U.S. inverter manufacturer Ideal Power reported a 75% drop in second-quarter revenue to $300,000 year-on-year while increasing its net loss in the period by nearly 9% to $2.5 million.
The Austin-based company attributed the revenue drop to delays in Californias Self Generation Incentive Program (SGIP) but said it expected business to pick up in the latter part of the year.
[S]everal recent developments in the energy storage market from an integrator and funding perspective give us confidence that growth will resume in the second half of 2016," said Ideal Power Chairman and CEO Dan Brdar, adding that California had resolved the delay with SGIP incentive funding. This now enables approximately $70 million of new energy storage projects submitted in February 2016 to proceed, many of which we expect will incorporate our power conversion systems."
The company said it recently signed its first licensing agreement for its new SunDial solar PV string inverter with an unnamed Fortune Global 500 company.
Brdar said the SunDial would enable the company to diversify its revenue base as it targets the mature $6.9 billion solar inverter market, offering a storage option that we believe is unique in that market.
Ideal Power Chief Financial Officer Tim Burns stressed that the resolution of the SGIP delays in California would drive revenue growth later this year and beyond, adding that the company also anticipated initial revenues from the SunDial product to contribute in the fourth quarter of 2016, with licensing revenues starting in 2017.
Ideal Powers operating expenses remained relatively stable, increasing 2.3% versus last years second quarter. The company also reported a 9% increase in research and development expenses in the period to $1.2 million compared to a year ago, although it said R&D expenditures were still lower compared to the last three quarters.