See more news releases in: Electronic Components, Computer Electronics, Telecommunications Industry, Earnings
WPCS Reports FY2010 Second Quarter Financial Results
EXTON, Pa., Dec. 15 /PRNewswire-FirstCall/ -- WPCS International Incorporated (Nasdaq: WPCS), a leader in design-build engineering services for communications infrastructure, today announced financial results for the second quarter of fiscal year 2010 ended October 31, 2009. For the second quarter, WPCS reported revenue of $24.3 million compared to $28.8 million for the same period a year ago. WPCS reported net income of $337,000 or $0.05 per diluted share for the second quarter compared to $362,000 or $0.05 per diluted share for the same period a year ago. Year to date through the six months ended October 31, 2009 WPCS reported revenue of $49.6 million compared to $57.0 million for the same period a year ago. For the six month period, the reported net income was $772,000 or $0.11 per diluted share compared to net income of $1.2 million or $0.17 per diluted share for the same period a year ago.
Andrew Hidalgo, CEO of WPCS, commented, "The second quarter results fell within our expectations and the company is reaffirming its guidance for fiscal year 2010, which is a range of $0.31 to $0.34 in earnings per share. Our backlog remained relatively flat at $28 million at the end of the second quarter, however, our bids have increased substantially to $245 million which is an indication that we are beginning to see a more robust level of activity. Due to this increase in bid activity, we expect our backlog to grow accordingly over the next few quarters. From an operating income perspective, a positive highlight in the second quarter was the achievement of a 31% gross margin. WPCS continues to maintain a healthy balance sheet with $22.3 million in working capital, $5.6 million in credit line borrowing and $8.5 million in cash. In addition, the credit line borrowing to working capital ratio remains favorably low at 25%. Accounts receivable remained stable with day sales outstanding of 70 days. In summary, the company feels confident that the second half of the fiscal year will show improvement over the first half of the fiscal year."
As a reminder, there will be an investor conference call at 5:00 pm ET today. To participate on the conference call, please dial 888-299-4099 for calls within the U.S. and 302-709-8337 for calls from international locations. Upon reaching the operator, verbally transmit the participant code VH12354. Andrew Hidalgo, CEO of WPCS, will be discussing the company's financial results, market conditions and strategic outlook. When the overview concludes, your questions can be asked by pressing *1 and your questions can be removed from the queue by pressing the number sign. Replays of the conference call will be available for a period of five days by dialing 402-220-2946 and using 12354 # as the pass code.
About WPCS International Incorporated:
WPCS is a design-build engineering company that focuses on the implementation requirements of communications infrastructure. The company provides its engineering capabilities including wireless communication, specialty construction and electrical power to the public services, healthcare, energy and corporate enterprise markets worldwide. For more information, please visit www.wpcs.com
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.
CONTACT:
WPCS International Incorporated
610-903-0400 x101
ir@wpcs.com
WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
2009 2008 2009 2008
---- ---- ---- ----
REVENUE $24,301,560 $28,767,681 $49,585,343 $57,035,212
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Cost of revenue 16,752,484 21,421,304 34,910,296 41,606,178
Selling, general
and administrative
expenses 6,286,661 5,945,671 12,140,145 11,883,160
Depreciation and
amortization 658,199 651,039 1,308,143 1,340,181
------- ------- --------- ---------
Total costs and
expenses 23,697,344 28,018,014 48,358,584 54,829,519
---------- ---------- ---------- ----------
OPERATING INCOME 604,216 749,667 1,226,759 2,205,693
OTHER EXPENSE (INCOME):
Interest expense 78,277 136,681 140,637 248,284
Interest income (1,612) (22,073) (3,531) (48,112)
------ ------- ------ -------
INCOME BEFORE INCOME
