SAN JOSE, Calif. - Energous (NASDAQ:WATT) Corporation (NASDAQ: WATT), specializing in over-the-air wireless power networks, has entered into a distribution partnership with DigiKey, a global distributor of electronic components. This collaboration aims to broaden the availability of Energous's wireless power solutions within the rapidly growing Internet of Things (IoT) market.
The partnership makes Energous's 1W PowerBridge and Omnidirectional PowerBridge transmitter systems available on DigiKey's platform, with plans to add more products in the future. These wireless power network solutions are designed to support battery-free operations for IoT applications, such as asset tracking and inventory management, which traditionally depend on batteries or charging cables.
Mallorie Burak, Interim Principal Executive Officer and CFO of Energous, stated that the alliance with DigiKey, which serves nearly one million customers annually, is expected to create new opportunities for their wireless power network solutions.
Minnesota-based DigiKey, with a history dating back to 1972, has evolved into a significant player in the distribution of electronic components and automation products. With the addition of Energous to their power portfolio, Missy Hall, Vice President of New Market Development at DigiKey, highlighted the potential benefits for customers in industries like retail, transportation, logistics, and manufacturing.
The global IoT market is anticipated to surpass $650 billion by the end of 2026, driven by the digital transformation of supply chain management and logistics applications. Energous's technology aims to facilitate the next generation of IoT devices, including retail sensors, electronic shelf labels, air quality monitors, and motion detectors.
This partnership reflects Energous's commitment to expanding the reach of its wireless power technology and DigiKey's ongoing efforts to provide innovative solutions to its customers. The information for this article is based on a press release statement.
In other recent news, Energous Corporation has been a topic of interest among analysts. Roth/MKM maintained its Buy rating on the company, despite reducing the stock's price target from $4.00 to $2.50. The firm's analysis showed confidence in Energous's direction and growth potential, highlighting the company's progress in proof-of-concept engagements and the anticipated production ramp-up of its initial programs.
On the other hand, Ladenburg Thalmann downgraded Energous from Buy to Neutral, setting a price target of $2.00. The firm cited concerns about the company's short-term prospects and a slower revenue ramp, revising its revenue estimate for Energous in 2024 to just $1.1 million.
In addition to these developments, Energous announced the immediate departure of Cesar Johnston from his roles as President and CEO, although he will maintain his position on the company's Board of Directors. An Office of the Chair has been established to lead operations during the transition. These are among the recent developments that investors should take into account when considering Energous Corporation.
InvestingPro Insights
As Energous Corporation (NASDAQ: WATT) embarks on its partnership with DigiKey to expand its wireless power solutions in the IoT market, the company's financial health and market performance provide critical context for investors. An analysis of real-time data from InvestingPro reveals some of the challenges and opportunities facing Energous.
The company's market capitalization stands at a modest $6.73 million, reflecting the size and scale of the business within its industry. Notably, Energous is currently not profitable, with a negative price-to-earnings (P/E) ratio of -0.28 for the last twelve months as of Q1 2024, and analysts do not anticipate the company will turn a profit this year. The price-to-book ratio of 0.94 suggests that the stock may be valued fairly in relation to the company's book value.
The InvestingPro Tips highlight that Energous holds more cash than debt on its balance sheet, which is a positive sign of the company's ability to manage its financial obligations. Additionally, analysts anticipate sales growth in the current year, which could signal future improvements in the company's financial performance. However, with the stock price having fallen significantly over the last year, currently at 15.19% of its 52-week high, investors have seen substantial declines in their holdings.
For Energous investors seeking deeper insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/WATT. These tips include analysis of the company's cash burn rate, stock volatility, and sales growth expectations, which can help investors make more informed decisions. Subscribers can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.
Overall, while Energous's partnership with DigiKey could open up new avenues for growth, it is important for investors to consider the company's current financial state and market performance. With 17 additional InvestingPro Tips available, investors have access to a comprehensive analysis that could aid in navigating the complexities of investing in a niche player within the IoT industry.
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