OREANDA-NEWS. Digital Power Corporation (NYSE MKT:DPW) today announced financial results for the first quarter ended March 31, 2016.

Digital Power’s revenues for the first quarter ended March 31, 2016 were $1,713,000, a decrease of 10% from revenues of $1,896,000 for the same quarter ended March 31, 2015, resulting mainly from a decreased level of power supply shipments in the U.S. market. Net loss for the quarter ended on March 31, 2016 was $193,000, comparable to the $204,000 net loss recorded for the quarter ended March 31, 2015 which resulted mainly from the decline in revenues. Gross margin in the first quarter ended March 31, 2016 was 36.2%, slightly lower than the 37.6% reported in the first quarter ended March 31, 2015 mainly due to the product mix. Operating expenses were $820,000 a decrease of 12% from the quarter ended March 31, 2015. Reflecting lower general and administrative expenses and engineering costs.

Commenting on the results, President and CEO, Amos Kohn, stated: “For the first quarter ended March 31, 2016, our net loss of $193,000 included $44,000 of stock option expenses. Excluding these non-cash related expenses, our non-GAAP net loss was $149,000 for the first quarter of 2016. For the first quarter ended March 31, 2015, our net loss was $204,000 and excluding stock option expenses of $47,000, intellectual property amortization expenses of $24,000 and $50,000 for impairment of our Telkoor investment our non-GAAP net loss was $83,000. Although we continue to realize stronger defense related shipments from our European operations in the current fiscal quarter as compared to the comparable quarter last year, our commercial product portfolio continues to lag behind expectations in terms of orders and shipments. Our efforts to further develop our product line offerings and geographical sales coverage are still in process with the hope that improvements in our revenue realization rate will follow in future quarters.” 

Mr. Kohn continued, “We continue to pursue our strategic plan of developing complete customized power solutions and enhancing our standard product portfolio with innovative, high density and efficient power supplies at ever increasing power levels. The focus on a complete solution for power applications is well received by our major telecom, medical, military and industrial customers.”

Use of Non-GAAP Measures

This press release provides financial measures for 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".