WPCS Announces Financial Results for 3rd Quarter and Nine Months Ended January 31, 2016
Suisun Year-to-Date Operating Income at $886,000
(firmenpresse) - SUISUN, CA -- (Marketwired) -- 03/10/16 -- WPCS International Incorporated (NASDAQ: WPCS), which specializes in low voltage communications and security contracting services, today announced its fiscal 2016 third quarter and nine-month financial results for the period ended January 31, 2016.
Sebastian Giordano, Interim CEO of WPCS, commented, "The most telling facts at this juncture are that:
(i) Suisun Operations continues to operate profitably, generating operating income of $286,000 and $886,000 for the three months and nine months ended January 31, 2016, respectively;
(ii) Over 96% of our approximately $7,000,000 of assets are current assets;
(iii) Other than $150,000 in vehicle loans for operations, the Company is debt-free; and,
(iv) We have no further preferred dividend requirements.
"We believe that our results continue to demonstrate that, not only have we successfully restructured the Company and dramatically cleaned-up our balance sheet, but more importantly, we have a sound, core profitable business from which to build upon. In addition to just recently establishing operations in Texas and forming a unique technology alliance, we are currently evaluating various other growth alternatives that we believe will yield positive results in the near term."
Revenue for the three months ended January 31, 2016 decreased $1,944,000, or 37%, to $3,318,000 as compared to $5,262,000 for the same period in 2015, as one, multi-year, high revenue project was completed in the prior fiscal year.
The Company's $819,000 loss from continuing operations for the three months ended January 31, 2016 was comprised of the $286,000 operating income from the Suisun Operations and offset by: (i) $1,073,000 of corporate overhead, of which $656,000 was attributable to stock compensation expense for stock options issued to employees and the Board of Directors, and (ii) $32,000 of start-up costs for our new Texas Operations. This compared to a net operating loss from continuing operations of $2,865,000 for the same period in 2015.
WPCS has recorded the financial results for its divested subsidiaries as discontinued operations. For the three months ended January 31, 2016, WPCS recorded no income or loss from discontinued operations. Meanwhile, the net loss attributable to common shareholders for the three-month period totaled $1,233,000, due primarily to the $819,000 loss from continuing operations and $414,000 in dividends declared on preferred stock.
Revenue for the nine months ended January 31, 2016 decreased $5,810,000, or 33%, to $11,606,000 as compared to $17,416,000 for the same period in 2015, as one, multi-year, high revenue project was completed in the prior fiscal year.
The Company's $2,776,000 loss from continuing operations for the nine months ended January 31, 2016 was primarily comprised of the $886,000 operating income from the Suisun Operations and $400,000 income from Section 16 settlements, and which was offset by: (i) $4,030,000 of corporate overhead, of which $2,174,000 was attributable to stock compensation expense for stock options issued to employees and the Board of Directors and (ii) $32,000 in start-up costs for our new Texas Operations. This compared to a net operating loss from continuing operations of $7,395,000 for the same period in 2015.
WPCS has recorded the financial results for its divested subsidiaries as discontinued operations. For the nine months ended January 31, 2016, WPCS recorded income from discontinued operations of approximately $863,000. Meanwhile, the net loss attributable to common shareholders for the nine-month period totaled $7,400,000 due primarily to the $2,776,000 loss from continuing operations, $5,487,000 in dividends declared on preferred stock, and which was partially offset by the income from discontinued operations of $879,000.
WPCS provides low voltage communication and security 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: 10.03.2016 - 14:00 Uhr
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