Pioneer Power (PPSI) Tops Q2 EPS by 5c, Revenues Miss

Pioneer Power (NASDAQ: PPSI) reported Q2 EPS of $0.16, $0.05 better than the analyst estimate of $0.11. Revenue for the quarter came in at $24.59 million versus the consensus estimate of $27 million.

Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "The second quarter represented a significant improvement on a sequential basis, with notable improvements in revenue, gross margin and EBITDA and a narrowing of our net loss by more than half a million dollars, from $581,000 in the first quarter to just $78,000 in the second quarter. We ended the quarter with the highest backlog in our history, up 20% in just three months, and while we do not intend to regularly provide mid-quarter backlog figures, our backlog at July 31 was over $39 million, up an additional 7% from the end of June. Demand for our solutions, especially from data centers and cryptocurrency mining operations, is strong and growing, and our service business is up 6.5% year-to-date compared to the first half of last year. Today, we have a stable, efficient, cost-controlled platform for profitable growth."

"In addition, the second quarter was also impacted by unfavorable foreign currency exchange rates, which represented an approximate $544,000 drag on our earnings, when compared to Q2 2017," added Mr. Mazurek. "Finally, the second quarter last year was unusually strong with higher revenues and an ideal mix, especially for our liquid filled operation, creating a challenging comparison. Our liquid filled business is at full capacity for the balance of the year, giving us clear visibility into the second half of the year, and our dry type business is building on its strong position in the general construction and data center markets. In particular, our backlog for medium voltage dry type power units is at an all-time high and growing. Combined with accelerating service related sales, we are confident that revenue in both the third and fourth quarter should exceed that of the second quarter, driving further sequential improvements in our profitability."

For earnings history and earnings-related data on Pioneer Power (PPSI) click here.

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