29 Jul 2005 - PowerLinx, Inc. Announces Consolidated Results for the Quarter Ended June 30, 2005
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--July 29, 2005--PowerLinx, Inc. (OTCBB:PWLX), today reported its June 30, 2005 quarter ended consolidated results.
Revenues of $504,200 for the quarter ended June 30, 2005 exceeded revenues for the same period in 2004 by $69,900 or 16%. Net loss for the quarter ended June 30, 2005 was $1,175,600 or $.01 per share, including loss from discontinued operations, compared to a loss of $958,400 or $.01 per share for the same period ended 2004.
Gross profit declined 12% from $172,500 for the quarter ended June 30, 2004 to $151,800 for the quarter ended June 30, 2005. Operating expenses increased 15% from $1,111,000 for the quarter ended June 30, 2004 to $1,282,200 for the quarter ended June 30, 2005. Loss from operations increased 20% from $938,500 for the quarter ended June 30, 2004 to $1,130,400 for the quarter ended June 30, 2005.
As reported in the Company's 10-KSB filed on April 14, 2005, the Company discontinued the operations of its Hotel/MDU products segment and operating results for the discontinued segment have been reported separately as discontinued operations in the consolidated statements of operations for all periods presented in accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." For the quarter ended June 30, 2005, revenues for the discontinued segment were $125,300, cost of goods sold was $82,300, and operating expenses were $75,200; resulting in a net loss from discontinued operations of $32,200.
Also as reported in the Company's 10-KSB filed on April 14, 2005, during the quarter ended March 31, 2005, the Company restructured its management and business operations. As a result, the Company was able to improve its financial performance for the quarter ended June 30, 2005 compared to the previous quarter ended March 31, 2005. Revenues for the quarter ended June 30, 2005 increased $76,800 or 18%, compared to the previous quarter ended March 31, 2005. Net Loss, including Loss from Discontinued Operations, for the quarter ended June 30, 2005 decreased $848,400 or 42%, compared to the previous quarter ended March 31, 2005. Gross profit for the quarter ended June 30, 2005 increased $39,600 or 35%, compared to the previous quarter ended March 31, 2005. Operating expenses for the quarter ended June 30, 2005 decreased $714,200 or 36%, compared to the previous quarter ended March 31, 2005.
Mike Tomlinson, President & Chief Executive Officer stated "the restructuring plan implemented during the 1st quarter of 2005 has already begun to produce tangible results; not only in the form of increased revenues from our core technology products, but also in the area of research and development where considerable progress was made during the quarter toward the completion of our next generation power line technologies and products."
POWERLINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2005 AND 2004
2005 2004
--------- ---------
Product sales, net $ 504,194 $ 434,342
Cost of goods sold 352,389 261,833
--------- ---------
Gross profit 151,805 172,509
Operating expenses 1,282,161 1,110,969
--------- ---------
Loss from operations (1,130,356) (938,460)
Other income (expense), net (13,041) (29,318)
--------- ---------
Loss before discontinued
operations (1,143,397) (967,778)
Gain (Loss) from
discontinued operations (32,206) 9,332
--------- ---------
Net loss ($ 1,175,603) ($ 958,446)
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Loss per common share $ (0.01) $ (0.01)
POWERLINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2005 AND MARCH 31, 2005
June 30, March 31,
2005 2005
--------- ---------
Product sales, net $ 504,194 $ 427,434
Cost of goods sold 352,389 315,182
--------- ---------
Gross profit 151,805 112,252
Operating expenses 1,282,161 1,996,363
--------- ---------
Loss from operations (1,130,356) (1,884,111)
Other income (expense), net (13,041) (1,057)
--------- ---------
Loss before
discontinued operations (1,143,397) (1,885,168)
Gain (Loss) from
discontinued operations (32,206) (138,882)
--------- ---------
Net loss ($ 1,175,603) ($ 2,024,050)
========= =========
Loss per common share $ (0.01) $ (0.01)