Pioneer Power Revenue Increases 34% to $8.5 Million from Prior Year Quarter; Company Reports Earnings Per Share of $0.01.

FORT LEE, N.J: Pioneer Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer", "Pioneer Power" or the "Company"), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle ("EV") charging solutions, today provided a business update and announced financial results for the first quarter ended March 31, 2023.

Financial Highlights for the First Quarter of 2023:

First quarter revenue increased approximately 34% to $8.5 million, as compared to $6.4 million for the first quarter of 2022.

Pioneer's total backlog at March 31, 2023 was $37.0 million, up $13.4 million (or 57%) when compared to $23.6 million at March 31, 2022, and essentially flat compared to Pioneer's ending backlog at December 31, 2022.

First quarter gross profit increased significantly to $2.2 million, or a 26.0% gross margin, which is a 1,150 basis point improvement when compared to a gross margin of 14.5%, or gross profit of $923,000, for the first quarter of 2022.

First quarter total operating income was $55,000, compared to an operating loss of $823,000 in the first quarter of last year.

First quarter net income was $122,000, or $0.01 per basic and diluted share, compared to a net loss of $740,000, or $(0.08) per basic and diluted share, for the same period last year.

The Company had cash on hand of $11.6 million at March 31, 2023, up approximately 12% from $10.3 million of cash on hand at December 31, 2022.

The Company had $14.3 million of net operating loss carryforwards at March 31, 2023.

Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "Supported by surging demand and an increasingly strong competitive position, Pioneer Power continued its momentum in the first quarter, delivering year-over-year revenue growth of more than $2.1 million, a near doubling of our gross margins and a positive swing of more than $870,000 in net income. Higher gross margins and continued expense management enabled us to deliver GAAP profitability and positive earnings per share on $8.5 million in revenue, further demonstrating that we have reached a key inflection point for our profitability. This performance, which builds upon the strong financial results from the fourth quarter, demonstrates that we are well on our way to achieving our full-year growth targets of 50% or better. Encouragingly, we essentially maintained our backlog at approximately $37.0 million even...