Ayro (AYRO) 8-K WPCS Reports Record Revenue and $0.18 EPS for the 2nd Quarter

Exhibit 99.1

PRESS RELEASE    SOURCE: WPCS International Incorporated

WPCS Reports Record Revenue and $0.18 EPS for the 2^nd Quarter

EXTON, PA — (PR Newswire-First Call) - December 14, 2006) WPCS International Incorporated (Nasdaq: WPCS) a leader in design-build engineering services for specialty communication systems and wireless infrastructure, has reported its financial results for the second quarter ended October 31, 2006. For the quarter ended October 31, 2006, WPCS reported total revenue of approximately $17.8 million compared to $14.2 million for the same period a year ago, which represents an increase of approximately 25%. For the second quarter of FY2007, the reported net income was approximately $1,065,000 or $0.18 per diluted share. For the same period last year, the reported net income was approximately $3.2 million or $0.82 per diluted share which included a non-cash gain of approximately $2.4 million related to accounting for warrant liabilities.

For the six months ended October 31, 2006, WPCS reported total revenue of $34.2 million compared to $26.4 million for the same period a year ago, or an increase of approximately 29%. For the six months of FY2007, the reported net income was approximately $1,979,000 or $0.34 per diluted share. For the same period last year, the reported net loss was approximately $628,000 or $0.16 per diluted share which included a non-cash loss of approximately $1.7 million related to accounting for warrant liabilities.

Andrew Hidalgo, CEO of WPCS International Incorporated, stated: “FY2007 continues to be a strong year for WPCS. We achieved record revenue as well as a record net income level if you exclude the non-cash implications of the warrant liabilities last fiscal year. With a $20 million backlog and a $62 million bid list, which is our highest bid activity to date, our wireless engineering services continue to be in high demand. In addition, the company has generated $3.7 million in cash from operations for the first six months of this fiscal year and has improved its consolidated gross margin to 30%. We are meeting our financial objectives and it has certainly created a lot of energy for our company. We remain on target to achieve our FY2007 guidance.”

About WPCS International Incorporated:

WPCS International Incorporated provides design-build engineering services for specialty communication systems and wireless infrastructure including site design, product integration and project management. The company has an extensive customer base that includes corporations, government entities and educational institutions. For more information, please visit our website at www.wpcs.com.

Statements about the company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and are subject to change at any time. The company’s actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the company undertakes no obligation to update forward-looking statements.

CONTACT:

Carol Lindley

WPCS International Incorporated

610-903-0400 x100

ir@wpcs.com

WPCS INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Three Months Ended						Six Months Ended
	October 31,						October 31,
	2006			2005			2006			2005
				(Note 1)						(Note 1)
REVENUE	$	17,753,044		$	14,250,243		$	34,189,322		$	26,421,882
COSTS AND EXPENSES:
Cost of revenue		12,360,962			10,339,132			24,052,430			19,469,223
Selling, general and administrative expenses		3,239,738			2,355,681			6,336,060			4,622,383
Depreciation and amortization		337,242			209,593			570,891			421,060
Total costs and expenses		15,937,942			12,904,406			30,959,381			24,512,666
OPERATING INCOME		1,815,102			1,345,837			3,229,941			1,909,216
OTHER EXPENSE (INCOME):
Interest expense		134,502			65,694			214,436			112,041
Interest income		(74,214	)		(13,687	)		(174,752	)		(24,016	)
(Gain) loss on change in fair value of warrants		-			(2,382,912	)		-			1,727,682
INCOME BEFORE INCOME TAX PROVISION		1,754,814			3,676,742			3,190,257			93,509
Income tax provision		690,167			509,025			1,211,180			721,108
NET INCOME (LOSS)	$	1,064,647		$	3,167,717		$	1,979,077			($627,599	)
Basic net income (loss) per common share	$	0.19		$	0.82		$	0.37			($0.16	)
Diluted net income (loss) per common share	$	0.18		$	0.82		$	0.34			($0.16	)
Basic weighted average number of common shares outstanding		5,500,579			3,853,994			5,408,531			3,837,689
Diluted weighted average number of common shares outstanding		6,026,999			3,869,522			5,849,495			3,837,689

WPCS INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
	October 31,		April 30,
ASSETS	2006		2006
	(Unaudited)		(Note 1)
CURRENT ASSETS:
Cash and cash equivalents	$	10,878,639	$	12,279,646
Accounts receivable, net of allowance of $98,786 and $104,786 at October 31, 2006 and April 30, 2006, respectively		13,667,657		12,141,789
Costs and estimated earnings in excess of billings on uncompleted contracts		2,248,549		1,441,977
Inventory		1,557,735		1,204,540
Prepaid expenses and other current assets		683,732		286,625
Deferred income taxes		39,000		78,000
Total current assets		29,075,312		27,432,577
PROPERTY AND EQUIPMENT, net		2,035,386		1,352,216
CUSTOMER LISTS, net		1,535,638		864,388
GOODWILL		18,823,738		14,239,918
DEBT ISSUANCE COSTS, net		84,736		111,091
DEFERRED INCOME TAXES		80,000		51,000
OTHER ASSETS		248,130		71,128
Total assets	$	51,882,940	$	44,122,318

WPCS INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
	October 31,		April 30,
LIABILITIES AND SHAREHOLDERS' EQUITY	2006		2006
	(Unaudited)		(Note 1)
CURRENT LIABILITIES:
Current portion of capital lease obligation	$	14,224	$	-
Current portion of loans payable		277,533		231,065
Accounts payable and accrued expenses		5,940,676		4,989,861
Billings in excess of costs and estimated earnings on uncompleted contracts		2,016,187		1,085,312
Deferred revenue		512,024		128,052
Due to shareholders		678,610		381,377
Income taxes payable		506,366		420,066
Deferred income taxes		17,000		21,000
Total current liabilities		9,962,620		7,256,733
Borrowings under line of credit		4,437,446		3,000,000
Loans payable, net of current portion		299,898		256,692
Due to shareholders, net of current portion		468,891		514,623
Deferred income taxes		488,000		531,000
Total liabilities		15,656,855		11,559,048
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock - $0.0001 par value, 5,000,000 shares authorized, none issued		-		-
Common stock - $0.0001 par value, 75,000,000 shares authorized, 5,514,187 and 5,264,284 shares issued and outstanding at October 31, 2006 and April 30, 2006, respectively		551		526
Additional paid-in capital		35,208,843		33,525,130
Retained earnings (accumulated deficit)		1,016,691		(962,386	)
Total shareholders' equity		36,226,085		32,563,270
Total liabilities and shareholders' equity	$	51,882,940	$	44,122,318

Note 1: Certain reclassifications have been made to prior period financial statements to conform to current presentation.