Digital Power Corp (DPW)

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Digital Power Corporation (AMEX:DPW) http://www.digipwr.com/ Digital Power Corporation Digital Power Corporation and Gresham Power Electronics in joint partnership with Telkoor Power Supplies Ltd: designs, manufactures and markets a variety of best-in-class high-density power solutions for the Commercial and Military Marketplace. We specialize in Enclosed and Open Frame AC/DC solutions, both AC and DC CPCI solutions, ATCA Strongbox, and Custom architectures from 50 watts to 1200 watts. Digital Power, located in Fremont California and Gresham Power Electronics, located in Salisbury England are also recognized industry leaders for time-to-market solutions of standard and modified-standard products based on their flexible design concepts and ability to support a cross section of value added services. Management: Jon Wax, President and C.E.O. Leo Yen, C.F.O Ita Geva, Controller http://www.digipwr.com/company.htm http://www.tase.co.il/TASEEng/General/Company/companyMainData.htm?ShareID=01084227&CompanyID=001.... DESCRIPTION OF BUSINESS (from the latest filing- link below) General Digital Power Corporation designs, develops, manufactures, markets, and sells switching power supplies to industrial, telecommunication, data communication, medical, and military industries. We are a California corporation originally formed in 1969. Our corporate office, which contains our administrative, sales, and engineering functions, is located in Fremont, California. In addition, the Company has a wholly-owned subsidiary, Digital Power Limited (“DPL”), located in Salisbury, England, which designs, manufactures, and sells products for the European marketplace, including power conversion products for naval and military applications and DC/AC inverters for the telecommunications industry, under the label Gresham Power Electronics. We primarily sell our switching power supplies to industrial, telecommunication, data communication, medical, and military industries both in North America and Europe. These industries have experienced pricing pressure that has adversely affected our operations and financial condition. As a result, we incurred an operating loss during the first half of the year ended December 31, 2005. The Company moved all its production to a Chinese subcontractor offering lower prices with shorter lead-times, and to Telkoor Telecom Ltd. (“Telkoor”), an Israeli Manufacturer and a major shareholder holding 43% of the outstanding shares of DPC. Telkoor manufactures at longer lead times and at higher ‘total costs’ in comparison to the Chinese manufacturing partners. Power supplies are critical components of electronic equipment that supply, convert, distribute, and regulate electrical power. The various subsystems within electronic equipment require a steady supply of direct current (DC) electrical power, usually at different voltage levels from the other subsystems within the equipment. In addition, the electronic components and subsystems require protection from the harmful surges and drops in electrical power that commonly occur over power lines. Power supplies satisfy these issues of allocation and protection by (i) converting alternating current (AC) electricity into direct current (DC); (ii) dividing a single input voltage into distinct and isolated output voltages; and (iii) regulating and maintaining such output voltages within a narrow range of values.