WPCS Reports 4th Quarter and FY2012 Results
(firmenpresse) - EXTON, PA -- (Marketwire) -- 07/30/12 -- WPCS International Incorporated (NASDAQ: WPCS), a leader in design-build engineering services for communications infrastructure, today announced financial results for the fiscal year 2012 fourth quarter ended April 30, 2012. Excluding the Trenton Operations, the remaining operation centers posted a slight EBITDA loss of approximately $58,000 compared to an EBITDA loss of $2.9 million for the same period in the prior year. Similarly, for the year ended April 30, 2012, the remaining operations centers have generated an EBITDA profit of approximately $3.0 million compared to an EBITDA loss of $3.0 million during the same period a year ago.
The company experienced cost overruns on four projects at the Trenton Operations during this fiscal year. The most significant is a healthcare project that was awarded to WPCS for $14.5 million which will cost an estimated $20.5 million to complete. The company has accrued the total expected loss for this project in fiscal year 2012 and this project is close to completion. As a result, these projects caused the company to post a consolidated EBITDA loss for the fourth quarter of $7.6 million, compared to an EBITDA loss of $4.1 million for the same period in the prior year. For the year ended April 30, 2012, the company reported a consolidated EBITDA loss of $11.2 million, compared to an EBITDA loss of $5.9 million for the same period in the prior year.
For the fourth quarter, WPCS reported revenue of $20.2 million compared to $16.2 million for the same period a year ago. The increase in revenue is due to organic growth in all of our segments. In regards to the net loss for the fourth quarter ended April 30, 2012, WPCS reported a net loss of approximately $8.5 million or $1.23 per diluted share, as a result of the cost overruns incurred by the Trenton Operations, and a non-cash charge of $2.6 million related to additional valuation allowances recorded for deferred tax assets. The net loss for the fourth quarter ended April 30, 2012 compares to a net loss of $27.0 million or $3.89 per diluted share for the same period a year ago.
For the year ended April 30, 2012, WPCS reported revenue of $92.4 million compared to $84.1 million for the same period a year ago, which represents an increase of approximately 10% due to organic growth in all of our segments. For the year ended April 30, 2012, WPCS reported a net loss of approximately $20.5 million or $2.95 per diluted share which includes a non-cash charge of $9.3 million related to valuation allowances for deferred tax assets and a $1.8 million loss from discontinued operations. As a result of the losses incurred by the Trenton Operations in fiscal 2012, WPCS re-evaluated the realization of deferred tax assets in light of the change in our current financial performance and established a full valuation allowance on its U.S. Federal and state deferred tax assets. WPCS will continue to evaluate the realization of its deferred tax assets on a periodic basis and will likely recoup the allowance in future periods as the financial performance improves. This compares to a net loss of $36.8 million or $5.30 per diluted share for the same period a year ago.
Andrew Hidalgo, CEO of WPCS, commented, "I am pleased to mention that for the year ended April 30, 2012, excluding the Trenton Operations the remaining operations centers have generated an EBITDA profit of $3.0 million compared to a loss of $3.0 million during the same period a year ago. This represents a significant improvement. The last two fiscal years have been challenging due to the economic conditions and certain projects that experienced substantial cost overruns, however, we believe our future quarters look promising. The management team is working to strengthen the balance sheet and income statement so that we can target positive revenue and EBITDA results in fiscal 2013. In this regard, we completed the $5.5 million asset sales of our Hartford and Lakewood Operations, with the proceeds used to extinguish bank debt and for future working capital. Our bid activity of $87 million remains high at the end of our fourth quarter. Our commitment to quality workmanship and our special certifications in design-build engineering continue to give us a competitive advantage during this economic recovery. As evidenced in the press releases announcing new contracts, customers continue to seek bids from WPCS because of our outstanding reputation. At the end of the fourth quarter, WPCS continues to maintain a backlog of $23.6 million comprised of a variety of projects in the public services, healthcare and energy sectors. Our goal in the next few quarters is to convert more of our bids into backlog. The conversion of these bids to backlog and the effective management of projects through completion will give us the opportunity to increase our EBITDA performance and get back to positive earnings per share results in the future. Our financial performance will be generated by the three domestic operations centers in Seattle, Suisun City, and Trenton, as well as the international operations in Australia and China. We are reiterating our guidance for the fiscal year ending April 30, 2013 of approximately $60 million in revenue and $1 million in EBITDA."
As a reminder, there will be an investor conference call at 5:00 pm ET today. To participate on the conference call, please dial 800-875-3456 for calls within the U.S. or 302-607-2001 for calls from international locations. Upon reaching the operator, verbally transmit the participant code VH46147. 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 call will be available for a period of five days by dialing 800-355-2355 and entering 46147 # as the program identification number.
The press release references a financial measure, EBITDA that is not in accordance with GAAP. WPCS defines EBITDA in the traditional sense of earnings before interest, income taxes, depreciation and amortization but in addition, WPCS has incurred one-time charges for the loss from discontinued operations and the strategic alternatives effort as well as non-cash charges from deferred tax asset valuation allowances, acquisition related earn-out costs and goodwill impairments. These charges are also excluded from the EBITDA calculation so that the company can provide a more meaningful perspective on the results for the continuing operations. The company uses EBITDA to evaluate its operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. The company believes that this measure is useful to investors because it enhances investors' ability to review the Company's business from the same perspective as our management and to facilitate comparisons of this period's results with prior periods. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of the company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of the additional information should not be considered a substitute for net income or net income per diluted share prepared in accordance with GAAP. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in our industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. Pursuant to the Requirements of Regulation G, WPCS has included a reconciliation of EBITDA to the most directly comparable GAAP financial measure.
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
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.
(1) The prior year financial statements contain certain reclassifications to present discontinued operations.
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(1) Reconciliation of Non-GAAP EBITDA:
CONTACT:
WPCS International Incorporated
610-903-0400 x101
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.07.2012 - 14:01 Uhr
Sprache: Deutsch
News-ID 1137661
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
EXTON, PA
Phone:
Kategorie:
Wireless & Mobile
Anmerkungen:
Diese Pressemitteilung wurde bisher 171 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"WPCS Reports 4th Quarter and FY2012 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
WPCS (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
