Delaware
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0-26277
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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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99.1
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Press Release, dated March 17, 2011, issued by WPCS International Incorporated.
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WPCS INTERNATIONAL INCORPORATED
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|||
Date: March 17, 2011
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By:
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/s/ JOSEPH HEATER | |
Joseph Heater
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Chief Financial Officer
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PRESS RELEASE | SOURCE: WPCS International Incorporated |
CONSOLIDATED STATEMENTS OF INCOME
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||||||||||||||||
Unaudited
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||||||||||||||||
Three Months Ended
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Nine Months Ended
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|||||||||||||||
January 31,
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January 31,
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|||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
REVENUE
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$ | 23,434,729 | $ | 26,972,380 | $ | 79,010,305 | $ | 76,557,723 | ||||||||
COSTS AND EXPENSES:
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||||||||||||||||
Cost of revenue
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18,424,200 | 20,561,172 | 63,122,185 | 55,471,468 | ||||||||||||
Selling, general and administrative expenses
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5,643,916 | 5,660,707 | 17,657,254 | 17,800,852 | ||||||||||||
Depreciation and amortization
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638,337 | 662,705 | 2,094,658 | 1,970,848 | ||||||||||||
Goodwill impairment
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2,600,000 | - | 6,900,000 | - | ||||||||||||
Change in fair value of acquisition-related contingent consideration
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41,784 | - | 178,430 | - | ||||||||||||
Total costs and expenses
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27,348,237 | 26,884,584 | 89,952,527 | 75,243,168 | ||||||||||||
OPERATING (LOSS) INCOME
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(3,913,508 | ) | 87,796 | (10,942,222 | ) | 1,314,555 | ||||||||||
OTHER EXPENSE (INCOME):
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||||||||||||||||
Interest expense
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293,274 | 53,294 | 410,011 | 193,931 | ||||||||||||
Interest income
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(11,436 | ) | (5,821 | ) | (35,804 | ) | (9,352 | ) | ||||||||
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION
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(4,195,346 | ) | 40,323 | (11,316,429 | ) | 1,129,976 | ||||||||||
Income tax (benefit) provision
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(874,089 | ) | (12,253 | ) | (1,590,537 | ) | 480,434 | |||||||||
NET (LOSS) INCOME
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(3,321,257 | ) | 52,576 | (9,725,892 | ) | 649,542 | ||||||||||
Net income (loss) attributable to noncontrolling interest
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141,547 | (18,250 | ) | 76,041 | (192,988 | ) | ||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO WPCS
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$ | (3,462,804 | ) | 70,826 | (9,801,933 | ) | $ | 842,530 | ||||||||
Basic net (loss) income per common share attributable to WPCS
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$ | (0.50 | ) | $ | 0.01 | $ | (1.41 | ) | $ | 0.12 | ||||||
Diluted net (loss) income per common share attributable to WPCS
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$ | (0.50 | ) | $ | 0.01 | $ | (1.41 | ) | $ | 0.12 | ||||||
Basic weighted average number of common shares outstanding
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6,954,766 | 6,944,032 | 6,954,766 | 6,942,855 | ||||||||||||
Diluted weighted average number of common shares outstanding
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6,954,766 | 6,968,587 | 6,954,766 | 6,966,054 |
WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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January 31,
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April 30,
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|||||||
ASSETS
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2011
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2010
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||||||
(Unaudited)
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(Note 1)
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|||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$ | 5,581,036 | $ | 5,584,309 | ||||
Accounts receivable, net of allowance of $189,724 and $206,617 at January 31, 2011 and April 30, 2010, respectively
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23,587,456 | 26,011,955 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts
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6,444,060 | 8,859,056 | ||||||
Inventory
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2,957,067 | 2,720,052 | ||||||
Prepaid expenses and other current assets
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1,986,245 | 848,626 | ||||||
Prepaid income taxes
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379,751 | - | ||||||
Income taxes receivable
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1,429,634 | - | ||||||
Deferred tax assets
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578,873 | 666,000 | ||||||
Total current assets
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42,944,122 | 44,689,998 | ||||||
PROPERTY AND EQUIPMENT, net
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6,335,993 | 6,468,787 | ||||||
OTHER INTANGIBLE ASSETS, net
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1,708,326 | 2,112,058 | ||||||
GOODWILL
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28,310,000 | 34,919,384 | ||||||
OTHER ASSETS
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139,221 | 162,858 | ||||||
Total assets
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$ | 79,437,662 | $ | 88,353,085 |
LIABILITIES AND EQUITY
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January 31,
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April 30,
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||||||
2011
