New Growth Shows Digital Power is Recharged with Opportunities

“We must ensure that our courageous servicemen and women have the tools they need to deter war and, when called upon to fight in our name, only do one thing: win.” That was President Trump during his first speech to Congress in February. He followed up these words with a proposal to boost military spending by $54 billion next year. The increase is an effort to revitalize and shore up the nation’s armed forces. The budget would put the United States military budget at an estimated $639 billion, which would dwarf China, Russia and Britain. In fact, the United States spends more on its military than the next seven highest spenders worldwide. The reason for this gargantuan budget, in a time where conflicts are waning, is because of the United States’ global presence. While the U.S. military currently has over 200,000 active troops deployed in over 170 countries, the Department of Defense projects that the active duty end strength in the armed forces for 2017 to be 1,281,900 people, with an additional 801,200 people in the seven reserve components. One aspect of the increased budget would bolster deployments and stock troops with more advanced weaponry and supplies.

In effect, increased military spending can fuel defense research and promote new technology. As new technology and defense solutions improve, one aspect of the terrain will remain unchanged: the need for a reliable power supply. The core of every military operation is its power supply. Mission critical systems necessitate rugged high performance power platforms that will function and withstand the unforgiving environments in which our troops are called to serve. One company in this field that has an exciting new trajectory is Digital Power Corporation (NYSE Mkt:DPW). The California-based company develops a wide range of tough power supplies engineered for combat environments that meet numerous MIL-STD requirements.

Digital Power designs and manufactures best in class AC/DC or DC/DC power solutions from 20W to 80kW including but not limited to:

Full custom power solutions
Military Grade Uninterruptible Power Supplies (UPS)
Static Frequency Converters (SFC)
Transformer Rectifier Units (TRU)
AC-DC power switchers
DC-DC converters
Desktop adaptors
Compact PCI
Distributed power front-end power supplies
Capacitor chargers
Solar systems
Isolated power bricks
These products can work in a variety of sectors, primarily Health Care, Industrial and Telecommunications, Aerospace, as well as Defense, Automotive and Utilities. But recent developments at the company indicates that the potential applications of Digital Power’s technology to be much greater, and could provide the company opportunities to enter new markets to expand.

Digital Power Corporation Reports Financial Results for First Quarter 2017

Company Announces $57M in Order Backlog

Company Comments on Historic $50M MTIX Purchase Order

FREMONT, Calif., May 17, 2017 (GLOBE NEWSWIRE) — Digital Power Corporation (NYSE MKT:DPW) (hereinafter: “Digital Power” or the “Company”), a growth company seeking to increase revenues through acquisitions and organic growth, today announced its financial results for the first quarter ended March 31, 2017 and provided an investor update highlighting its major accomplishment for the quarter and the Company’s future.

Digital Power’s revenues for the first quarter 2017 were $1,628,000, a decrease of 5% from revenues of $1,713,000 for the first quarter 2016. The Company recorded an operating loss of $787,000 for the first quarter 2017 compared to an operating loss of $200,000 for the comparable 2016 period. Non-GAAP operating losses were $630,000 and $156,000 for the first quarters of 2017 and 2016, respectively. The net loss for the first quarter 2017 was $994,000 compared to the loss of $193,000 for comparable 2016 period. Non-GAAP net losses were $629,000 and $149,000 for the first quarters of 2017 and 2016, respectively. Gross margins in first quarters of 2017 and 2016 were 43.5% and 36.2% respectively. The Company raised $950,000 in new capital for the quarter ended March 31, 2017 in comparison to no capital being raised for the same quarter in 2016.

Commenting on the results, President and CEO Amos Kohn stated: “Our net loss for the first quarter of 2017 included $157,000 of stock option expenses and $208,000 of non-cash interest expenses that is primarily from our capital raising efforts and represents approximately 36% of the first quarter net loss. Excluding these non-cash related expenses, our net loss would have been $629,000 for the first quarter of 2017. While this loss may appear large to some, its magnitude was anticipated and reflects the cost of the Company to restructure and transition to the new directives and strategies borne from the Company’s change in control last year. We are pleased that the Company’s cash balance improved from the prior 2016 fourth quarter to over $1.13M and investments improved from the prior quarter to over $1.67M. We are confident in the Company’s new direction and new initiatives.”

