Wpcs International (WPCS) saw its loss narrow to $0.42 million, or $0.15 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $1.20 million, or $0.82 a share.
Revenue during the quarter grew 26.76 percent to $4.85 million from $3.82 million in the previous year period. Gross margin for the quarter expanded 737 basis points over the previous year period to 21.22 percent. Operating margin for the quarter stood at negative 11.69 percent as compared to a negative 53.34 percent for the previous year period.
Operating loss for the quarter was $0.57 million, compared with an operating loss of $2.04 million in the previous year period.
Sebastian Giordano, chief executive officer of WPCS, commented, "We have improved the financial results of the Company during the first six months of our fiscal year on a year-over-year comparable basis. During the period, we experienced a positive swing of $6.0 million from a net loss to net income attributable to common shareholders. While we incurred an operating loss for the three and six months ended October 31, 2016, on a comparable basis to the same periods in 2015, it improved 72.2% and 50.7%, respectively. Additionally, our backlog has increased 23.6%, from $13,200,000 to $16,325,000 since the start of this new fiscal year, which we anticipate will have a positive impact in the quarters ahead. Our goal remains getting the Company back to profitability through revenue growth, expense reductions and new strategic opportunities."
Operating cash flow remains negativeWpcs International has spent $0.02 million cash to meet operating activities during the first half as against cash outgo of $2.56 million in the last year period. The company has spent $0.10 million cash to meet investing activities during the first half as against cash inflow of $1.33 million in the last year period
The company has spent $0.05 million cash to carry out financing activities during the first six months as against cash inflow of $1.30 million in the last year period.
Cash and cash equivalents stood at $2.07 million as on Oct. 31, 2016, down 17.69 percent or $0.44 million from $2.52 million on Oct. 31, 2015.
Working capital declines
Wpcs International has witnessed a decline in the working capital over the last year. It stood at $2.12 million as at Oct. 31, 2016, down 21.86 percent or $0.59 million from $2.71 million on Oct. 31, 2015. Current ratio was at 1.53 as on Oct. 31, 2016, down from 1.60 on Oct. 31, 2015.
Days sales outstanding went down to 79 days for the quarter compared with 110 days for the same period last year.
Debt increases substantiallyWpcs International has witnessed an increase in total debt over the last one year. It stood at $0.17 million as on Oct. 31, 2016, up 108.93 percent or $0.09 million from $0.08 million on Oct. 31, 2015. Total debt was 2.61 percent of total assets as on Oct. 31, 2016, compared with 1.09 percent on Oct. 31, 2015. Debt to equity ratio was at 0.07 as on Oct. 31, 2016, up from 0.03 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
