| PRESS RELEASE |
SOURCE: WPCS
International Incorporated
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·
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Revenues
from the specialty communication systems segment represented approximately
88% of total revenue in the fiscal 2009 first quarter compared to 84%
during the fiscal 2008 first quarter. Revenues from the wireless
infrastructure services segment represented approximately 12% of total
revenue in the fiscal 2009 first quarter compared to 16% in the fiscal
2008 first quarter.
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·
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The
backlog of unfilled orders for WPCS was approximately $54 million at July
31, 2008 compared to $31 million at the corresponding period in
2007.
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·
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Additionally,
the Company’s bid list – representing project bids under proposal for new
and existing customers – was approximately $156 million at July 31, 2008
compared to $96 million at July 31,
2007.
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·
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WPCS
continues to maintain a healthy financial position with approximately $4.0
million in cash and cash equivalents, approximately $28.4 million in
working capital and credit facility borrowings of $7.6 million as of July
31, 2008.
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Three
Months Ended
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July
31,
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||||||||
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2008
|
2007
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|||||||
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REVENUE
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$ | 28,267,531 | $ | 21,816,006 | ||||
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COSTS
AND EXPENSES:
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||||||||
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Cost
of revenue
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20,184,874 | 15,187,752 | ||||||
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Selling,
general and administrative expenses
|
5,937,489 | 4,059,256 | ||||||
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Depreciation
and amortization
|
689,142 | 529,587 | ||||||
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Total
costs and expenses
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26,811,505 | 19,776,595 | ||||||
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OPERATING
INCOME
|
1,456,026 | 2,039,411 | ||||||
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OTHER
EXPENSE (INCOME):
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||||||||
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Interest
expense
|
111,603 | 122,582 | ||||||
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Interest
income
|
(26,039 | ) | (214,512 | ) | ||||
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Minority
interest
|
41,246 | 3,648 | ||||||
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INCOME
BEFORE INCOME TAX PROVISION
|
1,329,216 | 2,127,693 | ||||||
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Income
tax provision
|
490,905 | 855,078 | ||||||
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NET
INCOME
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$ | 838,311 | $ | 1,272,615 | ||||
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Basic
net income per common share
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$ | 0.12 | $ | 0.18 | ||||
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Diluted
net income per common share
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$ | 0.12 | $ | 0.16 | ||||
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Basic
weighted average number of common shares outstanding
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7,251,083 | 6,973,659 | ||||||
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Diluted
weighted average number of common shares outstanding
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7,260,035 | 8,050,686 | ||||||
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July
31,
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April
30,
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|||||||
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ASSETS
|
2008
|
2008
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||||||
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(Unaudited)
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||||||||
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CURRENT
ASSETS:
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||||||||
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Cash
and cash equivalents
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$ | 3,995,309 | $ | 7,449,530 | ||||
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Accounts
receivable, net of allowance of $94,067 and $98,786 at July 31, 2008 and
April 30, 2008, respectively
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32,417,735 | 29,092,488 | ||||||
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Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
4,808,297 | 3,887,152 | ||||||
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Inventory
|
3,345,333 | 2,791,782 | ||||||
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Prepaid
expenses and other current assets
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1,586,413 | 1,002,993 | ||||||
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Prepaid
income tax
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- | 122,342 | ||||||
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Deferred
tax assets
|
158,873 | 35,939 | ||||||
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Total
current assets
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46,311,960 | 44,382,226 | ||||||
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PROPERTY
AND EQUIPMENT, net
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7,035,920 | 6,828,162 | ||||||
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OTHER
INTANGIBLE ASSETS, net
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2,671,518 | 2,929,937 | ||||||
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GOODWILL
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32,239,771 | 28,987,501 | ||||||
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OTHER
ASSETS
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395,383 | 820,315 | ||||||
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Total
assets
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$ | 88,654,552 | $ | 83,948,141 | ||||
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July
31,
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April
30,
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||||||
|
2008
|
2008
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|||||||
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(Unaudited)
|
(Note
1)
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|||||||
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CURRENT
LIABILITIES:
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||||||||
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Current
portion of loans payable
|
$
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697,141
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$
|
1,272,112
|
||||
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Borrowings
under line of credit
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-
|
750,000
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||||||
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Current
portion of capital lease obligations
|
70,637
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91,491
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||||||
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Accounts
payable and accrued expenses
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8,572,132
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9,305,791
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||||||
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Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
4,829,142
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3,602,422
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||||||
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Deferred
revenue
|
869,169
|
602,560
|
||||||
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Due
to shareholders
|
2,588,262
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2,300,083
|
||||||
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Income
taxes payable
|
328,444
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-
|
||||||
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Total
current liabilities
|
17,954,927
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17,924,459
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||||||
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Borrowings
under line of credit
|
7,626,056
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4,376,056
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||||||
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Loans
payable, net of current portion
|
131,538
|
156,978
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||||||
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Capital
lease obligations, net of current portion
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233,971
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215,780
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||||||
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Deferred
tax liabilities
|
1,626,918
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1,173,786
|
||||||
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Total
liabilities
|
27,573,410
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23,847,059
|
||||||
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Minority
interest in subsidiary
|
1,373,096
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1,331,850
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COMMITMENTS
AND CONTINGENCIES
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||||||||
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SHAREHOLDERS'
EQUITY:
|
||||||||
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Preferred
stock - $0.0001 par value, 5,000,000 shares authorized, none
issued
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-
|
-
|
||||||
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Common
stock - $0.0001 par value, 75,000,000 shares authorized, 7,251,083 shares
issued and outstanding at July 31, 2008 and April 30, 2008
|
725
|
725
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||||||
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Additional
paid-in capital
|
50,802,710
|
50,775,938
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||||||
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Retained
earnings
|
8,547,873
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7,709,562
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||||||
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Accumulated
other comprehensive income on foreign currency translation
|
356,738
|
283,007
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||||||
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Total
shareholders' equity
|
59,708,046
|
58,769,232
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||||||
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Total
liabilities and shareholders' equity
|
$
|
88,654,552
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$
|
83,948,141
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