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Empower TechnologiesT First Quarter Report Ended March 31, 2006
Richmond , British Columbia - May 30, 2006 - Empower Technologies Corporation ("The Company" or "Empower") has filed financial statements for the first quarter ended March 31, 2006.
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 first quarter ended March 31, 2006:
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On February, the Company's product, LEOs-based development platform LDK5910 software development kit has been listed on the Texas Instruments ("TI") online eStore. Empower is also brought up first out of hundreds of search returns as a TI recommended 'Best Bet' when a keyword search is made on TI.com for OMAP5910, Linux or Empower.
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Also, there is a new release of LEOs for OMAP5912 Development Kit (LDK5912), based on TI's OMAP5912 dual-core processor. This one-stop Linux-based development platform to consumer electronics developers runs LEOs out of the box, so developers can use the LDK5912 to compile, download and test applications within minutes of set-up. One of the key advantages of the LDK5912 is its ability to support multiple programs and algorithms optimized for the DSP. These applications supported by LEOs and the LDK5912 include examples for developers on how LEOs can interact with the DSP codecs. Documentation in the box also shows developers how to develop and download DSP codecs for their own custom device applications using an available JTAG interface and the TI Code Composer Studio Integrated Development Environment. This robust functionality reduces software development time and empowers designers to take full advantage of the performance of TI's OMAP processor.
- During the quarter, the Company attended the following tradeshows:
- Consumer Electronics Show, Las Vegas , NV , USA , January 5-8, 2006
- TI Developer Conference, Dallas , TX , USA , February 28 - March 2, 2006
- Game Developers Conference, San Jose , CA , USA , March 22-24, 2006
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.
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 Lite Project
The Osaka Lite Project is a light version of Osaka Project. It is a compact, all-digital audio system with an Apple's iPod dock. Empower has joined the Apple "Made For iPod" licensing and accessories program. 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 Lite Project uses Empower's Totally Digital Audio Platform ("T-DAP") technology. The Osaka Lite Project fulfils the needs and demands of the Apple iPod accessory consumer.
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 Platform ("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 embedded processor families, engineering consumer electronics using LEOs and LDK5910 Development Kit, and filing patents for embedded systems and technologies. Revenues generated for the three months ended March 31, 2006 were $14,009 compared with $32,673 for the three months ended March 31, 2005. 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 the Company's core embedded system technology 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 and in China for LEOs, the new LDK591x Development Kits, and the consumer products such as the PowerPlay Media Chair and handheld unit using LEOs and LDK591x technology.
General and administrative expenses without stock-based compensation and R&D costs for the three months ended March 31, 2006 increased to $581,777 (2005 - $491,795). Advertising and promotion increased to $116,647 (2005 - $43,244) due to the Company's effort to commercialize its technologies by attending tradeshows and expanding investor relations. Office expenses increased to $36,108 (2005 - $18,566) due to the expansion of the Company's office and support systems. Rent increased to $13,444 (2005 - $5,290) for our new move to a larger premise. Legal fees increased to $56,689 (2005 - $8,677) 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 three months ended March 31, 2006 were $367,698 compared to $301,309 for the three months ended March 31, 2005.
The R&D cost increase is due to the Company accelerating its efforts to develop its core technology, LEOs operating software, expand the TI embedded processor platform coverage 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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