WPCS International (NASDAQ: WPCS) Cuts Overhead an
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Posted On: 11/27/2015 12:15:23 PM
WPCS International (NASDAQ: WPCS) Cuts Overhead and Focuses on Core Businesses
In a recent update to shareholders, WPCS International (NASDAQ: WPCS) announced they had dramatically reduced corporate overhead, closed and sold non-core businesses, eliminated all notes payable, and settled various liabilities for lesser amounts. The company has buried its disappointing past and moved into a new era. In Q1 FY2016, the company turned a new leaf and saw realized net income. It turned a working capital deficit to a surplus nearly double the size of its previous deficit. Their cash flows rose and they saw a surplus in equity as well. The company’s profitability has increased substantially due to its restructuring, and they saw their gross profit margin increase to 22.8%.
The company has historically shown stronger profitability on Q3 and Q4 financial statements, and they are anticipating the same for FY2016. They won large contracts in July and August, which totaled $3M. The company expects to build upon this positive news as the year unfolds. With stronger Q1 results and expected Q2 results than usual (due in part to these new contracts and settled liabilities), Q3 and Q4 could be very exciting times for this company as it finds its footing post-restructuring.
In a recent update to shareholders, WPCS International (NASDAQ: WPCS) announced they had dramatically reduced corporate overhead, closed and sold non-core businesses, eliminated all notes payable, and settled various liabilities for lesser amounts. The company has buried its disappointing past and moved into a new era. In Q1 FY2016, the company turned a new leaf and saw realized net income. It turned a working capital deficit to a surplus nearly double the size of its previous deficit. Their cash flows rose and they saw a surplus in equity as well. The company’s profitability has increased substantially due to its restructuring, and they saw their gross profit margin increase to 22.8%.
The company has historically shown stronger profitability on Q3 and Q4 financial statements, and they are anticipating the same for FY2016. They won large contracts in July and August, which totaled $3M. The company expects to build upon this positive news as the year unfolds. With stronger Q1 results and expected Q2 results than usual (due in part to these new contracts and settled liabilities), Q3 and Q4 could be very exciting times for this company as it finds its footing post-restructuring.
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