IPWR - Earnings call transcript Q2 2019

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Unidentified Company Representative

…. [Call starts abruptly] Burns, the Company's Chief Financial Officer. A press release detailing these results crossed the wires this afternoon at 4:10 P.M. Eastern today and is available on the Company's website idealpower.com.

Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast including those regarding future financial results and industry prospects are forward-looking, and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. industry Company's we for to would website more the associated list the to for and risks, also supporting refer SEC a filings of Company's Please information. refer you

to At this Power's Executive is Dr. Officer, the floor over Bell. the to Chief Lon, turn Lon yours. time, Ideal call like I'd

Lon Bell

arrangement. officers PATHION. and PATHION of well asset Chris, that In certain [ph] to asset due April, failure call. and the and our June, sub any these purchase purchase related between Thank PPSA their conference agreement to as In asserting everyone you, our second parties pay quarter PATHION their a announced an to amount filed results to to welcome XXXX the breached agreement sell business due lawsuit lease agreement update we we cash as business against under

of to assert and general July, also denial certain its that believe do and PATHION's counterclaim validity. not lawsuit PATHION In stock position counts The misrepresented in merit. our counterclaim. a response, officers PATHION's We financial a lawsuit filed PATHION

proceeding, is cannot this legal time. on we at ongoing an information provide any this matter As more this

Due storage market our coverage acquiring prevent comment our of design agreement in the in Confidentiality for now strong comprehensive to on patent place of further and showing micro-grid the portfolio, PPSA interest in regard PPSA our sale. other the are energy companies PPSA asset.

the release We XX expect to in next provide press via update days. an

of common company's will will in of more unanimously a status our to trading of a Directors partners common on maintain to [indiscernible] stock a listing under the effect our strength. market Given basis The which our believe on trade enable and stock begin listing. later, detail decided progress investors with outstanding the Board the the stock continue will opens from the position on to technology, and NASDAQ split cover maintaining engage the IPWR. order NASDAQ this B-TRAN to symbol strategic we August will strongly company XX, XXXX We capital when market split-adjusted reverse

the Turning address on power switch our B-TRAN was XXXX $XX has a to market. potential billion new operations, B-TRAN to of switch our power second continuation technology. the strategic the our of B-TRAN focus proprietary quarter

we renewable During the powering B-TRAN for critical B-TRAN a use range vehicle required energy, symmetric energy applications. performance the of quarter, in voltage fabricated datacenters, vehicle, infrastructure, and and storage, the XG. that necessary losses; bi-directionality; and include These and commercial validated breakdown three, double-sided of: wafers low tested metrics conduction applications battery-powered broad military three two, electric electric markets robotics, [indiscernible], one,

We B-TRAN confirmed is provide Brdar, processing exciting with development. our an our on Chief Dan Commercial manufacturable B-TRAN equipment. update these silicon conventional Dan? Officer will design

Dan Brdar

on patented of our the company concentrate progress Thank on overview resources you, out like our areas activities with an B-TRAN focus. and provide to Lon. dies development for commercialization. strategic of early start technology. the five, will In government customer we packaged its solid-state early One, and our a and bidirectional pursue five Two, specific demonstration proprietary domestic January, recent and based technology. samples bipolar broadly main would I of advance announced Three, foundry. pursue for fabricate and funding engineering relationships transistor, commercial second-generation development to switch B-TRAN Four, adopters. accelerate partner projects, junction at that near-term device

second-generation testing of design During wafers. double-sided second quarter, B-TRAN we on completed the our the successful

to our breakdown metrics: fabrication voltages military measured wafer runs substantially to following B-TRAN critical automation the simulations. results consistent testing results our semiconductor applications facilities. is .X vehicles, performance dies value measured X.X confirm approximately at form provided drop wafer successful die. design. energy, at .X basis the with data required the X,XXX This lower many Our repeatable forward of fabrication with industrial to the symmetrical and drop was performance characteristic the voltage both operation bidirectional volts, voltage electric junction generation next in than for were These volts our renewable directions, Test test into for as for two centers. and current incorporated corresponding independent up such And are IGBT industrial volts commercial, an results for

lead addition, layout enhance us fabrication enable simplified to were to performance. for provide that packaged engineering runs, able higher In customer different samples to should partner a commercialization. accelerate early and changes adopters relationships to die designed lead we have and pursue wafer will evaluate layouts several to to manufacturability These yield, and strategic shorter

dies use bidirectional characterize switching with being performance. B-TRAN a packaged to driver are for

delivered Additionally, for fourth criteria the the prototype initial engineering expected Power's program initial B-TRAN to samples quarter be potential to in the XXXX. Ideal of dies partners sampling with meet

