FREMONT, Calif., Nov. 21, 2017 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE AMERICAN:DPW) ("Digital Power" or the "Company"), a company seeking to increase revenues through acquisitions and organic growth, announced today that gross revenues on a consolidated basis for its 2017 third quarter exceeded $3.2M, marking 77% growth in sequential quarters for 2017. The Company also stated its total assets exceeded $18M, up 310% from the quarter ending September 30, 2016, as stated in its Form 10-Q report filed on Monday, November 20, 2017, after the close of market, with the Securities and Exchange Commission (“SEC”). The Company noted that it anticipated the prior sequential quarter of 2017 would be ‘its bottom of its revenue decline’ and believes that the financial results of the third quarter confirm that prediction.
The increase in gross revenues was attributable to several factors ranging from the inclusion of the first revenues from the manufacturing of machines that use the proprietary MSLE® technology to fulfill the $50M purchase order issued on March 15, 2017 from MTIX, Ltd. to the full inclusion of revenues from the acquisitions of Microphase Corporation and Power-Plus Technical Distributors to partial fulfillment of back orders which currently amount to approximately $63M, down from the previous balance of $65M. The Company noted that its backlog of orders is anticipated to increase due to pending contracts during the fourth quarter.
The Company disclosed during its investor conference call held after the close of market on November 20, 2017 that it is pursuing the purchase of the 44% minority interest in Microphase Corporation that it doesn’t own. There are no assurances, however, that the Company will be able to complete successfully negotiations with the minority shareholders.
Milton “Todd” Ault, III, the Company’s Executive Chairman said, “During the past 12 months, the Company has kept its word to its shareholders and partners. With that said, we plan to be active in the M&A space at the subsidiary level and will continue to invest in MTIX, Ltd. through Avalanche International Corp, its parent company. I am proud of the team and we have a lot more to deliver.”
The Company listed numerous achievements by its operating subsidiaries:
- New orders from Lockheed Martin, the United States Air Force, BAE and SAAB.; and
- Had an increase in sequential quarter to quarter gross revenue.
Digital Power Lending:
- Company made new loans in the Hospitality and Life Sciences sectors; and
- Is nearing completion of the process to acquire a California Lenders License.
- Company completed its acquisition of Power-Plus Technical Distributors; and
- Company is reorganizing as an advanced technology services company with the following subsidiaries by the end of 2017:
- Digital Power Ltd. (Gresham Power Electronics);
- Digital Power Corporation;
- Power-Plus Technical Distributors;
- Microphase Corporation
The Company disclosed that it expects to continue to incur losses for the foreseeable future and needs to raise additional capital to continue its business development initiatives and to support its working capital requirements, especially in conjunction with the manufacturing of machines for MTIX, Ltd. As of September 30, 2017, and December 31, 2016, the fair value of the Company’s investments were $3,782,000 and $1,036,000 respectively, and were concentrated in debt and equity securities of Avalanche International Corp., a related party, which are classified as available-for-sale investments.
The Company urges shareholders and others to read all of its public filings including its recent 10-Q report for more information which are available on the Company’s web site, www.DigitalPowerCorp.com or at www.SEC.gov. Shareholders and investors are invited to listen to the investor call which was recorded in its entirety and is available for listening by following this link, http://www.digitalpowercorp.com/investor-earnings-conference-11-20-2017-audio-replay/.
About Digital Power Corporation
Headquartered in Fremont, CA, Digital Power Corporation, through its subsidiaries, 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 rugged power solutions. The Company’s wholly owned subsidiary, Coolisys Technologies, Inc. headquartered in Fremont CA, provides world-class technology-based solutions where innovation is the main driver for mission-critical applications and lifesaving services. Coolisys’ growth strategy targets core markets that are characterized by “high barriers to entry” and include specialized products and services not likely to be commoditized. Coolisys Technologies, Inc., www.Coolisys.com, a developer and manufacturer that services the defense, aerospace, medical and industrial sectors, has 3 subsidiaries including Digital Power Limited dba Gresham Power Electronics based in Salisbury, UK, www.GreshamPower.com; Microphase Corporation based in Shelton, CT, 1-203-866-8000, www.MicroPhase.com; and Power-Plus Technical Distributors based in Sonora, CA, 1-800-963-0066, www.Power-Plus.com. Digital Power Lending, LLC, a wholly-owned subsidiary of the Company based in Fremont, CA, and is a California private lending company dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest, www.DigitalPowerLending.com. Excelo, LLC, a wholly-owned subsidiary of the Company, is a national search firm specializing in fulfilling strategic executive, professional and hi-tech placements for businesses delivering world-class services; www.Excelo.com.
As previously reported, subject to shareholder approval, the Company will be undergoing a corporate reorganization, including the reincorporation from the State of California to the State of Delaware and changing its name to DPW Holdings, Inc. to better reflect its new business model as a holding company. In connection with the reorganization, the Company will retain its stock symbol. The Company shareholders will be receiving a proxy statement which will discuss in detail these and other important issues to be voted upon at its annual shareholders meeting.
Digital Power's headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982, www.DigiPwr.com. For Investor Relations inquiries: IR@DigitalPowerCorp.com or 1-888-753-2235; www.DigitalPowerCorp.com.
The foregoing 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, including statements concerning the Company’s ability to acquire additional capital financing to fund the Company, the ability of the Company to meet its estimates for gross revenue for the 4th quarter of 2017 or beyond, the ability of the Company to acquire the minority interest in Microphase Corporation, the ability of the Company to fulfill the purchase order issued by MTIX Ltd., and that the Company will complete its reincorporation. The Company cautions readers that such “forward looking statements” are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward- looking statements. 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.DigitalPowerCorp.com.
Source:Digital Power Corporation