IPWR - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 2018 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Chris Tyson, Managing Director of MZ North America. Please go ahead, sir.

Chris Tyson

Thank you and good afternoon. you Power's taking second thank us to to Ideal for XXXX like all time for join I'd conference call.

are Chief p.m. and the well crossed the today Dan Eastern A press Company’s today hosts Dr. this these Chief Officer. website, Bell, Company's Your results detailing Executive Chief Brdar, Financial B-TRAN on Tim afternoon Commercial is as as wires available release Officer; idealpower.com. Burns, the Lon Officer; at X:XX

questions will we of open comments, for prepared to in call. those who floor today's Management's dialing are Following you the for

to the number described remind are future prospects begin call risks in could that of those financial made risks, results to we and formal more Bell. that call. the of would a floor I'd industry and Chief forward-looking, Before and also Please the SEC this over At differ the turn a presentation, uncertainties and for like you Dr. Officer, I'd Executive to on materially actual refer Power’s Company's regarding Lon is from the time, to results cause to associated the everyone may like webcast, be to we and industry those yours. including filings to information. the statements subject call website Ideal list Company's refer Lon supporting for

Dr. Lon Bell

both second the for Chris, demonstrated during and goals performance XXXX quarter second moved conjunction quarter. assuming B-TRAN XXXX quarter our with us division and commercialization in you, Thank closer financial call welcome everyone second and to the conference positive ever to PPSA our our

including second to both first order as solar-plus-storage PPSA our shipment BCI and division during evidenced NEXTracker the growth the win quarter SunDial utilizing the embrace Over market saw a megawatt quarter, the solution. solar-plus-storage. from for by quarter encouraged wins solar-plus-storage new X we for market deployment importantly, as the were megawatt a in market. a Plus China BCI solutions Chinese such our see large solution our international in Most large represents first We're scale this our in to

in OEM increase Tim for who granular our a more new shipped for of have now eCAMION as PPSA Importantly, their electric development, the our chain DC a on we system business Canada. for later vehicles provide call. EV technology. Coritech fast our service EV selected in conversion bi-directional PPSA charging been a time, we market supplier by network same and commercial power saw interest the We in their Burns, business charges. oversees charging stations customer will uptick In a supply initial

notable expected year. this second next semiconductor switch B-TRAN development of with the qualified front, for runs a In solid-states delivery made progress technology. our the generation ties the domestic we On quarter, with we fabricator new later

switch. also our circuit power designed and prototype B-TRAN a driver B-TRAN We driver with combining tested by a

early growing customers We available available will B-TRAN make have module IGBT for for easier is evaluation our market IGBT. power what potential and faster intelligent on strategic summary, is targeted fast similar partners. taking which per will will year, B-TRAN to perform we this comprehensive offering. this product our initial to Later year, $XX expect billion be more laboratory market large steps over enter we with In and function to the will to samples have with characterization. Since for semiconductor engineering the we disruptive we

B-TRAN Brdar Officer call. during summary, Commercial potential our this sample potential evaluation. this our partners Dan strategic our We and and Chief new of parts expect the division B-TRAN significant later provide technology. an with customers their sharing providing continue front to to see In then we for begin target update commercial proprietary with and will information on them

Ideal distinct Power recently call, last operating As divisions. mentioned separated our we is two into on

for integrators of and major their these And and by other logic, is the year for to for PPSA reiterate sales investors potential that by design, PPSA integrated our division, according developed cubic and which each Three, services customer of and shift to circuit an PPSA last designers, these hundreds space third, think in distinctive units semiconductor have target with will characteristic hundreds semiconductor us of and rationale it us to our needs to number converter skill market and resource leverage management, identifies the fabrication adequately the while X, to houses. this organization. package. Our vehicle technologies and conversion sales that technology subsystem of components separation each batteries, as times single and done our that integrators Number benefits is sectors for energy power the set force manufacturer a year. firmware, first and division, are subsystem separate is users. in B-TRAN best each and circuit supply all, ships power with The number starting integrated array Power, great driver to meets by combine proprietary B-TRAN are it division, PPSA packaging market storage divisions. Generally, specific custom manage is and human fabrication customer shift all converter product in process per are that of other of with our of power the PV manufacturers software, or semiconductor of consisting to and units the the configurations for sales to needed each also product, Systems unique The with PPSA will paths and is combined our defined also and subsystems power own like into the requirement. Ideal circuit on market respect I PPSA finally, to following; thermal storage division electrical X following electronics integrated needs enclosure change The two particular the system market controllers board the the developing is PPSA's supply allows important this speed drives per of are comprised into proprietary to contracts. characteristics serve space a Power manufacturers with control customer leading related our us our about hardware, system, successful tens feet. product that system one, time power to commercialization. base on solar-plus-storage power, conversion allows a of of two of allows there's meet segments. of B-TRAN and Conversion the to focus fleet systems. logical surface respect the thought The motors developed production thousands be see a B-TRAN commercial target division, converter base variable reorganization B-TRAN We electric under the capital designed already for and With facilities chip manufactured and file

present growing and targeted comprise that billion market IGBT the vehicle switch are for markets electric year Our those power charge example system. B-TRAN drive is An $XX market. per which the of

now and beginning Lastly, transition, in channel. show second to like to of licensing The discuss be and low be Tim results in an hand quarter our our targeted system call distribution conclusion, realignment, to execute. are recent expected our are progress development millions sales B-TRAN quarter represented arrangements conversion the our through the performance. units Burns of are year and to to division. a financials and established sales In integration, per focus in the business our and enhanced to to power ability over to Tim? I'd high

