Digital Power reported a net income of $142,000, for the fourth quarter of 2008, compared to net income of $235,000 for the fourth quarter of 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 fourth quarter of 2008, down 34% from $3,851,000 in revenues for the comparable quarter in 2007. The gross margins increased to 30% in 2008, compared to gross margins in 2007 of 26%.
Amos Kohn, president and chief executive officer said, ‘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 initiatives, resulted in improved gross margins in 2008.’
