WPCS International Incorporated (NASDAQ:WPCS) submitted Form 10-Q for the quarter and six months closed October 31, 2017. Sebastian Giordano, the CEO, expressed that while they continue working towards closing the proposed deal with DropCar, Inc., they are delighted to post that for the quarter and semester closed October 31, 2017, their Suisun City Operations recorded net income of $158,000 and $343,000, in that order.
The performance
WPCS International reported that revenue for the quarter closed October 31, 2017 dropped $988,000 to $3.86 million as compared to $4.848 million for same period, a year earlier. The decline can be attributed to revenue drop in Suisun City Operations and Texas Operations. This respective facility will not record any further revenue as it was completed in the fourth quarter of FY2017.
The firm reported a net loss from operations that stood at $457,000 for the quarter closed October 31, 2017. This was due to an interest expense of $2,000 and operating loss of $490,000, which were mainly offset by other income of $27,000 and income of $8,000 recorded from a legal settlement deal. The figure stood at $419,000 for the same period, a year earlier. WPCS International had a net loss of around $1.271 million for the quarter closed October 31, 2017 versus a net loss of $439,000 for the comparable period, a year ago.
Revenue for the semester closed October 31, 2017 came at $7.383 million compared to around $8.264 million for comparable period, a year earlier. This decline can be attributed to revenue declines of Suisun City Operations and Texas Operations.
In the last trading session, the stock price of WPCS International jumped more than 37% to close the day at $1.50. The gains came at a share volume of 8.36 million compared to average share volume of 862.551. Post the recent gains, the market cap of firm was noted at $9.4 million.