Tim Burns

Thank you, Lon.

engineering Brantingham for engineering we first inverters that and into leader to Ideal or construction us, quarter, profile demonstration the & Carroll global customer and an high SunDial large deployment Plus its is contractor a new the order megawatt second steel, procurement BCI the X BCI, kind. design, a advanced for solar-plus-storage and in the global mechanical Power's manufacturing. first scale project our China, shipped of integrates International a or During EPC in solution

enough the according demand to in is megawatt As second a commission represent charges. Lon large or the the we received encouraged relatively BCI power to produce monthly of for in bill either high expecting to and successful orders third annual Fairfield, the quarter University station utilizing by project China. from Chinese a and peak follow Flow the represents our mentioned developer in system NX has a first high the demonstration material Chinese This of profile solutions we Laboratory The power expected Also the quarter solar-plus-storage at partnering year. Maharishi projects deployment National plant nearly integrated Management to the of MUM NEXTracker scale multi-megawatt for early its usage electricity embracing such first in for market to project Renewable Iowa, NEXTracker. that currently to time. as of quarter, BCI we us the system on purchase the this is Energy high to is reduce of scale will and demand lead state significant X.X solar-plus-storage shaving with state-owned see third commissioning market in of a cover in could university's international or large this electricity are large deployment solution project solar-plus-storage. use this during fourth the order China way large energy the earlier, scale

of year, projects to were of Based the projects larger NEXTracker, of activated generally for expecting purchase and waste with pipeline quarter recent installation third in this we are the expect as mid-XXXX. balance ship early timing smaller We for on this discussions the XXXX. their orders to the

School our the XXX Moving increased we business the shipped in exceed storage by second year for receive megawatt standalone the the of of storage, storage systems we to the quarter we of power expect XXXX. California begin to solar-plus-storage encouraged X.X in third kilowatts Sharp's last District. in standalone for quarter, project We're order with installations. this during And conversion pace Sharp late to

this we energy they example customer on allow company later Energy Amber announced of over technology the the more to our systems seeks deliver most discussions year. past our year flywheel to on now off our begin Kinetics, their workforce a detail as C&I it and JLM backlog material new half compared a megawatt and us. provide in with in funding. JLM storage shipped to additional Kinetics This lay We'll In in JLM had on another front, an capital of they diverse additional is PCS securing technologies. technology Amber with future to with addition, focused the late progress business. them for of this of commissioning Based it making almost week, other June utility the opportunities storage once are On its

grid signed Stabiliti at Bosch the Moving March, building analysis, Building solutions. power with agreement system. this by conversion the a microgrids, of to down turning Unfortunately, wind DC early longer thorough for were not Company. Group their we Technologies was inclusion support systems fit quarter or business Bosch After in an microgrid in DC and was that the supply recently the to group a operations no end the strategic we and for for implement it

were which to do on our not to meaningful we to this from Although, investors Friday. bosses soon we receive as permission expecting provide wanted we update with this to revenue year, Bosch wait so occurred

We microgrid due view growth intermediate until to pace to with grid standardized. market term of the constrained flexibility of targeted to its design us an as the for this microgrid these be at solutions continue more The challenge forming product will opportunity microgrid longer applications. become in contact Stabiliti for system multiport is our

range energy public vehicle for held received makes the The $XX.X earlier, proves distances infrastructure EV use with charge Canada $X.X EV entails With anxiety the million eCAMION the SGEM highway. EVs of charge locations drivers to shipments Charge, dual acting overcome instead ion can and a helps charging. from from XXX with allowing vehicle. inadequate designed slow to charge PCS an incorporating different As funded the EV vehicle-to-grid as charging to units our to privately both by under Level in of between have June at at North This investment eCAMION from charging estimated multiple an electric hours allowing once. of is obstacles grid from to announced as new DC line of vehicles emissions joint using of rapidly X FAST known the X eCAMION encourage and their This biggest renewable to VGA stations. use stations charging minutes. multiple for Canadian at charging travel bi-directional the second storage, batteries fast orders and to find well it's the by Natural chosen grid Lon electric repayable is batteries reverse units along community Innovation their powerful purchase SAE We XX Leclanche provide VXG. EV supplier storage to fast program. CHAdeMO charger, storage electric of Coritech to network directly in charging grid electric but existing is one ship of charging standards development complying venture a globally a million with Trans-Canada slowly to recently issue to as its vehicle for faster the lithium initial as most multiport and Leclanche their lithium vehicle faster VGI the an Energy more requiring to the half in We've sometimes smart Stabiliti the as operate drivers installation system XX back certified of partners partially of support charge and it XX buffer being several X recharge PCS consists additional grid. by large standard. million in for services solutions custom the American eCAMION energy X the XXXX. tons charging allows chargers cumbersome product long the just about projects and the project will provider we charging will advanced eCAMION units OEM offering for This along level power of or capacity, contribution X.X that a XX along install ion is supply EV Resources of easy reduce being plan Canada The innovative XX by format to of power Charge also Coritech vehicles. Japanese in outlet The two, architecture enable Currently, by adoption This charging as the well vehicles developed modular, for between a and charging, project also applications. an storage higher, their mentioned stations adoption. electronics to FAST and units by in contributing bi-directional auxiliary energy first CCS years as operation. over system been a the with recently Stabiliti

