17 August 2004 -- PowerLinx, Inc. Reports Eighth Consecutive Quarter of Comparative Sales Improvement With Second Quarter Results Ending June 30, 2004
2nd Quarter Sales Represent Best in Company's History; Gross Profit Continues to Improve With 211% Increase as Compared to Same Period for the Previous Year
TIERRA VERDE, Fla., Aug. 17 /PRNewswire-FirstCall/ -- PowerLinx, Inc. (OTC Bulletin Board: PWLX - News), the leader in power line communication products, reported results for the quarter ended June 30, 2004. The Company reported $559,713 in sales for the second quarter of 2004 versus $275,364 for the second quarter of 2003 which represents a 103.3% sales gain and is the seventh consecutive quarter of comparative sales improvement for the Company. In addition, the $559,713 in sales represents the largest single quarter of net revenue in the Company's history. For the trailing four quarters, the Company has generated sales of $1,661,992 versus $1,044,031 for the comparable four quarters which is a 59.2% sales gain. The Company reported $215,548 in gross profit for the second quarter of 2004 versus $69,225 for the second quarter of 2003 which represents a 211.4% gross profit gain. 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 and six months ended June 30, 2004 and 2003.
Selected Statement Of Operations Information
Three Months Ended Three Months Ended
June 30, 2004 June 30, 2003
Net Revenues $559,713 $275,364
Operating Expenses $1,198,424 $682,219
Net Income (Loss) $(1,012,193) $(953,633)
Six Months Ended Six Months Ended
June 30, 2004 June 30, 2003
Net Revenues $910,913 $620,965
Operating Expenses $2,197,501 $1,427,896
Net Income (Loss) $(1,874,306) $(1,931,120)
The Company has chosen to present additional financial information regarding the Company's financial condition and results of operations. As the Company's results of operations as presented under Generally Accepted Accounting Principles (GAAP) include material non-cash expenses, the Company has provided a pro-forma statement that adds back these expenses to present a pro-forma net loss that reconciles to its GAAP presentation. Given the net losses that have been reported in current and prior reporting periods, and the Company's use of cash to support operations, the Company believes this information will be useful to current and potential investors.
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
Reported net loss $(1,012,193) $(953,633) $(1,874,306) $(1,931,120)
Add:
Depreciation $22,008 $15,682 $43,868 $31,178
Amortization $128,572 $114,822 $254,644 $281,959
Taxes $ -- $ -- $ -- $ --
Net loss before taxes,
depreciation &
amortization $(861,613) $(823,129) $(1,575,794) $(1,617,983)
Add:
Stock-based
compensation: $312,792 $72,367 $587,749 $170,997
Pro forma net loss $(548,821) $(750,762) $(988,045) $(1,446,986)
The complete statement of Company results may be found in the quarterly 10-QSB report which may be accessed via the Company Web site, http://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 is consistently building a sales base for the future. Our sales directors and expanding sales team are beginning to develop and fill their sales pipeline. We are generating sales increases in our consumer security market segment and our transportation market segment along with recording initial sales results in our new hotel/MDU market segment. In addition, each hotel/MDU installation provides for recurring revenues through tech support and digital products and services marketed through our agreement with B2 Networks LLC. The engineering group lead by Mr. Rumbaugh is finalizing the details for the initial presentations of the PLVS Plus(TM) products for the consumer and professional security markets along with beginning the development of our digital products and applications in conjunction with On2 Technologies. 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 2nd quarter 2004 and early 3rd quarter 2004 include:
* PowerLinx, Inc. launched a redesigned Web site at:
http://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.
* PowerLinx, Inc. has enlisted the services of Winn Technology Group,
Inc., http://www.winntech.net, to serve as the marketing resource to
provide business-to-business marketing campaigns, inbound sales
management, first level tech support service, dealer database
management and competitive intelligence research.
* PowerLinx, Inc. has entered into a marketing and distribution agreement
with B2 Networks, (LLC) to distribute the new B2 Digital Services
Product Line. The agreement also provides PowerLinx the ability to
market and distribute the Pay-Per-View and Digital Satellite Services
of Telecommunication Products, Inc. who is a strategic partner and
minority shareholder of B2 Networks (LLC). The distribution agreement
will complement and enhance the recently launched PowerLinx product
offerings of high-speed internet and connectivity to the Hotel & MDU
market segment. The agreement provides for recurring revenue sharing
by all participants, including the hotel & MDU property owner, on the
services used and purchased by customers.
* PowerLinx, Inc. has engaged Bob Circosta, a legend in Direct Response
Retailing, as Spokesperson and On-Air talent for our powerline home
monitoring products which include SecureView(R), the "camera in a light
bulb."
* PowerLinx, Inc. announced the completion of a $1.275M private placement
to certain institutional investors of 10M shares of common stock,
together with 1.5M warrants to acquire additional shares of common
stock. Upon exercise these warrants would yield additional cash
proceeds to the Company of approximately $750,000 in total.
* PowerLinx, Inc. and On2 Technologies, Inc., The Duck Corporation
launched several strategic initiatives aimed at the surveillance,
security, and video-on-demand (VOD) markets.
About PowerLinx, Inc.:
PowerLinx, Inc., http://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.