-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KN4Ucdg9JxUMdZsT9aiHWzJEYvBEB95MOi6VvZwJMumuywqYcFzoRzw2v6lojir8 b/i4qNloch0eCNitMye9Tg== 0000881771-99-000040.txt : 19990817 0000881771-99-000040.hdr.sgml : 19990817 ACCESSION NUMBER: 0000881771-99-000040 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990627 FILED AS OF DATE: 19990816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WPI GROUP INC CENTRAL INDEX KEY: 0000881771 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COILS, TRANSFORMERS & OTHER INDUCTORS [3677] IRS NUMBER: 020218767 STATE OF INCORPORATION: NH FISCAL YEAR END: 0928 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-72391 FILM NUMBER: 99693240 BUSINESS ADDRESS: STREET 1: 1155 ELM ST CITY: MANCHESTER STATE: NH ZIP: 03101 BUSINESS PHONE: 6036273500 MAIL ADDRESS: STREET 1: 1155 ELM STREET CITY: MANCHESTER STATE: NH ZIP: 03101 FORMER COMPANY: FORMER CONFORMED NAME: WALKER POWER INC DATE OF NAME CHANGE: 19930328 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 Q (Mark One) /XX/QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES -- EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 1999 / /TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES -- EXCHANGE ACT OF 1934 For the transition period from to . ----------- ---------- Commission File Number: 0-19717 WPI GROUP, INC. --------------- (Exact name of registrant as specified in its charter) NEW HAMPSHIRE 02-0218767 ------------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 1155 Elm Street, Manchester, New Hampshire 03101 - ------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code: (603) 627-3500 -------------- - ----------------------------------------------------------------------- (Former name, former address, and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Applicable only to issuers involved in bankruptcy proceedings during the preceding five years: Indicate by check mark whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court. Yes No --- --- Applicable only to corporate issuers: Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: Class Outstanding as of July 31, 1999 ----- ------------------------------- Common Stock, par value $.01 6,049,958 shares WPI GROUP, INC. INDEX ----- Page No. -------- PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets 3 - June 27,1999 and September 27,1998 Consolidated Statements of Operations 4 - Three months ended June 27,1999 and June 28,1998 - Nine months ended June 27,1999 and June 28,1998 Consolidated Statements of Cash Flows 5 - Nine months ended June 27,1999 and June 28,1998 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of 7 Financial Condition and Results of Operations PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 11 SIGNATURES 12 -2- WPI GROUP, INC. CONSOLIDATED BALANCE SHEETS
September 27, June 27, 1998 1999 ------------- ------------ (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 159,518 $ 50,948 Accounts receivable - net of allowance for doubtful accounts of $1,283,000 and $898,000, respectively 21,123,792 15,792,925 Accounts receivable - other 270,611 317,344 Inventories 14,188,286 16,764,656 Prepaid expenses and other current assets 1,562,048 2,389,543 Prepaid income taxes 2,551,616 2,551,459 Refundable income taxes 620,578 209,480 ------------- ------------ Total current assets 40,476,449 38,076,355 PROPERTY, PLANT AND EQUIPMENT at cost, less accumulated depreciation 15,514,291 15,195,186 OTHER ASSETS 54,132,417 52,802,425 ------------- ------------ $ 110,123,157 $106,073,966 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank credit facility $ - $ 67,000,000 Current portion of long-term debt 3,715,748 495,372 Accounts payable 7,776,470 8,008,348 Accrued expenses 5,985,304 5,601,062 Accrued income taxes 1,672,166 1,121,588 ------------- ------------ Total current liabilities 19,149,688 82,226,370 ------------- ------------ LONG-TERM DEBT 62,638,964 1,423,800 ------------- ------------ DEFERRED INCOME TAXES 3,091,995 3,095,604 ------------- ------------ COMMITMENTS STOCKHOLDERS' EQUITY: Common stock, $.01 par value; authorized 20,000,000 shares, issued and outstanding 6,028,204 and 6,049,958, respectively. 60,282 60,499 Additional paid-in capital 14,169,771 14,234,931 Retained earnings 10,418,044 5,660,687 Cumulative foreign currency translation adjustments 594,413 (627,925) ------------- ------------ Total stockholders' equity 25,242,510 19,328,192 ------------- ------------ $ 110,123,157 $106,073,966 ============= ============
