AUSTIN, TX - Ideal Power Inc. (NASDAQ:IPWR), a company specializing in efficient and patented bidirectional semiconductor power switches, announced today a distribution agreement with Richardson Electronics, Ltd. (NASDAQ:RELL). The partnership aims to globally distribute Ideal Power's products, including the B-TRAN™ device and SymCool™ power module.
The agreement marks a significant step for Ideal Power as they commence the shipment of their SymCool™ power modules to fulfill existing customer orders. These modules are designed for a range of industrial applications, such as solid-state switchgear, renewable energy inverters, and electric vehicle charging.
Dan Brdar, President and CEO of Ideal Power, expressed enthusiasm about the collaboration, highlighting Richardson Electronics' extensive experience in technical sales and global customer support. Ideal Power anticipates the solid-state circuit breaker market to be the primary driver of their sales growth, expected to begin in the second half of 2024.
Richardson Electronics, with over 75 years of experience in engineered solutions and power products, views Ideal Power's offerings as a valuable addition to its portfolio. Greg Peloquin, Executive Vice President of Richardson, noted the innovative nature of Ideal Power's products and their potential to meet global industrial demands.
Ideal Power's strategy utilizes an asset-light business model, which relies on existing silicon processing and distribution infrastructure, allowing the company to focus on further developing its B-TRAN™ technology while minimizing capital requirements.
The B-TRAN™ technology is a double-sided bidirectional AC switch that promises to improve performance over conventional power semiconductors by reducing losses, simplifying thermal management, and lowering operating costs.
The information in this article is based on a press release statement from Ideal Power Inc.
InvestingPro Insights
Ideal Power Inc.'s recent distribution agreement with Richardson Electronics, Ltd. is a strategic move that could significantly impact its market presence and financial performance. To provide a more comprehensive understanding of Ideal Power's potential, let's examine some key data and insights from InvestingPro.
InvestingPro Data highlights that Ideal Power has a market capitalization of approximately $6.07 billion, suggesting a substantial presence in the semiconductor industry. The company's Price-to-Earnings (P/E) ratio stands at 11.62, which indicates that the stock may be trading at a reasonable valuation relative to its earnings. Furthermore, Ideal Power's Price-to-Book (P/B) ratio as of the last twelve months ending Q4 2023 is 0.99, potentially signaling that the stock is undervalued compared to the company's book value.
InvestingPro Tips reveal that Ideal Power has demonstrated a strong return over the last three months, with a price total return of 15.81%. This performance may interest investors looking for companies with recent positive momentum. Additionally, InvestingPro Tips indicate that analysts predict the company will be profitable this year, which could provide further confidence to potential investors.
For those interested in delving deeper into Ideal Power's financials and future prospects, InvestingPro offers additional tips that can be accessed through the dedicated InvestingPro page for Ideal Power Inc. at https://www.investing.com/pro/IPWR. Moreover, readers can benefit from an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Ideal Power's collaboration with Richardson Electronics and the optimistic outlook presented by InvestingPro data and tips may indicate a promising future for the company, aligning with its strategic goals and innovative product offerings in the semiconductor power switch market.
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