Polar Power sees Q3 sales $4.7M-$5.2M

Polar Power (POLA) announces preliminary third quarter net sales between $4.7 million and $5.2 million, representing growth of 147% to 174%, gross margin in the range of 26% to 32%, and breakeven net earnings. Recovering net sales benefitting from strength across both diesel- and natural gas-powered product lines, with new customers accounting for 18% and 12% of total sales, respectively; Substantial year-over-year improvement in gross margin attributable to higher revenues, lower labor costs and improved factory overhead absorption; Substantial improvement in net income from operations attributed to a combination of higher sales, improved gross margins, reduced R&D expenditures and lower general and administrative costs. Arthur Sams, CEO, commented, “We expect to report third quarter results that will reflect another solid quarter of year-over-year top- and bottom-line improvements, with sales of about $5 million and gross margins that are recovering and tracking towards our long-term target. Investments made in our newly implemented ERP system and other initiatives have resulted in both continued diversification of our customer base and more efficient business processes, which have enabled inventory optimization, reduction of certain R&D costs and faster reaction time to meet evolving needs in our core telecom sector and beyond. We have made very good progress in the past twelve months, and there remain plenty of opportunities for us to take advantage of and generate sustainably profitable growth for our shareholders.”