Sets Price Target of $1.02 Predicated on Revenue Forecasts for 2017 and 2018
FREMONT, Calif., Aug. 29, 2017 (GLOBE NEWSWIRE) – Digital Power Corporation (NYSE AMERICAN:DPW) (“Digital Power” or the “Company”), a company seeking to increase revenues through acquisitions and organic growth, announced today that Zacks Investment Research updated its analysis of Digital Power Corporation on Monday, August 28, 2018 post issuance of the Company’s financial results and 10Q for the quarter ending June 30, 2017. Zacks also incorporated in its research the Company’s Revenue Guidance issued through a press release dated August 25, 2017. Zacks analysis sets a price target of $1.02 based on substantial investment by the Company in three announced acquisitions, in its operational infrastructure and in conjunction with its corporate realignment which includes the recent establishment of Coolisys Technologies, Inc.
Zacks believes the Company could be worth $1.02 in the next 12 months based on the expected 2017 revenue forecasts and an industry average of 1.6x EV/Sales. Zacks notes the increase in revenues include the recognition of the first sales in Q4 of 2017 from the $50M purchase order issued by MTIX. Ltd. for machines that utilize its proprietary, disruptive MLSE® technology along with broader recognition of revenues earned from newly acquired enterprises now being streamlined to achieve cost efficiencies and increased production. The full report is readily available at www.DigitalPowerCorp.com.
As previously reported, the Company expects to change its name, Digital Power Corporation, while retaining its stock symbol later this year.
The Company is committed to an acquisitions and organic growth strategy and anticipates continuing to raise additional capital in the foreseeable future to fuel the engine of growth necessary to accomplish the Company’s goals and strategy.
Zacks SCR has received compensation from the Company for providing non-investment banking services and expects to pay additional compensation for such non-investment banking services that will be provided. The non-investment banking services provided to the Company include the preparation of the cited report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR.
About Digital Power
Headquartered in Fremont, CA, 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 communications, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. The Company’s wholly owned subsidiary, Coolisys Technologies, Inc. a technology focused developer and manufacturer that services the defense, aerospace, medical and industrial sectors, has 2 subsidiaries. Digital Power Limited is based in Salisbury, UK is wholly-owned. Microphase Corporation, is a majority owned subsidiary, with its headquarters in Shelton, CT (203) 866-8000. Website: www.microphase.com. Digital Power Lending, LLC, is a wholly owned subsidiary of the Company, is based in Fremont, CA, and is a California private lending company dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest. Digital Power Corporation’s headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982. Website: www.digipwr.com.
For Investor Relations inquiries: IR@digipwr.com or 1-888-753-2235.
The foregoing 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, including statements concerning the Company’s current expectations regarding revenues for the remaining 2017 and thereafter from contracts and operations on a consolidated basis, that the Company will be able to complete a complete the acquisition of Power-Plus, that it will be able to meet its production for the MTIX product, develop a new line of accepted products and services targeting the specialized marketplace and achieve a market price of $1.02 within 12 months. 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. 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.