the electric is multiple XX development VXG those Coritech and capability kilowatts of of with and past vehicle the vehicle. Department chargers Defense incorporates six PCS. and Coritech's commercial EV XX port PCS Stabiliti anticipation manufactured U.S. selected and a supplement years, designed of Department Coritech solutions Over to kilowatt Energy multiport in U.S. charging. electric latest research product solar storage is of for also offering VXG Stabiliti dual projects for adoption for

need vehicle of these charging the or by and Our rapid the specifications products electric in occur as the strong adoption growth charger for and were of electric Coritech chosen view to stringent as that area by vehicles. isolation will expected infrastructure weight near Coritech's galvanic Based a potential including optimizing growth us development cost. term advance on within in successes, size, we recent

and to networks both their ability bulky and Our the making build by by and isolation EV products paired ideal and/or charging electrical mandated the underdeveloped. onsite EV be enable also electric the an desired small charging need the planned size big manufacturers to programs without in choice The energy transformers networks out investment has for for of new to sales auto investments. storage incorporations with solar been driven of government its the vehicles

XXXX part in are this of XXXX participation a for products. charging demonstrations EV utilizing EV infrastructure, and partners series several to relationships our Stabiliti developing transition in to initiating technology We commercially with charging in successful pleased our for of

including our Estate, PPSA issued those the terms we and issued In of coverage XX patents of now Patent States in outside Europe. have PPSA China patents five with United

demonstrated the In pending charging provide includes strong and addition, both PPSA In solar-plus-storage patent patent EV in eight the and potentially the PPSA markets. summary, our filings second portfolio quarter India. during progress will division in coverage

an We for like be to fit products discuss highlights call offerings off to storage market I Dan? and the relates are B-TRAN from division. excellent commercialized. as to once our to the continue our to opportunistic Dan microgrid hand it will be now as Brdar standalone standardized

Dan Brdar

Tim. you, Thank

semiconductor that evaluation earlier, As two operational second more our demonstration, notable of items fabricator want of bi-directional and government made submission who for technology, to during development reduction device the B-TRAN I'll runs overview and design an provide To low-loss our circuit the design quickly new drill release switch our disruptive domestic and the quarter in the is securing division these we for switch of XX%, the sided fabrication, mentioned a power switching B-TRAN for fabrication a offers solid-state on XX% two to double are standard and our B-TRAN B-TRAN, on first our proposal new runs the the down based device. multimillion to versions production Lon story. for a but release progress date, different at conduction B-TRAN of sites. Ideal shortly, I faster two those highlighted completion losses of dollar produce funded Power configuration. driver of for depending

and focus conventional most It to our It's and does B-TRAN. what die recent wafer. reduce a with to XX% A conduction of bonding has validated the bigger. a to process a losses and B-TRAN thin thicker, level and requiring to This process than switches. by of first also testing. This de-bonding steps making on complex performance the about power more our standard efforts steps compared device. the was one-third as switching refer as full featured potential process wafer version manufacturing double-sided handle very The quicker current require both features fewer sides standard the to we it is simpler the fabricate, not and of is

considered and conventional is and more to second we're and losses to manufacturing which success for XX%. be more have equipment. Foundation the advanced development early switching and of full applications its by performance. silicon with demonstrations Ideal features levels parties our B-TRAN further B-TRAN potential core efficiency can Science Department programs. with complex can of made The of bring and Defense, the designs collaboration partnering both other government Department R&D and funding with conduction of energy within that and the addressable pursue solution addresses the unique words related version Energy, are than in B-TRAN for third objectives application National respective the programs the data manufacturing funded better many performance agencies. performance B-TRAN, the of critical Based feature showcase federally and already with these objectives markets to partners on is high versions development on in Power performance semiconductor standard efficiency reduce has semiconductor Increase development and a critical Both

B-TRAN commercialization, a In leverages development semiconductor addition, programs installed. path governments the where to providing power silicon an funded infrastructure switches, of clear existing area technology many

quarter, intended collaborated proposals, several be of the demonstrate to expect multimillion During high dollar submit what other value potential to we applications. with we organizations B-TRAN of the first the the performance and

satisfied applications technologies. technology B-TRAN We’re power switching to control conversion applications not address where power enabling by targeting specifically and become conventional can

creating of partners ecosystem what support potential we our While the it level to partners. potential was efforts of are early application raising can users B-TRAN an and channel the and capture, to of awareness too market technology of tell

recent early the B-TRAN. to the release successful development for diameter third-party enabled quickly potential enable design of during initial us available qualified B-TRAN designs. fabricator did device. prototype in out a wafers to engineering as intelligent B-TRAN IGBTs find proposal second build fabrication to our for this of partners between for for by module important using us This The this most as much we will we we the the to rather power domestic completed our of of runs faster Also diameter new fabrication, smaller an for it and for it of to We check standard our provided quarter, of the die driver order, production discrete wafers, testing driver for smaller secured the circuit feel customers manufacturing package so more offer the is activity, is technical complete we than as partners. runs production a easier R&D semiconductor can In semiconductor addition and with handling a and use B-TRAN efforts. and evaluation so both complexities design, risk. sides significantly importantly thing resulted prototyping process steps large fewer The and lower wafers runs, much which what processing

