VISTA, Calif. - Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of lithium-ion energy storage solutions, announced today the appointment of Kevin Royal as its new Chief Financial Officer. Royal, a CPA with over two decades of financial leadership experience, will replace Chuck Scheiwe in a transition aligned with the company's current growth trajectory. Scheiwe will continue to provide his expertise in a consulting capacity to ensure a smooth transition.
Royal's extensive background includes serving as CFO for four publicly traded companies, where he oversaw finance, accounting, and other key corporate divisions. His prior role as Executive Vice President and CFO at Zovio (OTC:ZVOI) Inc., along with his tenure at Maxwell Technologies, Blue Coat Systems, and Novellus Systems, has equipped him with a wealth of experience in financial management and operational strategy.
In his new role at Flux Power, Royal is set to spearhead financial planning, budgeting, risk management, and strategic development. His appointment is expected to build on Flux Power's commitment to delivering shareholder value and advancing the company's financial and strategic goals.
Flux Power's CEO Ron Dutt expressed enthusiasm for Royal's appointment, noting his proven track record and financial acumen as valuable assets for the company's future. Dutt also acknowledged Scheiwe's contributions to Flux Power's financial team and his role in reaching the company's current inflection point.
Royal himself expressed excitement about joining Flux Power, highlighting the company's promising order pipeline and customer opportunities. His focus will be on cash profitability improvement initiatives, aiming for near-term profitability while fulfilling strategic and financial priorities.
Flux Power, known for its advanced lithium-ion battery packs for industrial and commercial electrification, continues to position itself as a sustainable alternative to traditional energy storage solutions.
This article is based on a press release statement from Flux Power Holdings, Inc.
InvestingPro Insights
As Flux Power Holdings, Inc. (NASDAQ: FLUX) ushers in a new era of financial leadership with Kevin Royal taking the CFO reins, the company's stock characteristics and financial health are crucial for investors to monitor. According to InvestingPro, Flux Power trades with high price volatility, a factor that investors should consider when evaluating the potential risks associated with the company's stock.
The appointment of Royal comes at a time when Flux Power is navigating through financial challenges. The company operates with a moderate level of debt and has not been profitable over the last twelve months, as indicated by a negative P/E ratio of -14.93. This aligns with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Furthermore, with a high Price / Book multiple of 11.89, the stock is trading at a premium compared to its book value.
Despite these challenges, the company has experienced a strong return over the last three months, with a 47.91% increase. This performance underscores the potential for growth and the impact that strategic financial management can have on the company's stock. However, it's important to note that Flux Power does not pay a dividend, which may influence the investment strategy of income-focused shareholders.
Investors seeking a deeper analysis of Flux Power's financials and stock performance can find additional insights with a subscription to InvestingPro. Currently, there are 6 more InvestingPro Tips available for FLUX, which can be accessed for further guidance. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment strategy with expert insights.
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