16 Mar 2004 -- PowerLinx Reports Record 2003 Sales Revenue With Fiscal Year Results Ending December 31, 2003
Sixth Consecutive Quarter of Comparative Sales Improvement
TIERRA VERDE, Fla., March 16 /PRNewswire-FirstCall/ -- PowerLinx, Inc. (OTC Bulletin Board: PWLX - News), the leader in power line communication products, reported results for the quarter and year ending December 31, 2003. The Company reported $328,860 in sales for the 4th quarter of 2003 versus $186,326 for the 4th quarter of 2002, which represents a 76.5% sales gain and is the sixth consecutive quarter of comparative sales improvement for the Company. For the fiscal year of 2003, the Company has generated sales of $1,372,044 versus $704,641 for the comparable fiscal year which is a 94.7% sales gain.
The following table sets forth selected information from the statement of operations for the three months and fiscal year ended December 31, 2003 and 2002.
Selected Statement of Operations Information
Three Months Ended Three Months Ended
December 31, 2003 December 31, 2002
Net Revenues $328,860 $186,326
Operating Expenses $1,144,581 $(17,802)
Operating Income (Loss) $(662,727) $(35,053)
Fiscal Year Ended Fiscal Year Ended
December 31, 2003 December 31, 2002
Net Revenues $1,372,044 $704,641
Operating Expenses $3,345,996 $3,899,388
Operating Income (Loss) $(2,934,265) $(3,900,591)
The complete statement of Company results may be found in the annual 10-K
report which may be accessed via the Company Web site,
www.power-linx.com, using the "SEC filings" link in the investor
relations section.
Significant highlights of Company achievements for the 2003 fiscal year and early 1st quarter 2004 include:
-- SecureView(TM), "camera in a light bulb," debuted with catalog leader
Frontage's newest catalog; "Grandin Road(TM)" in July 2003 and
continues to be sold and merchandised in subsequent editions of the
catalog which are expected to continue throughout 2004.
-- PowerLinx began distributing our Power Line Vision Systems(TM)
(PLVS)(TM) as an option on truck body models and vans for Truck Dealers
and for National Truck Equipment Association (NTEA) members in July
2003 through SIA Truck Bodies, Inc., a leading Ford(R) Truck Bailment
Pool dealer in the Southeastern United States. SIA is just one of
approximately 125 such dealers who serve the commercial truck market
for all makes and models in the US market in which PowerLinx expects to
expand its presence in 2004 with the help of SIA.
-- PowerLinx entered into a strategic business alliance in July 2003 with
China Silian Group Co., Ltd (SIC Group), www.sicc.com.cn, of Chongqing,
China who is one of the 500 largest industrial enterprises in China,
manufacturing a wide array of electrical instrument products for
worldwide distribution to customers who include ABB Ltd. and Siemens
AG. The alliance established three important business arrangements with
more anticipated in the future. First, and of most significance, SIC
Group has established a secured open ended credit line for PowerLinx to
procure production of the PowerLinx's products for its customers.
Secondly, SIC Group will become the primary manufacturer for
PowerLinx's PLC products along with several marine products. Not only
will this allow PowerLinx to provide a consistent quality product since
SIC Group factories are ISO 9001/9002 certified, the Company expects to
significantly reduce our sourcing costs allowing our products to be
competitively priced in the marketplace. Lastly, PowerLinx and SIC
Group intends to conduct market research in late 2004 to investigate
the marketability and distribution of PowerLinx's products in China
which may result in a distribution arrangement.
-- SecureView(TM) debuted on leading direct television retailer, Shop At
Home Network, LLC. in August 2003 with subsequent airings throughout
the 2003 holiday season joining our other direct TV retailer, Home
Shopping Network. SAH is expected to begin SecureView(TM) 2004 airings
in March 2004 followed by HSN later in the 2nd quarter. PowerLinx
expects both SAH and HSN to maintain regular airings of the product
throughout 2004.