TAX PROVISION 527,551 635,059 1,089,653 2,005,521
Income tax provision 254,605 253,299 492,687 744,204
------- ------- ------- -------
NET INCOME 272,946 381,760 596,966 1,261,317
Less: Net (loss) income
attributable to
noncontrolling interest (63,841) 19,950 (174,738) 61,196
------- ------ -------- ------
NET INCOME ATTRIBUTABLE
TO WPCS $336,787 $361,810 $771,704 $1,200,121
======== ======== ======== ==========
Basic net income per
common share
attributable to WPCS $0.05 $0.05 $0.11 $0.17
===== ===== ===== =====
Diluted net income per
common share
attributable to WPCS $0.05 $0.05 $0.11 $0.17
===== ===== ===== =====
Basic weighted average
number of common shares
outstanding 6,942,266 7,251,083 6,942,266 7,251,083
========= ========= ========= =========
Diluted weighted average
number of common shares
outstanding 6,976,256 7,262,419 6,968,524 7,259,353
========= ========= ========= =========
WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 31, April 30,
ASSETS 2009 2009
(Unaudited) Note 1
CURRENT ASSETS:
Cash and cash equivalents $8,511,319 $6,396,810
Accounts receivable, net of allowance of
$105,889 and $155,458 at October 31, 2009
and April 30, 2009, respectively 24,728,415 25,662,784
Costs and estimated earnings in excess of
billings on uncompleted contracts 4,034,783 5,229,043
Inventory 3,093,949 2,481,383
Prepaid expenses and other current assets 2,344,190 1,674,952
Prepaid income taxes - 295,683
Deferred tax assets 268,922 70,413
Total current assets 42,981,578 41,811,068
PROPERTY AND EQUIPMENT, net 6,498,162 6,668,032
OTHER INTANGIBLE ASSETS, net 1,823,932 1,983,879
GOODWILL 33,094,959 32,549,186
OTHER ASSETS 132,204 132,948
Total assets $84,530,835 $83,145,113
WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
LIABILITIES AND EQUITY October 31, April 30,
2009 2009
---- ----
(Unaudited) Note 1
CURRENT LIABILITIES:
Current portion of loans payable $54,662 $89,210
Borrowings under line of credit 5,626,056 5,626,056
Current portion of capital lease obligations 93,298 96,001
Accounts payable and accrued expenses 8,894,587 8,997,296
Billings in excess of costs and estimated
earnings on uncompleted contracts 2,164,517 2,511,220
Deferred revenue 640,156 507,650
Due to shareholders 2,988,674 2,951,008
Income taxes payable 190,423 -
------- ---
Total current liabilities 20,652,373 20,778,441
Loans payable, net of current portion 51,511 71,634
Capital lease obligations, net of
current portion 106,786 151,425
Deferred tax liabilities 1,565,866 1,467,971
--------- ---------
Total liabilities 22,376,536 22,469,471
---------- ----------
COMMITMENTS AND CONTINGENCIES
EQUITY:
Preferred stock - $0.0001 par value,
5,000,000 shares authorized, none issued - -
Common stock - $0.0001 par value,
25,000,000 shares authorized, 6,942,266
shares issued and outstanding at
October 31, 2009 and April 30, 2009,
respectively 694 694
Additional paid-in capital 50,246,439 50,175,479
Retained earnings 10,152,893 9,381,189
Accumulated other comprehensive
income (loss) on foreign currency
translation 488,933 (321,798)
------- --------
Total WPCS shareholders' equity 60,888,959 59,235,564
Noncontrolling interest 1,265,340 1,440,078
--------- ---------
Total equity 62,154,299 60,675,642
---------- ----------
Total liabilities and equity $84,530,835 $83,145,113
=========== ===========
Note 1. Certain reclassifications have been made to prior period financial statements to conform to current presentation.
SOURCE WPCS International Incorporated
Back to top
RELATED LINKS
http://www.wpcs.com
Custom Packages
Browse our custom packages or build your own to meet your unique communications needs.
PR Newswire Membership
Fill out a PR Newswire membership form or contact us at (888) 776-0942.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.
Featured Video
More in These Categories
Journalists and Bloggers
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
Free Investing Newsletter from Investor Uprising!
Learn to navigate the world's financial system and profit from leading companies.
Register for Investor Uprising, the people's investment site, for a free weekly newsletter, information, education and premium research including our latest IU Confidential Report - "All The Glitters: The Ultimate Gold Report".