PWNX Powerlinx Inc (CE)

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) About PowerLinx, Inc.: PowerLinx, Inc., 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: www.power-linx.com E-mail: investor@power-linx.com This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those that involve PowerLinx�s risks and uncertainties and statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. All statements contained herein are based upon information available to PowerLinx�s management as of the date hereof, and actual results may vary based upon future events, both within and without PowerLinx�s management�s control. 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 are only predictions. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. 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. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. 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. -0- *T 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) *T About PowerLinx, Inc.: PowerLinx, Inc., 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: www.power-linx.com E-mail: investor@power-linx.com This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those that involve PowerLinx's risks and uncertainties and statements regarding our plans, future events, objectives, expectations, forecasts, or assumptions. All statements contained herein are based upon information available to PowerLinx's management as of the date hereof, and actual results may vary based upon future events, both within and without PowerLinx's management's control. 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 are only predictions. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors, including those described in the Company's most recent filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. The business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. 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. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.