-- PowerLinx entered into a redemption agreement with the convertible
debenture holders to redeem the $1,000,000 12% convertible debenture
purchase agreement executed September 20, 2002 and the $440,000 12%
convertible debenture agreement executed May 9, 2003. The redemption
closed on August 27, 2003 at which time PowerLinx paid all remaining
principal balances which had not been previously converted into common
stock, any accrued interest, and any applicable prepayment penalties in
cash. In addition, PowerLinx did not execute the last two remaining
$60,000 tranches of the May 9, 2003 12% convertible debenture
agreement.
-- PowerLinx engaged the government affairs firm of Alcalde & Fay in
Arlington, Va. in October 2003 to represent its interests before the
United States Congress as well as federal departments and agencies.
Initially, they are focused on generating appropriations in the
upcoming transportation bill to deploy our power line safety systems on
trucks and to facilitate a study of this type of safety product.
Assuming a positive report, their efforts would migrate toward
facilitating the presentation of Congressional legislation mandating
the use of rear-vision camera safety systems on trucks. Further,
Alcalde & Fay expects to seek other sales and marketing opportunities
for PowerLinx through their client schools, Homeland Security
Contracts, GSA listings, military, and other government agencies.
-- PowerLinx received $300,000 through warrants exercised by the original
debenture holder. The warrants were issued as part of the original
debenture agreement and registration filed September 30, 2002 and
carried an exercise price of $.10.
-- PowerLinx processed purchase order contracts with several fleet
companies to provide them with PowerLinx's Power Line Vision System(TM)
(PLVS(TM)), PowerLinx's distinctive power line on board rear & side
vision camera system. Ryder, Sysco, McKenzie Tank Lines, and McLane
Trucking are among our growing list of direct fleet customers who have
deployed over 1,000 PLVS(TM) systems since March 2003. The system
enhances vehicle safety and provides enhanced loss prevention through
reduced accident rates which is expected to lower insurance rates and
improve driver working conditions. PowerLinx believes this system is
the only power line product on the market today that provides video
transmission through the existing wiring harness, from cab to trailer,
on all makes and models. The product also provides a solution for all
fifth wheelers and towables in the RV market today.
-- PowerLinx, Inc. expanded its Board of Directors. William B. "Bill"
Edwards, President K & M Associates LP, and Francisco "Frank" Sanchez,
Managing Director of Cambridge Negotiation Strategies, accepted
appointments to join the Board effective November 1, 2003. Martin A.
"Marty" Traber, a partner of Foley & Lardner Attorneys at Law, and
James A. "Jim" Williams, President & CEO of Gold Toe Brands, Inc. and
Chairman of the Board of Maidenform Worldwide accepted appointments to
join the Board effective December 1, 2003. Douglas A. McIntyre,
Chairman, President & CEO of On2 Technologies, Inc. accepted an
appointment to join the Board effective March 1, 2004.
-- PowerLinx, Inc. acquired multiple patents defining digital transmission
through regular power lines and also through twisted pair wires.
-- PowerLinx, Inc. added two additional Sales & Marketing Directors: James
P. Markus and Michael E. Tomlinson.
-- PowerLinx Inc. and On2 Technologies, Inc. (Amex: ONT - News) announced that
PowerLinx will use the On2 VP6 codec in its next generation digital
commercial security products through a license agreement.
Commenting on these results, George S. Bernardich III, PowerLinx's Chairman & CEO stated, "The Company continues to systematically grow our sales base by utilizing its available capital productively and judiciously as evidenced by our sixth consecutive quarter of sales growth. And, the Company achieved it highest sales volume in its history for fiscal year 2003. However, the unexpected departure of our only sales director in mid-November significantly affected our sales momentum temporarily while delaying our intentions of achieving our operational breakeven point. Our two recently hired sales directors are rapidly getting up to speed and filling the void. We expect the Company to continue to achieve new milestones on a regular basis over the coming quarters and years. The Company is completing the final processing of the recent convertible preferred offering, which is expected to place the Company in a more stable financial position. And, this additional funding, along with the continued planned and systematic approach we have been executing, will allow the Company to continue to develop as a worldwide leader in the manufacturing and distribution of power line products to consumer, commercial and industrial markets."