilities. Going forward, Management and the Board of Directors are evaluating all strategic options available to it, the goal of which is to create long-term value for our shareholders."
Revenue for the fiscal 2015 second quarter increased 61.7% to $7.3 million as compared to $4.5 million for the same period the prior year, mostly attributable to contracting services project revenue in the Company's Suisun City Operations.
Revenue for the fiscal 2015 first six months increased 60.5% to $14.1 million as compared to $8.8 million for the same period the prior year.
On July 31, 2014, completed the sale of its Australia Operations to Turquino Equity LLC, whose managing member is Andrew Hidalgo ("Hidalgo"), the former Chairman and CEO of WPCS. With the sale, the Company eliminated its outstanding severance obligation of approximately $1.1 million to Mr. Hidalgo.
On September 30, 2014, sold substantially all of the assets of the Seattle Operations for an all-cash purchase price of approximately $2.0 million.
As of November 2014, eliminated all of our approximately $900,000 of secured convertible debt, the approximately $1.9 million liability related to the make-whole amount on such secured convertible debt and the $500,000 secured promissory note related to BTX.
Appointed David Allen as Chief Financial Officer on December 12, 2014.
Revenue for the three months ended October 31, 2014 was approximately $7.3 million, as compared to approximately $4.5 million for the three months ended October 31, 2013, an increase of 61.7% as compared to the same period last year. The increase in revenue was due primarily to an increase in revenue of the contracting services segment, as a result of the significant increase in contracting services project revenue in our Suisun City Operations.
The Company's loss from continuing operations for the three months ended October 31, 2014 was approximately $3.4 million as compared to approximately $598,000 for the same period last year. Such change was due primarily to non-cash items, including approximately $1.9 million in inducement expense, $827,000 in impairment loss on capitalized software and a $254,000 increase in depreciation and amortization.
WPCS has recorded the Australia and Seattle Operations' financial results as discontinued operations. For the three months ended October 31, 2014, WPCS recorded a loss from discontinued operations of approximately $346,000. Net loss attributable to common shareholders for the three-month period totaled approximately $3.8 million.
Revenue for the six months ended October 31, 2014 was approximately $14.1 million, as compared to approximately $8.8 million for the six months ended October 31, 2013, an increase of 60.5% as compared to the same period last year. The increase in revenue was due primarily to an increase in revenue of the contracting services segment, as a result of the significant increase in contracting services project revenue in our Suisun City Operations. For the six months ended October 31, 2014, there was one customer who comprised 50.9% of the consolidated total revenue.
The Company's loss from continuing operations for the six months ended October 31, 2014 was approximately $6.7 million as compared to approximately $6.8 million as compared to the same period last year. WPCS has recorded the Company's Australia and Seattle Operations' financial results as discontinued operations. For the six months ended October 31, 2014, WPCS recorded an income from discontinued operations of approximately $601,000. Net loss attributable to common shareholders for the six-month period totaled approximately $6.1 million.
Finally, WPCS has filed a Certificate of Correction with the Secretary of State of the State of Delaware on December 19, 2014 in order that the Company's Certificate of Incorporation accurately reflects that the total number of authorized shares of Common Stock is 100,000,000. The Certificate of Correction, which became effective immediately upon filing, corrected the Certificate of Amendment previously filed in May 2013.
WPCS provides communications infrastructure contracting services to the public services, healthcare, energy and corporate enterprise markets worldwide. For more information, please visit .
Statements about the Company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The Company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the Company undertakes no obligation to update forward-looking statements.
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INVESTOR CONTACT:
Capital Markets Group, LLC
Valter Pinto
PH: (914) 669-0222 or (212) 398-3486
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Datum: 23.12.2014 - 21:05 Uhr
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News-ID 361429
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