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WPCS Reports FY2010 Third Quarter Financial Results

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.
    
    
    
                  WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
    
                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)
    
                               Three Months Ended          Nine Months Ended
                                   January 31,                 January 31,
                                2010         2009          2010          2009
                               ----          ----          ----          ----
    
    REVENUE             $26,972,380   $25,323,422   $76,557,723   $82,358,634
                        -----------   -----------   -----------   -----------
    
    COSTS AND EXPENSES:
      Cost of revenue    20,561,172    18,369,219    55,471,468    59,975,397
      Selling, general
       and administrative
       expenses           5,660,707     5,904,094    17,800,852    17,787,254
      Depreciation and
       amortization         662,705       614,699     1,970,848     1,954,880
                            -------       -------     ---------     ---------
    
        Total costs and
         expenses        26,884,584    24,888,012    75,243,168    79,717,531
                         ----------    ----------    ----------    ----------
    
    OPERATING INCOME         87,796       435,410     1,314,555     2,641,103
    
    OTHER EXPENSE (INCOME):
      Interest expense       53,294        85,480       193,931       333,764
      Interest income        (5,821)       (3,042)       (9,352)      (51,155)
                             ------        ------        ------       -------
    
    INCOME BEFORE INCOME
     TAX PROVISION           40,323       352,972     1,129,976     2,358,494
    
    Income tax (benefit)
     provision              (12,253)      101,036       480,434       845,240
                            -------       -------       -------       -------
    
    NET INCOME               52,576       251,936       649,542     1,513,254
    
    Less: Net (loss) income
     attributable to
     noncontrolling
     interest               (18,250)       73,840      (192,988)      135,037
                            -------        ------      --------       -------
    
    NET INCOME ATTRIBUTABLE
     TO WPCS                $70,826      $178,096      $842,530    $1,378,217
                            =======      ========      ========    ==========
    
    Basic net income
     per common share
     attributable to
     WPCS                     $0.01         $0.03         $0.12         $0.19
                              =====         =====         =====         =====
    
    Diluted net income
     per common share
     attributable to
     WPCS                     $0.01         $0.03         $0.12         $0.19
                              =====         =====         =====         =====
    
    Basic weighted
     average number of
     common shares
     outstanding          6,944,032     7,077,249     6,942,855     7,193,138
                          =========     =========     =========     =========
    
    Diluted weighted
     average number of
     common shares
     outstanding          6,968,587     7,077,249     6,966,054     7,213,744
                          =========     =========     =========     =========
    
    
    
    
    
                WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
    
                      CONDENSED CONSOLIDATED BALANCE SHEETS
    
    
                                         January 31,        April 30,
              ASSETS                           2010             2009
                                         -----------        ---------
                                          (Unaudited)       (Note 1)
    CURRENT ASSETS:
    
      Cash and cash equivalents           $3,973,653      $6,396,810
      Accounts receivable, net of
       allowance of $96,051 and $155,458
       at January 31, 2010 and April 30,
       2009, respectively                 27,539,260      25,662,784
      Costs and estimated earnings in
       excess of billings on uncompleted
       contracts                           6,176,827       5,229,043
      Inventory                            2,973,199       2,481,383
      Prepaid expenses and
       other current assets                1,470,810       1,674,952
      Prepaid income taxes                   306,933         295,683
      Deferred tax assets                    299,481          70,413
                                             -------         -------
        Total current assets              42,740,163      41,811,068
    
    PROPERTY AND EQUIPMENT, net            6,521,029       6,668,032
    
    OTHER INTANGIBLE ASSETS, net           2,204,955       1,983,879
    
    GOODWILL                              34,914,822      32,549,186
    
    OTHER ASSETS                             132,589         132,948
                                             -------         -------
    
        Total assets                     $86,513,558     $83,145,113
                                         ===========     ===========
    
    
    
    
    
             WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
    
             CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
    
    
                                  January 31,          April 30,
          LIABILITIES AND EQUITY     2010                2009
                                     ----                 ----
                                 (Unaudited)           (Note 1)
    CURRENT LIABILITIES:
    
      Current portion of loans
       payable                         $89,401         $89,210
      Borrowings under line of
       credit                        5,626,056       5,626,056
      Current portion of capital
       lease obligations                88,317          96,001
      Accounts payable and
       accrued expenses              9,076,906       8,997,296
      Billings in excess of
       costs and estimated
       earnings on uncompleted
       contracts                     2,334,186       2,511,220
      Deferred revenue                 646,403         507,650
      Due to shareholders            3,947,559       2,951,008
                                    ----------      ----------
    
                 Total current
                  liabilities       21,808,828      20,778,441
    
    Due to shareholders, net
     of current portion                803,722               -
    Loans payable, net of
     current portion                    38,654          71,634
    Capital lease obligations,
     net of current portion             87,508         151,425
    Deferred tax liabilities         1,737,619       1,467,971
                                    ----------      ----------
                 Total liabilities  24,476,331      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, 6,948,516 and
       6,942,266 shares issued
       and outstanding at
       January 31, 2010 and
       April 30, 2009,
       respectively                        700             694
      Additional paid-in
       capital                      50,301,320      50,175,479
      Retained earnings             10,223,719       9,381,189
      Accumulated other
       comprehensive income
       (loss) on foreign
       currency translation            352,956        (321,798)
                                       -------        --------
    
                 Total WPCS
                  shareholders'
                  equity            60,878,695      59,235,564
    
                 Noncontrolling
                  interest           1,158,532       1,440,078
                                     ---------       ---------
    
                 Total equity       62,037,227      60,675,642
    
    
                 Total liabilities
                  and equity       $86,513,558     $83,145,113
                                   ===========     ===========
    
    
    Note 1.  Certain reclassifications have been made to prior period 
    financial statements to conform to current presentation.
    
    
    
    CONTACT: 
    
    WPCS International Incorporated
    610-903-0400 x101
    ir@wpcs.com

SOURCE WPCS International Incorporated

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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