Suisun City Operations Continue Profitability
SUISUN, CA–(Marketwired – Jul 21, 2017) – WPCS International Incorporated (NASDAQ: WPCS), a full-service low-voltage solutions provider in the business of developing, installing and servicing integrated structured cabling, audio-visual and security systems, announced that today it filed its Annual Report on Form 10-K, for the fiscal year ended April 30, 2017.
Sebastian Giordano, CEO of WPCS, commented, “Operational results this past year demonstrated that our sole business, Suisun City Operations, continues to perform profitably as it generated $1,064,000 in operating income on revenues of approximately $15,731,000.”
Financial Results for the Year Ended April 30, 2017
Revenue for the twelve months ended April 30, 2017 increased by approximately $2,182,000, or 15%, to approximately $16,737,000, as compared to approximately $14,555,000, for the same period in 2016. Such increase was due primarily to revenue increases in our: (i) Suisun City Operations of approximately $1,177,000, and (ii) Texas Operations of approximately $1,005,000. Notwithstanding the foregoing, we do not anticipate any further revenues from the Texas Operations since it was closed in the fourth quarter of 2017.
The Company’s loss from continuing operations for the year ended April 30, 2017 was approximately $1,219,000, due primarily to an approximate $2,545,000 operating loss, interest expense of approximately $7,000 and income tax provision of approximately $3,000, which were partially offset by income from various settlements totaling approximately $1,192,000 and other income of approximately $143,000. This compared to a loss from continuing operations of approximately $3,631,000 for the same period in 2016. Meanwhile, the net loss attribute to WPCS common shareholders for the year ended April 30, 2017 was approximately $2,256,000, or $0.76 per share, as compared to a loss of approximately $8,270,000, or $3.61 per share, for the same period in 2016.
The $2,545,000 loss from operations was comprised primarily of approximately $1,043,000 in operating income from Suisun City Operations and which was offset by approximately $2,602,000 of corporate overhead expenses, of which approximately $580,000 related to non-cash compensation expense recognized on the issuance of employee stock options, and a loss from our Texas Operations of approximately $986,000. This compared to a net loss from operations of approximately $4,032,000 for the same period in 2016.
ABOUT WPCS INTERNATIONAL INCORPORATED
WPCS is a full-service, low-voltage solutions provider, installing and servicing integrated structured cabling, audio-visual and security systems for public services, healthcare, energy and corporate enterprise markets in the United States. The Company delivers end-to-end solutions, superior project management and best-in-class products and technology. For more information about WPCS, please visit www.wpcs.com.
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, other future conditions and the risk factors detailed from time to time in the Company’s periodic filings with the Securities and Exchange Commission, including without limitation, the Company’s Annual Report on Form 10-K for the year ended April 30, 2017. 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.