Ideal Power(US:IPWR)2023-08-10 18:45Financial Data and Key Metrics Changes - In Q2 2023, the company recorded development revenue of $98,000 and grant revenue of $37,000, with a net loss of $2.3 million compared to $1.7 million in Q2 2022 [54][68] - Cash burn in Q2 2023 was $1.8 million, unchanged from Q1 2023, with total cash and cash equivalents at $12.7 million as of June 30, 2023 [68] Business Line Data and Key Metrics Changes - The company successfully completed the full process flow engineering run for the B-TRAN device, proving manufacturability with high yield and excellent performance [4][42] - Hundreds of B-TRAN devices were delivered to diversify technologies under the NAVSEA solid-state circuit breaker program [9][46] - The SymCool Power Module was introduced as the first commercial product, targeting the solid-state circuit breaker market [5][55] Market Data and Key Metrics Changes - The global solid-state switching equipment market is projected to grow at a CAGR of 7.6% to approximately $9.3 billion by 2028 [6] - The semiconductor content in electric vehicles is expected to significantly impact production costs, with estimates of $2,000 to $3,000 per vehicle for power semiconductor devices [31][32] Company Strategy and Development Direction - The company aims to commercialize B-TRAN technology, focusing on markets such as electric vehicles, renewable energy, and energy storage [52][64] - A dual sourcing strategy for wafer fabrication is in place to mitigate supply chain risks, ensuring sufficient capacity for large customers [45][59] - The company plans to pursue licensing agreements with large semiconductor players as part of its long-term strategy [20][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the B-TRAN technology's potential to displace conventional power semiconductors in various applications [80] - The company anticipates higher R&D spending in the latter half of 2023, with some variability in operating expenses [67][68] - Management highlighted the importance of customer education regarding the new semiconductor architecture, noting positive feedback from early adopters [70][102] Other Important Information - The company has 75 issued B-TRAN patents, with ongoing efforts to expand its patent estate [53] - The first commercial sales of the SymCool product are expected to begin later in 2023, with revenue ramping up in 2024 [41][79] Q&A Session Summary Question: Importance of initial T&E customer shipments and early feedback - Management noted that early feedback has been positive, with customers finding the devices performing better than expected [70][86] Question: Performance improvements on production units - Management indicated that the production units have shown lower losses and better switching performance than initially rated, leading to increased current ratings [90][91] Question: Risks to achieving first commercial sales of SymCool - Management stated that they are on track with their milestones and have been diligent in addressing any surprises that arise [94] Question: Pursuit of the data center market - The company confirmed ongoing interest in the data center market, with potential co-development opportunities [104] Question: Adoption speed and breadth in targeted markets - Management highlighted the significant market potential for B-TRAN technology, particularly in the IGBT market, projected to reach $11 billion by 2026 [118][119]