17 May 2004 -- PowerLinx, Inc. Reports Seventh Consecutive Quarter of Comparative Sales Improvement With First Quarter Results Ending March 31, 2004
PowerLinx Sourcing Strengths Translate Into 65% Increase in Gross Profit as Compared to Same Period for the Previous Year
TIERRA VERDE, Fla., May 17 /PRNewswire-FirstCall/ -- PowerLinx, Inc. (OTC Bulletin Board: PWLX - News), the leader in power line communication products, reported results for the quarter ended March 31, 2004. The Company reported $351,199 in sales for the first quarter of 2004 versus $345,601 for the first quarter of 2003 which represents a 1.6% sales gain and is the seventh consecutive quarter of comparative sales improvement for the Company. For the trailing four quarters, the Company has generated sales of $1,377,642 versus $923,626 for the comparable four quarters which is a 49.2% sales gain.
The Company reported $136,833 in gross profit for the first quarter of 2004 versus $82,768 for the 1st quarter of 2003 which represents a 65.3% gross profit gain. It marks the beginning of the effects of an improved cost structure generated from the Company's overseas sourcing and the strategic business alliance with China Silian Group Co., Ltd (SIC Group), of Chongqing, China. The alliance established SIC as the primary supplier of our power line products and components and establishes a credit line for the Company to procure inventory. The Company has also begun expanding the sourcing of its products beyond Chinato include Hong Kong, Taiwan, and Korea. The ability to source product overseas should continue to be a major strength of the Company in an effort to improve gross profit margins in future reporting periods.
The following table sets forth selected information from the statement of operations for the three months ended March 31, 2004
Selected Statement of Operations Information
Three Months Ended Three Months Ended
March 31, 2004 March 31, 2003
Net Revenues $ 351,199 $ 345,601
Operating Expenses $ 999,078 $ 755,990
Net Income (Loss) $(862,114) $(977,487)
The complete statement of Company results may be found in the quarterly 10-Q report which may be accessed via the Company Web site, www.power-linx.com, using the "SEC filings" link in the investor relations section.
Commenting on these results, George S. Bernardich III, PowerLinx's Chairman & CEO stated, "The Company again continues to systematically grow our sales base by utilizing its available capital productively and judiciously as evidenced by our seventh consecutive quarter of sales growth. Our two new sales directors rapidly got up to speed and we expect their expanding sales team now numbering ten strong to significantly impact sales growth in the future. Inventory is on hand and readily available for the sales team to meet their goals. And, after being absent from the airwaves for several months, our sales team reestablished our business relationships with our direct television partners in late March to sell our SecureView, "camera in a light bulb" which recently has the value added MommyTrack(TM) software included in the package. Our PowerLinx Vision System (PLVS)(TM) continues to be deployed throughout an expanding customer base among distributors, dealers, and fleets. Thus far, the PLVS(TM) product has produced verifiable safety enhancement and property loss savings for the customers and fleets which we expect to result in continued additional orders and contracts. Finally, on revenues, the recently launched hotel connectivity segment is expected to immediately generate revenues and profits in the 2nd quarter. The Company's balance sheet continues to improve and the fact remains we have no long-term debt. To continue this trend, the Company is in discussions with several institutional grade investors to acquire long term funding for the Company. Lastly, the engineering group lead by Mr. Rumbaugh is focused on finalizing the PLVS Plus(TM) products for the consumer and professional security markets along with developing our digital products and applications. We expect the Company to continue to achieve new milestones on a regular basis over the coming quarters as we become an established worldwide leader in the manufacturing and distribution of PowerLine products to consumer, commercial and industrial markets."
Significant highlights of Company achievements for the 1st quarter 2004 and early 2nd quarter 2004 include:
* PowerLinx, Inc. expanded its Board of Directors. 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. announced that PowerLinx
will use the On2 codecs in its next generation digital commercial
security products through a license agreement.
* PowerLinx, Inc. concluded a private placement in the amount of
$1,825,520 with warrants that would bring an additional $411,000 if
exercised. The private placement was conducted as a "Unit Offering"
with each $8.00 Unit consisting of 8 shares of Series A Convertible
Preferred stock, 2 shares of restricted common stock and a warrant to
purchase an additional 3 shares of common stock at $.50 per share. In
addition to a 6% coupon per share, the Series A Convertible Preferred
stock has a $1.00 per share value which may be converted to shares of
common stock at a variable rate but not less than $.25 or 4 shares of
common stock.
* PowerLinx, Inc. has become a Commercial Member (#C10012) of the Family
Motor Coach Association (FMCA), www.fmca.com. PowerLinx is selling and
marketing our innovative PowerLinx Vision System(TM) ("PLVS")through
our affiliation with this well-known and respected RV organization to
provide a safer RV experience.
* PowerLinx, Inc. has become a member of the National Truck Equipment
Association (NTEA), www.ntea.com, through our business relationship
with Mr. Stan Coveleskie, President of SIA Truck Bodies, Inc. who also
serves as a Trustee for the NTEA. PowerLinx is selling and marketing
the Company's innovative PowerLinx Vision System(TM) ("PLVS")through
its affiliation with NTEA to provide a safer trucking environment as
risk management and operator safety are two of the top concerns in the
transportation industry.
* PowerLinx, Inc. launched a redesigned Web site at: www.power-linx.com.
The Company's recent name change from Seaview to PowerLinx, as well as
its redesigned Web site, reflects on its emphasis to continually
develop new powerline products for the consumer, transportation, and
commercial security markets.
* PowerLinx, Inc. began a comprehensive collaboration with Cenuco, Inc.
of Boca Raton, Fla., to deploy the first integrated CCTV solution
utilizing PowerLinx power line video transmission technologies and
camera systems, combined with Cenuco's mobile software technology to
transmit live CCTV video onto cellular phones, Pocket PC devices, and
remote computers.
* PowerLinx, Inc. entered into a strategic alliance agreement with Choice
Hotels International, one of the largest hotel franchise companies in
the world with more than 5,000 hotels, inns, all-suite hotels and
resorts open and under development in 46 countries under the Comfort
Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Rodeway Inn, Econo
Lodge and MainStay Suites brand names. The PowerLinx-Choice Hotels
International agreement is an annual, renewable contract which appoints
PowerLinx as a Choice Endorsed Vendor offering PowerLinx's high speed
internet access and connectivity to Choice Hotels United States
franchisees.
About PowerLinx, Inc.:
PowerLinx, Inc., www.power-linx.com, develops, manufactures, and markets, among other devices, products, and applications developed to transmit voice, video, audio and data either individually or any and all combinations over power lines, twisted pair wires and coax in AC and DC power environments, on any and all power grids. The Company has also developed, manufactured, and marketed different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.
Web site: www.power-linx.com
E-mail: investor@power-linx.com