Ideal Power Inc., a developer of innovative power conversion technologies, reported results for its fourth quarter and full year ended December 31, 2015.
Key 2015 and Subsequent Highlights:
- Received largest order in the Company's history, totaling 14.5MW across our entire product family for deliveries throughout 2016.
- Added multiple new customers and alliance partners including Gexpro, Sonnen, Wesco International, KACO new energy, EOS Energy Storage, LG Chem and Aquion Energy.
- Order backlog of $5.2 million at December 31, 2015.
- Received first commercial orders for Asia; two customers ordered multiple units of Grid-Resilient 125kW Power Conversion Systems (PCS) for project installations in China and Japan.
- Received first multi-unit orders for the microgrid market from The Boeing Company and EnerDel.
- Partnering with Austin Energy on U.S. DOE-funded projects to integrate solar PV and storage for commercial sites.
- Introduced and achieved certification for UL1741 conformance for Grid-Resilient 30kW 2-Port, 30kW Multi-Port and 125kW 2-Port PCS with microgrid forming and software-enabled 50Hz and 60Hz capabilities.
- Grid-Resilient 30kW Multi-Port PCS recognized as one of the top inverter products of 2015 by Solar Power World Magazine.
- Currently have 43 issued patents, up from 20 at December 31, 2014, including 12 issued patents for B-TRAN and over 100 patent applications pending.
"2015 was an inflection point for our business, with significant revenue growth from new products supported by the addition of several new alliance partnerships and customers that we expect to fuel our future growth," stated Dan Brdar, Chairman and CEO. "We are excited about the size, commitment and capability of global companies entering the battery energy storage space."
"We expect to see strong growth in 2016 based on our year-end backlog and feedback from our existing and potential channel partners. In addition, we are excited about the prospects for our bi-directional power switch technology as a key component of our longer term strategy and product differentiation."
Fourth Quarter and Full Year 2015 Financial Results
- 2015 product revenue increased 250% to $4.3 million compared to 2014 product revenue of $1.2 million.
- 2015 gross margins were 9% compared to negative 22% gross margins in 2014.
- 2015 net loss was $10.4 million compared to $6.9 million in 2014 on higher research and development expenses.
- Q4 2015 product revenue increased 159% to $967 thousand compared to Q4 2014 product revenue, with approximately 90% of Q4 2015 revenue related to products introduced in 2015.
- Q4 2015 gross margins were 1% compared to negative 36% gross margins in Q4 2014, with some compression in Q4 2015 gross margins due to the introduction of our new 125kW product at low initial production volumes.
- Q4 2015 net loss was $3.0 million compared to Q4 2014 net loss of $2.0 million on higher research and development expenses.
- Higher research and development spending resulted from the self-funding of our bi-directional switch development efforts in 2015, the engagement of a second semiconductor fabricator for the bi-directional switch development and prototyping and certification costs associated with new products.
- Cash and cash equivalents totaled $15.0 million on December 31, 2015, compared to $17.3 million on September 30, 2015 and $7.9 million on December 31, 2014, with no long-term debt outstanding.
"We delivered significant year-over-year revenue growth and generated positive gross margins, displaying the inherent leverage of our business model," said Tim Burns, Chief Financial Officer of Ideal Power. "Backlog at December 31, 2015 increased 160% to $5.2 million compared to a backlog of $2.0 million at December 31, 2014."
"This included a significant increase in backlog for our 125kW product, which represented more than 50% of total backlog at year end. We also ended 2015 with a strong balance sheet with $15 million in cash and no long-term debt outstanding."
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:
Date: Thursday, February 11, 2016
Time: 4:30 pm ET, 1:30 pm PT
Toll-free dial-in number: 1-888-219-1420
International dial-in number: 1-913-312-0683
Conference ID: 3024604
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=118179 and via the investors section of the Company's website at www.IdealPower.com.
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 1-949-259-4986 or matt.hayden@mzgroup.us.
