CAMPBELL, Calif. - Tigo Energy, Inc. (NASDAQ: TYGO), a provider of solar and energy software solutions, has initiated legal action against Zhejiang Benyi New Energy Co., Ltd. for alleged patent infringement. The lawsuit, filed on August 21, 2024, in the Shanghai Intellectual Property Court, claims that Zhejiang Benyi's rapid shutdown devices infringe on Tigo's China Patent No. 200880114564.0.
Rapid shutdown technology, essential for safety in photovoltaic systems on buildings, helps to protect emergency responders from electrical shock. The technology is increasingly mandated by building codes and regulatory bodies globally. Tigo, which holds over 150 patents granted or pending in this domain, also licenses its technology to other solar equipment manufacturers.
Tigo's complaint follows its track record of actively defending its intellectual property rights and winning multiple patent disputes in the past. The company's products, including the Tigo Flex (NASDAQ:FLEX) MLPE solutions, are installed worldwide, aiming to optimize solar energy systems and provide safe and monitored energy solutions.
Founded in 2007, Tigo Energy is recognized for its smart hardware and software solutions that improve the safety, efficiency, and cost-effectiveness of solar energy systems. The company's offerings are integral to residential, commercial, and utility-scale solar installations, combining module-level power electronics (MLPE) and solar optimizer technology with advanced cloud-based monitoring.
This legal action reflects Tigo Energy's commitment to safeguarding its technological innovations in the rapidly expanding solar energy sector. The information in this report is based on a press release statement from Tigo Energy.
In other recent news, Tigo Energy has been under the financial microscope with both H.C. Wainwright and Northland adjusting their price targets for the solar company. H.C. Wainwright reduced its target to $3.00 from $5.00, maintaining a Buy rating despite a more conservative revenue forecast for the third quarter of 2024. Northland also adjusted its target, lowering it to $4.50 from $4.80, but kept an Outperform rating on the stock.
The revisions follow Tigo Energy's second-quarter earnings call, where the company projected revenues between $13 million and $16 million, down from previous estimates. However, Tigo Energy has shown signs of sequential improvement in its financial performance, with expectations of a business recovery delayed until early 2025.
Tigo Energy's management has indicated that, with current inventory levels, the company would reach a break-even point with quarterly revenues of $17-19 million and adjusted EBITDA of $33-35 million. The company recently launched its TS4-X product and secured a significant contract for a 142MWp solar installation project in Spain, one of the largest projects to use Module Level Power Electronics (MLPE).
Both H.C. Wainwright and Northland consider Tigo Energy's balance sheet stable enough to support the company's near-term operational requirements. These are among the recent developments for Tigo Energy.
InvestingPro Insights
In the context of Tigo Energy's recent legal action to defend its patent rights, it is important for investors to understand the company's financial health and market performance. According to InvestingPro data, Tigo Energy (NASDAQ: TYGO) has a market capitalization of approximately $67.43 million. The company's revenue has seen a significant decline of 71.7% over the last twelve months as of Q2 2024, with a quarterly revenue decline of 81.55% in Q2 2024. These figures suggest challenges in the company's revenue generation.
Moreover, Tigo Energy's price has experienced significant volatility, with a one-week total price return of -9.35% and a staggering one-year price total return of -87.3%. This indicates that the stock has faced substantial pressure in the market.
InvestingPro Tips highlight several concerns for potential investors. Tigo Energy is quickly burning through cash, and analysts have revised their earnings forecasts downwards for the upcoming period. Furthermore, analysts anticipate a sales decline in the current year and do not expect the company to be profitable this year, with a negative P/E ratio of -7.37 reflecting these concerns.
However, it's not all negative for Tigo Energy. The company's liquid assets exceed its short-term obligations, which is a positive sign of its ability to meet immediate financial liabilities. Additionally, the company operates with a moderate level of debt, which can be a stabilizing factor in its financial structure.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics. There are 14 more InvestingPro Tips available for Tigo Energy, which can be found at https://www.investing.com/pro/TYGO. These tips provide a comprehensive view of the company's financial health and market performance, which could be crucial for making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.