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Empower TechnologiesT Year Ended December 31, 2005
Richmond , British Columbia - April 28, 2006 - Empower Technologies Corporation ("The Company" or "Empower") has filed financial statements for the year ended December 31, 2005 .
Empower is a Linux operating software developer for Linux-based embedded system technologies and solutions for the consumer electronics industry. The Company was incorporated under the Company Act ( British Columbia ) on February 21, 2003. The Company operates through its wholly-owned Washington State subsidiary, Empower Technologies, Inc. ("Empower US"), and indirectly; Empower Technologies ( Canada ) Inc. ("Empower Canada ") and Empower Technologies ( Shanghai ) Inc. ("Empower Shanghai"). The Company trades on the TSX Venture Exchange under the symbol EPT.
Highlights of the fourth quarter ended December 31, 2005:
- As of the end of the eligible period of March 31, 2005 - all of the 501,200 warrants issued and all of the 200,000 Agent's Warrants issued in the Short Form Offering of March 31, 2004 were exercised. This resulted in the issuance of 701,200 common shares and proceeds of $701,200 to the Company.
- The Company appointed Mr. Alex Romanov to Vice President, Sales and Marketing of its Canadian subsidiary.
- Delivered a one-stop Linux-based development platform to consumer electronics designers. The Company and Texas Instruments Incorporated ("TI") announced the availability of the LEOs for OMAP5910 Development Kit (LDK5910), running LinuxDA Embedded O/S (LEOsT) by the Company. Optimized for TI's OMAP5910 dual-core DSP and ARM CPU, the LDK5910 leverages the versatility of LEOs and the performance of TI's OMAPT processor to serve as a powerful reference design that significantly reduces product development time, cost and risk.
- The Company has met the requirements and became a TSX Venture Exchange Tier 1 company on September 12, 2005.
- Effective October 21, 2005, the Company moved to a new office that has a warehouse facility and also doubled the office space. This ambitious move is representative of our Company's rapid move to commercialize LEOs and products using LEOs, and the increasing expansion of sales and marketing and research and development capabilities, and will enable our team to continue to keep business growing in the right direction, bringing us closer to our goal of being a leader in our industry.
- During the year, the Company attended the following tradeshows:
» Consumer Electronics Show, Las Vegas , NV , USA , January 6-9, 2005
» TI Developer Conference, Huston , TX , USA , February 28 - March 2, 2005
» Electronic Entertainment Expo, Los Angeles , CA , USA , May 18-20, 2005
» Brazil TI Show, Sao Paulo , Brazil , August 15-17, 2005
» Embedded World 2005, Humberg, German, August 21-24, 2005
» Mexico Embedded Development Show, Guadalajara , Mexico , September 4-7, 2005
» Embedded Systems Conference, Boston , NY , USA , September 15-18, 2005
Significant projects
LEOs II (LinuxDA Embedded O/S II)
Empower US has commenced work on the next version of LEOs. Once the new LEOs II is tested and released then it will be optimized for the Texas Instruments ("TI") OMAP processors.
LDK5910 Development Kit
Empower US has launched LEOs for TI OMAP5910 Development Kit (LDK5910) on August 9, 2005 with a Texas Instruments joint press announcement. This kit will enable electronic manufacturers and developers to develop new products using the TI OMAP5910 dual core processor with LEOs as the operating software. The kit comes with hardware development boards using, TI OMAP5910 and a CD with LEOs and the SDK (Software Development Kit). The manufacturer's suggested retail price is $900 USD. LEOs for TI OMAP5910 initiates a new level of performance expectations for intelligent devices with increased headroom for applications and expansion capabilities for other functions.
LDK5912 Development Kit
Empower US has commenced work on LEOs for TI OMAP5912 Development Kit (LDK5912). This kit has the same features as the LDK5910. This product completes the LEOs for TI OMAP591x (LDK591x) Development Platform offering. LDK5912 is backward compatible with LDK5910 for both the hardware and the software.
Osaka Project
With CD, DVD, MP3 and clock radio capabilities, the Osaka Project is a compact, all-digital audio system. Supporting a wide range of sound functions, it integrates all the elements of personal and home audio, in addition to a PDA with QVGA display. Powered by LEOs for the TI OMAP5910 dual core processor, the Osaka Project uses Empower's Totally Digital Audio Path ("T-DAP") technology. The Osaka Project fulfils the needs and demands of the cutting edge consumer.