excellent expertise and with manufacturing features also we U.S. university state-of-the-art as the provide process. produce performance, manufacturing We’re to expertise volumes devices at a facilities device with modest evolve major semiconductor and collaborating to to access and

die new patents eight We fabricator of university have outside we respect domestic our in China, Patent XXXX. of expect Estate, of United issued B-TRAN the to States third B-TRAN with to in our have quarter Europe now B-TRAN from XX With both issued the and and Australia. patents those

coverage the fourth to CFO financial our in the Our division discuss solid evaluation pending potentially that includes on or floor samples division the of results. summary, deliver quarter and provide now progress B-TRAN to demonstrated will patent engineering approximately track the and India. in Tim turn Tim? the quarter to Korea Burns In I'll over during XX South patent XXXX. B-TRAN Japan, remains second filings operational portfolio for

Tim Burns

quarter run in to X% up of second margins in Dan. you, quarter second quarter SunDial gross sales Thank XXX% well products to from in the Research in for customer was ramp quarter and decreased second second of for in our second XX% quarter In negative margins XXXX to the for to XXX% expedited quarter. to the the as implemented consisted XX of XXXX. the last markets. second XXXX. $X.X solar-plus-storage as the from quarter storage quarter roadmap XXXX fulfill second kilowatt in on Gross million products. XXXX, simplification charging reductions quarter we as the million XXXX of quarter manufacturing million compared in series the the was Stabiliti Revenues development production The we on were to $X.X for decrease focus $X.X basis of of and our of the costs orders for XXXX. Plus saw EV due expenses results. higher sales an the standalone quarter product the cost $X.X over second through market impact of product financial positive Revenue our preceding primarily will the months compared the XX million the I increasing including second

of cost quarter modest two primarily was year. resulted quarter For we resolution to second as increase research was well in the XX% and second debt PPSA legal development the balance and reserved partial second recovery of over last as well expect research of $XXX,XXX The favorable implemented spending quarter development decrease proceedings technology. the SG&A the the due in XXXX, million last from spending is that on year. legal more XXXX months last $X.X XX fully B-TRAN flat as of mature fees and the our as on to in $X.X million in a that of reductions in recovery bad increased

second continue reduction implementing we the to to positive XXXX impact, breakeven. path to cost began cash see our We program in flow the accelerating quarter

program We've with kilowatts our in noted have XXXX, not as efforts reduction cost are the quarters closely $X.X demonstrated communicated for we to From negative positive revenues collection program timely As as spending. second in timing. declining. growing be There from working to XX the benefits us perspective, that to of I more receivables on million due to plan clear million cutting combination growth roadmap share. and This manage for the demonstrated focus legal families. Operating product will our product On as growth, to manufacturer revenues Lon as $X $X.X sight million, second We'll our We second quarter, to to variability and as we reduction believe some of and positive efforts no a was again cash associated $X.X We and aligned. a the In terms impact summary, focus government cost impact for The opportunities to reported on Power basic flow in of a the meaning simplification line quarter-to-quarter customer public XXth, do will and self-financing, June orders the of previously, a in cash the experienced flow XX% over look aggressive of we lower cost burn impact Ideal against a expenses management quarter payment and million financial totaled cash customer due our enhanced in a for aligns be balance continue runway and the were XXXX. cash saw near-term of since call of I million, eliminated including initiatives capital lowest allowing this call the yielding million with equivalents reduce now impact during recovery QX are cash a the of to see most of with of or providing typically XXXX. cash diluted burn and our $X.X in Lon? remarks. burn $X.XX action XXXX. debt. cash the our into of went burn result closing the nonpayment. included $X.X turn no former revenue. provide net sheet for XXXX we rates fully well stable per debt, and cash cost reduction a back our continued loss cash and quarterly strong the

Dr. Lon Bell

you, Thank Tim.

starting as potentially to are to lumpiness quarter-to-quarter expect to continue or market products for ramp, we we revenue. signs seeing in significant variability Although, our PPSA a

installing with be and timing revenue the Our will schedule of by itself contract cycle installation, awards. impacted customer associated the win, permitting the

quarter and progress is second line conclude, more We our basis XXXX our in both be quarter provide we are on to expect To half a second continue operating promising. quarterly of third with revenue disability. more significant roughly have to showing and revenue divisions will until uptick

as results the accelerate are recent Our continue the operate the shift initiatives path to starting listeners. to cost both of echo respective towards technology potential the to our now our reinforces breakeven. and time, PPSA to management team our that our restructuring questions us allows B-TRAN financial Today's like the I our of divisions up implications for while reduction maximize from reported from XXXX. call and each the encourages recent At confidence open to this positive Operator? balance a would to

Operator

sir. you, ahead. our Irwin go first Craig Please take Thank with from Instructions] Please go question ROTH Partners. [Operator Capital ahead. We'll

Craig Irwin

about in us And client-based quarters? is My NEXTracker first few advanced with us with line question traditional potential any maybe participating whether reschedule particularly you the for maybe NEXTracker. with or discuss them Can work on the share over projects. your you're PPSA not next

Dr. Lon Bell

ahead go Tim, please.

