Delaware
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001-34643
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98-0204758
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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ITEM 2.02
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Results of Operations and Financial Condition.
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ITEM 9.01
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Financial Statements and Exhibits.
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99.1 | Press Release, dated September 14, 2011, issued by WPCS International Incorporated. |
WPCS INTERNATIONAL INCORPORATED | |||
Date: September 14, 2011
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By:
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/s/ JOSEPH HEATER | |
Joseph Heater | |||
Chief Financial Officer | |||
PRESS RELEASE | SOURCE: WPCS International Incorporated |
Three Months Ended
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||||||||
July 31,
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||||||||
2011
|
2010
|
|||||||
REVENUE
|
$ | 25,419,503 | $ | 28,852,498 | ||||
COSTS AND EXPENSES:
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||||||||
Cost of revenue
|
19,573,186 | 22,697,975 | ||||||
Selling, general and administrative expenses
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5,156,522 | 5,916,327 | ||||||
Depreciation and amortization
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604,832 | 734,615 | ||||||
Change in fair value of acquisition-related contingent consideration
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43,068 | 63,052 | ||||||
25,377,608 | 29,411,969 | |||||||
OPERATING INCOME (LOSS)
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41,895 | (559,471 | ) | |||||
OTHER EXPENSE (INCOME):
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||||||||
Interest expense
|
95,932 | 54,635 | ||||||
Interest income
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(8,476 | ) | (10,069 | ) | ||||
LOSS BEFORE INCOME TAX BENEFIT
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(45,561 | ) | (604,037 | ) | ||||
Income tax benefit
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(26,340 | ) | (238,379 | ) | ||||
CONSOLIDATED NET LOSS
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(19,221 | ) | (365,658 | ) | ||||
Net income attributable to noncontrolling interest
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15,456 | 10,293 | ||||||
NET LOSS ATTRIBUTABLE TO WPCS
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$ | (34,677 | ) | $ | (375,951 | ) | ||
Basic net loss per common share attributable to WPCS
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$ | (0.00 | ) | $ | (0.05 | ) | ||
Diluted net loss per common share attributable to WPCS
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$ | (0.00 | ) | $ | (0.05 | ) | ||
Basic weighted average number of common shares outstanding
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6,954,766 | 6,954,766 | ||||||
Diluted weighted average number of common shares outstanding
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6,954,766 | 6,954,766 |
July 31,
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April 30,
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|||||||
ASSETS
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2011
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2011
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||||||
(Unaudited)
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$ | 4,063,322 | $ | 4,879,106 | ||||
Accounts receivable, net of allowance of $1,631,985 and $1,662,168 at
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||||||||
July 31, 2011 and April 30, 2011, respectively
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25,777,082 | 22,474,024 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts
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4,546,270 | 4,669,012 | ||||||
Inventory
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1,606,385 | 1,972,905 | ||||||
Prepaid expenses and other current assets
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1,592,500 | 1,413,151 | ||||||
Prepaid income taxes
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214,897 | 173,700 | ||||||
Income taxes receivable
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1,185,000 | 1,166,225 | ||||||
Deferred tax assets
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2,642,598 | 2,621,329 | ||||||
Total current assets
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41,628,054 | 39,369,452 | ||||||
PROPERTY AND EQUIPMENT, net
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5,909,461 | 6,035,353 | ||||||
OTHER INTANGIBLE ASSETS, net
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742,897 | 803,171 | ||||||
GOODWILL
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2,038,978 | 2,044,856 | ||||||
DEFERRED TAX ASSETS
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2,674,841 | 2,675,511 | ||||||
OTHER ASSETS
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134,145 | 134,654 | ||||||
Total assets
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$ | 53,128,376 | $ | 51,062,997 |
LIABILITIES AND EQUITY
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July 31,
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April 30,
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||||||
2011
|
2011
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|||||||
(Unaudited)
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||||||||
CURRENT LIABILITIES:
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||||||||
Current portion of loans payable
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$ | 97,299 | $ | 35,724 | ||||
Borrowings under line of credit
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5,560,977 | 7,000,000 | ||||||
Current portion of capital lease obligations
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48,175 | 54,496 | ||||||
Accounts payable and accrued expenses
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13,599,932 | 10,249,503 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts
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2,168,352 | 2,039,117 | ||||||
Deferred revenue
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809,169 | 792,414 | ||||||
Due joint venture partner
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3,134,583 | 3,415,641 | ||||||
Acquisition-related contingent consideration
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1,049,011 | 1,008,200 | ||||||
Total current liabilities
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26,467,498 | 24,595,095 | ||||||
Loans payable, net of current portion
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211,677 | 10,554 | ||||||
Capital lease obligations, net of current portion
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5,432 | 15,465 | ||||||
Total liabilities
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26,684,607 | 24,621,114 | ||||||
COMMITMENTS AND CONTINGENCIES
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||||||||
EQUITY:
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Preferred stock - $0.0001 par value, 5,000,000 shares authorized, none issued
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- | - | ||||||
Common stock - $0.0001 par value, 25,000,000 shares authorized, 6,954,766
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||||||||
shares issued and outstanding at July 31, 2011 and April 30, 2011
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695 | 695 | ||||||
Additional paid-in capital
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50,453,914 | 50,433,626 | ||||||
Accumulated deficit
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(26,630,508 | ) | (26,595,831 | ) | ||||
Accumulated other comprehensive income on foreign currency translation, net of
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||||||||
tax effects of $191,979 and $185,060 at July 31, 2011 and April 30, 2011, respectively
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1,560,411 | 1,564,965 | ||||||
Total WPCS shareholders' equity
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25,384,512 | 25,403,455 | ||||||
Noncontrolling interest
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1,059,257 | 1,038,428 | ||||||
Total equity
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26,443,769 | 26,441,883 | ||||||
Total liabilities and equity
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$ | 53,128,376 | $ | 51,062,997 |
Three Months Ended
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|||||||||
July 31,
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|||||||||
2011
|
2010
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||||||||
NET LOSS ATTRIBUTABLE TO WPCS, GAAP
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$ | (34,677 | ) | $ | (375,951 | ) | |||
Plus:
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|||||||||
Net income attributable to noncontrolling interest
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15,456 | 10,293 | |||||||
Income tax benefit
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(26,340 | ) | (238,379 | ) | |||||
Interest expense
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95,932 | 54,635 | |||||||
Interest income
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(8,476 | ) | (10,069 | ) | |||||
Change in fair value of acquisition-related contingent consideration
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43,068 | 63,052 | |||||||
One time strategic costs
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63,670 | - | |||||||
Depreciation and amortization
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604,832 | 734,615 | |||||||
Consolidated EBITDA, Non-GAAP
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$ | 753,465 | $ | 238,196 |
July 31,
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April 30,
|
|||||||
2011
|
2011
|
|||||||
Total WPCS shareholders' equity
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$ | 25,384,512 | $ | 25,403,455 | ||||
Less:
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||||||||
Goodwill
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2,038,978 | 2,044,856 | ||||||
Other Intangible Assets, net
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742,897 | 803,171 | ||||||
Net tangible asset value
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$ | 22,602,637 | $ | 22,555,428 | ||||
Diluted weighted average number of common shares outstanding
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6,954,766 | 6,954,766 | ||||||
Net tangible asset value per common share attributable to WPCS
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$ | 3.25 | $ | 3.24 |