Polar Power, Inc. (POLA) has seen an increase of 8.99% in the aftermarket. However, the last trading session closed at $2.67 with an increase of 0.75%.
About POLA
Polar Power, Inc. is a company that develops, produces, and distributes direct current (DC) electric generators, renewable energy systems, and cooling equipment in the US And abroad. This company provides DC base power systems, DC hybrid power systems, and DC solar hybrid power systems.
Third Quarter 2021 Financial Results – What’s up?
POLA announced third quarter 2021 financial results on 15th January 2022. The company announced that net sales of the company to be $4.1 million. Not only this but the gross profit came out to be $0.9 million with an incline of 136%. Moreover, the operating expenses declined from $2.0 million to $1.7 million. Lastly, the company experienced a net income of $0.9 million.
Now what?
The DC power solutions, which are largely used by telecommunications companies, continue to be in high demand. POLA is also working hard to diversify the customer base. And the company is seeing an increase in sales into non-telecommunications sectors and applications. Moreover, the expansion of 5G networks and the normalization of business activities due to a decrease in COVID-19-related shutdowns and limitations are expected to drive demand for the DC power systems in the telecoms sectors in 2021.
Furthermore, tier-1 telecommunication clients are already deploying 5G networks, which require much more power at cell sites than 4G networks. Not only this but the usage of 5G technology in IoT, video streaming, and data analytics applications necessitate cell sites to be operational at all times, increasing the requirement for reliable power backup systems. The company also invested in the development of backup power systems with more power, larger engines and alternators, and improved emission control systems in 2021. Last but not the least, POLA anticipates that, in comparison to typical AC power systems, the increasing power demand of 5G networks will expand market prospects for our higher efficient DC power systems.