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2010
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|||||||
(Unaudited)
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(Note 1)
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|||||||
CURRENT LIABILITIES:
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Current portion of loans payable
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$ | 37,407 | $ | 63,683 | ||||
Income taxes payable
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- | 107,417 | ||||||
Borrowings under line of credit
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6,690,488 | - | ||||||
Current portion of capital lease obligations
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61,648 | 81,950 | ||||||
Accounts payable and accrued expenses
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9,517,705 | 10,962,016 | ||||||
Billings in excess of costs and estimated earnings on uncompleted contracts
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2,341,700 | 1,853,131 | ||||||
Deferred revenue
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584,256 | 503,502 | ||||||
Due joint venture partner
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3,323,778 | 3,288,294 | ||||||
Acquisition-related contingent consideration
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997,606 | 851,516 | ||||||
Total current liabilities
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23,554,588 | 17,711,509 | ||||||
Acquisition-related contingent consideration, net of current portion
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880,886 | 726,677 | ||||||
Borrowings under line of credit
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- | 5,626,056 | ||||||
Loans payable, net of current portion
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18,048 | 46,364 | ||||||
Capital lease obligations, net of current portion
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26,178 | 69,961 | ||||||
Deferred tax liabilities
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1,921,508 | 2,018,462 | ||||||
Total liabilities
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26,401,208 | 26,199,029 | ||||||
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 shares issued and outstanding at January 31, 2011 and April 30, 2010
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695 | 695 | ||||||
Additional paid-in capital
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50,418,824 | 50,346,655 | ||||||
Retained earnings
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433,657 | 10,235,590 | ||||||
Accumulated other comprehensive income on foreign currency translation, net of tax effects of $25,197 and $19,581 at January 31, 2011 and April 30, 2010, respectively
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908,756 | 398,116 | ||||||
Total WPCS shareholders' equity
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51,761,932 | 60,981,056 | ||||||
Noncontrolling interest
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1,274,522 | 1,173,000 | ||||||
Total equity
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53,036,454 | 62,154,056 | ||||||
Total liabilities and equity
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$ | 79,437,662 | $ | 88,353,085 |
Three Months Ended
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Nine Months Ended
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||||||||||||||||
January 31,
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January 31,
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||||||||||||||||
2011
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2010
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2011
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2010
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NET (LOSS) INCOME ATTRIBUTABLE TO WPCS, GAAP
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$ | (3,462,804 | ) | $ | 70,826 | $ | (9,801,933 | ) | $ | 842,530 | |||||||
Plus:
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Net income (loss) attributable to noncontrolling interest
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141,547 | (18,250 | ) | 76,041 | (192,988 | ) | |||||||||||
Income tax (benefit) provision
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(874,089 | ) | (12,253 | ) | (1,590,537 | ) | 480,434 | ||||||||||
Interest expense
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293,274 | 53,294 | 410,011 | 193,931 | |||||||||||||
Interest income
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(11,436 | ) | (5,821 | ) | (35,804 | ) | (9,352 | ) | |||||||||
Change in fair value of acquisition-related contingent consideration
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41,784 | - | 178,430 | - | |||||||||||||
Goodwill impairment
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2,600,000 | - | 6,900,000 | - | |||||||||||||
One time strategic costs
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204,895 | - | 480,570 | - | |||||||||||||
Depreciation and amortization
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638,337 | 662,705 | 2,094,658 | 1,970,848 | |||||||||||||
Consolidated EBITDA, Non-GAAP
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$ | (428,492 | ) | $ | 750,501 | $ | (1,288,564 | ) | $ | 3,285,403 | |||||||
Plus:
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Operating loss (gain), Suisun City operations center
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631,918 | (50,716 | ) | 2,097,012 | (1,979,457 | ) | |||||||||||
Operating loss, Portland operations center
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- | - | 485,710 | 200,324 | |||||||||||||
Corporate operating expenses
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584,902 | 666,427 | 2,459,059 | 2,616,972 | |||||||||||||
Performing Operation Centers EBITDA, Non-GAAP
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$ | 788,328 | $ | 1,366,212 | $ | 3,753,217 | $ | 4,123,242 |
January 31,
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April 30,
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|||||||
2011
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2010
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|||||||
Total WPCS shareholders' equity
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$ | 51,761,932 | $ | 60,981,056 | ||||
Less:
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Goodwill
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28,310,000 | 34,919,384 | ||||||
Other Intangible Assets, net
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1,708,326 | 2,112,058 | ||||||
Net Tangible Asset Value
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$ | 21,743,606 | $ | 23,949,614 |