Digital Power Corporation (NYSEMKT: DPW) is a power supply company that designs, manufactures and markets power supply solutions for the telecom, industrial, medical and military markets. The company currently operates in both North America and Europe, offering a suite of standard and custom power supply products (adapters, front end, open frame, compact PCI, etc.). Digital Power Corporation was founded in 1969 and went public in 1996. It is headquartered in Freemont, California and incorporated in California.
The company’s wholly owned subsidiary, Coolisys Technologies, Inc. (“Coolisys”) entered a definitive agreement to purchase all outstanding membership interest in Power-Plus Technical Distributors, LLC (“Power-Plus”), a company that sells customized power supply solutions. Coolisys is purchasing Power-Plus for $850,000 of which $198,000 will pay off outstanding debt and the remaining will be paid in cash over time. The anticipated transaction closing date is on or around September 1, 2017.
On July 10, 2017, DPW announced the appointment of William D. Corbett as CEO of Digital Power Lending (“DPL”), a wholly-owned subsidiary of the company. DPL was founded on November 30, 2016 to assist small businesses with capital financing through innovative products and services.
On May 25, 2017, DPW announced that it has received regulatory approval for the acquisition of the controlling interest in Microphase Corporation, a company that designs, develops and manufactures OEM electronic components, devices and subsystems for the defense, aerospace and telecom sectors. Additionally DPW announced the execution of a new corporate structure in which it will transition to a holding company with all operations at the subsidiary level.
Telecom – Offers quick to market tailored high density and efficient power supply solutions
Industrial – Offers rugged power supply solutions to withstand extreme conditions and electrical surges/sags
Medical – Offers power supply solutions that meet stringent medical requirements for patient vicinity applications
Military – Offers a suite of rugged power supply products that can withstand harsh combat conditions and are also compliant with MIL-SPEC requirements. Products are compliant with the regulations of International Traffic in Arms Regulations (“ITAR”). Currently, the company is an approved vendor for the US Navy, Army and Air Force
Custom – Advanced custom solutions that meet almost all AC or DC power requirements
Open Frame – Offers the smallest open frame AC/DC switchers that deliver up to 800 W of continuous power
Compact PCI (Compact Peripheral Component Interface) – Product offering is fully compliant with PICMG® 2.11 power interface specification. It delivers up to 500 W of continuous power and incorporates active power factor correction
Micro TCA – Offers high-power modules designed for use in MicroTCA systems. The product supports shelves, cubes, MicroTCA enclosures and other implementations. It also complies with the PICMG MicroTCA Revision 1.0 specification
Adapters – Offers a suite of power adapters for multiple purposes
POE (Power over Ethernet) – Supplies 1 Amp of 48V or 55V DC power utilized by 10/100 Base-T transformers for connection to an IEEE 802.3 (10/100 Base-T) compatible device. This product supplies feature impact resistant enclosures and are designed to support indoor, outdoor and DC input applications
AC to DC – Offers standard DC input versions for most of our standard AC input products
Military – The power supplies listed here are ruggedized designs for Military and COTS Applications and are compliant with MIL-STD 810 and MIL-STD 461 with external filters
Front End – Product offering is built with hot-swappable and N+N redundancy features. It is used for critical applications in the telecom market
Capacitor Chargers – Designed to meet the requirements of medical, aesthetic, and industrial pulsed energy systems. These systems include flashlamp pumped laser systems, excimer laser systems, irradiation devices, inspection devices, diagnostic and therapeutic equipment, laser aesthetic systems, medical holmium YAG lasers, pulsed UV curing systems and sterilization systems
High Density Modular Products – Offers the NEVO and VCCM series devices which are used for applications that go through the harshest conditions. Standard features include fully adjustable output voltage, externally controllable voltage and current and series or parallel outputs. Each device can accommodate up to four isolated DC output modules and each module uses SMT components to ensure reliability
Stock Influences and Risk Factors
With a new corporate structure, the holding company must make sound strategic acquisitions to drive incremental revenue growth
Given its continuous losses, maintain its ability to obtain funding to fund growth;
Power supply solution demand from the four markets it serves: Telecom, Industrial, Medical, Military;
Continuously maintain or increase its customer order backlog of $65m while maintaining customer experience and product quality
The company’s debt/equity ratio was at 0.145 and its current ratio was at 1.83 at the end of Q1 2017. The net loss was $0.99m on $1.63m revenue in Q1 2017. The company’s change in cash position was $0.14m in Q1 2017 with all of the inflow coming from Cash from Financing Activities.
DPW will be announcing its Q2 2017 earnings on or about August 14, 2017.
On August 16, 2017, in intraday trading, DPW shares were at $0.61, down 6.89% from the previous day. DPW shares have an average daily trading volume of 586K shares. The current RSI (14) is 47.75. At $0.61, DPW shares are trading above their 50-day and below their 200-day moving averages at $0.58 and $0.63 respectively.
DPW has recently transitioned to a holding company model that focuses on increasing revenues through strategic acquisitions. With this change in corporate structure, the company has to maintain its strong balance sheet position and its ability to obtain financing in order to execute on new acquisitions.
***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.