Ideal Power Reports Third Quarter 2017 Financial Results
Management to Host Conference Call Today at 4:30 p.m. ET
AUSTIN, TX – November 9, 2017 -- Ideal Power Inc. (NASDAQ: IPWR), an innovative power conversion technology company, reported results for the third quarter ending September 30, 2017.
Key Third Quarter 2017 and Subsequent Highlights:
Completed UL 1741 Supplement A (SA) testing of our next generation SunDial™ and Stabiliti™ series power conversion systems (PCS).
Signed a master purchase agreement with NEXTracker for our solar + storage products utilizing the Company’s SunDial™ series PV string inverter and Stabiliti™ PCS for commercial, industrial and utility sites throughout North America.
Shipped initial units to NEXTracker and its battery partner for NX Fusion Plus development and system integration.
Received a purchase order for, and shipped, 35 units of our Stabiliti™ 30 kilowatt (kW) PCS to Sharp Electronics Corporation for a solar + storage integration project in a California school district.
Partnered with W Energies Solar One to deploy a grid-resilient commercial solar + storage microgrid system in Texas.
Strengthened patent estate: currently have 72 issued patents, including 31 issued patents for B-TRAN™ with a similar number of patent applications pending.
"Our recent accomplishments were highlighted by the completion of UL 1741 SA certification testing for our next generation 30 kW Stabiliti™ and SunDial™ series and the NX-15 product for NEXTracker, which incorporate the newest standards for grid-tied systems and complement our new strategic initiative in the solar + storage market,” said Dan Brdar, Chief Executive Officer. “These improvements add significant capabilities for dealing with grid disturbances and this standard is now required by certain utilities for new equipment installed in their service territory. We expect to receive official listing in the coming days. This certification will support the rollout of the NX Fusion Plus with NEXTracker and, we believe, will facilitate growth with existing customers, such as Sharp, and new customers in the solar + storage market.”
Third Quarter 2017 Financial Results
Q3 2017 product revenue remained unchanged at $0.4 million versus Q3 2016.
Q3 2017 gross margins were 6% compared to negative 68% gross margins in Q3 2016.
Q3 2017 net loss was $2.2 million compared to $2.9 million in Q3 2016, with the decrease primarily attributable to reduced operating expenses as a result of ongoing cost reduction activities and excess and obsolete inventory charges in Q3 2016 for our discontinued IBC-30 battery converter.
Q3 2017 cash used in operating and investing activities was $1.7 million compared to $2.0 million in Q2 2017 and $2.7 million in Q3 2016.
Cash and cash equivalents totaled $11.7 million as of September 30, 2017, with no long-term debt outstanding.
“On the financial front, the third quarter of 2017 was highlighted by our lowest cash burn in three years and a return to an improved gross margin profile for our next generation product families,” said Tim Burns, Chief Financial Officer. “Our cost reduction efforts, including our focus on opportunities with the most significant short-term potential, have extended our runway in advance of anticipated revenue growth in the solar + storage market.”
Conference Call Details
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:
Thursday, November 9, 2017
4:30 p.m. ET, 1:30 p.m. PT
Toll-free dial-in number:
International dial-in number:
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 http://public.viavid.com/index.php?id=126703
and via the investor relations section of the Company’s website at www.idealpower.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time through December 9, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1602135
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is a power conversion technology company that delivers innovative solutions to system integrators and project developers, enabling distributed energy resources for applications both on and off the grid. Ideal Power’s products deliver superior reliability and compelling return on investment for renewable energy and storage applications at a competitive cost, backed by first-rate customer service. With its patented power conversion technology, Ideal Power supports a broad set of growing markets, including solar + storage, battery energy storage and microgrids. For more information, visit www.IdealPower.com.
Safe Harbor Statement
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 statements that we expect the UL1741 SA listing in the coming days and that we expect this listing to support growth with existing and new customers in the solar + storage market, as well as our anticipated revenue growth in such market. 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, unanticipated costs in connection with the discontinuation our legacy product families, 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 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, whether our cost reduction efforts will be successful and other risks and uncertainties set forth in our quarterly and annual reports filed with the Securities and Exchange Commission. 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.
Ideal Power Media Contact:
Investor Relations Contact:
MZ North America
IDEAL POWER INC.
December 31, 2016
Cash and cash equivalents
Accounts receivable, net
Prepayments and other current assets
Total current assets
Property and equipment, net
Intangible assets, net
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities
Other long-term liabilities
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430 shares issued and outstanding at June 30, 2017
Common stock, $0.001 par value; 50,000,000 shares authorized; 13,998,465 shares issued and 13,996,121 shares outstanding at September 30, 2017 and 9,560,896 shares issued and 9,559,213 shares outstanding at December 31, 2016, respectively
Additional paid-in capital
Treasury stock, at cost, 2,344 shares at September 30, 2017 and 1,683 shares at December 31, 2016
Total stockholders’ equity
Total liabilities and stockholders’ equity
IDEAL POWER INC.
Statements of Operations
Three Months Ended September 30,
Nine Months Ended
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Gross profit (loss)
Research and development
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Loss from operations
Net loss per share – basic and fully diluted
Weighted average number of shares outstanding – basic and fully diluted
IDEAL POWER INC.
Statements of Cash Flows
Nine Months Ended
Cash flows from operating activities:
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for doubtful accounts
Write-down of inventory
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Write-off of capitalized patents
Write-off of fixed assets
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Net cash used in operating activities
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Purchase of property and equipment
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Net proceeds from issuance of common stock
Exercise of options and warrants
Payment of taxes related to restricted stock vesting
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