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Empower Technologies™ Year Ended December 31, 2006
Richmond , British Columbia – April 27, 2007 – Empower Technologies Corporation (“The Company” or “Empower”) has filed financial statements for the year ended December 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 year ended December 31, 2006:
On February 20, the Company's product, LEOs-based development platform LDK5910 software development kit has listed on the Texas Instruments (“TI”) online eStore. Empower also comes up first when a keyword search is made on TI.com for OMAP5910, Linux or Empower and marked as a TI recommended ‘Best Bet'.
- On February 27, the LDK5912 was officially unveiled to the world at the TI Developers Conference with many of the top DSP programmers and TI executives in attendance. The conference which ran from February 28th to March 2nd, 2006 in Dallas , Texas is widely regarded as one of the most, high powered gatherings of DSP programmers and developers in the world.
- On March 29, the Company launched LDK5912 at the Embedded Systems Conference (ESC) in San Jose , California , from April 3rd to April 7th 2006 in the Texas Instruments Third Party Pavilion at the San Jose McEnery Conference Center . The LDK5912 Development Kit completed the LEOs for TI's OMAP591x dual-core embedded processor family.
- On June 26, the Company announced it has begun a joint international sales effort with Texas Instrument (TI) to promote its LDK591x family of LEOs Development Kits to over 2,000 of the top universities and technical colleges worldwide.
- On June 28, the Company has signed the first LEOs operating software licensing agreement, a supply agreement and a software development agreement with an undisclosed customer on the US west coast. Due to the extremely competitive nature of their fast growing industry, the Customer requested Empower to keep their identity and business in strict confidence.
- On July 12, Empower Technologies (Empower) and Texas Instruments Incorporated (TI) jointly announced the release of Empower's latest LinuxDA Embedded Operating System (LEOs 2.3) running Linux Kernel 2.6.12 along with TI's DSP/BIOS Link for TI's OMAP5912 dual-core digital signal processor (DSP) and ARM general purpose processor (GPP). For the first time the Linux Kernel 2.6.12 is available with the OMAP5912 and TI's latest software tools, such as DSP/BIOS Link, Code Composer Studio Integrated Development Environment and Reference Framework 6 (RF6) so developers can create consumer electronics products at reduced cost, risk and time-to-market.
- On October 19, the Company announced the launch of Empower's Asia sales and marketing initiative with its core technology LEOs (“LinuxDA Embedded Operating System”) for Texas Instruments (“TI”) OMAP591x dual core embedded processor family and the accompanying development tool platform LDK5910 and LDK5912 Development Kits. Empower exhibited at the Texas Instruments developers Conference (TIDC) Asia 2006 that was held in three Asian cities, the epi-center of Consumer Electronics development and manufacturing in one week from October 23 to 27, 2006.
- On November 8, the Consumer Electronics Association (CEA) announced Empower Technologies Corporation (“Empower”) the recipient of an International CES Innovations 2007 Design and Engineering Awards Honoree for “iMedia Chair” at the International CES New York Press Preview. Products entered in this prestigious program are judged by a preeminent panel of independent industrial designers, engineers and members of the trade press to honor outstanding design and engineering in cutting edge consumer electronics products.
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During the year , 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
- Embedded System Conference, San Jose , CA , USA , April 3-7, 2006
- Electronic Entertainment Expo, Los Angeles , CA , USA , May 10-12, 2006
- TI Developer Conference Asia, Shenzhen, Taipei , Singapore , Oct 23-27, 2006
- TI Developer Conference, Bangalore , India , Nov 30-Dec 01, 2006
Significant projects
LEOs II (LinuxDA Embedded O/S II)
Empower US completed work on the next version of LEOs. It was tested and released for the Texas Instruments (“TI”) OMAP5912 dual-core processors.
LDK5912 Development Kit
Empower US has completed work on LEOs II 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, user programming and PC connectivity capabilities, the Osaka Project is a compact, all-digital intelligent audio/video reference design system. Supporting a wide range of sound functions, it integrates all the elements of personal computer and home audio/video, in addition to a PDA with QVGA display. Powered by LEOs for the TI OMAP591x dual core processor, the Osaka Project uses Empower's Totally Digital Audio Path (“T-DAP”) technology. The Osaka Project was completed and renamed “Osaka Technology” for marketing purpose. The Company targeted the audio video developers, designers and manufacturers to use the “Osaka Technology” to fast track their AV product development.
