WPCS Announces Financial Results for 2nd Quarter and Six Months Ended October 31, 2015
Suisun Year-to-Date Operating Income at $600,000
(firmenpresse) - SUISUN, CA -- (Marketwired) -- 12/14/15 -- WPCS International Incorporated (NASDAQ: WPCS), which specializes in contracting services for communications infrastructure, today announced its fiscal 2016 second quarter and six-month financial results for the period ended October 31, 2015.
Sebastian Giordano, Interim CEO of WPCS, commented, "While our Suisun Operations generated operating income of $55,000 and $600,000 for the three months and six months ended October 31, 2015, respectively, the other significant impact items reported this quarter were an $838,000 gain on sale of the China Operations and noncash charges of $783,000 for dividends on preferred stock and $1,518,000 in stock option expense related to issuance of stock options to employees and the Board of Directors."
Revenue for the three months ended October 31, 2015 decreased $2,266,000, or 37%, to $3,824,000 as compared to $6,090,000 for the same period in 2014, as one, multi-year, high revenue project was completed in the prior fiscal year.
The Company's $2,041,000 loss from continuing operations for the three months ended October 31, 2015 was comprised of the $55,000 operating income from the Suisun Operations, offset by $2,095,000 of corporate overhead, of which $1,518,000 was attributable to stock compensation expense for stock options issued to employees and the Board of Directors. This compared to a net operating loss from continuing operations of $1,882,000 for the same period in 2014.
WPCS has recorded the financial results for its divested subsidiaries as discontinued operations. For the three months ended October 31, 2015, WPCS recorded income from discontinued operations of approximately $838,000 due to the gain on the sale of the China Operations. Net loss attributable to common shareholders for the three-month period totaled $1,986,000 due primarily to the $2,041,00 loss from continuing operations, $783,000 in dividends declared on preferred stock, and which partially was offset by the $838,000 gain on the sale of the China Operations.
Revenue for the six months ended October 31, 2015 decreased $3,866,000, or 32%, to $8,288,000 as compared to $12,154,000 for the same period in 2014, as one, multi-year, high revenue project was completed in the prior fiscal year.
The Company's $1,957,000 loss from continuing operations for the six months ended October 31, 2015 was primarily comprised of the $600,000 operating income from the Suisun Operations and $400,000 income from Section 16 settlements, and which was offset by $2,951,000 of corporate overhead, of which $1,518,000 was attributable to stock compensation expense for stock options issued to employees and the Board of Directors. This compared to a net operating loss from continuing operations of $4,530,000 for the same period in 2014.
WPCS has recorded the financial results for its divested subsidiaries as discontinued operations. For the six months ended October 31, 2015, WPCS recorded income from discontinued operations of approximately $879,000. Net loss attributable to common shareholders for the six-month period totaled $6,168,000 due primarily to the $1,956,000 loss from continuing operations, $5,072,000 in dividends declared on preferred stock, and which was partially offset by the income from discontinued operations of $878,000.
WPCS provides contracting services to the public services, healthcare, energy and corporate enterprise markets in the United States. For more information, please visit .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to the Company's future growth opportunities and strategic plan. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
WPCS International Incorporated
David Allen
Chief Financial Officer
Phone: 707-759-6008
Email:
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Datum: 14.12.2015 - 22:30 Uhr
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