FREMONT, Calif., March 27, 2015 /PRNewswire/ -- Digital Power
Corporation (NYSE Amex: DPW - News) today announced its financial
results for the fourth quarter and the year ended December 31, 2014.
Digital Power's revenues for the year ended December 31, 2014 were $9,022,000, an increase of 3% from revenues of
$8,770,000 for the year ended
December 31, 2013. We recorded an
operating loss of $542,000 for the
year ended December 31, 2014 compared
to an operating loss of $317,000 for
comparable 2013 period. Non GAAP operating losses were
$189,000 and $115,000 for the 2014 and 2013 years,
respectively. Net loss for the year ended December 31, 2014 was $658,000, an increase of 4%, or $26,000, over the loss of $632,000 for the year ended December 31, 2013. Non GAAP net losses were
$130,000 and $118,000 for the 2014 and 2013 years,
respectively. Gross margins in 2014 and 2013 were comparable at
36%.
Digital Power reported revenues of $2,112,000 for the fourth quarter ended
December 31, 2014, a decrease of 7%
from revenue of $2,267,000 in the
comparable quarter in 2013. We recorded an operating loss of
$360,000 for the fourth quarter of
2014 compared to an operating loss of $173,000 for the fourth quarter of 2013. Non GAAP
operating losses were $238,000 and
$107,000 for the fourth quarter of
2014 and fourth quarter of 2013, respectively. Digital Power
reported a net loss of $499,000 for
the fourth quarter of 2014 compared to a net loss of $361,000 for the fourth quarter of 2013. Non GAAP
net losses were $202,000 and
$110,000 for the fourth quarter of
2014 and fourth quarter of 2013, respectively.
Commenting on the results, President and CEO Amos Kohn stated: "For the year ended
December 31, 2014 our net loss of
$658,000 included $247,000 of stock option expenses, $106,000 of intellectual property amortization
expenses, and $175,000 for impairment
expenses related to our Telkoor investment of 2011. For the year
ended December 31, 2013, our net loss
of $632,000 included $106,000 of stock option expenses, $96,000 for intellectual property amortization,
and $312,000 for the Telkoor
investment impairment. Excluding the aforementioned non cash
related expenses our net loss would have been $130,000 for the year ended December 31, 2014 and $118,000 for the year ended December 31, 2013. While we are very
disappointed about the magnitude of the loss reported for the past
two years, it is important to note that 80% and 81% of the losses
in 2014 and 2013, respectively, was attributable to non-cash
related expenses. We comply with generally accepted
accounting principles that require inclusion of these expenses.
Our cash balances increased to $2.1
million at December 31, 2014
compared to $1.7 million at
December 31, 2013 primarily the
result of a reduction in accounts receivable balances.
Mr. Kohn continued: "For the year ended December 31, 2014 our defense product revenues of
$2.6 million were similar to the
$2.7 million for the year ended
December 31, 2013. In 2013, we
began to realize our expansion in this market with several new
fully customized design projects to supply advanced power switching
solutions for military battlefield uses and power rectifier systems
for international naval fleets. We also completed the development
of new power switching solutions for medical surgical instruments
and other products for telecom and datacom industries. We have a
strong backlog for our defense related products and expect to
continue to realize the benefits of our presence in this market.
Our commercial product revenue increased to $6.4 million for the year ended December 31, 2014 from $6.1 million for the year ended December 31, 2013 primarily as the result of
improved orders from our European market. For 2014, our domestic
commercial product revenue suffered from the loss of a major
customer as the result of their acquisition by a European company
that changed the strategic direction of their supply chain.
Use of Non-GAAP Measures
This press release provides financial measures for operating
loss and net loss, which exclude stock-based compensation expense,
impairment expenses and amortization for acquired intangible
assets, and are therefore not calculated in accordance with
generally accepted accounting principles (GAAP). Management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance because it
reflects our ongoing operational results, operating loss and net
loss. The presentation of this non-GAAP financial information is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
GAAP. A reconciliation of each GAAP to non-GAAP financial measure
discussed in this press release is contained in the accompanying
financial tables.
About Digital Power:
Digital Power Corporation is a solution-driven organization that
designs, develops, manufactures and sells high-grade customized and
flexible power system solutions for the most demanding applications
in the medical, military, telecom and industrial markets. We are
highly focused on high-grade and custom product designs for both
the commercial and military/defense markets, where customers demand
high density, high efficiency and ruggedized products to meet the
harshest and/or military mission critical operating conditions. We
are a California corporation
originally formed in 1969, and our common stock trades on the NYSE
Amex under the symbol "DPW". Digital Power's headquarters is
located at 48430 Lakeview Blvd., Fremont,
California, 94538; Website: www.digipwr.com.
