Digital Power Reports Financial Results for the First Quarter Ended Marc...( FREMONT Calif. May 15 /- Digital ...),Health

FREMONT, Calif., May 15 /PRNewswire-FirstCall/ -- Digital Power Corporation (Amex: DPW) (herein "Digital Power") today announced its financial results for the first quarter ended March 31, 2008.

Digital Power reported revenue of $3,169,000 for the quarter ended March 31, 2008, an increase of 15.6% from $2,742,000 for the same quarter last year. An operating loss of $165,000 for the first quarter of 2008 was reported, compared to an operating profit of $25,000 for the same quarter last year. Digital Power reported a net loss for the three months ended March 3l, 2008 of $161,000 compared to a net profit of $41,000 for the three months ended March 31, 2007.

Commenting on the results, Ben-Zion Diamant, Interim President and CEO stated, "Our first quarter results were significantly impacted by the costs associated with the severance agreement of the former CEO. Absent these one-time charges of $189,000, the Company would have reported a profit. While all of these expenses were recognized in our first quarter, it should be noted that the actual cash effect will take place over the balance of the year."

Continuing on other matters, Mr. Diamant said, "We are pleased to report that the voluntary disclosure which the company filed with the US Department of State regarding possible violations of the International Traffic in Arms Regulations ("ITAR") with respect to defense business, was closed without action by the US Department of on April 22, 2008. No fines were assessed. The Company has also applied for registration as a "Broker" and a "Manufacturer and Exporter" of Defense Articles/Defense Services with the U.S. Department of State under the ITAR. Upon approval, the Company will be well positioned to further penetrate this im
'/>"/>