AUSTIN, Texas - Ideal Power Inc. (NASDAQ: IPWR), a developer of the B-TRAN bidirectional semiconductor power switch with a current market capitalization of $51.8 million, has announced a significant design win for its solid-state circuit breakers (SSCBs) with a major Asian manufacturer. According to InvestingPro data, the company's stock is currently trading near its Fair Value, with analysts setting a $14 price target. The agreement, which includes joint product development, prototype creation, and testing, is set to culminate in the second quarter of 2025, with commercial sales expected later that year.
The partnership could yield considerable revenue for Ideal Power, with projections of several hundred thousand dollars in the first year and the potential to surpass a million dollars in the second year. The company anticipates that the customer, who currently sells over 200 thousand circuit breakers annually, may eventually purchase up to a million units per year. InvestingPro analysis shows that while the company's revenue was $0.14 million in the last twelve months, analysts expect significant sales growth this year.
This first design win for Ideal Power's SSCBs is seen as a validation of B-TRAN technology and a step toward expanding the company's presence in industrial markets. The customer's initial B-TRAN-enabled SSCB will target providers of grid-tied solar and energy storage equipment, as well as utility electric distribution network companies.
Ideal Power's B-TRAN technology is touted for its low conduction losses and inherent bidirectionality, which is expected to offer faster operation, programmability, and enhanced safety compared to conventional circuit breakers. The company estimates a $1 billion serviceable addressable market for B-TRAN in the solid-state switchgear market, which includes SSCBs.
Dan Brdar, President and CEO of Ideal Power, expressed optimism about leveraging this design win to secure additional agreements with other SSCB customers to drive long-term shareholder value.
The announcement is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Ideal Power's future success and the pace of market acceptance for its B-TRAN technology will determine the actual outcomes. Want deeper insights? InvestingPro subscribers have access to 13 additional ProTips and a comprehensive research report that provides detailed analysis of Ideal Power's financial health, valuation metrics, and growth prospects.
In other recent news, Ideal Power Inc. has received a multi-unit order for its SymCool® IQ intelligent power modules from a company engaged in circuit protection and power conversion manufacturing. This order follows previous acquisitions of SymCool® modules by the same customer, indicating a sustained interest in Ideal Power's technologies for applications in electric vehicles, EV charging, renewable energy, and data centers. Additionally, the company reported substantial progress in its B-TRAN technology and partnerships during its Third Quarter 2024 Results Call, despite modest revenue for the quarter.
Ideal Power also received a significant order for its B-TRAN devices from a global Tier 1 automotive supplier and is currently in Phase 3 of a program with Stellantis (NYSE:STLA). Furthermore, the company established new distributor partnerships with RYOSHO and Sekorm to increase market reach in Asia. Third-party automotive qualification testing for B-TRAN devices is underway, with initial results being positive.
Despite a cash burn of $2.4 million in Q3 2024, the company remains debt-free, with cash and cash equivalents standing at $18.7 million. Analysts project revenue growth of over 450% for the current year and expect the company to achieve profitability. However, Ideal Power has issued a disclaimer that actual results may differ from those projected in forward-looking statements due to various risks, uncertainties, and other factors.
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