See notes to financial statements - 3 - WPI GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended June 28, June 27, June 28, June 27, 1998 1999 1998 1999 ----------- ----------- ----------- ----------- NET SALES $24,397,485 $21,201,209 $69,494,757 $68,153,904 COST OF GOODS SOLD 13,874,966 12,905,474 40,511,951 40,030,909 ----------- ----------- ----------- ----------- GROSS PROFIT 10,522,519 8,295,735 28,982,806 28,122,995 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Research and new product development 1,323,517 1,465,118 3,983,448 4,435,651 Selling, general and administration 6,426,139 7,312,248 17,670,970 21,772,999 Restructuring costs - - - 1,750,000 ----------- ----------- ----------- ----------- Total operating expense 7,749,656 8,777,366 21,654,418 27,958,650 ----------- ----------- ----------- ----------- OPERATING INCOME (LOSS) 2,772,863 (481,631) 7,328,388 164,345 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest expense (771,792) (1,791,732) (2,445,588) (5,196,901) Foreign currency exchange gain (loss) (26,162) 19,208 (54,422) 252,590 Other, net 56,408 8,685 72,173 22,609 ----------- ----------- ---------- ----------- (741,546) (1,763,839) (2,427,837) (4,921,702) ----------- ----------- ----------- ----------- INCOME (LOSS)BEFORE PROVISION FOR INCOME TAXES 2,031,317 (2,245,470) 4,900,551 (4,757,357) PROVISION FOR INCOME TAXES 663,000 904,000 1,568,000 0 ----------- ----------- ----------- ----------- NET INCOME (LOSS) $ 1,368,317 $(3,149,470) $ 3,332,551 $(4,757,357) =========== =========== =========== =========== BASIC EARNINGS (LOSS) PER SHARE: $ 0.23 $ (0.52) $ 0.55 $ (0.79) =========== =========== =========== =========== DILUTED EARNINGS (LOSS) PER SHARE: $ 0.22 $ (0.52) $ 0.54 $ (0.79) =========== =========== =========== =========== Weighted Average Common Shares 6,018,419 6,048,977 6,011,864 6,041,515 Effect of Dilutive Options 172,258 - 200,164 - ----------- ----------- ----------- ----------- Adjusted Weighted Average Common Shares 6,190,677 6,048,977 6,212,028 6,041,515 =========== =========== =========== ===========
See notes to financial statements - 4 - WPI GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended June 28, June 27, 1998 1999 ------------ ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 3,332,551 $(4,757,357) ------------ ----------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,073,770 4,730,186 Deferred income taxes 21,135 9,292 Changes in current assets and liabilities net of effects of acquisition: Accounts receivable (5,252,176) 4,618,742 Accounts receivable - other (54,793) (52,531) Inventories 515,345 (3,061,493) Prepaid expenses and other current assets 353,425 (507,582) Accounts payable (395,206) 583,320 Accrued expenses 1,070 208,043 Accrued income taxes 1,211,818 (426,613) ------------ ----------- Total adjustments 474,388 6,101,364 ------------ ----------- Net cash provided by operating activities 3,806,939 1,344,007 ------------ ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in notes payable (2,000,000) 2,564,460 Proceeds from issuance of common stock 50,878 35,958 Proceeds from exercise of stock options 79,469 28,519 Tax benefit on exercise of non- statutory options 22,000 900 ------------ ----------- Net cash provided by (used in) financial activities (1,847,653) 2,629,837 ------------ ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (950,889) (2,150,774) Proceeds from sales of property, plant and equipment 1,492,738 - Increase in other assets (1,646,877) (1,504,180) Payment of accrued acquisition costs (133,328) (397,453) ------------ ----------- Net cash (used in) investing activities (1,238,356) (4,052,407) ------------ ----------- EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH 24,502 (30,007) ------------ ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 745,432 (108,570) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 678,799 159,518 ------------ ----------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,424,231 $ 50,948 ============ =========== SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION: Income taxes paid (refunded) $ (337,684) $ 70,246 Interest paid 2,423,138 3,940,396
See notes to financial statements - 5 - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The financial statements for the three months and nine months ended June 27,1999 and June 28, 1998 are unaudited and include all adjustments which, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. All such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-K filed with the Securities and Exchange Commission (File No. 0-19717), which included financial statements for the years ended September 27,1998 and September 28,1997. The results of the Company's operations for any interim period are not necessarily indicative of the results of the Company's operations for any other interim period or for a full fiscal year. 2. INVENTORIES
Inventory consists of: September 27, June 27, 1998 1999 ------------- ----------- Raw Materials $ 7,684,405 $ 9,467,918 Work in Process 4,758,535 5,110,955 Finished Goods 1,745,346 2,185,783 ------------- ----------- Total $ 14,188,286 $16,764,656 ============= ===========