With States. B-TRAN of patent now our respect XX XX issued portfolio, the United B-TRAN we to outside with issued have those patents

now Our coverage geographic Europe. includes and China, Japan

in coverage and Our China, Korea includes expand potential will portfolio Japan coverage patent the B-TRAN and has the India. patent our to that filings include our Europe and also to U.S., enhance XX

In partners summary, for on providing our we roadmap. early we’ve as samples forward We to look accelerate adopters, commercial roadmap. our among made significant strategic commercialization engineering progress customers and

I will now our the turn to CFO, discuss the results. to financial floor Tim. Burns, Tim over

Tim Burns

our and broadly a also and second our the announced development systems January, shift suspended the early proprietary division commercialization we To Thank cash patented you, Dan. and we of PCS results. a XXXX in facilitate B-TRAN and I'll our shift run quarter reduction strategic workforce announced technology. on financial through strategic burn rate, at sales. further that focused power time significant conversion reduce that In

with balance division PCS believe an for this held shareholders as operations As our investors asset such, into we transparency provides sheet. results a and discontinued and potential greater presentation on historical new sale our go-forward We in P&L as business. a the our reported for

our drive as I'll operations shareholder changes will our operations results financial on primarily in review value. focus of my these future continuing

operations in Our the second continuing is from financial company summary second quarter of XXXX. revenues follows: had quarter the XXXX of as no

million XXXX. of operating to in million XXXX QX Our QX expenses were compared $X.X $X.X

absence employee was our years expenses plan, our operating decrease a by in and in recent in an headcount, of of reduction grants decrease and to due tenured expenses general reduced administrative impacted The executives inclusive expense to by cost the in to in offset fees included recovery favorable related XXXX of results $X.X legal second as legal lower the expenses resolution legal bonus million the higher of quarter of partly proceedings. the

the for quarter net million, ended XX Our million in million from months second down was June QX XXXX operations $X.X loss used the June in $X.X XXXX. $X.X XX, compared was operating continuing six $X.X XXXX, for Cash ended months million XXXX. to six of the in activities

XXXX million debt outstanding. totaled equivalents cash June with and long-term Cash $X.X as no XX, of

our cash maintained rate, utilizing On $X.X the side, targeted continuing cash of we in from quarter burn of million management second XXXX. cash the operations

Lon? closing for I'll now back call the to over turn Lon remarks.

Lon Bell

vehicles, operation Thank .X commercial, so because both Tim. stride. bidirectional division up drop simulation. dies important. industrial B-TRAN the for is automation industrial energy, made and with IGBT, Successful model repeating a electric characteristic to equipment for for they To the such our directions, many and approximately symmetrical voltages voltage voltage This following you, required breakdown meeting than measured an datacenters. B-TRAN value X,XXX renewable I’m military performance significant applications results Test the of metrics. .X volt, as to consistent in volts for substantially corresponding volts .X are have lower junction was forward critical measured these conclude, at with confirmed performance our drop

successes creation. forward recent We opportunity believe earliest customers to We the both strategic commercial accelerate for we’ve roadmap. and positioned Power engineering deliver adopters, and At shareholder commercial government. this value our as with providing Ideal including samples to our we looking long-term partners, early do along strategically

time, open-up At I'd the call this like to questions. Operator? to

Operator

Thank It Please of This ahead. Manalapan appears actually Oracle Advisers. concludes no go there you. joined. -- Joe just time. [Operator are questions this Instructions] at Vidich today’s

Joseph Vidich

I have Thanks first is Yes. questions. I given conversion for through, that revised the a two cash do for burn question didn't guess power for forecast have my next you taking quarter? deal go the the

Tim Burns

that think still prior the we in true. in regard is So largely I what probably quarter said

with although per discontinued said $X.X think million we we target, to think in I I million excluded our quarter. $X.X ops X.

released second cash less that our results I related at was discontinued the financial it $XX,XXX number, the quarter. to If a you remember was, operations we look than for don’t today,

I we significant impact don't alternatives we were looking a to are to is, obviously what additive that have to and other operations, expected So business. but continuing targeted from for PPSA guess the

Joseph Vidich

Right.

