Ideal Power Announces Global Distribution Agreement with Richardson Electronics, Ltd.
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Insights
The agreement between Ideal Power Inc. and Richardson Electronics, Ltd. signifies a strategic move in the semiconductor industry, particularly within the power switch sector. The distribution of Ideal Power's B-TRAN and SymCool modules through a global distributor with a robust technical sales capability could potentially enhance market penetration and customer reach. Richardson's expertise in demand creation is particularly notable, as it can accelerate the adoption of Ideal Power's products in various industrial applications.
Furthermore, the mention of Ideal Power's asset-light business model is significant. By leveraging existing silicon processing and distribution infrastructures, the company can maintain a focus on technology development while keeping capital expenditures low. This could improve profitability and allow for a more agile response to market demands. Investors should monitor the sales ramp in the second half of 2024, especially within the solid-state circuit breaker market, as this could be indicative of the company's growth trajectory and market acceptance of its innovative products.
The partnership between Ideal Power and Richardson Electronics is expected to have financial implications for both companies. Ideal Power's commencement of shipments to fulfill customer orders suggests an operational upswing, which could translate into revenue growth. The focus on medium and high voltage power semiconductors for a wide array of applications, including the burgeoning EV market, positions the company in high-growth sectors.
Investors should note that Ideal Power's reliance on an asset-light model, typically associated with lower overheads, might result in higher margins if sales volumes increase as projected. However, it is important to evaluate the company's ability to scale production and meet demand without incurring significant additional costs. The second half of 2024 sales ramp will be a critical period to assess the financial impact of this distribution agreement on Ideal Power's bottom line.
The technical aspects of Ideal Power's B-TRAN and SymCool power modules are integral to understanding their market potential. B-TRAN's bidirectional capabilities and SymCool's thermal management solutions offer clear advantages in efficiency and performance for applications like solid-state switchgear, renewable energy inverters and EV charging systems. The ability to handle medium and high voltage efficiently is a key differentiator in the competitive semiconductor market.
Richardson Electronics' distribution network can provide the necessary global exposure for these advanced components, which could lead to increased adoption in industrial settings. It is essential to consider the pace of technological advancements in this field and how quickly Ideal Power can iterate on its product offerings to stay ahead of competitors. The success of this agreement will likely hinge on the technical superiority and reliability of Ideal Power's products in real-world applications.
AUSTIN, TX / ACCESSWIRE / March 18, 2024 / Ideal Power Inc. ("Ideal Power," the "Company," "we," "us" or "our") (Nasdaq:IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, today announced an agreement with Richardson Electronics, Ltd. (RELL) for the global distribution of Ideal Power's products including the discrete B-TRAN™ device and SymCool™ power module
"We are excited to announce Richardson Electronics as the first distributor for our products. They have strong technical sales capability, expertise in demand creation and securing sales for new technologies, robust customer support, and global reach. Our products are a perfect fit for Richardson Electronics' existing customer base needing medium and high voltage power semiconductors," said Dan Brdar, President and Chief Executive Officer of Ideal Power.
"We are very excited to work with Ideal Power to bring their products to market worldwide. For years, Richardson has developed an excellent portfolio of Technology Partners for power management components and engineered solutions," said Greg Peloquin, Executive Vice President and General Manager of Power & Microwave Technologies and Green Energy Solutions groups. "Ideal Power's products are an innovative and complementary addition to this portfolio, providing low loss and inherently bidirectional power semiconductors to customers globally for use in a wide variety of industrial applications."
Ideal Power recently commenced shipment of its SymCool™ power modules to fulfill customer orders. The SymCool™ power module delivers clear advantages for several applications, including solid-state switchgear and circuit protection, renewable energy inverters for solar and wind, industrial inverters, hybrid and electric vehicles ("EVs"), and EV charging. Ideal Power looks forward to industrial markets, particularly the solid-state circuit breaker market served by our SymCool™ power module, to be the earliest source of our sales ramp beginning in the second half of 2024, as expected.
Ideal Power utilizes an asset-light business model leveraging the large investment already made in the silicon processing, distribution, demand creation and support infrastructure. This business model allows the Company to focus on the further development of its disruptive B-TRAN™ technology while minimizing capital requirements.
About Ideal Power Inc.
Ideal Power (NASDAQ:IPWR) is pioneering the development and commercialization of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch that delivers substantial performance improvements over today's conventional power semiconductors. Ideal Power's B-TRAN™ can reduce conduction and switching losses, complexity of thermal management and operating cost in AC power switching and control circuitry. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook.
About Richardson Electronics - Power & Microwave Technologies
For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world's most innovative technology partners. Richardson Electronics' Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair-all through our existing global infrastructure. More information is available at www.rellpower.com.
About Richardson Electronics, Ltd.
Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components, including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than
Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
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. While Ideal Power's 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. Such forward-looking statements include, but are not limited to, our statement that industrial markets, particularly the solid-state circuit breaker market served by our SymCool™ power module, will be the earliest source of our sales ramp beginning in the second half of 2024, as expected. 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, the success of our B-TRAN™ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN™ technology, including the timing of the completion of our wafer fabrication runs with our semiconductor fabrications partners, the rate and degree of market acceptance for our B-TRAN™, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN™, and uncertainties set forth in our quarterly, annual and other 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. 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, except as required by applicable law.
Ideal Power Investor Relations Contact:
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917
SOURCE: Ideal Power
View the original press release on accesswire.com
FAQ
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