WPCS Announces Financial Results for Fiscal 2018 Second Quarter

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SUISUN, Calif., Dec. 15, 2017 — WPCS International Incorporated (NASDAQ:WPCS), a full-service low-voltage solutions provider in the business of developing, installing, and servicing integrated structured cabling, audio-visual, and security systems announced that today it filed its Quarterly Report on Form 10-Q, for the three and six months ended October 31, 2017.
Sebastian Giordano, CEO of WPCS, commented, “While we continue working towards completing the proposed merger with DropCar, Inc., we are pleased to report that for the three and six months ended October 31, 2017, our Suisun City Operations generated net income of $158,000 and $343,000, respectively.”Financial Results for the Three Months Ended October 31, 2017Revenue for the three months ended October 31, 2017 decreased $988,000, or 20%, to $3,860,000, as compared to $4,848,000 for same prior year period due to revenue decreases of: (i) $583,000 in our Suisun City Operations and (ii) $405,000 from our Texas Operations, which will not generate any further revenues as it was closed in the fourth quarter of fiscal year 2017.The Company had a net loss from operations of $457,000 for the three months ended October 31, 2017 due primarily to an operating loss of $490,000 and interest expense of $2,000, which were partially offset by income of $8,000 from a legal settlement and other income of $27,000. This compared to a net loss from operations of $419,000 for the same prior year period.  The Company had a net loss attributable to WPCS common shareholders of $1,271,000 for the three months ended October 31, 2017 as compared to a net loss attributable to WPCS common shareholders of $439,000 for the same prior year period.  Financial Results for the Six Months Ended October 31, 2017Revenue for the six months ended October 31, 2017 decreased $881,000, or 10.7%, to $7,383,000, as compared to approximately $8,264,000 for same prior year period due to revenue decreases of: (i) $203,000 in our Suisun City Operations and (ii) $678,000 from our Texas Operations, which will not generate any further revenues as it was closed in the fourth quarter of fiscal year 2017.The Company had a net loss from operations of $897,000 for the six months ended October 31, 2017 due primarily to an operating loss of $936,000 and interest expense of $4,000, which were partially offset by income of $16,000 from a legal settlement and other income of $27,000. This compared to a net loss from operations of $1,160,000 for the same prior year period.  The Company had a net loss attributable to WPCS common shareholders of $1,711,000 for the six months ended October 31, 2017 as compared to net income attributable to WPCS common shareholders of $118,000 for the same prior year period, primarily due to income from legal settlements of $1,180,000.About WPCS International Incorporated
WPCS is a full-service, low-voltage solutions provider, installing and servicing integrated structured cabling, audio-visual and security systems for public services, healthcare, energy and corporate enterprise markets in the United States. The Company delivers end-to-end solutions, superior project management and best-in-class products and technology. For more information about WPCS, please visit www.wpcs.com.On September 6, 2017, WPCS announced the signing of a definitive merger agreement with DropCar, a privately-held company that provides app-based automotive logistics and concierge services for both consumers and the automotive industry. For more information about DropCar, please visit www.dropcar.com. For more information about the proposed merger, please see WPCS’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 6, 2017 and the Company’s Registration Statement on Form S-4 (SEC File # 333-220891).Cautionary Note Regarding Forward-Looking StatementsThis 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, other future conditions and the risk factors detailed from time to time in the Company’s periodic filings with the Securities and Exchange Commission, including without limitation, the Company’s Annual Report on Form 10-K for the year ended April 30, 2017. 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 condensed consolidated financial statements 

The accompanying notes are an integral part of these condensed consolidated financial statements.


The accompanying notes are an integral part of these condensed consolidated financial statements.

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Maria Burns

Maria Burns

Maria is a Viral News Editor who graduated from the University Of California. She likes social media trends, being semi-healthy, Buffalo Wild Wings and vodka with lime. When she isn’t writing, Maria loves to travel. She last went to Thailand to play with elephants and is planning a trip to Bali.
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