The Company stated there were successes this quarter with the most important being awarded the largest purchase order in its history from MTIX, Ltd. On March 15, 2017, the Company reported it had received an order for $50MM over 3 years to manufacture, install and service textile treatment systems that utilize MTIX’s proprietary Multiplexed Laser Surface Enhancement (MLSE®) platform. MTIX has developed a cost-effective and environmentally friendly material synthesis technology featuring a virtual dry process and breakthrough technology for textile applications utilizing the MLSE® process which uses a combination of high voltage, high frequency electrical discharge plasma and laser energy to imbue textiles with desirable technical characteristics. The order demonstrates the Company’s production versatility while dramatically doubling the anticipated revenues for the 2017 fiscal year. The Company noted it considers the MSLE® platform disruptive sustainable technology that offers several key benefits to manufacturers including lower energy and water costs and usage. The Company believes these benefits not only make the MSLE® platform an alternative “more eco-friendly” process for fabrics and various surfaces, it will attract and drive demand from a few of the world’s largest polluting industries including textiles and clothing. The Company is working with MTIX, Ltd. to execute the purchase order and will announce timelines and other production details over the coming weeks and months, as they are available.

“We understand that the losses reported seem significant, however, we believe they were necessary to propel the Company toward the goals we have outlined for 2017. We believe the losses are not as significant as the progress the Company has made to revitalize itself. We are executing on our plan to rebuild the company, acquire new capital to support its infrastructure, its acquisition strategy and its equity listing requirement while aggressively expanding through strategic and accretive acquisitions after almost 16 years of capital stagnation and declining gross sales. The ability of the Company’s current management has been unleashed to capture and leverage the various opportunities through organic growth and through acquisition while developing new products internally. We are pleased with the leadership provided by the Company’s CEO and look forward to the remainder of 2017,” said Milton “Todd” Ault, III the Company’s Executive Chairman. Ault added, “We suggest investors note the Company has reported a current backlog of almost $57M in pending orders and anticipates a growth in this number as well over the remaining quarters of this and the following fiscal year. This backlog will be significant in the coming months as these orders are completed and revenue is recognized. The current backlog is due to a mix of new customers and new products being sold. The current 10-Q report does not include anticipated revenues from consolidation with our new acquisitions which will be reported as early as our 2nd quarter.”

The Company stated it believes its premises regarding MTIX and its acquisition strategy are supported by the recent report issued by Zacks Research. The report dated May 5, 2017 cited among several observations the importance of the MTIX order to the Company’s future. The report noted the potential for additional orders and revenues from MTIX due to the various financial and social benefits provided by the new proprietary MSLE® technology that Zacks deemed disruptive if the anticipated results are realized.

For the remainder of 2017, as previously reported, the Company is pursuing an increase in revenues by seeking to attract new customers and implementing an aggressive acquisition strategy to build upon its anticipated organic growth. In implementing this strategy, the Company has hired a number of additional personnel and consultants to assist in identifying, analyzing, negotiating and acquiring potential companies. The Company will need to continue to raise a substantial amount of capital for acquisitions and to support its infrastructure. As a result of its projected growth, its anticipated net income may not match its growth in gross revenues and may continue to experience losses through 2017 and 2018 until these acquisitions have been integrated into operations or until cost reduction and efficiency changes have been implemented.

Use of Non-GAAP Measures

This press release provides financial measures for operating loss and 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

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, Digital Power Limited which does business as Gresham Power Electronics, is based in Salisbury, UK. Digital Power’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.comor 1-888-753-2235.

Forward Looking Statements

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 Digital Power Lending’s ability to achieve profitability, or that Microphase can become more efficient and can contribute the Company’s bottom line. 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.

Digital Power Corporation announces higher power additions to its Capacitor Charger product Family

FREMONT, Calif., February 1, 2017 — Digital Power Corporation (NYSE MKT: DPW) announced the release of high power additions to its advanced capacitor chargers product family, designed for medical laser system and industrial applications.

This family of products features a series of highly efficient, high power and compact capacitor charger power supplies. These products charge capacitive loads to high voltages with excellent pulse-to-pulse repeatability at very high repetition rates, allowing load capacitors to be charged in the fastest time possible.

The products support output voltages ranging from 500 volts to 1,000 volts and offer charge rates from 1,500 Joules/sec to 2,200 Joules/sec. The new models increase the power output capability from 3000 Watts to 6000 Watts and introduce two new case sizes. 1500 and 2000 Watt models are available in a 12.7” x 5.75” x 4.1” package and 3000, 4000 and 6000 Watt models are available in a 17.3” x 16.5” x 3.7” outline. These products have built in airflow and operate over a 0 to 50̊C ambient temperature range.

The capacitor chargers deliver clean and efficient power for pulsed YAG lasers, flashlamp pumped laser systems, intense pulsed light excimer lasers for photolithography, pulsed UV lasers for curing and sterilization, pulsed energy lasers for cosmetic and surgical treatments, and other pulsed energy applications in medical an industrial markets.

