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Tigo Energy defends key solar patent against SMA challenge

Published 14/11/2024, 14:06
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CAMPBELL, Calif. - Tigo Energy, Inc. (NASDAQ: TYGO), known for its solar and energy software solutions, has successfully upheld the validity of a key patent related to its module-level power electronics (MLPE) technology. The U.S. Patent and Trademark Office (USPTO) has rejected a challenge by SMA Solar Technology AG to Tigo's U.S. Patent No. 9,584,021, which focuses on a power supply design that mitigates false-start issues in solar systems.

This decision by the USPTO is the latest in a series of legal victories for Tigo, strengthening its intellectual property portfolio amidst ongoing patent-infringement litigation with SMA in the U.S. District Court for the District of Delaware. The disputed patents, including U.S. Patent Nos. 9,966,848 and 10,333,405, are central to Tigo's MLPE technology.

Zvi Alon, CEO of Tigo Energy, emphasized the importance of these defenses, stating that they "affirm the strength of our intellectual property portfolio and reinforce our position as a leader in solar innovation." He further highlighted Tigo's commitment to advancing solar safety and efficiency while safeguarding the company's investments in innovation.

Tigo's patented technology is integral to its Flex (NASDAQ:FLEX) MLPE solutions, which are designed to enhance the reliability and performance of solar installations. The company offers licenses to its patented technologies on fair, reasonable, and nondiscriminatory terms. Tigo's products, patents, and licensees can be found on their Virtual Patent Marking for Rapid Shutdown Devices webpage.

The information for this article is based on a press release statement.

In other recent news, Tigo Energy has seen a series of significant developments. The company announced the return of Anita Chang as Chief Operating Officer, following the upcoming departure of Jeffrey Sullivan. Chang's previous tenure at Tigo Energy saw substantial operational improvements and sales growth, and her return is expected to further enhance the company's operational efficiency and product delivery.

Tigo Energy has also reported its second-quarter earnings, projecting revenues between $13 million and $16 million, showing signs of sequential improvement. The company's management indicated that with current inventory levels, Tigo Energy would reach a break-even point with quarterly revenues of $17-19 million and adjusted EBITDA of $33-35 million.

In other recent developments, Tigo Energy initiated a patent lawsuit against Zhejiang Benyi New Energy Co., Ltd., demonstrating its commitment to defending its intellectual property rights. Furthermore, the company recently launched its TS4-X product and secured a contract for a 142MWp solar installation project in Spain.

Analysts from H.C. Wainwright and Northland have adjusted their price targets for Tigo Energy, maintaining favorable ratings despite the adjustments. These recent developments highlight Tigo Energy's ongoing efforts in operational efficiency, financial performance, and technological advancement.

InvestingPro Insights

While Tigo Energy (NASDAQ: TYGO) has secured a significant legal victory in defending its intellectual property, recent financial data from InvestingPro paints a challenging picture for the company's current market position.

According to InvestingPro data, Tigo's market capitalization stands at $63.17 million, reflecting a relatively small player in the solar technology sector. The company's revenue for the last twelve months as of Q3 2023 was $45.98 million, with a concerning revenue growth decline of -72.45% over the same period.

InvestingPro Tips highlight that Tigo is "quickly burning through cash" and "analysts anticipate sales decline in the current year." These factors may pose significant challenges for the company as it continues to defend its patents and invest in innovation.

Despite these financial hurdles, Tigo maintains some positive aspects. An InvestingPro Tip notes that the company "operates with a moderate level of debt," which could provide some financial flexibility. Additionally, "liquid assets exceed short term obligations," suggesting a degree of short-term financial stability.

The stock's performance has been notably weak, with InvestingPro data showing a one-year price total return of -56.67% as of the latest available data. This aligns with another InvestingPro Tip stating that the "stock has fared poorly over the last month."

For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Tigo Energy, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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