Powerlinx (CE) (USOTC:PWNX)
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PowerLinx, Inc. (OTCBB:PWNX) today announced that CEO
Mike Tomlinson was interviewed by Michael Wax of CEOcast. The
interview can be heard online at http://www.ceocast.com.
In the interview, Mr. Tomlinson described PowerLinx power line
technology, which sends video and audio over existing electrical
wiring. PowerLinx has chosen to focus the commercialization of its
technology on the home, small office and vehicular markets. Each of
these are very large, fast-growing markets.
PowerLinx technology advantages include ease of installation and
reliability, as compared with competing hard wired and RF wireless
technologies. In video surveillance, for example, hard wired
technology is very difficult to install because wiring must be run
from each camera to the locations in the home or office where the
video is to be monitored.
RF wireless is relatively easy to install, but the signal strength
is limited due to regulations, often to the point that it cannot
transmit and receive video over the desired distances within a home.
In contrast, PowerLinx technology is easy to install. One does not
need to run new wiring since the video signal is transmitted and
received over the electrical wiring already in the home. PowerLinx
technology is more reliable than RF wireless because it does not send
any video through the air.
The demand for video surveillance in the home and small office is
growing rapidly. PowerLinx technology provides a sustainable
competitive advantage in this market.
PowerLinx recently completed a $4.48MM capital funding round. When
asked how the proceeds from the convertible debentures will be used,
Tomlinson explained that the funds will consolidate debt and enable
PowerLinx to execute its business plan. Initially, $1.3MM was used to
consolidate all existing company debt into this offering. The
remaining $3MM will be used to execute the business plan.
PowerLinx cut $1MM in expenses from the budget during the 2005
restructuring. This reduction in expenses, combined with the new
funding, should ensure the necessary capital for PowerLinx to
introduce its new power line video and audio products during the third
and fourth quarters of 2006.
The products will include:
-- Analog and digital power line video systems for the home and
small office markets;
-- Power line audio products for the home entertainment market;
-- An improved rear vision system for the transportation market.
The improved rear vision system will complement the Zone Defense
initiative, where PowerLinx is expanding its product mix to become a
full-line vendor in the accident avoidance space for trucks and
recreational vehicles.
PowerLinx views its core competency as development of products
using power line technology. PowerLinx will outsource other non core
activities where possible. PowerLinx has signed a manufacturing
contract with IC Intracom. IC Intracom currently manufactures products
in Asia, and will apply its expertise to the manufacture of PowerLinx
products as well. This will allow PowerLinx to focus on its core
business while accelerating time to market.
PowerLinx will also outsource some sales activities. PowerLinx
will seek licensing agreements for each product as a primary marketing
strategy. Where licensing relationships are not appropriate, PowerLinx
will employ brokers and manufacturers' representatives to sell
PowerLinx products, using the existing structure and customer contacts
of these sales organizations to speed market penetration.
Mr. Wax asked what milestones investors should look for in the
coming quarters. Mr. Tomlinson replied that investors should look for
milestones in the areas of new product introductions and increased
revenue.
In-depth interviews from CEOcast deliver a first hand perspective
that enables investors to make intelligent and informed investment
decisions. On the CEOcast.com site, the interview can be retrieved by
accessing "Interview Archives", and searching for Powerlinx, Inc. in
the alphabetical listing.
About CEOcast:
CEOcast (http://www.ceocast.com) is the premier source of original
and syndicated streaming broadcast interviews of Chief Executive
Officers at public and private news-making companies. Organized by
industry, its analysts average over 15 years experience covering and
evaluating Wall Street's leading companies.
CEOcast's programming is distributed to millions of on-line
investors at over 700 financial web sites as well as to more than
20,000 portfolio managers, buy-side analysts and traders at more than
3,300 North American institutions. Content is also disseminated to
over 7,000 investment research professionals representing over 425
institutions.
About PowerLinx, Inc.:
PowerLinx, Inc. (http://www.power-linx.com) develops,
manufactures, and markets products and applications that transmit
voice, video, audio and data either individually or in 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: http://www.power-linx.com
E-mail: investor@power-linx.com
This press release may contain "forward-looking statements" that
involve risks and uncertainties, including statements regarding our
plans, future events, objectives, expectations, forecasts, or
assumptions. Any statement in this press release that is not a
statement of historical fact is a forward-looking statement, and in
some cases, words such as "believe," "estimate," "project," "expect,"
"intend," "may," "anticipate," "plans," "seeks," and similar
expressions identify forward-looking statements. These statements
involve risks and uncertainties that could cause actual outcomes and
results to differ materially from the anticipated outcomes or result,
and undue reliance should not be placed on these statements. These
risks and uncertainties may include: the adoption of our new products
by customers; our ability to identify, develop, and commercialize new
applications for our products; the ability to manage our anticipated
growth; scaling-up our manufacturing capabilities; protecting our
intellectual property; and other risks and uncertainties discussed in
filings made with the Securities and Exchange Commission (including
risks described in subsequent reports on Form 10-Q, Form 10-K, Form
8-K, and other filings). PowerLinx, Inc. disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.