Digital Power Corporation will display these products at the MD&M West show February 7–9, at Anaheim Convention Center, Anaheim CA, booth 381.

About Digital Power Corporation
Headquartered in Fremont, California, Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Its products are used in the most demanding telecom, industrial, medical and military applications where customers require high density, high efficiency and ruggedized power solutions. Its wholly owned subsidiary Digital Power Limited, is located in the UK.
Contact: Digital Power Corporation, 48430 Lakeview Blvd., Fremont, California 94538.

1-877-634-0982 E-mail: sales@digipwr.com
Website: www.digipwr.com.

Digital Power Corporation Announces the release of its Advanced Capacitor Charger product Family

FREMONT, Calif., July 6, 2015 — Digital Power Corporation (NYSE MKT: DPW) announced the release of its new advanced capacitor chargers product family for powering laser systems in medical and industrial applications.

This family of products features a series of highly efficient, high power and compact capacitor charger power supplies. These products charge capacitive loads to high voltages with excellent pulse-to-pulse repeatability at very high repetition rates, allowing load capacitors to be charged in the fastest time possible.

The products support output voltages ranging from 500 volts to 1,000 volts and offer charge rates from 1,500 Joules/sec to 2,200 Joules/sec. They are available in power ranges from 1,500 watts to 3,000 watts.

The capacitor chargers deliver clean and efficient power for pulsed YAG lasers, flashlamp pumped laser systems, intense pulsed light excimer lasers for photolithography, pulsed UV lasers for curing and sterilization, pulsed energy lasers for cosmetic and surgical treatments, and other pulsed energy applications in medical an industrial markets.

Amos Kohn, president and CEO of Digital Power, comments, “The Digital Power capacitor charger product family demonstrates our commitment to continued innovation in the development of power solutions for a broad range of industries and challenging environments.” Mr. Kohn adds, “Our systems use reactive charging with duty cycle control and programmable circuitry where the ballast current is reactive and recoverable and the only power consumed is the real power going into the energy bank. This approach provides a great advantage when dealing with energy storage in the thousands of joules”.

A product photo accompanying this release is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=34246

About Digital Power Corporation
Headquartered in Fremont, California, Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Its products are used in the most demanding telecom, industrial, medical and military applications where customers require high density, high efficiency and ruggedized power solutions. Its wholly owned subsidiary Digital Power Limited, is located in the UK.

Forward Looking Statements
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 from contracts. 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. As previously noted, the current customers associated with the aforementioned contracts may modify their purchase forecasts for these products which 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 Blvd., Fremont, California 94538.

1-866-344-7697 E-mail: akohn@digipwr.com
Website: www.digipwr.com.

Digital Power wins two contracts to develop advanced, next-generation power solutions for cloud based data centers and converged cable access platforms (CCAP)

FREMONT, Calif., September 16, 2014 — Digital Power Corporation (NYSE MKT: DPW) announced that it recently was awarded two contracts, one to develop a custom switching power solution for cloud based data centers and the other to develop a custom power solution for converged cable TV edge router and gateway nodes. Based on current purchase forecasts provided by the customers to these contracts and after completion of development, the company expects to generate aggregate annual revenue of $1.3 million from these contracts for a period of five years. The customers may update their purchase forecasts from time to time.

The solution for data centers is intended to support the rapidly increasing demand for cloud based computing services. The solution for router and gateway nodes is intended to support the high demands of virtual converged cable access platform (CCAP) over cable TV operator networks for IP video streaming services and file uploads and downloads.

For data centers, the Digital Power DC/DC 1300 watt product features a fully synchronous rectifier design and employs advanced digital signal processing (DSP) devices and firmware for real-time monitoring and performance control. The DSP communicates with a host processor to enable the system to monitor and control performance, including timing, digital control loops, and multiphase clocking, using the industry standard SMBus. For router and gateway nodes, the Digital Power AC/DC pseudo-square wave product features an advanced synchronous rectifier AC/DC front end to improve power efficiency. This product also is fully DSP controlled.

Amos Kohn, president and CEO of Digital Power Corporation comments, “We are proud that we have been selected to provide our technology and designs to customers in these two service industries. Our power solutions are based on the next-generation of digital synchronous rectifier design, and we believe they are among the most technologically advanced power processing solutions on the market.” Mr. Kohn added, “We hope that these engagements will lead to additional opportunities to serve these growing market segments”.
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. Its products are used in the most demanding telecom, industrial, medical and military applications where customers require high density, high efficiency and ruggedized power solutions. Its wholly owned subsidiary Digital Power Limited, is located in the UK.

