PRESS
RELEASE SOURCE: WPCS International Incorporated
WPCS
Signs Letter of Intent to Acquire NECS
EXTON,
PA — (PR Newswire-First Call) - May 9, 2006 - NASDAQ: WPCS
- News)
WPCS
International Incorporated (WPCS), a leader in design-build engineering services
for specialty communication systems and wireless infrastructure, has announced
that it has signed a letter of intent to acquire New England Communications
Systems, Inc. (NECS) www.necommsys.com
of
Middletown, CT for $3.2 million in cash and the assumption of approximately
$1.4
million in debt. NECS is a provider of specialty communication systems and
has
deployed wireless networks for many corporate, government and educational
clients including the Massachusetts State Police, University of Connecticut
and
Foxwoods Resort Casino.
NECS
has
a history of profitable operations, with steadily increasing revenues over
the
past five years. For the year ended December 31, 2005, NECS generated $9.9
million in revenue and $540,000 of EBIT or earnings before interest and taxes,
excluding certain non-recurring owner expenses (a non-GAAP measure). The gross
margin for 2005 was approximately 29%. The current annual forecast for NECS,
ending December 31, 2006 is to achieve $11.4 million in revenue and $936,000
in
EBIT.
Myron
Polulak, CEO of New England Communications Systems, Inc., commented, “The
merging of operations with WPCS is very beneficial for our customers and our
employees. For our customers, it allows us to continue to offer the highest
quality of service with additional engineering and financial strength. For
our
employees, it offers the opportunity to be part of a larger organization and
a
recognized leader in specialty communication systems, which should enhance
career development. We look forward to closing this transaction and contributing
to the future growth of WPCS.”
Andrew
Hidalgo, CEO of WPCS International Incorporated, commented, “This is a very
strategic acquisition from many perspectives. First, it establishes WPCS with
offices in New England, which has been a very important geographic region for
our company. Secondly, WPCS will gain the benefit of an experienced and talented
management team with very capable engineers and lastly, we add a financially
successful company that is recognized in New England as a leader in specialty
communication systems. We are truly excited about merging our operations and
capitalizing on the future opportunities.”
About
WPCS International Incorporated:
WPCS
provides design-build engineering services for specialty communication systems
and wireless infrastructure including site design, network integration,
structured cabling, electrical work and project management. The company has
an
extensive customer base that includes corporations, government entities and
educational institutions. For more information, please visit the website at
www.wpcs.com.
Statements
about the company's expectations, including 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:
Heather
Tocket / Corporate Communications Manager
WPCS
International Incorporated
610-903-0400
x102
ir@wpcs.com