Ideal Power posts revenue 75% drop in Q2 revenue, increases net loss


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 California’s 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 Power’s operating expenses remained relatively stable, increasing 2.3% versus last year’s 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.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.