SUISUN, CA--(Marketwired - Oct 8, 2015) - WPCS International Incorporated (NASDAQ: WPCS), which specializes in contracting services for communications infrastructure, today issued a stockholder update following its September 29, 2015 Annual Stockholder Meeting, summarizing the Company's improved financial condition, as it transitions from completing a successful restructuring plan to implementing a value-enhancing growth strategy.
In a prepared statement, Sebastian Giordano, Interim CEO of WPCS, said, "As we previously announced, the restructuring of WPCS, which commenced in August 2013 and was completed in July 2015, was not only highly successful, but now has the Company better-positioned for the future, as we chart a new, exciting course for the Company. In two years time, we executed a turnaround plan that resulted in significant improvements in our financial position, as we eradicated millions of dollars in expenses and liabilities by:
Dramatically reducing corporate overhead;
Closing and selling unprofitable and non-core businesses;
Eliminating all secured and unsecured notes; and,
Settling various liabilities for lower amounts.
"With the restructuring behind us, we started the new fiscal year by reporting net income from continuing operations for the first quarter. Though a modest amount, we strongly believe it is indicative of just how far we have come, especially when one considers that during the four consecutive fiscal years ending April 30, 2011 through April 30, 2015, the Company incurred cumulative net losses from continuing operations of more than $75 million.
"We have sufficient cash and adequate liquidity to fund our Company for the next twelve months. In fact, between the year-end April 30, 2015 and the first quarter ended July 31, 2015, we increased:
Working capital from a $1.3 million deficit to a $2.2 million surplus;
Cash and cash equivalents from $2.4 million to $5.5 million; and,
Equity from a $139 thousand deficit to a $3.3 million surplus.
"Present state notwithstanding, it is certainly not our intention to stand still. Armed with a profitable core business, our plan is to pursue both organic growth initiatives and acquisition opportunities as aggressively as we conquered the restructuring. A first step towards that end was our recent engagement of an investment-banking firm to work with management in identifying, targeting, and assessing various strategic opportunities.
"We are as confident today, about our go-forward goals, as we were back in August 2013 about our ability to execute the restructuring plan. We see this an exciting time for WPCS. With what we view as the most difficult and challenging part behind us, we look forward to the next phase of the Company's transition, the primary objective of which is to increase stockholder value.
"Finally, on behalf of the entire Company and the Board of Directors, we thank all of our stockholders for their continued long-term support of WPCS and, as always, we will continue to update you on our progress."
ABOUT WPCS INTERNATIONAL INCORPORATED
WPCS provides contracting services to the public services, healthcare, energy and corporate enterprise markets in the United States. For more information, please visit www.wpcs.com.
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.