Tim Burns

So, challenge isn't true, Craig, typically the happen. timely with of visibility side, of would forecast, and have I true whether say this a often part into as store depending in not getting we does on just which is lot quarter roughly customers of our NEXTracker we're the only

have than We we just right visibility size. small us the have publicly the placed order of didn't that some recently balance project But visibilities this of actually more smaller projects this that, smaller year. we're announce over but in NEXTracker expecting because and year we now for projects with

being of this first pipeline have us understanding pipeline quarter any of significant their of into is see But their or Our up quarter in XXXX. those what shared we would of the show size second don't in of they the they projects they're balance year. accelerated

Craig Irwin

diligence once of base pretty want the in. scale you optimistic been a have is first they us experience So obviously They then the Sharp that Sharp the from ago. rapidly next you they’ve have And flow customer the the couple the concerned. maybe Sharp very Sharp, potential couple good as with Can years of as determine the what yielded? effort that through applications following that all thoroughness for taking to over their breadth feel product company done they the a is is early far you describe be could that for portfolio that quarters? from many they

Dr. Lon Bell

say sharp segment. customer leading first probably for off the now would our I story standalone is right

the has say over they Our years us consciousness I kilowatt before XX evaluation our the with actually Sharp pretty started project. over its took solar-plus-storage applications one public, with approach But the would X-year before to the their process excuse at been implication storage. they’ve last, to and and pace obviously for we time over of generation recently significantly relationship first through particularly I first megawatt went two through in standalone the even storage standalone X storage. on -- a would quarters, selected when side just they say last Sharp roughly starting solar-plus-storage increased me, project here

we for So, to third have In quarter, here. Sharp with consistent a the what in flow sales than of revenue expect then in pretty have seen into quarter is we us higher second expect to we’ve we the And second quarter. translates actually continue will revenue thereafter. that we the

the about Sharp excited with some relationships to pretty we’re So momentum. actually starting gain serious

Craig Irwin

money. thing disbursement to SGIP wanted is I of California ask Next about

like a a my something gain subsidy side those point regulatory traction. the external be directly more you really So you SGIP projects market there interesting for there with we potential bit funds? part little of improve this that to that What should are storage that participate? a looks to funding rated benefit this help could about monitoring funding? from disbursements where Is can disbursements Is anything hearing

Dr. Lon Bell

market challenge with some they of the SGIP into level in been has in activity there the really past, would say our and expect. the would Yes, the sizable translated fairly that haven’t we I awards

some So or Sharp the have count has something on actively be storage, decision see solar-plus-storage. this were of SGIP revenue the Company. We revenue theory Power, positively actually is standalone in opportunistic really involved shown but but partners primary taking impact process. and not we’re involved see difficulties more should of that Any been the in wait deemphasize storage to as say approach in well the JLM for changes been intentional where our as would in the that I more their translate for Ideal was before made any if standalone source shift and do SGIP our past. has actually one into our to our increased would is SGIP we as program to there’s

Craig Irwin

done a of work the commercially with quite you’ve bridges before know lot working launched. And right building of customers then, I sort B-TRAN

third-party distinct potential for maybe not update for the us customers the of the deal very or on about licensing those B-TRAN? have number there type product. continued the B-TRAN you you potential side? of approximate their see some you’re Whether or talking a on support Some Can on activities said expectations to of maybe development for the

Dr. Lon Bell

of bit talk cover to ask it little I’ll and me first finishes. part after Let Dan a Dan

Dan Brdar

because players the needs for we customers, of actually looking each from we've including give including people utility doing whole a to I'll people talked example. people customers potential of and diversity automotive you have can sector, Yes, the conventional really are to variety in that the an we're that because with partner powerful are that are that different conversion suppliers industry,

automotive learning technology from hybrid major come about electric the in were with of in interesting that we are losses XX% discussions vehicles shared for that with of a the semiconductors. us today One manufacturers more our

improvements So fuel terms them losses conduction are the big a of economy. impact switching in deal of on for

becomes things that with While, enabling to that the control looking utility some power suppliers you for, and similar partners losses where they're them. see start our conduction high for, talked technology We it B-TRAN equipment. breakers of like thinking utility potentially things to for about low voltage the DC we segment

partner going to a is strategically where bringing and power there conventional opportunity B-TRAN we which customers is partner what because that to enabler continually we're think need those switches. the start become of to see whole variety up demonstration semiconductors And out to who targeted everybody is. or be to really best B-TRAN can with So touching part different an there learning curve good where with of on with to done out be funding, with technology all not things secure then find

Dr. Lon Bell

we few are the at very products market partners that might us? proprietary There And generally and that these we also, is a content. devices. have technologies, that sectors proprietary not for fabricated called it to are little quite question, bi-polar Great, strategic when houses older are fabrication devices ask this be look are who generally

in proprietary because they simply store, we we content they're a when now. quite approach no fab for interested that So partnering have of the prospect offer houses other pathway to right

gives this develop to for conversation the have strategic pathway to early ourselves begin to so partners. us group And to one of and ability a

costs and it a this bit the from to early the development our types while certainly partner development has the And talking But this product. of some partners. perspective control as of stages and quite are case, will is opposed this advantage ability has early in both evaluating stages of be user partner in they to given unique a the to our a other combination manufacturing it Now, yet to and is partner a us the tended us a to technology in of and from help both performance perspective. fab

