FORT LEE, N.J., Feb. 1, 2016 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer" or the "Company"), a company engaged in the manufacture, sale and service of electrical transmission, distribution and on-site power generation equipment, today announced the Company has recently secured purchase orders and new business from multiple customers with an aggregate value of approximately $10 million. Each of the orders are scheduled for delivery during calendar 2016.
Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "I am encouraged with the sales activity we experienced at the end of 2015 and into the first part of 2016. Improving conditions in several end markets, particularly from data centers looking for solutions to effectively and safely manage expanding electricity requirements, are driving growing demand for our critical power and T&D solutions. The size of individual orders and customer confidentiality requests often prevent us from announcing individual awards, but we believed it was important to demonstrate the improving pipeline which supports our 2016 financial outlook."
Highlights of these contracts include:
- Pioneer recently received new commitments from the developer of a data center for one of the world's largest technology companies, for deliveries in excess of $5 million from its Transmission and Distribution Division. All shipments are expected to occur during 2016.
- In the Critical Power Division, the Company will deliver a prototype solution, consisting of natural gas engines, normal and emergency switchboards and automatic transfer switches, to a large Midwestern-based chain of grocery stores. This solution will provide emergency backup systems as well as utility demand-side management functions enabling the chain to augment electric supply during the summer months and reduce peak charges. This prototype is expected to be shipped during the first quarter of 2016, and once proven in the initial store, the chain plans to expand the design to other locations.
- Also in the Transmission & Distribution Solutions Division, the Company has received a significant increase in orders derived from wastewater treatment facilities, hospital and data centers, all of which are directly related to the lines of business acquired through its purchase of Pacific Power Systems Integration, Inc. in the second half of 2015.
"During the past few years, Pioneer has aggregated several businesses, creating a diversified, yet integrated, array of capabilities," continued Mr. Mazurek. "The end result is that today, we are able to provide a comprehensive, purpose-built solution for a growing group of customers to meet emerging electricity needs. We have the right solutions for today's industry demands and we are working with customers to create new and innovative solutions, and we are seeing expansion of our pipeline as a result."
About Pioneer Power Solutions, Inc. Pioneer Power Solutions, Inc. manufactures, sells and services a broad range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The Company's principal products and services include custom-engineered electrical transformers, low and medium voltage switchgear and engine-generator sets and controls, complemented by a national field-service organization to maintain and repair power generation assets. Pioneer is headquartered in Fort Lee, New Jersey and operates from 14 additional locations in the U.S., Canada and Mexico for manufacturing, centralized distribution, engineering, sales, service and administration. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.
Safe Harbor Statement: This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the Company's ability to expand its business through strategic acquisitions, (ii) the Company's ability to integrate acquisitions and related businesses, (iii) the fact that many of the Company's competitors are better established and have significantly greater resources, and may subsidize their competitive offerings with other products and services, which may make it difficult for the Company to attract and retain customers, (iv) the Company's dependence on Hydro-Quebec Utility Company and Siemens Industry, Inc. for a large portion of its business, and the fact that any change in the level of orders from Hydro-Quebec Utility Company or Siemens Industry, Inc. could have a significant impact on the Company's results of operations, (v) the potential loss or departure of key personnel, including Nathan J. Mazurek, the Company's Chairman, President and Chief Executive Officer, (vi) the fact that fluctuations between the U.S. dollar and the Canadian dollar will impact the Company's revenues, (vii) the Company's ability to generate internal growth, (viii) market acceptance of existing and new products, (ix) the Company's dependence on a distributor agreement with Generac Power Systems through which it derives a significant portion of its revenues, (x) operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, labor or overhead cost increases, interest rate risk and commodity risk, (xi) restrictive loan covenants or the Company's ability to repay or refinance debt under its credit facilities that could limit the Company's future financing options and liquidity position and may limit the Company's ability to grow its business, (xii) general economic and market conditions in the electrical equipment, power generation, commercial construction, industrial production, oil and gas, marine and infrastructure industries, (xiii) the impact of geopolitical activity on the economy, changes in government regulations such as income taxes, climate control initiatives, the timing or strength of an economic recovery in the Company's markets and the Company's ability to access capital markets, (xiv) the fact that unanticipated increases in raw material prices or disruptions in supply could increase production costs and adversely affect the Company's profitability, (xv) the fact that the Company's Chairman controls a majority of the Company's combined voting power, and may have, or may develop in the future, interests that may diverge from yours, (xvi) material weaknesses in the Company's internal control over financial reporting that could have an adverse effect on the Company's business and common stock price, and (xvii) the fact that future sales of large blocks of the Company's common stock may adversely impact the Company's stock price. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's Annual and Quarterly Reports on Form 10-K and Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
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SOURCE Pioneer Power Solutions, Inc.