13 July 1006 - PowerLinx Update on Power Line Audio Product Line
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--July 13, 2006--PowerLinx, Inc. (OTCBB:PWNX), a developer, manufacturer, and seller of power line communication products today announced details regarding the first of several product upgrades and new products scheduled for launch in 2006.
This product line transmits audio over the existing electrical lines within a home or small office. The product allows an end user to install audio speakers in any room in the home without running additional wiring from room to room.
The product will be introduced in two forms. The first is an iPod/MP3 accessory, complete with audio speakers; and targets the rapid growth of the iPod/MP3 player market. The second is an accessory for home entertainment systems and component stereo systems which have an extensive installed base. Both products allow the user to connect speakers in any room without running wires from the audio source to the room with the speakers. The technology may also be integrated into various consumer electronics products like home entertainment systems. It is especially well suited for surround sound products as it enables the rear surround sound speakers to be connected without running wires across the room. Prototypes were sent to two potential licensees during June of 2006. PowerLinx is currently scheduling presentations to introduce pre-production samples to major retailers during July and August of 2006.
Executive Vice President of Sales Roger Roy said, "NPD Group research shows that for every $3 spent on iPod products, an additional $1 is spent on accessories. That figure totaled $850-thousand last year and is forecast to top a billion dollars this year. We are driving our digital power line audio devices specifically at the iPod, MP3 player, and PC music users. Further, the second version of the product targets home theater and hi-fi consumers who want sound throughout their home without the trouble and expense of in-wall wiring."
PowerLinx is expanding the revenue potential for all power line products by engineering the products to operate on both domestic and international electrical systems.
Management intends on penetrating targeted markets utilizing both licensing and direct sales strategies, depending on market structure and targeted customers in each segment. Management is currently pursuing licensing partners for all product lines. For its direct sales strategy, the Company has outsourced manufacturing to IC Intracom in order to efficiently manufacture goods in Asia. This change in manufacturing has reduced the cost of goods sold and has freed resources within PowerLinx allowing the Company to concentrate on its core competence of developing power line communication technology and products.
Mike Tomlinson, CEO of PowerLinx stated, "The Company remains committed to its new strategic plan. These new product introductions and upgrades are a key part of aggressively pursuing the business plan that supports those strategies." According to Tomlinson, the estimated release dates are based on the most recent project plan timelines. Risks associated with engineering new technology and certain external influences, such as regulatory approvals or component availability, have been factored in but may shorten or lengthen time to market by several weeks.