Forward Looking Statements
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 current expectations regarding
revenue and earnings results for 2014 and the expected results of
modifications to the Company's strategy. 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.
In particular, the following factors, among others, could cause
actual results to differ materially from those described in the
"forward looking statements": (a) the possibility of operating and
net losses in the future; (b) dependency on Telkoor to design and
manufacture products; (c) dependency on our ability, and the
ability of our contract manufacturers, to timely procure electronic
components; (d) the potential ineffectiveness of the Company's
strategic focus on power supply solution competencies; (e)
dependency on developer partners for the development of some of our
custom design products; (f) dependency on sales of our legacy
products for a meaningful portion of our revenues; (g) the possible
failure of the Company's custom product development efforts to
result in products which meet customers' needs or such customers'
failure to accept such new products; (h) the ability of the Company
to attract, retain and motivate key personnel; (i) dependence on a
few major customers; (j) dependence on the electronic equipment
industry; (k) reliance on third party subcontract manufacturers to
manufacture certain aspects of the products sold by the Company;
(l) reduced profitability as a result of increased competition,
price erosion and product obsolescence within the industry; (m) the
ability of the Company to establish, maintain and expand its OEM
relationships and other distribution channels; (n) the inability of
the Company to procure necessary key components for its products,
or the purchase of excess or the wrong inventory; (o)
variations in operating results from quarter to quarter; (p)
dependence on international sales and the impact of certain
governmental regulatory restrictions on such international sales
and operations; and other risk factors 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 also available on the
Company's website at www.digipwr.com.
Digital Power
Corporation
|
|
Financial
Data
(In thousands
except for per share data)
|
|
|
|
|
|
Three
months
|
|
Year
|
|
Ended December
31,
|
|
Ended December
31,
|
Statement of
Operations Data:
|
2014
|
2013
|
|
2014
|
2013
|
Revenues
|
$2,112
|
$2,267
|
|
$9,022
|
$8,770
|
Operating
loss
|
$ (360)
|
$ (173)
|
|
$ (542)
|
$ (317)
|
Other
income(expense)and impairment of Telkoor
|
$ (139)
|
$ (185)
|
|
$ (115)
|
$ (312)
|
Net income
loss
|
$ (499)
|
$ (361)
|
|
$ (658)
|
$ (632)
|
|
|
|
|
|
|
Basic net earnings
(loss) per share:
|
$(0.74)
|
$(0.053)
|
|
$(0.1)
|
$(0.09)
|
|
|
|
|
|
|
Balance
Sheet
|
As of December
31,
|
|
|
|
|
2014
|
2013
|
|
|
|
Working
capital
|
$3,588
|
$3,841
|
|
|
|
Total
assets
|
6,342
|
6,977
|
|
|
|
Total
Liabilities
|
1,901
|
1,930
|
|
|
|
Shareholders'
equity
|
4,441
|
5,047
|
|
|
|
Non GAAP Financial
Data & Reconciliation to GAAP (Excluding Stock option expenses,
amortization of intangible intellectual property and impairments of
our investments
|
|
|
Three months
ended
|
|
Year ended
|
|
31-Dec
|
31-Dec
|
|
31-Dec
|
31-Dec
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
GAAP Gross
profit
|
$696
|
$766
|
|
$3,287
|
$3,169
|
Amortization of
intangible assets
|
28
|
24
|
|
106
|
96
|
Stock option
expenses
|
1
|
(2)
|
|
4
|
1
|
Non GAAP Gross
profit
|
725
|
788
|
|
3,397
|
3,266
|
Operating
expenses
|
1,056
|
939
|
|
3,829
|
3,486
|
Stock option
expenses
|
93
|
44
|
|
243
|
105
|
Non GAAP operating
expenses
|
963
|
895
|
|
3,586
|
3,381
|
Non GAAP operating
loss
|
(238)
|
(107)
|
|
(189)
|
(115)
|
GAAP Other expenses,
net
|
(138)
|
(185)
|
|
(115)
|
(312)
|
Impairment of
investment
|
175
|
185
|
|
175
|
312
|
Non GAAP other
income
|
37
|
0
|
|
60
|
0
|
Income
taxes
|
1
|
3
|
|
1
|
3
|
GAAP Net
loss
|
(499)
|
(361)
|
|
(658)
|
(632)
|
Non GAAP expense
reductions
|
297
|
251
|
|
528
|
514
|
Non GAAP Net
loss
|
($202)
|
($110)
|
|
($130)
|
($118)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/digital-power-corporation-reports-financial-results-for-the-fourth-quarter-and-the-year-ended-december-31-2014-300057250.html
SOURCE Digital Power Corporation