Richardson Electronics, Ltd. Announces Global Distribution Agreement with Ideal Power
Richardson Electronics, (RELL) partners with Ideal Power (IPWR) to distribute innovative B-TRAN™ device and SymCool™ power module globally. Ideal Power's efficient B-TRAN™ semiconductor switch and SymCool™ power module offer significant advantages for various industrial applications. Richardson Electronics' strong technical sales capability and global reach make them an ideal partner for Ideal Power's products.
The distribution agreement between Richardson Electronics and Ideal Power represents a strategic alliance in the semiconductor industry, which is poised to cater to the growing demand for energy-efficient and high-performance power components. The partnership leverages Richardson Electronics' established distribution network and Ideal Power's innovative B-TRAN™ and SymCool™ products.
From a market perspective, the integration of Ideal Power's products into Richardson's portfolio could potentially expand the market reach of B-TRAN™ devices and SymCool™ modules. These products are particularly relevant in sectors focusing on energy efficiency and electrification, such as renewable energy systems and electric vehicles. The deal may lead to increased sales volume and market penetration for both companies, given the current trend towards green technology and sustainable energy solutions.
Moreover, Ideal Power's asset-light business model is significant as it indicates a strategic focus on R&D and innovation while leveraging existing infrastructure for production and distribution. This approach can potentially reduce operational costs and enhance profitability in the long run, which could be attractive to investors looking at the financial health and future prospects of the company.
The technical aspects of the B-TRAN™ bidirectional semiconductor power switch and the SymCool™ power module are worth noting for their potential impact on the efficiency and performance of power systems. B-TRAN™ devices offer low loss and bidirectional capabilities, which are important for applications such as solid-state switchgear, renewable energy inverters and EV charging systems. This technology could significantly improve energy conversion efficiency and reduce thermal management challenges, which are common pain points in power electronics.
Furthermore, the SymCool™ power module's ability to serve the solid-state circuit breaker market indicates a focus on reliability and performance in industrial applications. As the demand for more robust and efficient power management solutions grows, particularly in the context of EVs and renewable energy integration, these technological advancements could provide Ideal Power with a competitive edge in the market.
Investors should consider the potential financial impact of the distribution agreement on Richardson Electronics and Ideal Power. The announcement suggests an opportunity for revenue growth as Ideal Power commences shipment of the SymCool™ modules to fulfill customer orders. The expected sales ramp in the second half of 2024 aligns with the timeline for revenue realization.
Additionally, the adoption of Ideal Power's products in emerging markets such as solid-state circuit breakers and renewable energy inverters could lead to diversified revenue streams. This diversification is particularly valuable given the cyclical nature of the semiconductor industry. Investors should monitor the adoption rate of these products and the subsequent financial performance of both companies to gauge the success of this partnership.
It's also worth noting that such strategic partnerships can lead to synergy gains, cost savings on marketing and distribution for Ideal Power and an enhanced product offering for Richardson Electronics, potentially improving the financial metrics for both companies.
03/18/2024 - 09:20 AM
LAFOX, Ill., March 18, 2024 (GLOBE NEWSWIRE) -- Richardson Electronics, Ltd. (NASDAQ: RELL) announced today a global distribution agreement with Ideal Power (NASDAQ: IPWR) for products including the discrete B-TRAN™ device and SymCool™ power module. Ideal Power is pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch.
“We are excited to announce Richardson Electronics as the first distributor for our products. They have strong technical sales capability, expertise in demand creation and securing sales for new technologies, robust customer support, and global reach. Our products are a perfect fit for Richardson Electronics’ existing customer base needing medium and high voltage power semiconductors,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
“We are very excited to work with Ideal Power to bring their products to market worldwide. For years, Richardson has developed an excellent portfolio of Technology Partners for power management components and engineered solutions,” said Greg Peloquin, Executive Vice President and General Manager of Power & Microwave Technologies and Green Energy Solutions groups. “Ideal Power’s products are an innovative and complementary addition to this portfolio, providing low loss and inherently bidirectional power semiconductors to customers globally for use in a wide variety of industrial applications.”
Ideal Power recently commenced shipment of its SymCool™ power modules to fulfill customer orders. The SymCool™ power module delivers clear advantages for several applications, including solid-state switchgear and circuit protection, renewable energy inverters for solar and wind, industrial inverters, hybrid and electric vehicles (“EVs”), and EV charging. Ideal Power looks forward to industrial markets, particularly the solid-state circuit breaker market served by our SymCool™ power module, to be the earliest source of our sales ramp beginning in the second half of 2024, as expected.
Ideal Power utilizes an asset-light business model leveraging the large investment already made in the silicon processing, distribution, demand creation and support infrastructure. This business model allows the Company to focus on further developing its disruptive B-TRAN™ technology while minimizing capital requirements.
About Richardson Electronics – Power & Microwave Technologies
For over 75 years, Richardson Electronics has been your industry-leading global provider of engineered solutions, RF & microwave, and power products. The Power & Microwave Technologies group continues this legacy and complements it with new products from the world’s most innovative technology partners. Richardson Electronics’ Power & Microwave Technologies group focuses on what we do best: identify and design disruptive technologies, introduce new products on a global basis, develop solutions for our customers, and provide exceptional worldwide support. As a global company, we provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair—all through our existing global infrastructure. More information is available at www.rellpower.com .
About Richardson Electronics, Ltd.
Richardson Electronics, Ltd. is a leading global manufacturer of engineered solutions, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components, including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. More than 60% of our products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of our manufacturing partners throughout the world. All our partners manufacture to our strict specifications and per our supplier code of conduct. We serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company’s strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure. More information is available at www.rell.com .
Richardson Electronics common stock trades on the NASDAQ Global Select Market under the ticker symbol RELL.
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the development and commercialization of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch that delivers substantial performance improvements over today’s conventional power semiconductors. Ideal Power’s B-TRAN™ can reduce conduction and switching losses, complexity of thermal management and operating cost in AC power switching and control circuitry. For more information, visit the Company’s website at www.IdealPower.com , on LinkedIn , on Twitter, and on Facebook .
For Details Contact: chrism@rell.com
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What is the significance of the partnership between Richardson Electronics and Ideal Power?
The partnership aims to distribute Ideal Power's B-TRAN™ device and SymCool™ power module globally, benefiting from Richardson Electronics' technical sales capability and global reach.
What advantages do Ideal Power's SymCool™ power modules offer for various applications?
Ideal Power's SymCool™ power modules provide advantages for applications such as solid-state switchgear, renewable energy inverters, industrial inverters, hybrid and electric vehicles, and EV charging.
When is Ideal Power expecting the sales ramp for its SymCool™ power modules to begin?
Ideal Power anticipates the sales ramp for its SymCool™ power modules to begin in the second half of 2024, with a focus on industrial markets like the solid-state circuit breaker market.
What business model does Ideal Power utilize to develop its B-TRAN™ technology?
Ideal Power employs an asset-light business model that allows the company to focus on developing its disruptive B-TRAN™ technology while minimizing capital requirements.
