20 Nov 2006 - PowerLinx, Inc. Announces Consolidated Results for the Quarter Ended September 30, 2006
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--PowerLinx, Inc. (OTCBB:PWNX), today reported its September 30, 2006 quarter ended consolidated results.
Net revenues of $1,004,600 for the quarter ended September 30, 2006 exceeded revenues for the same period in 2005 by $780,600 or 349%. The growth in revenue was directly attributable to increases in revenue from the SecureView PowerLinx Video Surveillance Camera.
Net loss for the quarter ended September 30, 2006 was $584,800 or $.12 per share, including discontinued operations, compared to a loss of $941,000 or $.24 per share for the same period ended 2005.
Gross profit increased 436% from $87,400 for the quarter ended September 30, 2005 to $272,900 for the quarter ended September 30, 2006. Operating expenses decreased 21% from $1,011,600 for the quarter ended September 30, 2005 to $797,800 for the quarter ended September 30, 2006. Loss from operations decreased 43% from $924,200 for the quarter ended September 30, 2005 to $524,900 for the quarter ended September 30, 2006.
Attaining net revenues of $1,004,600 for the quarter ended September 30, 2006 represented the largest single quarterly revenue total in the Company's history; a 99% increase in net revenues, compared to the previous largest single quarterly revenue total for the quarter ended June 30, 2005.
"There are three key elements to the PowerLinx business plan as we move forward: grow revenue on existing products, reduce expenses, and complete development of new technologies and the products currently in the pipeline," stated Mike Tomlinson, President & Chief Executive Officer of PowerLinx. "We are very proud of the significant progress we've made in all three areas this past quarter. The financial results for the third quarter reflect the Company's focus on growing revenue on existing products and reducing overall expenses. In addition, we recently announced the readiness for launch of two new technologies/products; Power Line Audio and Power Line IP Cameras. Consistent with our business plan, the Company is in the early stages of bringing to market these exciting new technologies and products, through both direct sales and licensing opportunities, to fuel anticipated future revenue growth."
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." Accordingly, for all comparative reporting periods, revenue and expense amounts have been reclassified to reflect this accounting.
POWERLINX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(unaudited)
2006 2005
----------- -----------
Product sales, net $ 1,004,564 $ 223,945
Cost of goods sold 731,688 136,529
----------- -----------
Gross profit 272,876 87,416
Operating expenses 797,806 1,011,645
----------- -----------
Loss from operations ( 524,930) ( 924,229)
Interest expense, net 22,133 6,156
Gain (loss) on extinguishment of debt - -
Derivative gain (loss) ( 37,718) -
Loss before discontinued operations ( 584,781) ( 930,385)
Loss from discontinued operations ( - ) ( 10,638)
----------- -----------
Net loss ($ 584,781) ($ 941,023)
=========== ===========
Loss per common share $ (0.12)$ (0.24)