Editorial contact: Amos Kohn, telephone 510-657-2635, e-mail akohn@digipwr.com.

Contact: Digital Power Corporation, 48430 Lakeview Blvd., Fremont, California 94538.
1-866-344-7697 E-mail: akohn@digipwr.com
Website: www.digipwr.com.

Digital Power Corporation awarded $2M Defense Export Order

FREMONT, Calif., July 28, 2014 — Digital Power Corporation (NYSE MKT: DPW) announced that its wholly-owned subsidiary, Digital Power Limited, has secured a $2M order from the Republic of Korea to provide uninterruptible power supply (UPS) systems to be fitted to Military Afloat Reach and Sustainability (MARS) tankers being built by Daewoo Shipbuilding and Marine Engineering (DSME).

DSME is building four MARS tankers to support Type 45 Destroyers while at sea. To be delivered to the UK Ministry of Defense (MoD), each MARS tanker requires a total complement of eight (8) UPS systems of various ratings. These tankers will provide logistical support, ammunition and other supplies to the destroyers. Digital Power Corporation already has provided a wide range of power conversion and distribution equipment for the Type 45 Destroyer fleet.

Jake Moir, Managing Director of Digital Power Limited, comments: “After nine months of hard work by our Republic of Korea partner, C&A Electric, and us, we are pleased to have secured this important contract. This order will be a major part of our forward order book for the next two years and provides us with a platform to develop additional new products for customers worldwide. Our defense business continues to grow with customers in markets that include Spain, France, Australia, India and now South Korea.”

Amos Kohn, president and CEO of Digital Power Corporation comments, “We continue to search for new products and markets and are very pleased to have penetrated this important market segment as part of our ongoing expansion into the international defense industries. The recent award of the Republic of Korea naval defense project to our subsidiary, Digital Power Limited, follows the award of the LVPS project by the Israel Aerospace Industries and demonstrates our expansion of power technologies to the worldwide defense market”. Mr Kohn continues: “In this increasingly unstable world, we are proud to do our part to support our strategic allies.”

About Digital Power Corporation

Digital Power Corporation, a publicly traded corporation (NYSE/Amex: DPW), 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. The company also manufactures static frequency converters, DC UPS devices, distributed power systems, and DC/AC inverters and switchers. The company’s headquarters are in Fremont, California. Its wholly-owned subsidiary, Digital Power Limited (DPL), is based in Salisbury, UK, and operates under the brand Gresham Power Electronics.

Editorial contact: Amos Kohn, telephone 510-657-2635, e-mail akhon@digipwr.com.

Reader contact: Digital Power Corporation, telephone 510-657-2635, e-mail sales@digipwr.com, or telephone +44 1722 413060, email sales@greshampower.com

Digital Power Corporation awarded major military contract for the Israel Aerospace Industries

Fremont, California March 19, 2014 – Digital Power Corporation (NYSE: DPW) has been awarded a 5-year contract to provide its low voltage power supply (LVPS) multiple outputs DC/DC converter to Israel Aerospace Industries (IAI).

The contract awarded to Digital Power Corporation covers the manufacturing and delivery of the LVPS modules to IAI from 2014 through 2018. IAI will use the LVPS to power the TAMAM Modular Azimuth Position System (TMAPS) navigation system, which is used by the Israel Defense Forces (IDF) in tactical warfare.
Designed to operate in GPS-disturbed or jammed battlefield scenarios, the LVPS features a persistent capability that will provide the TMAPS with continuous and stable power through multiple power sources in the harshest operating conditions.

Amos Kohn, president and CEO of Digital Power Corporation comments, “We are proud that our LVPS product and manufacturing capabilities have been qualified for this effort. The TMAPS represents one of the most significant self-contained hybrid land navigation systems designed to provide autonomous position initialization and moving base alignment for land and amphibious vehicles in the battlefield”.

Continue Mr. Kohn, “The cost-effective LVPS is suitable for installation on a wide range of platforms, such as self-propelled guns, artillery radars, rocket launchers, mortars, observation vehicles and other vehicles types, and is designed for use in varied combat situations. The LVPS is a critical part of a system that provides ground forces with the persistent capability to determine precise position and direction in all weather conditions without requiring a battlefield survey.”

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. Its products are used in the most demanding telecom, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. Its wholly owned subsidiary, Digital Power Limited, is based in Salisbury, UK.

Contact: Digital Power Corporation, 48430 Lakeview Blvd., Fremont, California 94538.

1-866-344-7697 E-mail: akohn@digipwr.com
Website: www.digipwr.com.