PowerPlay 1x
This mobile data terminal model is near the end of development. The Company is working on the industrial design of the housing of the unit. Besides the regular PDA functions, this new model will have wireless communication capability. It now has renamed “PowerPlay iH” and “iH” stands for “industrial Handheld”. The “PowerPlay iH” is targeted toward the industrial control market.
Results of Operations
Revenues presently the Company's activities has shifted from primarily the development of the Company's LEOs operating software for Texas Instruments embedded processors, the engineering of reference designs using LEOs, LDK5910 and LDK5912 Development Kit, and filing patents for embedded systems and technologies, to commercialize the sales and marketing of LEOs, LDKxxxx development platform and the reference designs using LEOs. Revenues generated for the year ended December 31, 2006 were $85,138 compared with $3,746 for fiscal 2005 and $170,369 for fiscal 2004. This increase is attributed to the successful execution of the Company's decision to change the sales focus from distributed products and end of life products to sales and market the Company's core enabling embedded technology LEOs (LinuxDA Embedded O/S) and LDK591x.
The Company anticipates revenue to continue to improve through its plans to: release new and improved version of LEOs operating software, LDKxxxx platform development products and reference designs using LEOs; move aggressively to set up a strong marketing and sales channel using Manufacturer's Representative sales network and major electronic distributors in North America for LEOs, the LDKxxxx Development Kit, and the reference designs such as the Osaka Project, PowerPlay Media Chair and PowerPlay 1x.
General and administrative expenses for the year ended December 31, 2006 increased to $2,765,021 (2005 – $2,734,997 and 2004 - $2,346,214). Wages and benefits decreased to $576,969 (2005 - $1,019,785 and 2004 - $446,493). Advertising and promotion increased to $368,562 (2005 - $329,481 and 2004 - $236,839) due to the Company's effort to commercialize its technologies by attending tradeshows and to expand investor relations. Travelling expenses was at $171,266 (2005 - $187,169 and 2004 – $104,063) due to increase efforts to promote our products and to attend tradeshows. Office expenses decreased to $83,907 (2005 - $118,229 and 2004 - $63,628), rent increased to $79,089 (2005 - $34,568 and 2004 - $28,923) due to the move to a new and larger premise. Legal fees decreased to $178,589 (2005 - $229,679 and 2004 - $126,856).
Research and Development costs (“R&D costs”) relating to the development of LEOs, the LDK591x Development Kit, and new reference designs using LEOs are expensed as incurred. R&D costs for the year ended December 31, 2006 were $1,337,652 compared to $1,329,579 for 2005.
The R&D cost stabilized is due to the Company's successful completion of developing its core technology - LEOs operating software, the development platform products - LDK591x, and reference designs – Osaka Project, PowerPlay Media Chair and PowerPlay 1x unit.
Capital Resources
The Company has 1,593,185 share purchase warrants (the”Warrants”) from a Prospectus Offering (“Offering”) outstanding. Each Offering warrant entitles the holder to purchase a common share of the Company at a price of $2.50 at any time on or before June 20, 2007. These warrants represent a source of new equity capital for the Company in the event that market conditions lead to their being exercised.
Subsequent to year end, the TSX Venture Exchange has approved the repricing of Warrants from an exercise price of $2.50 each to the reduced exercise price of $1.25 per share. Expiring date remains at June 20, 2007. TSX Venture Exchange requires that for the repriced Warrants, the exercise period must be amended to be shortened to a period of 30 days if, for 10 consecutive trading days, the closing price of the Company's shares exceeds $1.50 per share and not the 25% or $0.31 above the reduced exercise price previously stated.
About Empower Technologies™
Founded in 2000, Empower Technologies (TSX.V: EPT) is an innovative company that brings the power and flexibility of the LEOs® (LinuxDA™ Embedded Operating System) to the dynamic Consumer Electronics 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 Instruments™ embedded CPU platform, that fulfill the needs, demands of developers and the Consumer Electronics Industry. Empower is continuing to develop LEOs® and newer versions of embedded CPUs in line with Texas Instruments™.
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 consumer electronics manufacturers and developers.
Empower's brands are “LEOs®”, “LinuxDA™”, Linux-based embedded operating systems and “PowerPlay™”, 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.
LEOs , PowerPlay and LinuxDA are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners. |
