Company Estimates Increased Revenue, Reports New Initiatives and New Acquisition Strategy
FREMONT, Calif., April
03, 2017 (GLOBE NEWSWIRE) — Digital Power Corporation (NYSE MKT:DPW)
announced today that it is targeting an 80-120% increase in revenue from
2016 in 2017. Top-line revenue will be driven by three key components:
- Organic growth;
- New customers; and
- An aggressive acquisition strategy.
The
Company plans to leverage its targeted acquisitions by consolidating
and streamlining new operations with our existing operations to provide
both a greater production capacity and manufacturing productivity. These
efforts will build upon the benefits derived from the reinvestment
program recently instituted for current operations.
The
Company stated this latest update is motivated by questions and
inquiries from investors and others regarding the various 8K reports and
press releases issued during the last two quarters. The Company
reserves its right not to issue further investor guidance for 2017.
With
the changes in corporate leadership and control since September 2016,
the Company has embarked on a path to resolve its equity requirements
from the NYSE MKT by raising new capital from both existing and new
investors. These same equity efforts will fuel the 2017 acquisition
growth strategy that will continue into 2018. The Company’s acquisition
growth strategy encompasses several elements including investing for the
long-term that enables the Company to leverage acquisition targets and
other opportunities as they arise over time and will provide dramatic
growth in gross revenue on a consolidated basis.
Amos
Kohn, President and CEO of Digital Power, comments: “The same strategy
is focused on the acquisition of leading suppliers of advanced products
to the defense and aerospace industries as well as those in the sectors
of medical, industrial and telecom. The strategy seeks undervalued
businesses that can provide synergies in expanding customer base,
additional customer ordering and in production.”
On March 14,
2017, the Company announced the award of a 3-year, $50 million purchase
order by MTIX Ltd., headquartered in Huddersfield, West Yorkshire, U.K.,
to manufacture, install and service textile treatment systems that
utilize proprietary MTIX Multiplexed Laser Surface Enhancement (MLSE™)
system. This milestone demonstrates the ability of the Company to expand
its product and service catalog while leveraging its manufacturing
capacity and expertise. The Company has embarked on its acquisition
growth strategy to support new customers and product contracts such as
MTIX.
The Company expects to file its 10K report for 2016 by the close of business on April 7, 2017.
About Digital Power Corporation
Headquartered
in Fremont, Calif., Digital Power Corporation designs, manufactures and
sells high-grade customized and off-the-shelf power system solutions.
Our products are used in the most demanding telecom, industrial, medical
and military applications where customers demand high density, high
efficiency and ruggedized power solutions. Our wholly owned subsidiary,
Digital Power Limited branded as Gresham Power Electronics, is based in
Salisbury, UK.
Forward Looking Statements
The
foregoing press 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. Such forward looking statements
include, but are not limited to, the Company being able to identify,
acquire, and integrate new businesses, that upon completion of these
acquisitions, that the Company will be able to integrate their
operations with the Company’s operations in order to achieve the cost
savings or efficiencies anticipated, that such acquisitions will provide
the synergies anticipated, MTIX and its customers being able to order
all of the machines subject to the purchase order, being able to
reproduce the MTIX process, benefits and enhancements on a production
scale, and the Company’s ability to integrate a sophisticated plasma and
energy system. 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. Further, MTIX and its prospective customers
related to the purchase order may modify their purchase forecasts for
these products that would increase or decrease the Company’s actual
revenue versus current revenue forecast for these customers. 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.digipwr.com.
Contact: Digital Power Corporation, 48430 Lakeview Boulevard, Fremont, California 945 94538. 1-877-634-0982; Website: www.digipwr.com; For Investor Relations inquiries: [email protected] or call 1-844-233-2645.
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