Operator

next our question from take with Rusch Oppenheimer. We'll ahead. Colin Please go

Colin Rusch

being bit timing government Could potential talk and what for up you the asked this the about that might magnitude of funding, little that ultimately? a end

Dr. Lon Bell

solution. we've was we doing that it runs, fact is become would that money Well, the well. the Energy it What include and research But our can of because responded work in already that one what's effort the at available there, we development be would multi-million other need is world a [indiscernible] real that team DARPA. money out are operation It a of a to our it to together are has include of able designs significantly as pools there several show equipment partners we there's is opportunities. some an B-TRAN see but and we as look that demonstration fabrication those doing all us to pieces available put out there submitted bring application was enable that opportunity a will use to lab,

Research of on active Office work an to Research have fact So, do DoE, we relationship we want navy, there. already Naval partner with Naval of worked they something to for because Office in the

start it's finding to players dollars, agencies the start and also finding market money really line interesting, as government not those is they they can want that the and bring that we're lot is finding to enabling to their there funding And funding something a in are that are right what to is we're partner were understand goals. are likely well. of to particular channels with really us together growth there So engage these for segments that of we with out we pools players that only pursue they B-TRAN, people putting that the do but

Colin Rusch

product side, couple develop, having over call next the at of very Okay, the about can but this compelling from dynamics. seeing geographies, of feel bit that’s you standpoint? for helpful. taking XX but you your market number products any redesigns. do competitiveness as this prices in competitive look a very battery How guys Obviously, And set your we're return XX at like point. it's and a There talk while little management to where then through on you story a gone a it the to is months here

Dr. Lon Bell

activities from starting think try about of stay cash product ahead cost sales. with three We and I go years So, through our did that reduction of to curve.

the And component and actions China letters through may certain recently some tariffs. received some an to aluminum particularly impact obviously. one increase seen have warning at pressure. imposed We pressure of Potentially tariffs components. some closure we've vendors of there proactive we that of price it's in could cost price of expecting the impact. the And when that seen price is pressure We product know due actually price potentially I have potential built our electrical least in be really our in say

product I make I But its years ago. to pressure. microgrid have we little margin of expectations would leg will capabilities price product additional a continue see market say I and we will through higher further just a sure we'll few can did of on maintain functional Stabiliti how cost up take competiveness. market evaluate bit because some different that products think capabilities said our has started in typically the the general because and overall that some side our that And we is manage because that process we'll for to than of storage out as that cost the So, project itself. potentially plus PV with on we

to replicate see that try high frank we there patched development be do other terms So to of to are we side what options of where that price in typically a too are that not out challenge which business in competitive a solutions that box. single is together to the be or compilation in with the

Dan Brdar

our that related of questions a And customer the satisfy. thing might a the asking of that looking with fresh to a that solution, the comprehensive One we product solution. our is verticals our the now enable quite positioning at few look product a are taking and products production integration

markets to unfold evolve. is this we it recently. of we should markets. will means product and see some from that And for certain I our what see I to ongoing And approach so, and certain --how terms effort an as offering expect to how changes better initiated how visibility have that And us just though expect in what

Operator

Craig-Hallum. from take next go with question Eric Stine ahead. We’ll Please our

Eric Stine

mentioned was a or orders we the expectation see with next you could potentially start get if BCI, you I wondering year.

talk the you’re Just able of curious, to and about you’re as if indications size kind of about the their well? pipeline seeing magnitude

Dr. Lon Bell

Yes.

operate, the they we something and do that the BCI here had Asia global, this And is active which we before to as as headquarters purchase there initial demonstration in they field Chinese well. as solar space. for but and a both an just project, be of at that a renewable have and actually the discussions and received is BCI even hydropower in early is a order. data field, they honest. So enormous in also partnering so this But they as It’s highly U.S., panels developer. in are headquarters with And

in world. project megawatt well, this the Chinese And multi think fully of developer. largest expect it goes and BCI scale to receive I from the if demonstration additional one data the orders

something their meaningful and larger we they’re put Ideal about company projects just to opportunity the excited into don’t opportunity a about company that that for on the not in as extremely China, being excited have And BCI global know demonstrate today. this the about small and having it’s with project additional talk going would So, us project, than be they’ll visibility other direct than the that we us where pipeline Power. as is extremely

with be So for and in more if demonstration China. us, rolled things this go well and could huge potentially out locales impact the it’s

Eric Stine

in this year. this or customers? to answer coming potential or China of sense this too done what that it’s mean, is has later what visibility deployment with I maybe in given the your what up do the follow to other But partners is will early that And any to this

Dr. Lon Bell

So, too to the I itself. this, project for think it’s yes, tell early

the some X the infrastructure concrete to nothing needed months the issues of our was in with to close on They original this do to get it delivered shipped which power here to think cetera, they were had and guys, Unfortunately, has mid-year. the project deal get issues conversions, that at time. goal which point. I installed in delay side this et board, say with But the I project. and

early is has the to September be is along installation into early think in potentially happen, will be really. totally all for QX. shocking pushes it commissioning. the we So But full It this up running demonstration conversation wouldn’t and before

progress discussions. expect future commercial to on make any We significant

Eric Stine

okay. is That

Dr. Lon Bell

known product power like where obviously in technology This with companies converter Huawei. is China, which its is situation a a for for

important obviously they sourced in alternatives as use that as to offerings, other strong that have not Power, could it may it’s and Ideal I China. they with converter were been elected have think power built note our to the