3. BANK CREDIT FACILITY The Company has a $75 million credit facility with a syndication of banks, consisting of a $20 million revolving line of credit which expires on September 30, 2003, and term notes totaling $55 million payable in varying quarterly installments commencing on December 31, 1998, and through September 30, 2004. The agreement contains certain restrictive covenants, including financial covenants, one of which the Company was not in compliance with at September 27, 1998. In December 1998, the Company reached an agreement with the banks to waive the event of non-compliance and amend certain terms of the agreement. As of March 28, 1999 and June 27, 1999, the Company was not in compliance with two of the financial covenants contained in the credit agreement. The Company reached agreement with the banks to waive the event of non- compliance as of March 28, 1999 and June 27, 1999 up to and until October 1, 1999 and to amend certain terms of the agreement. In relevant part, the terms of the amendment increases the interest accrued on all borrowings by 2% per annum and limits the revolving credit borrowings to $14.8 million, the amount of the Company's current revolving credit borrowings. In addition to the payment of a fee to amend the agreement, the Company has agreed to issue to the banks warrants to purchase 124,000 shares of the Company's common stock at $2.75 per share. The warrants are exercisable after one year for a period of ten years. The Company believes that its cash flow from operations and current availability under the credit facility sufficient to support working capital needs for the forseeable future. While the Company has received waivers of compliance with certain financial covenants through the - 6 - end of its fiscal year ending September 26, 1999, the Company anticipates the need to negotiate with its banks on an amendment to its credit facility, negotiate with the banks on further waiver on certain covenants and other terms, or refinance its credit facility. There is no assurance that the Company will obtain an amendment or waiver or be able to refinance its credit facility. If the Company is unable to obtain an amendment or waiver or is unable to refinance the credit facility, the Company could be in non- compliance with the terms of the credit agreement. Such non-compliance would permit the banks to accelerate the maturity of all outstanding borrowings under the credit facility and would have a material adverse effect on the Company's liquidity and capital reserves and cash flows. Accordingly, debt related to the credit facility has been classified as current in the balance sheet in the third fiscal quarter of 1999. - 7 - ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and footnotes contained in the Company's Form 10-Q for the period ending June 27, 1999 and the Form 10-K for the year ended September 27, 1998, filed with the Securities and Exchange Commission. In addition to historical information, this report contains forward looking statements that involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in this section. Readers should carefully review the risks described in other documents the Company files from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K where the fiscal year ended September 27, 1998. Readers are cautioned not to place undue reliance on the forward looking statements, which speak only as of the date of this report. The Company undertakes no obligation to publicly release any revisions to the forward looking statements or reflect events or circumstances after the date of this document. RESULTS OF OPERATIONS Net sales of $21.2 million for the third quarter of fiscal 1999 decreased 13% from sales of $24.4 million for the third quarter of fiscal 1998. For the first nine months of fiscal 1999, the Company reported net sales of $68.2 million, 2% lower than the sales of $69.5 million for the first nine months of fiscal 1998. The Company's net sales for the quarter and nine months ended June 27, 1999 include WPI Instruments, Inc. as a result of its acquisition in August 1998. The Company's fiscal 1999 sales were negatively impacted by lower sales in the Company's power conversion systems, electronic ballasts and handheld terminal product lines. Cost of sales of $12.9 million for the third quarter of fiscal 1999 resulted in a gross profit of 39%, compared to a gross profit of 43% for the same period of fiscal 1998. Cost of sales of $40.0 million for the first nine months of fiscal 1999 resulted in a gross profit of 41%, compared to a gross profit of 42% for the same period of fiscal 1998. The decrease in the Company's gross profit percentage in fiscal 1999 was primarily attributable to a change in the mix of products sold. Research and new product development expenses were 7% and 7 % of sales for the quarter and for the nine months ended June 27,1999, respectively, compared to 5% and 6% of sales for the same three and nine month periods in fiscal 1998. The increase in research and new product development expenses as a percentage of net sales was due primarily to the decrease in sales and the acquisition of WPI Instruments. As a percentage of sales, selling, general and administrative expenditures were 34% and 26% for the quarters and 32% and 25% of the nine month periods ended June 27, 1999 and June 28, 1998, respectively. The increase in selling, general and administrative expenses as a percentage of sales in fiscal 1999 was primarily attributable to the decrease in sales, the acquisition of WPI Instruments and higher expenses incurred prior to the implementation of the Company's consolidation