Digital Power Reports Financial Results for the Third Quarter Ended September
30, 2005
FREMONT, Calif., November 14th, 2005 Digital Power Corporation (Amex: DPW -
News) (herein "Digital Power") today announced its financial results for the
third quarter ended September 30, 2005.
Digital Power reported revenue of $2,969,000 for the quarter ended September
30, 2005, an increase of 35.6% from $2,190,000 for the same quarter last year.
An operating profit of $112,000 for the third quarter of 2005 was reported,
compared to an operating loss of $217,000 for the same quarter last year.
Digital Power reported a net profit for the three months ended September 30,
2005 of $113,000 compared to a net loss of $230,000 for the three months ended
September 30, 2004.
Revenue for the nine months ended September 30, 2005, was $7,187,000, a 16.7%
increase from revenue of $6,158,000 for the nine months ended September 30,
2004. Net loss for the nine months ended September 30, 2005 was $160,000
compared to a net loss of $733,000 for the same period in 2004.
Commenting on the results, Jonathan Wax, President and CEO stated, "This is the
sixth straight quarter over the previous year's quarter of revenue growth and
the first quarter of profitability for Digital Power since the fourth quarter
of 2002. We continue to be impressed by the overall market receptivity of our
commercial products, particularly with our high-density front end product lines
and the stability of our military revenue. This improvement resulted primarily
from a cross section of previously announced sales, manufacturing and
restructuring initiatives, which once again maintained our gross margins. We
are particularly pleased with our ability to grow revenue in excess of 30% from
the previous quarter and maintain our gross margin without the addition of
significant overhead or negative material variances. This is a tribute to our
hardworking employees and our strategic partners".
Digital Power designs, develops, manufactures, markets and sells switching
power supplies to industrial, telecommunication, data communication, medical
and military industries. Digital Power's headquarters are located at 41920
Christy Street, Fremont, California, 94538-3158; phone number 510-657-2635.
The foregoing contains forward-looking statements, which are subject to
contingencies and uncertainties, which are set forth in Digital Power's Form 10-
KSB and other filings with the Securities and Exchange Commission. Such
forward-looking statements are not guarantees of future performance and are
based upon assumptions about future conditions that could prove to be
inaccurate including, but not limited to, that the Company will be able to
lower its production costs and market conditions are improving in Digital
Power's industry. Actual events, transactions, and results may differ
materially from anticipated events, transactions or results described in such
statements.
Digital Power Corporation
Financial Data
(In thousands except for per share amounts)
Three months Nine months
Ended September 30, Ended September
30,
Statement of Operations Data 2005 2004 2005 2004
Revenues $2,969 $2,190 $7,187 $6,158
Operating profit (loss) 112 (217) (73) (722)
Profit (loss) before income taxes 113 (230) (160)
(733)
Net profit (loss) 113 (230) (160)
(733)
Net profit (loss) per share
Basic $0.02 $(0.04) $(0.03) $(0.13)
Diluted $0.02 $(0.04) $(0.03) $(0.13)
As of September 30,
Balance Sheet Data 2005 2004
Working capital $2,252 $2,785
Total assets 5,704 5,113
Shareholders' equity 2,461 3,059