WPCS Announces Financial Results for Fiscal 2015 Third Quarter and Nine-Month Periods
Results Reflect Losses From Restructuring but Profitable Domestic Operations
(firmenpresse) - SUISUN, CA -- (Marketwired) -- 03/23/15 -- WPCS International Incorporated (NASDAQ: WPCS), which specializes in contracting services for communications infrastructure and natural gas and petroleum transmission pipelines, today announced its fiscal 2015 third quarter and nine month financial results for the period ended January 31, 2015.
Sebastian Giordano, Interim CEO of WPCS, commented, "Operational results this quarter demonstrate that our core business, Suisun City Operations, continues to perform very well, achieving a 21.7% increase in revenue over the same period last year. While the Company had a loss from operations of $408,000 and $702,000 for the three months and nine months ended January 31, 2015, Suisun City had operating income of $236,000 and $1,292,000 for the same periods, which we believe provides an excellent foundation for future growth."
Revenue for the three months ended January 31, 2015 increased $94,000, or 1.5%, to $6.4 million as compared to $6.3 million for the same period in 2014, primarily due to a 21.7% increase in revenue from our Suisun City Operations to $5.3 million from $4.3 million, which was partially offset by a 45.6% decrease in revenue from our China Operations, to $1.1 million from $2.0 million.
The Company''s loss from continuing operations for the three months ended January 31, 2015 was $2.8 million, due primarily from the $408,000 operating loss and a non-cash charge for inducement expense of $3.6 million, which was partially offset by income from Section 16 settlements of $1.1 million, and $0.2 million of other income. This compared to a net operating loss from continuing operations of approximately $3.0 million for the same period in 2014.
WPCS has recorded the financial results for our divested subsidiaries as discontinued operations. For the three months ended January 31, 2015, WPCS recorded a loss from discontinued operations of approximately $111,000. Net loss attributable to common shareholders for the three-month period totaled approximately $3.5 million.
Revenue for the nine months ended January 31, 2015 increased $5.2 million, or 34.9%, to $20.2 million as compared to $15.0 million for the same period in 2014, primarily due to a 66.6% increase in revenue from our Suisun City Operations to $17.4 million from $10.5 million, which was partially offset by a 29.7% decrease in revenue from our China Operations to $2.9 million from $4.0 million.
The Company''s loss from continuing operations for the nine months ended January 31, 2015 was $7.6 million, due primarily from the $702,000 operating loss, interest expense of $3.0 million and a non-cash charge for inducement expense of $5.5 million, which was partially offset by income from Section 16 settlements of $1.4 million, and $200,000 of other income. This compared to a net operating loss from continuing operations of approximately $10.0 million for the same period in 2014.
WPCS has recorded the financial results for our divested subsidiaries as discontinued operations. For the nine months ended January 31, 2015, WPCS recorded a loss from discontinued operations of approximately $1.8 million. Net loss attributable to common shareholders for the six-month period totaled approximately $9.6 million.
"As expected, overall financial results reflect a Company still in the midst of a significant operational and financial restructuring. We continue to aggressively pursue additional debt and expense reductions, as well as the sale of our majority interest in the China Operations, while simultaneously seeking profitable growth opportunities for the Company," Giordano concluded.
WPCS provides contracting services to the public services, healthcare, energy and corporate enterprise markets in the United States and China. For more information, please visit .
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, and other future conditions. 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.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
WPCS International Incorporated
David Allen
Chief Financial Officer
Phone: 707-759-6008
Email:
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Datum: 23.03.2015 - 16:52 Uhr
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