FREMONT, Calif., May 25, 2017 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE MKT:DPW) (hereinafter: "Digital Power" or the "Company"), a growth company seeking to increase revenues through acquisitions and organic growth, today announced it has received regulatory approval in connection with the acquisition of the controlling interest in Microphase Corporation (MPC), the 62-year old global designer, developer, original equipment manufacturer (OEM) and industry leader of electronic components, devices and subsystems for the Defense, Aerospace and Telecommunication sectors. The Company believes MPC is prominent in delivering world-class radio frequency (RF) and microwave devices, and components and innovative testing devices. DPW previously announced the acquisition of MPC on May 3, 2017. The transaction is set to, close imminently.
The Company also announced that upon the close of the acquisition of the controlling interest of MPC, it will begin executing a corporate restructure and the Company will operate as a holding company with all operations at the subsidiary level. Details of the corporate restructure will be announced by the Company over the coming days and weeks as milestones are achieved or news deemed appropriate.
President and CEO Amos Kohn stated, “We are very pleased we have received the necessary approval. We look forward to completing the close of acquiring a majority interest in Microphase Corporation. The closing of Microphase will not only hallmark the Company executing its core acquisition strategy adopted during the last quarter of 2016, it will start the next chapter for the company, transitioning to a holding company whose name will change.” Mr. Kohn continued, “We are investing primarily in technology and industrial companies serving advanced and mission critical applications for our focused markets. We take a hands-on active approach and work closely with our portfolio companies to strive to create market leaders.” The Company cited the close of the MPC transaction as an important milestone that provides added value to shareholders and to its operations. It will be strategic as it pursues future acquisitions. The financial operations and results of MPC will be fully consolidated with the Company starting with the public reporting of the 2nd quarter of 2017 for DPW.
As previously disclosed, for the remainder of 2017, the Company is pursuing an increase in revenues by seeking to attract new customers and implementing an aggressive acquisition strategy to build upon its anticipated organic growth. This anticipated revenue increase reflects management’s and the Board’s commitment to an aggressive growth strategy through acquisitions adopted pending the change in control completed in September 2016. In implementing this strategy, the Company has hired a number of additional personnel and consultants to assist in identifying, analyzing, negotiating and acquiring potential companies. The Company will need to raise a substantial amount of capital for acquisitions and to support its infrastructure. As a result of its projected growth, its anticipated net income may not match its growth in gross revenues and it may continue to experience losses through 2017 and 2018 until these acquisitions have been fully integrated into its operations or until its cost reduction and efficiency changes have been implemented.
About Digital Power
Headquartered in Fremont, CA, Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Our products are used in the most demanding communications, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. The Company’s wholly owned subsidiary, Digital Power Limited which does business as Gresham Power Electronics, is based in Salisbury, UK. Digital Power's headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982. Website: www.digipwr.com. For Investor Relations inquiries: IR@digipwr.com or 1-888-753-2235.
Forward Looking Statements
The foregoing press release contains “forward looking statements” regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements include, but are not limited to, the Company being able to identify, acquire, and integrate new businesses and that upon completion of these acquisitions, the Company will be able to integrate their operations with the Company’s operations in order to achieve the cost savings or efficiencies anticipated, that the Company will be able to increase its revenues for the 2nd quarter, and that the Company will be able to complete acquisition of the controlling interest in Microphase Corp. The Company disclaims any current intention to update its “forward looking statements,” and the estimates and assumptions within them, at any time or for any reason. More information about potential risk factors that could affect the Company’s business and financial results are included in the Company’s most recent filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available on the Company’s website at www.digipwr.com.
Source:Digital Power Corporation