Pioneer Power Solutions, Inc. reported a decline in financial performance for the three months ended March 31, 2024, compared to the same period in 2023. Total revenues decreased by 10.1% to $8,590,000 from $9,555,000. The Electrical Infrastructure segment experienced a significant drop in revenue, falling 22.5% to $5,275,000, while the Critical Power Solutions segment saw a 20.7% increase in revenue to $3,315,000.

Gross profit also declined sharply, down 39.0% to $1,728,000 from $2,833,000, reflecting a consolidated gross margin of 20.1%, down from 29.6% in the prior year. The company reported an operating loss of $(1,106,000) for the quarter, a stark contrast to the operating income of $675,000 reported in the same period last year. This loss was attributed to decreased sales in the Electrical Infrastructure segment and increased selling, general, and administrative expenses, which rose by 28.2% to $2,607,000.

Net loss for the quarter was $(1,035,000), compared to a net income of $742,000 in the prior year, resulting in a basic loss per share of $(0.10) versus a basic income per share of $0.07 in 2023. Cash used in operating activities was $(1,950,000), a reversal from the cash provided of $1,525,000 in the same period last year.

As of March 31, 2024, the company had cash on hand of $6,227,000, a significant increase from $3,582,000 at the end of the previous quarter, primarily due to net proceeds from the issuance of common stock under the ATM Program, which totaled $4,841,000. Total current assets rose to $34,314,000 from $27,683,000, while total liabilities increased to $20,806,000 from $18,262,000.

The company’s backlog increased slightly to $45,911,000 as of March 31, 2024, from $45,165,000 at the end of 2023, with the Electrical Infrastructure backlog rising to $30,889,000, while the Critical Power Solutions backlog decreased to $15,022,000.

Pioneer Power Solutions is addressing material weaknesses in its internal controls, particularly over revenue recognition and inventory accounting, and plans to enhance its accounting personnel and procedures. The company is also navigating legal challenges, including a pending lawsuit related to a car accident and compliance issues with Nasdaq regarding timely filings of financial reports.