FORT LEE, N.J., July 26, 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 that over the last 60 days, the Company has booked more than $3.6 million in distributed generation business, reflecting several orders from new customers.
Distributed generation represents a new opportunity for Pioneer. In early 2015, Pioneer introduced a new line of automatic transfer switches (ATS), and during 2015, the Company generated initial sales of distributed generation solutions. These ATS solutions combine the stand-by aspect of a typical ATS with grid paralleling capability, enabling the IPP (Independent Power Producer) to export and "peak shave" power to the utility, providing the IPP with additional sources of revenue generation. Pioneer offers grid paralleling solutions for both Low and Medium voltage applications.
The three orders, totaling $3.6 million, represent a significant surge in orders related to distributed generation. The new business includes:
A single order in excess of $2 million to supply highly customized automatic transfer switches to a major integrated energy solution provider, with shipments beginning in the third quarter of 2016 and concluding in the first quarter of 2017, and the majority scheduled for shipment in the fourth quarter of 2016. The agreement represents Pioneer's first large distributed generation order and validates the Company's custom design capabilities.
Three additional orders, valued at approximately $1 million in aggregate, for other highly customized distributed generation solutions
Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "Distributed generation and the use of microgrids represent some of the fastest growing end markets in our industry, and it is an area we see as a particularly strong opportunity for Pioneer. Medium and large enterprises are looking for solutions to reduce reliance on utilities and the susceptibility of the grid to catastrophic events, while also lowering energy costs and improving efficiency. This emerging trend creates opportunities for leaders in custom distributed generation and microgrid solutions and for Pioneer. These solutions require highly customized components, and Pioneer has a proven history of working with customers to create high-quality, customized solutions. These significant orders demonstrate our rapid penetration into these rapidly growing end markets, and reinforce our confidence in our guidance for the full year. Distributed generation has now emerged as another long-term growth platform for Pioneer and we expect further market penetration over the coming months."
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 13 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 has been delinquent in payment of its federal payroll tax obligations and may not be successful in its requests for the abatement of penalties and payment of past due amounts over an extended period, (ii) the Company's ability to expand its business through strategic acquisitions, (iii) the Company's ability to integrate acquisitions and related businesses, (iv) 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, (v) 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, (vi) the potential loss or departure of key personnel, including Nathan J. Mazurek, the Company's Chairman, President and Chief Executive Officer, (vii) the fact that fluctuations between the U.S. dollar and the Canadian dollar will impact the Company's results, (viii) the Company's ability to generate internal growth, (ix) market acceptance of existing and new products, (x) the Company's dependence on a distributor agreement with Generac Power Systems through which its Critical Power segment derives a significant portion of its revenues, (xi) 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, (xii) 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, (xiii) general economic and market conditions in the electrical equipment, power generation, commercial construction, industrial production, oil and gas, marine and infrastructure industries, (xiv) 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, (xv) the fact that unanticipated increases in raw material prices or disruptions in supply could increase production costs and adversely affect the Company's profitability, (xvi) 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, (xvii) 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 (xviii) 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.