Ayro (AYRO) 8-K WPCS Reports Second Quarter FY2009 Financial Results and Revises Guidance

Exhibit 99.1

PRESS RELEASE                                                                                                    SOURCE: WPCS International Incorporated

WPCS Reports Second Quarter FY2009 Financial Results and Revises Guidance

EXTON, PA - (PR Newswire-First Call) - - December 15, 2008 - NASDAQ: WPCS - News)  - WPCS International Incorporated (NASDAQ: WPCS), a leader in design-build engineering services for specialty communication systems and wireless infrastructure, today reported financial results for the second quarter FY2009 ended October 31, 2008. WPCS reported revenue of approximately $29 million for the second quarter compared to $28 million a year ago. WPCS reported net income of approximately $362,000 or $0.05 per diluted share for the second quarter compared to approximately $1.5 million or $0.19 per diluted share for the same period in the prior year. Year to date through the six months ended October 31, 2008, WPCS reported revenue of approximately $57 million compared to $50 million a year ago, which represents a 14% increase. For the six month period, the reported net income was approximately $1.2 million or $0.17 per diluted share compared to net income of approximately $2.8 million or $0.35 per diluted share for the same period in the prior year.

There will be an investor conference call at 5:00 pm ET today. To participate on the conference call, please dial 888-299-4099 for calls within the U.S. and 302-709-8337 for calls from international locations. Upon reaching the operator, verbally transmit the participant code VH81553. Andrew Hidalgo, CEO of WPCS, will be discussing the company’s financial results, the state of the economy as it pertains to WPCS, the markets served and strategic initiatives underway. When the overview concludes, your questions can be asked by pressing *1 and your questions can be removed from the queue by pressing the number sign. Replays of the conference call will be available for a period of five days by dialing 402-220-2946 and using 81553 # as the pass code.

In addition, WPCS is adjusting its FY2009 guidance downward from $125 million in revenue and $5.6 million in net income to a range of $112 million to $115 million in revenue and $2.7 million to $3.1 million in net income. The change in net income will reduce the earnings per share projection from $0.74 to a range of $0.38 to $0.44 per diluted share for FY2009 ending April 30, 2009.

Andrew Hidalgo, CEO of WPCS, commented, “Although the current economic environment is challenging, WPCS remains healthy from a revenue, profitability and balance sheet perspective. We are encouraged about our markets, our backlog and our bid activity.”

About WPCS International Incorporated:

WPCS is a design-build engineering company that focuses on the implementation requirements of wireless technology. The company serves the specialty communication systems and wireless infrastructure sectors and provides services that include site design, technology integration, electrical contracting, construction and project management for corporations, government entities and educational institutions worldwide. For more information, please visit 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:

WPCS International Incorporated

610-903-0400 x101

ir@wpcs.com

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WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

Unaudited

	Three Months Ended						Six Months Ended
	October 31,						October 31,
	2008			2007			2008			2007
REVENUE	$	28,767,681		$	28,105,044		$	57,035,212		$	49,921,050
COSTS AND EXPENSES:
Cost of revenue		21,421,304			20,646,816			41,606,178			35,834,568
Selling, general and administrative expenses		5,945,671			4,518,881			11,883,160			8,578,137
Depreciation and amortization		651,039			468,615			1,340,181			998,202
Total costs and expenses		28,018,014			25,634,312			54,829,519			45,410,907
OPERATING INCOME		749,667			2,470,732			2,205,693			4,510,143
OTHER EXPENSE (INCOME):
Interest expense		136,681			185,636			248,284			308,218
Interest income		(22,073	)		(140,663	)		(48,112	)		(355,175	)
Minority interest		19,950			57,140			61,196			60,788
INCOME BEFORE INCOME TAX PROVISION		615,109			2,368,619			1,944,325			4,496,312
Income tax provision		253,299			867,106			744,204			1,722,184
NET INCOME	$	361,810		$	1,501,513		$	1,200,121		$	2,774,128
Basic net income per common share	$	0.05		$	0.21		$	0.17		$	0.39
Diluted net income per common share	$	0.05		$	0.19		$	0.17		$	0.35
Basic weighted average number of common shares outstanding		7,251,083			7,079,977			7,251,083			7,026,818
Diluted weighted average number of common shares outstanding		7,262,419			7,958,535			7,259,353			8,013,332

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WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31,		April 30,
ASSETS	2008		2008
	(Unaudited)		(Note 1)
CURRENT ASSETS:
Cash and cash equivalents	$	13,235,880	$	7,449,530
Accounts receivable, net of allowance of $133,803 and $98,786 at October 31, 2008 and April 30, 2008, respectively		26,542,341		29,092,488
Costs and estimated earnings in excess of billings on uncompleted contracts		4,819,434		3,887,152
Inventory		3,186,090		2,791,782
Prepaid expenses and other current assets		1,826,629		1,002,993
Prepaid income tax		-		122,342
Deferred tax assets		166,329		35,939
Total current assets		49,776,703		44,382,226
PROPERTY AND EQUIPMENT, net		6,858,020		6,828,162
OTHER INTANGIBLE ASSETS, net		2,236,574		2,929,937
GOODWILL		32,081,048		28,987,501
OTHER ASSETS		154,765		820,315
Total assets	$	91,107,110	$	83,948,141

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WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

LIABILITIES AND SHAREHOLDERS' EQUITY	October 31,			April 30,
	2008			2008
	(Unaudited)			(Note 1)
CURRENT LIABILITIES:
Current portion of loans payable	$	107,475		$	1,272,112
Borrowings under line of credit		-			750,000
Current portion of capital lease obligations		105,908			91,491
Accounts payable and accrued expenses		10,715,483			9,305,791
Billings in excess of costs and estimated earnings on uncompleted contracts		6,144,343			3,602,422
Deferred revenue		808,251			602,560
Due to shareholders		3,194,611			2,300,083
Income taxes payable		170,816			-
Total current liabilities		21,246,887			17,924,459
Borrowings under line of credit		7,626,056			4,376,056
Loans payable, net of current portion		104,420			156,978
Capital lease obligations, net of current portion		203,766			215,780
Deferred tax liabilities		1,174,380			1,173,786
Total liabilities		30,355,509			23,847,059
Minority interest in subsidiary		1,393,046			1,331,850
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, 7,251,083 shares issued and outstanding at October 31, 2008 and April 30, 2008		725			725
Additional paid-in capital		50,827,277			50,775,938
Retained earnings		8,909,683			7,709,562
Accumulated other comprehensive (loss) income on foreign currency translation		(379,130	)		283,007
Total shareholders' equity		59,358,555			58,769,232
Total liabilities and shareholders' equity	$	91,107,110		$	83,948,141

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

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