Ayro (AYRO) 8-K WPCS Reports FY2010 Second Quarter Financial Results

Exhibit 99.1

PRESS RELEASE                                                                                                    SOURCE: WPCS International Incorporated

WPCS Reports FY2010 Second Quarter Financial Results

EXTON, PA - (PR Newswire-First Call) - - December 15, 2009 - NASDAQ: WPCS - News)  - WPCS International Incorporated (NASDAQ: WPCS), a leader in design-build engineering services for communications infrastructure, today announced financial results for the second quarter of fiscal year 2010 ended October 31, 2009. For the second quarter, WPCS reported revenue of $24.3 million compared to $28.8 million for the same period a year ago. WPCS reported net income of $337,000 or $0.05 per diluted share for the second quarter compared to $362,000 or $0.05 per diluted share for the same period a year ago. Year to date through the six months ended October 31, 2009 WPCS reported revenue of $49.6 million compared to $57.0 million for the same period a year ago. For the six month period, the reported net income was $772,000 or $0.11 per diluted share compared to net income of $1.2 million or $0.17 per diluted share for the same period a year ago.

Andrew Hidalgo, CEO of WPCS, commented, “The second quarter results fell within our expectations and the company is reaffirming its guidance for fiscal year 2010, which is a range of $0.31 to $0.34 in earnings per share. Our backlog remained relatively flat at $28 million at the end of the second quarter, however, our bids have increased substantially to $245 million which is an indication that we are beginning to see a more robust level of activity. Due to this increase in bid activity, we expect our backlog to grow accordingly over the next few quarters. From an operating income perspective, a positive highlight in the second quarter was the achievement of a 31% gross margin. WPCS continues to maintain a healthy balance sheet with $22.3 million in working capital, $5.6 million in credit line borrowing and $8.5 million in cash. In addition, the credit line borrowing to working capital ratio remains favorably low at 25%. Accounts receivable remained stable with day sales outstanding of 70 days. In summary, the company feels confident that the second half of the fiscal year will show improvement over the first half of the fiscal year.”

As a reminder, 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 VH12354. Andrew Hidalgo, CEO of WPCS, will be discussing the company’s financial results, market conditions and strategic outlook. 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 12354 # as the pass code.

About WPCS International Incorporated:

WPCS is a design-build engineering company that focuses on the implementation requirements of communications infrastructure. The company provides its engineering capabilities including wireless communication, specialty construction and electrical power to the public services, healthcare, energy and corporate enterprise markets 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

WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Six Months Ended
	October 31,						October 31,
	2009			2008			2009			2008
REVENUE	$	24,301,560		$	28,767,681		$	49,585,343		$	57,035,212
COSTS AND EXPENSES:
Cost of revenue		16,752,484			21,421,304			34,910,296			41,606,178
Selling, general and administrative expenses		6,286,661			5,945,671			12,140,145			11,883,160
Depreciation and amortization		658,199			651,039			1,308,143			1,340,181
Total costs and expenses		23,697,344			28,018,014			48,358,584			54,829,519
OPERATING INCOME		604,216			749,667			1,226,759			2,205,693
OTHER EXPENSE (INCOME):
Interest expense		78,277			136,681			140,637			248,284
Interest income		(1,612	)		(22,073	)		(3,531	)		(48,112	)
INCOME BEFORE INCOME TAX PROVISION		527,551			635,059			1,089,653			2,005,521
Income tax provision		254,605			253,299			492,687			744,204
NET INCOME		272,946			381,760			596,966			1,261,317
Less: Net (loss) income attributable to noncontrolling interest		(63,841	)		19,950			(174,738	)		61,196
NET INCOME ATTRIBUTABLE TO WPCS	$	336,787		$	361,810		$	771,704		$	1,200,121
Basic net income per common share attributable to WPCS	$	0.05		$	0.05		$	0.11		$	0.17
Diluted net income per common share attributable to WPCS	$	0.05		$	0.05		$	0.11		$	0.17
Basic weighted average number of common shares outstanding		6,942,266			7,251,083			6,942,266			7,251,083
Diluted weighted average number of common shares outstanding		6,976,256			7,262,419			6,968,524			7,259,353

WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31,		April 30,
ASSETS	2009		2009
	(Unaudited)		Note 1
CURRENT ASSETS:
Cash and cash equivalents	$	8,511,319	$	6,396,810
Accounts receivable, net of allowance of $105,889 and $155,458 at October 31, 2009 and April 30, 2009, respectively		24,728,415		25,662,784
Costs and estimated earnings in excess of billings on uncompleted contracts		4,034,783		5,229,043
Inventory		3,093,949		2,481,383
Prepaid expenses and other current assets		2,344,190		1,674,952
Prepaid income taxes		-		295,683
Deferred tax assets		268,922		70,413
Total current assets		42,981,578		41,811,068
PROPERTY AND EQUIPMENT, net		6,498,162		6,668,032
OTHER INTANGIBLE ASSETS, net		1,823,932		1,983,879
GOODWILL		33,094,959		32,549,186
OTHER ASSETS		132,204		132,948
Total assets	$	84,530,835	$	83,145,113

WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

LIABILITIES AND EQUITY	October 31,		April 30,
	2009		2009
	(Unaudited)		Note 1
CURRENT LIABILITIES:
Current portion of loans payable	$	54,662	$	89,210
Borrowings under line of credit		5,626,056		5,626,056
Current portion of capital lease obligations		93,298		96,001
Accounts payable and accrued expenses		8,894,587		8,997,296
Billings in excess of costs and estimated earnings on uncompleted contracts		2,164,517		2,511,220
Deferred revenue		640,156		507,650
Due to shareholders		2,988,674		2,951,008
Income taxes payable		190,423		-
Total current liabilities		20,652,373		20,778,441
Loans payable, net of current portion		51,511		71,634
Capital lease obligations, net of current portion		106,786		151,425
Deferred tax liabilities		1,565,866		1,467,971
Total liabilities		22,376,536		22,469,471
COMMITMENTS AND CONTINGENCIES
EQUITY:
Preferred stock - $0.0001 par value, 5,000,000 shares authorized, none issued		-		-
Common stock - $0.0001 par value, 25,000,000 shares authorized, 6,942,266 shares issued and outstanding at October 31, 2009 and April 30, 2009, respectively		694		694
Additional paid-in capital		50,246,439		50,175,479
Retained earnings		10,152,893		9,381,189
Accumulated other comprehensive income (loss) on foreign currency translation		488,933		(321,798	)
Total WPCS shareholders' equity		60,888,959		59,235,564
Noncontrolling interest		1,265,340		1,440,078
Total equity		62,154,299		60,675,642
Total liabilities and equity	$	84,530,835	$	83,145,113

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