PowerPlay 1x
This new mobile data terminal model is still under development. Besides the regular PDA functions, this new model will have wireless communication capability.
Results of Operations
Revenues presently the Company's activities continue to be primarily the development of the Company's LEOs operating software for Texas Instruments OMAP591x dual core processor family, engineering consumer electronics using LEOs and LDK5910 Development Kit, and filing patents for embedded systems and technologies. Revenues generated for the year ended December 31, 2005 were $3,746 compared with $170,369 for fiscal 2004 and $134.728 for fiscal 2003. This decrease is attributed to the Company's decision to clear out and drop all distributed products and end of life product to make way for the new products developed in-house using t he Company's embedded system technologies including LEOs (LinuxDA Embedded O/S).
The Company anticipates revenue to be improved through its plans to: introduce new products using LEOs; move aggressively to set up a strong marketing and sales base in North America for LEOs, the new LDK5910 Development Kit, and the consumer products such as the PowerPlay Media Chair and handheld unit using LEOs and LDK5910 technology.
General and administrative expenses for the year ended December 31, 2005 increased to $2,734,997 (2004 - $2,346,214 and 2003 - $1,473,449). Wages and benefits increased to $1,019,785 (2004 - $446,493 and 2003 - $142,528), reflecting staff additions in the Company. Advertising and promotion increased to $329,481 (2004 - $236,839 and 2003 - $24,939) due to the Company's effort to commercialize its technologies by attending tradeshows and expanding investor relations. Travelling expenses increased to $187,169 (2004 - $104,063 and 2003 - 26,464) due to spending efforts to promote our products and attend tradeshows. Office expenses increased to $118,229 (2004 - $59,391 and 2003 - $37,054), rent increased to $34,568 (2004 - $28,923 and 2003 - $24,000) for our new move to a larger premise. Legal fees increased to $229,679 (2004 - $126,856 and 2003 - $156,001) due to corporate matters such as regulatory and exchange filing and reporting, new contracts, new patents and trademarks application and filing.
Research and Development costs ("R&D costs") relating to the development of LEOs, the LDK591x Development Kit, and new products using LEOs are expensed as incurred. R&D costs for the year ended December 31, 2005 were $1,329,579 compared to $770,042 for 2004 and $Nil for 2003.
The R&D cost increase is due to the Company accelerating its efforts to develop its core technology, LEOs operating software, and to apply it to new products to showcase the core technology.
About Empower Technologies™
Founded in 2000, Empower Technologies (TSX.V: EPT) is an innovative company that brings the power and flexibility of the LEOs® (LinuxDAT Embedded Operating System) to the dynamic embedded computing Industry and the emerging Intelligent Appliance Market, through their development of Linux-based operating software, embedded system technologies and solutions.
The products and services that form the base of its business activities include an embedded system development platform for LEOs®, based on Texas InstrumentsT embedded CPU platform, that fulfill the needs and demands of developers and the embedded computing Industry. Empower is continuing to develop LEOs® and newer versions of embedded CPUs in line with Texas InstrumentsT.
By uniting top professionals from within the computer industry and developing quality partnerships and strategic alliances, Empower is committed to being the leading developer of Linux-based operating software and embedded system technologies and solutions for electronics manufacturers and developers.
Empower's brands are "LEOs®", "LinuxDAT", Linux-based embedded operating systems and "PowerPlayT", smart consumer electronics.
Contact Information:
Media Enquiries:
Paul Leung - Chairman, President and CEO: pcleung@empowertechnologies.com or via Tel @ (604) 278-3100
Investor Relations: investorline@empowertechnologies.com
More Information on Empower Technologies: www.empowertechnologies.com
Sales Enquiries: sales@empowertechnologies.com or via Tel @ (604) 278-3100
Paul Leung
Chairman, President and CEO
Empower Technologies Corporation
# 405-5600 Parkwood Way
Crestwood Commerce Centre
Richmond , BC , Canada V6V 2M2
The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management's estimates, assumptions and projections using available information. The company cautions that actual financial results could differ materially from the current expectations due to a number of factors.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.
Empower Technologies, LEOs, PowerPlay and LinuxDA are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.
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