12 Apr 2006 - PowerLinx CEO Tomlinson Interviewed by Wall Street Reporter
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--April 12, 2006--PowerLinx, Inc. (OTCBB:PWNX) today announced that CEO Mike Tomlinson was interviewed by Michael Wax of the Wall Street Reporter. The interview can be heard online at http://www.wallstreetreporter.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. This
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 manufacture 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 The Wall Street Reporter deliver a first hand perspective that enables investors to make intelligent and informed investment decisions. On the wallstreetreporter.com site, the interview can be retrieved by scrolling down the left column of companies to the OTCBB section, and looking for PowerLinx, Inc.
About Wall Street Reporter:
When the first issue of Wall Street Reporter appeared in 1843, it was the only newspaper exclusively devoted to the financial business. Nearly 150 years after that, we took an equally bold step into the network age by becoming the first website to regularly interview CEOs and other high-ranking corporate officials. The Wall Street Reporter is published in three formats: print monthly magazine, online at http://www.wallstreetreporter.com, and an institutional weekly magazine delivered via the web. More than 80,000 portfolio managers, analysts, venture capitalists, and other decision makers (not to mention 3,500 financial editors, reporters, and TV producers) read their publications.
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.