Business
Polar Power Reports First Quarter 2023 Financial Results
GARDENA, CA, May 15, 2023 (GLOBE NEWSWIRE) -- Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA), a global provider of prime, backup and solar
About this update from Polar Power, Inc.
[{"type":"text","content":"GARDENA, CA, May 15, 2023 (GLOBE NEWSWIRE) -- Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA), a global provider of prime, backup and solar hybrid DC power solutions, today reported its financial results for the quarter ended March 31, 2023. Key Q1 2023 Results and Highlights: Financial Results for the Three Months Ended March 31, 2023 ●Net sales for Q1 2023 increased to $4.1 million, representing a 13% increase, compared to $3.7 million during the same period last year. ●We had a gross profit of $755,000 at the end of Q1 2023, as compared to a gross profit of $905,000 during the same period last year. ●Operating expenses decreased to $1.7 million in Q1 2023, as compared to $2.0 million in the same period last year. ●Net loss for Q1 2023 totaled $1.1 million, or $(0.09) per basic and dilutive share, compared to a net loss of $1.1 million, or $(0.10) per basic and dilutive share in Q1 2022. ●Cash and cash equivalents at March 31, 2023 were $119,000, as compared to $211,000 at December 31, 2022. We had $16.8 million in inventory at March 31, 2023, as compared to $15.4 million at December 31, 2022. Working capital was $15.8 million at March 31, 2023, as compared to $17.3 million at December 31, 2022. ●Backlog as of the end of Q1 2023 was $8.9 million, of which 68% is from orders of the Company’s DC power generators from telecommunications customers in the U.S., 29% from telecommunications customers in international markets, 1% from customers in marine market, and 2% from customers in other markets. Management Commentary The Company’s net sales increased 13% in Q1 2023 as compared to Q1 2022 despite ongoing headwinds from supply chain constraints and labor shortages. The Company’s gross profit during Q1 2023 decreased $150 when compared to Q1 2022 due to an increase in labor and material costs related to a wider product mix that required more labor and materials. Delays sourcing certain raw materials and labor shortages also affected gross margins in Q1 2023. Operating expenses during Q1 2023 decreased 11% as compared to Q1 2022 primarily due to a decrease in staff supporting sales, engineering, and administration. Sales of the Company’s DC Generators to telecommunications customers continues to drive sales growth. During the three months ended March 31, 2023, 68% of the Company’s net sales were derived from teleco...