Digital Power Corporation Reports Third Quarter Financial Results

FREMONT, Calif., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE MKT:DPW) today announced financial results for their third quarter that ended September 30, 2016.

Digital Power's revenues were $1,826,000, an increase of 29% from revenues of $1,415,000 for the same quarter ended September 30, 2015. The Company also was able to achieve an increase in gross margin for the quarter posting a 38.5% gross margin in comparison to the 33.9% gross margin reported for the comparative quarter that ended September 30, 2015. This increase in revenue was mostly attributable to a rising sales volume of commercial and military products in North America. The increase in profitability of our commercial and military products sold by our U.S operations was mainly responsible for these top and downline results.

The Company also showed a significant improvement with a decrease in its net loss for the quarter, only $38,000 compared to a net loss of $396,000 recorded for the same quarter that ended September 30, 2015. Company management leveraging opportunities to reduce operating expenses were responsible for these latest results. Operating expenses were $786,000, a decrease of 22% from the quarter ended September 30, 2015, reflecting lower sales, marketing, and engineering costs.

Commenting on the results, President and CEO, Amos Kohn, stated: "We are pleased to report an improvement in both sales and profitability for the third quarter that ended September 30, 2016 and other recent quarters. Our revenue increased by $411,000 and our losses decreased by $358,000 compared to the third quarter ended September 30, 2015. For the immediate past quarter, our net loss of $38,000 was mainly attributable to the weakness of the currency exchange rate for the UK Pound to US Dollar, the maturity of some international defense programs and the inclusion of $42,000 of stock option expense. Excluding this non-cash stock option expense, our non-GAAP net income was $4,000 for the third quarter of 2016. Comparing the same quarter in 2015, our net loss was $396,000 and if you exclude the stock option expense of $44,000 and the intellectual property amortization expense of $19,000, the non-GAAP net loss was $333,000. We are excited about our strategy to enhance our product offerings, develop new products and expand our sales in the global market, and believe that we will continue to improve our revenue realization rate and profitability in future quarters."

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