Digital Power Corp (DPW, Financial) filed Quarterly Report for the period ended 2010-06-30.
Digital Power Corp has a market cap of $6.8 million; its shares were traded at around $1 with and P/S ratio of 0.8. DPW is in the portfolios of Jim Simons of Renaissance Technologies LLC.
For the six months ended June 30, 2010, our revenues decreased by 8.4% to $4,138,000, from $4,516,000 for the six months ended June 30, 2009. Revenues from our commercial products increased by 12.4% to $3,313,000 for the six months ended June 30, 2010, from $2,947,000 for the six months ended June 30, 2009. Revenues from our military products decreased by 47.4% to $825,000 for the six months ended June 30, 2010, from $1,569,000 for the six months ended June 30, 2009. The overall decrease in revenues is mainly attributable to the decrease in sales of our military products, which decline was due to a delay in delivery of one of our major projects in Europe, as discussed above.
For the six months ended June 30, 2010, revenues from our U.S. operations increased by 12.4% to $2,390,000, from $2,127,000 for the six months ended June 30, 2009. This increase in revenues is mainly attributable to an increase in sales of our standard commercial products. Revenues from our European operations of DPL decreased by 26.8% to $1,748,000 for the six months ended June 30, 2010, from $2,389,000 for the six months ended June 30, 2009. The decrease in revenues from our European operation is mainly attributable to a decrease in sales of our military products.
Engineering and product development expenses were $96,000, or 4.4% of revenues, for the three months ended June 30, 2010, compared to $133,000, or 6.4% of revenues, for the three months ended June 30, 2009. Engineering and product development expenses were $268,000, or 6.5% of revenues, for the six months ended June 30, 2010, compared to $269,000, or 6.0% of revenues, for the six months ended June 30, 2009. This decrease was primarily due to a temporary decrease in salary expenses during the three months ended June 30, 2010.
Financial expense was $17,000 for the three months ended June 30, 2010, compared to financial expense of $99,000 for the three months ended June 30, 2009. Financial income was $23,000 for the six months ended June 30, 2010, compared to financial expense of $72,000 for the six months ended June 30, 2009. From time to time, we enter into forward contracts to hedge certain sales transactions which are denominated in foreign currencies. The change in financial results was due to foreign currency fluctuations during the respective periods and changes in the fair value of forward contracts.
For the three months ended June 30, 2010, we had an operating income of $120,000 and a net income of $103,000; however, for the six months ended June 30, 2010 we had an operating loss of $52,000 and a net loss of $29,000, and for the year ended December 31, 2009, we had an operating loss of $102,000 and a net loss of $148,000. Although we have actively taken steps to reduce our costs, we may continue to incur operating and net losses in the future until we increase revenues by selling current and custom design products, transitioning to production stage of our custom design products and decreasing manufacturing costs through a greater use of contract manufacturers in Asia and other strategic locations.
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Digital Power Corp has a market cap of $6.8 million; its shares were traded at around $1 with and P/S ratio of 0.8. DPW is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our revenues increased by 3.6 % to $2,171,000 for the three months ended June 30, 2010, from $2,095,000 for the three months ended June 30, 2009. The increase in revenues is mainly due to higher sales of our standard commercial products. In addition, during the three months ended June 30, 2010, we generated revenues from the sale of a fully customized product solution for the medical industry, as part of our earlier strategy to transition away from a dependence on standard, commodity products. Revenues from our commercial products during this period increased by 44.5% to $1,893,000 for the three months ended June 30, 2010, from $1,310,000 for the three months ended June 30, 2009. Revenue from sales of our military products decreased by 64.6% to $278,000 for the three months ended June 30, 2010, from $785,000 for the three months ended June 30, 2009. The decrease in our revenue from our military products was mainly due to a delay in delivery of one of our major projects.For the six months ended June 30, 2010, our revenues decreased by 8.4% to $4,138,000, from $4,516,000 for the six months ended June 30, 2009. Revenues from our commercial products increased by 12.4% to $3,313,000 for the six months ended June 30, 2010, from $2,947,000 for the six months ended June 30, 2009. Revenues from our military products decreased by 47.4% to $825,000 for the six months ended June 30, 2010, from $1,569,000 for the six months ended June 30, 2009. The overall decrease in revenues is mainly attributable to the decrease in sales of our military products, which decline was due to a delay in delivery of one of our major projects in Europe, as discussed above.
For the six months ended June 30, 2010, revenues from our U.S. operations increased by 12.4% to $2,390,000, from $2,127,000 for the six months ended June 30, 2009. This increase in revenues is mainly attributable to an increase in sales of our standard commercial products. Revenues from our European operations of DPL decreased by 26.8% to $1,748,000 for the six months ended June 30, 2010, from $2,389,000 for the six months ended June 30, 2009. The decrease in revenues from our European operation is mainly attributable to a decrease in sales of our military products.
Engineering and product development expenses were $96,000, or 4.4% of revenues, for the three months ended June 30, 2010, compared to $133,000, or 6.4% of revenues, for the three months ended June 30, 2009. Engineering and product development expenses were $268,000, or 6.5% of revenues, for the six months ended June 30, 2010, compared to $269,000, or 6.0% of revenues, for the six months ended June 30, 2009. This decrease was primarily due to a temporary decrease in salary expenses during the three months ended June 30, 2010.
Financial expense was $17,000 for the three months ended June 30, 2010, compared to financial expense of $99,000 for the three months ended June 30, 2009. Financial income was $23,000 for the six months ended June 30, 2010, compared to financial expense of $72,000 for the six months ended June 30, 2009. From time to time, we enter into forward contracts to hedge certain sales transactions which are denominated in foreign currencies. The change in financial results was due to foreign currency fluctuations during the respective periods and changes in the fair value of forward contracts.
For the three months ended June 30, 2010, we had an operating income of $120,000 and a net income of $103,000; however, for the six months ended June 30, 2010 we had an operating loss of $52,000 and a net loss of $29,000, and for the year ended December 31, 2009, we had an operating loss of $102,000 and a net loss of $148,000. Although we have actively taken steps to reduce our costs, we may continue to incur operating and net losses in the future until we increase revenues by selling current and custom design products, transitioning to production stage of our custom design products and decreasing manufacturing costs through a greater use of contract manufacturers in Asia and other strategic locations.
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