AUSTIN, TX — (Marketwired) — 11/10/16 — Ideal Power Inc. (NASDAQ: IPWR), a developer of innovative power conversion technologies, reported results for the third quarter ended September 30, 2016.
Received 4 Megawatt purchase order from JLM Energy to supply 30kW and 125kW power conversion systems (PCS) for JLM–s portfolio of commercial BESS and microgrid projects.
Selected to supply power conversion systems for NEC Energy Solutions– newly launched DSS distributed energy storage solution.
Alliance partner Sonnen launched a commercial system offering, the sonnenBatterie pro, utilizing Ideal Power–s 30kW products.
Semiconductor foundry partner completed fabrication of prototypes of Bi-Directional Bipolar Junction TRANsistor (B-TRAN).
Provided 30kW PCS for EVgo–s DC fast charging project that was recently named Energy Storage North America–s (ESNA) 2016 Innovation Award winner in mobility project category. Ideal Power products were featured in four of six projects named as distributed storage and mobility finalists for ESNA 2016 Innovation Awards.
Teamed up with University of Dayton Research Institute and EnerDel for mobile hybrid solar plus battery energy storage system for the U.S. Air Force Forward Operating Base of the future.
SunDial PV String Inverter recognized as a Top 20 Energy Storage Disruptor by PV-Tech.
Order backlog of $4.5 million at September 30, 2016.
Strengthened patent estate; currently have 59 issued patents, including 22 issued patents for B-TRAN and approximately 100 patent applications pending.
“Although the July announcement of the resolution in California–s Self Generation Incentive Program (SGIP) is a clear positive for the storage market, our top line revenue was modest in the third quarter as storage projects in California were slow to commence,” said Dan Brdar, chairman and CEO. “We are encouraged by the developments in late September as California passed legislation that doubled the incentives for energy storage projects throughout California for calendar years 2017-2019, allocating an additional $187 million for energy storage projects under the SGIP, and raised the energy storage target for 2020 from 1,325 megawatts to 1,825 megawatts.”
Continued Brdar: “We are seeing renewed momentum in our business with the announcement with NEC Energy Solutions and 4 MW purchase order from JLM Energy. We also recently announced our semiconductor foundry partner successfully completed the fabrication of prototypes of our B-TRAN. Later this year, we will begin to perform initial testing of fully packaged devices mounted on a circuit board, a key step in the potential commercialization of this technology.”
“While third quarter results fell short of our expectations, we continued to deliver progress with our commercialization strategy and penetration with large system integrators entering the commercial storage market. This progress, combined with the favorable resolution with the SGIP in California and indications that additional addressable markets in the US and abroad are now, or soon will be, opening up, positions us for growth in 2017.”
Q3 2016 product revenue totalled $0.4 million versus $0.9 million in Q3 2015.
Excluding a $0.3 million inventory charge related to the discontinuation of our legacy first generation IBC-30 battery converter, our Q3 2016 gross margins were 6.8%. Our next generation 30kW PCS, launched in the second quarter of 2015, is replacing the IBC-30 as it offers enhanced features and functionality. Including the inventory charge, our Q3 2016 gross margins were negative 68.0% compared to 5.9% gross margins in Q3 2015.
Our Q3 2016 net loss of $2.9 million was flat compared to Q3 2015. The negative impact of the Q3 2016 inventory charge was offset by a decline in operating expenses on the timing of development spending and cost management activities during the quarter.
Cash and cash equivalents totalled $6.8 million as of September 30, 2016 with no long-term debt outstanding.
“Third quarter revenue was negatively impacted by the slow commencement of projects post-SGIP resolution in California,” said Tim Burns, Chief Financial Officer. “On a positive note, after backing out the one-time inventory charge in the quarter, we were still able to maintain positive gross margins on a low revenue base. Furthermore, we expect to reduce cash usage in upcoming quarters as revenue ramps and we realize the leverage and positive working capital benefits of our business model.”
Ideal Power CEO Dan Brdar and CFO Tim Burns will host the conference call followed by a question and answer period.
To access the call, please use the following information:
Date: Thursday, November 10, 2016
Time: 4:30 p.m. ET, 1:30 p.m. PT
Toll-free dial-in number: 1-888-293-6960
International dial-in number: 1-719-325-2286
Conference ID: 3209636
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for replay at and via the investor relations section of the Company–s website at .
A replay of the conference call will be available after 7:30 p.m. Eastern time through January 10, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 3209636
Ideal Power Inc. (NASDAQ: IPWR) is a technology company dedicated to advancing the efficiency of electric power conversion. The company has developed a novel, patented power conversion technology called Power Packet Switching Architecture (“PPSA”). PPSA improves the size, cost, efficiency, flexibility and reliability of electronic power converters. PPSA can scale across several large and growing markets, including solar PV, variable frequency drives, battery energy storage, mobile power and microgrids, and electric vehicle charging. The company is also developing and has patented a bi-directional, bipolar junction transistor (“B-TRAN”) which has the potential to dramatically increase bi-directional power switching efficiency and power density. Ideal Power employs a capital-efficient business model which enables the company to address several product development projects and markets simultaneously. For more information, visit .
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include our statement that we will begin to test fully packaged B-TRAN devices on a circuit board later this year, our comment that our business progress and the resolution of SGIP issues in California positions us to resume growing in 2017, and our expectation that we will reduce cash usage in upcoming quarters as revenue ramps and we realize benefits of our operating model. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, the timing and impact of regulatory developments affecting the markets for our products, our inability to predict with precision or certainty the pace of development and commercialization of our advanced technologies, the uncertainty of whether the demand for energy storage products will grow at a pace consistent with our expectations, whether our backlog will translate into revenue in future periods, whether demand for our products, which we believe are disruptive, will develop, and whether we can compete successfully with other manufacturers and suppliers of power conversion products, both now and in the future, as new products are developed and marketed. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. The availability and amount of government incentive programs affect our customers spending patterns, and adverse changes or developments in such programs — such as the SGIP in California — have materially and adversely affected our orders, net sales, gross profit and net income, and may do so again in the future. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.
Mercom Communications
Wendy Prabhu
1.512.215.4452
MZ North America
Chris Tyson
1.949.491.8235
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