Eric Stine

that where, one of just to Or I assuming give you're turning move thoughts that, be, Maybe number whether would just wait and see? some there? that And to forward? know the out and you you then absolutely. one solid. just a on just trends that versus kind know don't But curious, are maybe I said, was And follow release anymore. on JLM does it's backlog you year, Yes, a it of in that is backlog, last some taken

Dr. Lon Bell

of Yes, of we a and the it backlog revenue balance quarter the at so took for well. JLM as year we the second out took we obviously

now. approach. mean, know regular to that's discussions regular, secure working JLM, we they're additional conservative seeking that actively a know a think with I we that still I funding. we're funding And in they're

And visibility I of visibility. visibility but to it less with demand. customers from the we us typically this we we're our pretty So, further amount we're asking XX greatest three of times quarter which XX one be provide days, and backlog. don't did What to but for have good much seeing seeing, remove as before, conservative, mentioned yes, on orders,

of future third comfortable, right It's is know will at when form when call giving and level not is we really the be had were particularly our significant our our QX at So that, we heavily get quarter ago for roughly is to we weighted which QX we quarter, now a and have revenue but a for some thereafter. in And, least QX look is not we saw of backlog, a guidance at we the for QX look but like backlog, short quarters. thing backlog same revenue. instance, we it comfortable

So, unfortunately, in a still predicament. we're

Operator

Driscoll our go ahead. with next question take Please Riley We'll FBR. Carter B. from

Carter Driscoll

something what Can or little with bit Bosch? least you looked a you just happened you seem had little are on, discussions that a on targeting that think at maybe You that elaborate then opportunity, at space less with positive the particular microgrid thought and you. And relationship, bit you how didn't it other maybe as seem people progress so just? to and far? Thank

Dr. Lon Bell

solution repeat type small that scale. power specific. projects. space they come the they as as year and challenge And of with suited scene Stabiliti in those last and see The no and space. successful the roll microgrid for has cookie microgrids microgrid for provided cutter on early levels even standardized on Yes, least actually we one with extremely at particularly microgrid aware, of they And some the general, is aware our some on is, is we in the well we've those space projects out announced in of very and some product up can, can solution, had

fit our we not come scalable we solution. that a something in technology term, out actually an think the is they microgrid, that until the some quickly extremely it's here So for people model, while have good near scaling business extremely see

a focused has But and We to particular, that's a made be I a with building far trying of to think expecting and unit Bosch close you're about level that script. where as challenge didn't made mean, exit to probably on that I we're expected had probably year where information DC really overall, press And had at strategic which a not were down parent discussions situation is the guess, was provide public. And microgrids I business that just of buildings. to behind a Bosch. the them to it really they business. little they decision bit So permission we there if based be rely our as had on the for was initial Bosch get in with

So to very of about shut learned this and think down the it's I by is be it surprise quickly, quarter. believe end this and it team recently came there actually who the to will pretty it going we be done

Carter Driscoll

more are these scale meant of days. that and to fairly for It's eagerly which difficult customized microgrids each

Dr. Lon Bell

That for more well was product far of And we a or work believe we seen power microgrids. actually near at in because the product particularly our extremely features our than offerings that's challenge for level we the advanced the that microgrids. other have actually market

Carter Driscoll

trying I one mean partner. standardized this because. has If the find right to that solution

Dr. Lon Bell

right. Exactly,

Dan Brdar

three potential one two finds or or us where model. to business starts scale. market it the for in evolution an a be partners attractive To And very then

level at we earlier. sharp we I think this saw

think I model. They're others. with it's we'll what see the about business learning

model solution. of guidance, be, probably part I answer that that end us of but the can not be we to perspective user what to them our maybe us might giving be from standardized to what thoughts see that potential more structure from form on allows might of have the some business our communication, them think them will partners parts of giving

large the does is on of is the of done What market market standardized a price nature the and be lot solution. needed each project. sales So that that can so the not custom engineering is

Carter Driscoll

may. then And one for Okay. me, another if I just

California states it's or whether could York really buckets to come federal. spending So don't solar talk about drive some some towards that whether galvanize like funding Massachusetts immediately maybe self generation or or start product? you and it's that storage think to through mind New others potentially Other

Dr. Lon Bell

It's state their So, articles at level. for is been one had a I Massachusetts few looking the of those been like XXXX terms if I they've But recently or mandates for follow in are know but mandate out XXXX. know future that put what's Media the mandate actually some GTM years a targets article, Arizona mandate. mandate a something I I place that's about of there someone there has -- has That's place. at lot has It's using of right. not in while that. mean of going mean challenges, limitation now, typically, on Greentech years. are in increasing There in you like form there

mandates put in think I Jersey New place has as well.

not see I'm definitely it terms revenue we haven't sure seen that we quickly we'll in but where drive those on particular still markets will, how just of market. lot our growth standalone but sure focused the we overtime So, the California. impact activity, see I'm storage still our in in a be in of revenue

Dan Brdar

business saw between in put incentive creation. California correlation a we and Yes, very poor the

have as that translate programmatic can more and activities. business states new into will hopefully planned So, enter, they models

Operator

Please H.C. from We'll Joshi take our with Sameer go ahead. question next Wainwright.

