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Digital Power Reports Financial Results for the Fourth Quarter and the Year Ended December 31, 2008
Date:3/26/2009

FREMONT, Calif., March 26 /PRNewswire-FirstCall/ -- Digital Power Corporation (NYSE Amex: DPW) today announced its financial results for the fourth quarter and for the year ended December 31, 2008.

Digital Power reported net income of $142,000 for the three months ended December 3l, 2008, compared to net income of $235,000 for the three months ended December 31, 2007. Operating income equaled $49,000 for the fourth quarter of 2008, compared to operating income of $206,000 for the fourth quarter of 2007 Digital Power reported revenues of $2,559,000 for the quarter ended December 31, 2008, a decrease of 34% from $3,851,000 in revenues for the comparable quarter in 2007.

Net income for the year ended December 31, 2008 was $558,000, an increase of $437,000 over the net income of $121,000 in 2007. Gross margins in 2008 increased to 30%, compared to gross margins of 26% in 2007. However, Digital Power's revenues for the year ended December 31, 2008 were $11,900,000, a 2% decrease from $12,157,000 in revenues for the year ended December 31, 2007.

Commenting on the results, Amos Kohn, President and CEO stated, "While we were disappointed with the fourth quarter drop in revenues, overall 2008 was a positive year for Digital Power. We were able to post significant increases in both operating income and net income for the Company over 2007. In mid-2008, we implemented a new strategy extending our distribution network to cover numerous new market segments. We also decided to focus more on full custom power solutions and are pleased to report that this initiative is beginning to pay off, as we have recently won several important development contracts. Simultaneously, we launched a promotional effort for our standard and modified standard high density, high flexibility products, which, along with several cost reduction initiat
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