I sure is with the wondering there's just of you mean, going -- to if gets in buy and it. the supposed legal Now you’re legal -- done to subject fees in that fees, potential not the deal company think if terms be to fighting making

Lon Bell

duplication costs. there deal so of will definitely be Yes, some

that in So here legal the we close. obviously statements flow PATHION do financial fees the second through deal our that largely quarter related not to incurred with

some believe duplicative very incur acquirers, we deal. on that some to the strong and forward with potential will look leverage of actually be able did other make will additional are some legal the favor but we of able will the things some be expense Obviously our to As be of there incurred. in agreements we we we we prior expense the ongoing those sure litigation working will with in terms to PATHION, leverage

Joseph Vidich

Okay.

lot Edge, One of on effort, businesses taken like the you the things in field seen over going of seems in -- right past your you have it is division their guys quarter? the off greater I interest that now. sales a interesting mean, really but [indiscernible] have and and a sort I inverter like there's you’re more recently stopped understand that’s Solar kind of

Lon Bell

the think slow the there's I that interest, I that factor that market been PPSA think to particular while has develop. position we

believe takes that the the we also than and believe asset to but value, expect that self it certainly company that value. has We we other considerable realize our

that the to or asset. focused it for to we continue on we while our smaller the to us that a -- company absolutely creation way B-TRAN think a participate is focus is in, value through but selling potential can not, there asset So

Joseph Vidich

the I if of what -- of highlight understandable. Sure. you’re interest B-TRAN, a little companies more to? clarity just are That’s could types as you’re And totally Any sort in you there's to bit don’t you what the seeing any. can talking give if potentially know

Lon Bell

Dan.

Dan Brdar

Yes.

with as the things of probably for opportunities the us want efforts are we interest to to pursuing start results that those with we to engage who testing we very government that enabling fact going For we us, partners, found engage go in that want proposal done had for example, for these of some that the we really has because of some after. capabilities start partners good of do some that for the to the funding that are comes B-TRAN finding we success credible have the we’ve particularly

some our of it's the of considerable some results, there publicly because out I think drive B-TRAN get I So going we test level [indiscernible] that there, you particularly that’s materials as through think of information I to and a are other silicon available like in do work as at our carbide, looking any update can't on performance start is that device. interest and achieve going samples engineering work more we kind people a think silicon architecture. we the of to on an And just that’s as development

migrate silicon can over bring performance. carbide same the it from So time of kind silicon to and

I and the near-term something are long-term to participate makes space about its for a see us power really a understand that them opportunity development. it's just there's in the in that want So more technology really think learn that They particularly those benefit, but with technology. not semiconductor

Joseph Vidich

Okay.

planning are other approaching have guys other? power you semiconductor approached Now company, or you on

Dan Brdar

packages. and going solution space it for be and best some that’s that make a have try a I to The -- support function be strategy that if ability mean of to bring have investments it's us a you actually really and the Semi, going it technology been you product. and projects. there's We’ve there wouldn't on how built space, huge infrastructure the to have to that’s to to compete and or and it the some of Infineon about semiconductor the have to others the make ability to or made development really with that’s -- ON space, the made people that be It's leverage fastest market think out and proving the that its a it are the ability because licensing lot way the collaborating already unlikely into in get with already to devices either

Joseph Vidich

Sure.

question guess Okay. all and going Really to have. in people the testing are getting Good I with all. who there of really luck that, I device That’s the a hands. at it their be out hope it's basically

Dan Brdar

agree. Yes,

Joseph Vidich

got. I all That’s Okay.

Tim Burns

Thanks, Joe.

Operator

[Operator Instructions] you further participation. questions. It concludes appears call. there are This your Thank for no today’s

You may now disconnect.

Ideal Power (IPWR) 14 Aug 192019 Q2 Earnings call transcript