and restructuring initiatives. The Company's operating loss of the third quarter of fiscal 1999 is $.5 million compared to operating income of $2.8 million in the third quarter of fiscal 1998. For the nine months ended June 27, 1999 and June 28, 1998, the Company's operating income was $.2 million and $7.3 million, respectively. The decrease in operating income was primarily due to the increase in selling, general and administration expenses discussed above and the restructuring costs incurred to date in connection with the Company's reorganization of its Information Solutions and Industrial Technology Groups. - 8 - For the three months ended June 27, 1999, the Company's loss before provision for income taxes is $2.2 million compared to income of $2.0 million for the three months ended June 28, 1998. For the nine months ended June 27, 1999, the Company's loss before provision for income taxes is $4.8 million compared to income of $4.9 million for the nine months ended June 28, 1998. The decrease for the three and nine month periods was primarily due to weaker sales and the Company's reorganization discussed above. The provision for income taxes of $904,000 for the three months ended June 27, 1999 represents the reversal of the tax benefits recognized in the first and second quarter of fiscal 1999. The Company had recognized the tax benefit because it expected to generate sufficient U.S. and U.K. income to realize the benefits of the loss during fiscal 1999. The tax benefits were reversed because the Company does not believe it is more likely than not that it will generate sufficient taxable income in fiscal 1999 to offset the loss incurred to debt. Any unutilized net operating loss will be available for carry forward to reduce the Company's future taxable income. LIQUIDITY AND CAPITAL RESOURCES The Company has a $75 million credit facility with a syndication of banks, consisting of a $20 million revolving line of credit which expires on September 30, 2003, and term notes totaling $55 million payable in varying quarterly installments commencing on December 31, 1998, and through September 30, 2004. The agreement contains certain restrictive covenants, including financial covenants, one of which the Company was not in compliance with at September 27, 1998. In December 1998, the Company reached an agreement with the banks to waive the event of non-compliance and amend certain terms of the agreement. As of March 28, 1999 and June 27, 1999, the Company was not in compliance with two of the financial covenants contained in the credit agreement. The Company reached agreement with the banks to waive the event of non- compliance as of March 28, 1999 and June 27, 1999 up to and until October 1, 1999 and to amend certain terms of the agreement. In relevant part, the terms of the amendment increases the interest accrued on all borrowings by 2% per annum and limits the revolving credit borrowings to $14.8 million, the amount of the Company's current revolving credit borrowings. In addition to the payment of a fee to amend the agreement, the Company has agreed to issue to the banks warrants to purchase 124,000 shares of the Company's common stock at $2.75 per share. The warrants are exercisable after one year for a period of ten years. The Company believes that its cash flow from operations and current availability under the credit facility sufficient to support working capital needs for the forseeable future. While the Company has received waivers of compliance with certain financial covenants through the end of its fiscal year ending September 26, 1999, the Company anticipates the need to negotiate with its banks on an amendment to its credit facility, negotiate with the banks on further waiver on certain covenants and other terms, or refinance its credit facility. There is no assurance that the Company will obtain an amendment or waiver or be able to refinance its credit facility. If the Company is unable to obtain an amendment or waiver or is unable to refinance the credit facility, the Company could be in non- compliance with the terms of the credit agreement. Such non-compliance would permit the banks to accelerate the maturity of all outstanding borrowings under the credit facility and would have a material adverse effect on the Company's liquidity and capital reserves and cash flows. Accordingly, debt related to the credit facility has been classified as current in the balance sheet in the third fiscal quarter of 1999. As of June 27, 1999, the Company had no material commitments for capital expenditures. - 9 - RESTRUCTURING COSTS The Company has recognized one-time restructuring charges in connection with the consolidation and restructuring of its Information Solutions and Industrial Technology Group operations. As part of the restructuring, the Company has integrated and consolidated the operations and management of its handheld computer and terminal operations into one business unit and has consolidated and integrated the operations and management of its Industrial Technology companies into a second business unit. In connection with the reorganization and consolidation, WPI anticipates a net reduction of approximately 10% of its workforce, transferring and consolidating manufacturing into three facilities and recording a restructuring charge of $1,750,000 during fiscal 1999. The restructuring charge and remaining obligation as of June 27, 1999 of approximately $365,000 consists primarily of employee severance costs. Management anticipates the cash requirements for the remaining obligation to be relatively consistent over the next two quarters. The Company's restructuring activity as of June 27, 1999 is as follows in thousands:
Initial Utilization of Reserve Remaining Reserve Cash Non-Cash Reserve Severance costs $1,575 $1,210 $ - $ 365 Other costs 175 175 - - ------ ------ -------- ------ Total $1,750 $1,385 $ - $ 365 ====== ====== ======== ======
YEAR 2000 The information set forth under this caption is designated to be a "Year 2000 readiness disclosure" under the Year 2000 Information Readiness Disclosure Act, Public Law 105-271. WPI has established its Year 2000 Project in order to evaluate the issue of computer software and embedded computer chips that are not able to distinguish between the year 1900 and the year 2000. WPI's Year 2000 Project is divided into three major sections: (1) IT systems (which examine operating systems and business applications software); (2) External agents (which examine third party suppliers and customers); and (3) Product issues (which involve Year 2000 issues inherent in products sold by WPI). The IT systems section evaluates hardware and systems software. WPI has completed its evaluation of its main internal operating systems and business applications software. As a result of this evaluation , WPI has begun the process of implementing the necessary changes and testing its internal systems to achieve Year 2000 compliance in this area. This process is currently on schedule. WPI estimates that if this process stays on schedule, IT systems are expected to be Year 2000 compliant by September 1999. The external agents section includes the process of identifying and prioritizing critical suppliers and customers at the direct interface level, and communicating with them about their plans and progress in addressing the year 2000 problem. Year 2000 compliance issues at critical suppliers create risks for WPI, since their inability to operate effectively could impact our business. Evaluations of the most critical third parties have been completed. WPI has receive assurances from its critical suppliers that they are or will be Year 2000 ready. The product issues section includes the process of identifying any product sold by WPI which may not be Year 2000 compliant, determining a corrective course of action and disseminating information about Year 2000 compliance to customers. Although most of WPI's products that have integrated software or embedded microprocessors are Year 2000 compliant, there can be no assurances that all of WPI's products are currently Year 2000 compliant. Detailed - 10 - evaluations of products have been completed. These evaluations have been followed by corrective actions and the dissemination of Year 2000 compliance information to product users, where necessary. Total costs associated with required IT systems modifications to become Year 2000 compliant and product issues are not expected to have a material effect on the consolidated results of operations, cash flows or financial position of WPI. The failure to correct a material Year 2000 problem could result in an interruption in, or a failure of, certain normal business activities or operations. Due to the general uncertainty inherent in the Year 2000 problem, resulting in part from the uncertainty of the Year 2000 readiness of third party suppliers and customers, WPI is unable to determine at this time, whether the consequences of Year 2000 failure will have a material impact on WPI's results of operations, liquidity or financial condition. However, management believes that WPI's Year 2000 Project will significantly reduce WPI's level of risk regarding the Year 2000 problem. - 11 - WPI GROUP, INC. PART II - Other Information Item 6. Exhibits and Reports on Form 8-K A. Exhibits 27 Financial Data Schedule B. Reports on Form 8-K None. - 12 - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned thereunto duly authorized. WPI GROUP, INC. (Registrant) Date: August 16,1999 By:/s/ John R. Allard ------------------ John R. Allard President and Chief Operating Officer Date: August 16,1999 By:/s/John W. Powers ----------------- John W. Powers Vice President and Chief Financial Officer - 13 - EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF WPI GROUP, INC. FOR THE NINE MONTHS ENDED JUNE 27, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS SEP-26-1999 JUN-27-1999 50,948 0 16,690,925 898,000 16,764,656 38,076,355 22,457,637 7,262,451 106,073,966 19,226,370 0 0 0 60,499 19,267,693 106,073,966 68,153,904 68,153,904 40,030,909 67,989,559 0 0 5,196,901 (4,757,357) 0 (4,757,357) 0 0 0 (4,757,357) (0.79) (0.79)
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