SAN JOSE, Calif. - Energous (NASDAQ:WATT) Corporation (NASDAQ: WATT), known for its RF-based wireless power technology, announced the immediate departure of Cesar Johnston from his roles as President and CEO. Johnston will maintain his position on the company's Board of Directors. The Board has begun the process to find a permanent successor.
Reynette Au, Chair of the Board, expressed gratitude for Johnston's efforts, especially his success in securing key regulatory approvals for the company's WattUp wireless power transfer technology. Au emphasized the Board's commitment to advancing the company's IoT strategy, broadening the adoption of WattUp technology, and enhancing operational efficiencies.
During the transition, an Office of the Chair has been established to lead operations, consisting of Reynette Au and Mallorie Burak, the Chief Financial Officer, who will also serve as the Principal Executive Officer. This interim office will manage strategic planning and collaborate with various stakeholders to further Energous's mission of expanding IoT capabilities through wireless power networks.
Energous is set to discuss its financial results for the year ended December 31, 2023, in a conference call on Thursday, March 28.
Since its inception in 2012, Energous has positioned itself as a leader in wireless charging technology that operates over distance. The company's solutions cater to a diverse range of industries, including retail, industrial, healthcare, and more, supporting applications like asset tracking, smart manufacturing, and digital supply chain management.
This announcement is based on a press release statement from Energous Corporation.
InvestingPro Insights
In light of the recent leadership changes at Energous Corporation (NASDAQ: WATT), a closer look at the company's financial health and market performance may offer investors additional context. According to InvestingPro data, Energous holds a market capitalization of 10.69 million USD, reflecting its position as a smaller player in the wireless power technology industry. Despite a challenging economic landscape, Energous has managed to maintain a price/book ratio of 0.71 as of the last twelve months ending Q3 2023, which could indicate that the company's assets are potentially undervalued at the current market price.
However, the company's financials also reveal some concerns. Energous has experienced a significant revenue decline, with a -37.42% change in the last twelve months as of Q3 2023. This is further evidenced by a gross profit margin of -16.23% in the same period, which suggests that the company is struggling to translate sales into profitability. Additionally, the stock's one-year total return has decreased by -82.57%, pointing to a considerable drop in investor confidence over the past year.
InvestingPro Tips highlight that while Energous carries more cash than debt, making it potentially more resilient in the short term, it is quickly burning through its cash reserves. Analysts are not optimistic about sales in the current year and do not expect the company to be profitable this year. This is particularly relevant for investors considering the company's future amidst the departure of its CEO and the search for a new leader.
For those looking to delve deeper into the financial metrics and strategic outlook for Energous, more InvestingPro Tips are available, providing a comprehensive analysis of the company's performance and future potential. There are a total of 15 additional InvestingPro Tips for Energous, which can be accessed through the dedicated InvestingPro page at https://www.investing.com/pro/WATT. Investors interested in these insights can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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