SUISUN, CA--(Marketwired - Aug 17, 2016) - 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, today issued a stockholder update, outlining details of its operational strategy and corporate goals for the current fiscal year ending April 30, 2017.
According to Sebastian Giordano, CEO of WPCS, "While the restructuring plan we began implementing in August 2013 was successfully completed in August 2015, we won't be satisfied until an absolute turnaround is achieved. For us, that means both the permanent return to profitability and sustainable increases in shareholder value.
The transition from a restructuring plan to a growth plan began during fiscal 2016, as we launched the first wave of organic initiatives targeting revenue enhancement and selected demographic expansion, including:
- Establishing Texas Operations in San Antonio and Dallas;
- Strengthening our operations team with proven audio-visual and security systems professionals;
- Hiring an experienced direct sales team;
- Uniformly deploying full-service low voltage capabilities for developing, installing and servicing structured cabling, audio-visual and security systems into both our California and Texas markets; and,
- Introducing new recurring revenue product and service offerings.
These moves will fundamentally change the Company's business.
Historically, the Suisun Operations operated primarily as a subcontractor for low-voltage structured cabling systems, which were generally secured through the competitive bidding process. WPCS wasn't adequately positioned with the resources to deliver a fully integrated offering to include audio-visual and security. As a result, such opportunities had either been lost, or had to be subcontracted to others. However, with the recent additions we have instituted, WPCS is now able to offer a full turnkey service in both our Suisun and Texas Operations that will allow us to be fully engaged with our customers well after an initial installation is completed.
In addition to expanding our geographical presence, broadening our contracting revenue potential and offering higher margin recurring service capabilities, we are also pursuing and securing more corporate affiliations and strategic alliances that will create more direct relationships capable of advancing our business opportunities even further.
Early indications are that this strategy is already working as we recently announced that approximately one-third of new contracts secured during the first quarter 2017 were directly attributable to these new organic initiatives. Moreover, in recent months our sales pipeline now includes many new business opportunities previously unavailable to the Company, such as:
- Direct security systems opportunity with a national rail transportation company;
- Nearly $3 million of pending audio-visual contracts in California; and,
- In the final phases of becoming a sole source vendor for the City of San Francisco.
We have a multi-faceted execution strategy and intend to methodically roll out new initiatives as the fiscal year unfolds. Furthermore, we continue to aggressively explore other viable growth opportunities.
In addition to the ongoing operational success, corporately we are evaluating and undertaking new measures to enhance our public company profile, attract new long-term minded investors, optimize our capital resources for growth and strengthen our Board of Directors. To start with, we are adding a new member to the Board of Directors, representing the Company's largest stockholder, who provides an investor's perspective and experience in helping to build shareholder value in small-cap public companies.
We fully expect that our operational performance and corporate strategies will have a positive impact towards building shareholder value. With the business performing well and demonstrating continued improvement, we do believe that the upside potential in the market valuation of the Company's stock has yet to be realized.
As previously stated, 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. After incurring five consecutive years of aggregate operating losses of more than $80 million, the Company believes that it is now on the verge of returning to profitability. So, we see this as a very exciting time for WPCS.
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 the Company's progress."
ABOUT WPCS INTERNATIONAL INCORPORATED
WPCS provides low-voltage 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.