AUSTIN, Texas - Ideal Power Inc. (NASDAQ: IPWR), a company specializing in innovative semiconductor power switch technology, has announced a new distribution agreement with Sekorm Advanced Technology (Shenzhen) Co., Ltd. to distribute its products across China. This move is seen as a significant step in the commercialization of Ideal Power's B-TRAN™ technology, particularly within the world's largest market for power semiconductors.
The agreement introduces Sekorm as the third distributor of Ideal Power's products, joining Richardson Electronics, Ltd. and RYOSHO U.S.A, INC., which also distribute globally with a focus on Japan. Sekorm is recognized for its demand creation capabilities in the Chinese market, with a strong technical sales force and a history of securing sales for new technologies.
Dan Brdar, President and CEO of Ideal Power, expressed optimism about the partnership, stating that collaboration with Sekorm could lead to design wins and potentially custom development agreements. He highlighted Sekorm's proficiency in addressing the target industrial and automotive markets for B-TRAN™ technology in China.
Ideal Power's business model leverages existing investments in silicon processing and distribution infrastructure, focusing on enhancing and commercializing its B-TRAN™ technology. This technology is a bidirectional AC power switch that aims to offer superior performance compared to conventional semiconductors, potentially reducing losses, thermal management complexity, and operating costs.
The news release includes forward-looking statements regarding the potential outcomes of the collaboration with Sekorm, which are subject to risks and uncertainties. Ideal Power acknowledges that the actual results may differ materially due to various factors, including market acceptance and the successful protection, enforcement, and defense of its patents.
This announcement is based on a press release statement from Ideal Power Inc. and does not constitute an endorsement of the company's claims. It provides a factual report of the distribution agreement with Sekorm Advanced Technology and the strategic expansion of Ideal Power's presence in the Chinese market.
In other recent news, Ideal Power Inc. has announced a global distribution agreement with RYOSHO U.S.A., INC., a subsidiary of RYODEN CORPORATION. This significant step in the company's commercialization of its B-TRAN™ technology is marked by RYOSHO placing orders for applications in solid-state circuit protection on behalf of a large global customer. Ideal Power's President and CEO, Dan Brdar, expressed optimism about the potential of this partnership to secure further orders and possibly lead to custom development agreements.
The B-TRAN™ technology, a double-sided bidirectional AC switch, is intended to reduce conduction and switching losses, simplify thermal management, and lower operating costs in AC power switching and control circuitry. It is aimed at a variety of applications, including electric vehicles, charging stations, renewable energy, energy storage, UPS/data centers, and industrial and military uses.
RYOSHO U.S.A., operating since 1999, is known for providing its customers with innovative technology solutions, particularly in the semiconductor and electronic components sectors, and has expanded into factory automation equipment and installation services. These are recent developments in the ongoing growth and innovation of Ideal Power Inc.
InvestingPro Insights
In light of Ideal Power Inc.'s new distribution agreement with Sekorm Advanced Technology, it's pertinent to consider the company's financial health and market position. According to InvestingPro data, Ideal Power holds a market capitalization of $383.13 million, indicating a moderate size in the semiconductor industry. The company's P/E ratio stands at 9.99, which is relatively low and suggests that the stock might be undervalued given the potential growth from the new Chinese market expansion.
InvestingPro Tips highlight that Ideal Power has raised its dividend for three consecutive years, with a notable dividend growth of 52.7% in the last twelve months as of Q1 2023. This consistent increase in dividends could be attractive to investors seeking income in addition to growth potential. Additionally, the company's cash flows can sufficiently cover interest payments, which is a strong indicator of financial stability, especially when venturing into new markets.
With a dividend yield of 4.48% as of the previous year, Ideal Power stands out as a company committed to returning value to shareholders. For readers interested in more comprehensive analysis and tips, InvestingPro offers additional insights on Ideal Power Inc., which can be found at https://www.investing.com/pro/IPWR.
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