Tuesday, March 31, 2015

Exton firm buys Bitcoin platform; accountants quit

WPCS tries new direction

Exton firm buys Bitcoin platform; accountants quit

WPCS International Inc., a publicly-traded Exton-based communications systems company, has had a busy week:
  - On Dec. 27, the company said its accountant, CohnReznick LLP of Roseland, NJ, which had "raised substantial doubt about the company's ability to continue as a going concern" in its past two annual reports, has resigned and not been replaced. No reason for ConhReznick's resignation was given.
  - On Dec. 26, WPCS said its newly-purchased New York subsidiary, BTX Trader LLC, "has released a beta version of its Bitcoin trading platform," enabling customers to speculate on the electronic independent currency.

Shares of the company, which includes former Comcast executive Michael Doyle among its directors, have been bouncing in the $2 to $3 range. On Dec. 19, interim CEO Sebastian Giordano reported a loss of $473,000 for the quarter ended Oct. 31, or 37 cents a share, and said WPCS plans to sell Australia operations to former CEO Andy Hidalgo. He also called recent stock volatility "a short-term aberration." "We are very excited about Bitcoin," he added. Investors questioned him about competition and the apparent big change in the company's business direction.

WPCS employs more than 250 in the U.S. and Australia, including about half a dozen at its Exton headquarters.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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