Sameer Joshi

long getting the guys lot a activity. in questions. deploy there’s from of answered. some been have yet Can But with your about discussing and BCI sales Coritech you into them? questions orders have pipeline to insight how give and of and development backlog, of Thanks been up for us but engagement taking the terms my Most customer ended or and -- been

Dr. Lon Bell

It when on you actually the mean, at totally look kind those opposites it. I customer. of are depends

than probably. less we And the BCI BCI, add the purchase we month, in began So, for a discussions order project. with

one So they were of their partners. our aware to technology of

order knowledge of our some BCI purchase our terms was partner in very But So of introduction on of of had our deciding technology. a to leverage the process. in they relationship, that short terms

lot say is tech, would core a I like Someone different.

core they’ve from some that of the is. time-to-time So defense, done actually the utilized think department is tech products for our I it work

technology our charging into the change involved had tech done our first and some time EV certify the So products. commercial projects they even that incorporate small core years, actually to actually, first back over product. And for to with have generation been they’re recently is charging Stabiliti going EV moving market. The the they going an

But So very they’re have changing the market at for bit, still charging. looking commercial their relationships. during the business model in they’re they’re little also military and still interested a those EV side, strong

finish to excited with So that, get took to that’s about it. because start our think Stabiliti X charging would certified months about, something, I we’re it product that in pretty from

was for it mean, and had year starting about that really this going and we’re pretty for in instance, one Sharp that when we earlier how was and big few we’ve pretty product they’re to I now they years, not anywhere is to So in totally like effort relationship opportunity. like, had some this that depending a scale them Sharp what’s excited another to made next in But for offering Sharp looks that depends. But months of of it Coritech we've expect. specific with can long you a relationship the some from years regards involved be on is it terms case level. multiple which maybe or

Dan Brdar

more it of One success. because quicker see bit others thing part rapid would those use are we time models some customers. organic forward growth in would be models expect quite And having And similar of seeing said in the going develop, all of think of our and that will is should I we will that, as proof that. much a took

it, that the and because see we And and coming at of so to they both think customers its I our as flexibility. our acceleration as for marketplace and on, we will security look in new product customers and see choose use

Sameer Joshi

apart and on the this there of fair some evaluating you and looking success? from the customers customers are it to that waiting sidelines on say call and is a for named that are previously, show are to bunch So already sitting

Dr. Lon Bell

all we actually see which it's of had in energy X now order our here all so the XXCX, that space. customers Stabiliti for a end the right say, significant place product now to but very evaluation. unit Stabiliti we with over customer announced there’s right month, that, we for X to is our, last the I unit, order evaluation. multiport that And they're of the the our didn't orders an would common and for very looking know to in prospective initial don’t of for player units I I it’s catch for obviously our the --

it purchase sizable some So real happening because teeth that announcing We it. partnership or not in But orders signed so behind behind a something is that's as looking order. not won't always terms announce activity scenes are we there's we're evaluation. a for agreement the either secured that we

some something to New the frequently. players they But are coming space. to figure that's into happen the the those in of want during we space, the here people customer out in play prospective and where working discussions that come are that trying

Sameer Joshi

that? in of A The it $X.X the recording? cash of does couple million Or is bookkeeping it question. burn, $X.X exclusive include million

Dr. Lon Bell

cash our this going of our say we that recovery, that to was cash $X.X burn, a when million, and about the million our balance, ignoring Right based $X.X it. is timing So spend, on impacts cash include like now our quarter. things burns quarterly It but would roughly change right.

event is So that now But bad maybe to close recovery will you due are. impact. debt million right due negative fluctuate $X.X it's for close a to as positive to positive such and timing and fluctuated

Sameer Joshi

that? into expense And previous a is sheet, balance impact slightly the last on the you paid one then fee higher us can which some give worker, is there than item the

Dr. Lon Bell

a legal Yes, so actually also relates matter. that to

turns we awarded and directions, were involved. claims this and were arbitration early denied in That to both so at claims claims proceeding be us former And here manufacturer, there there worked counter happened award $XXX,XXX. out their with an what about arbitration the our claims so arbitrator contract and quarter

So that that sitting is award in line. other asset

Sameer Joshi

Okay.

Dr. Lon Bell

It was changed August. in

it will time So, spend it will to it's not a be be quarter. from QX subsequent since -- there

Operator

this back session. to today's and closing gentlemen, remarks. for over this answer I concludes Ladies turn Bell time, At question CEO, will the call Lon and

Dr. Lon Bell

the we improve focus had of months. We've Thank focus over to underway we X very currently underway are will good We've greatest operations you difference. very several the and much. effort result lot and think a to items newsworthy that efforts next a our will our and quarter. had where attentions our make expect That

very going to been that are the So, think we you much. fruits making. we that more have Thank transitions we more see from and

Operator

conclude Ladies participation. your appreciate We this and does conference. gentlemen, today's

Ideal Power (IPWR) 13 Aug 182018 Q2 Earnings call transcript