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Empower Technologies™ Reports 2007 Results
April 29, 2008, Richmond,
British Columbia - – Empower Technologies
Corporation (TSX-V: EPT) today reported its financial
results for the year ended December 31, 2007. Empower
(or “the Company”) is a Linux-based embedded
system technologies and solutions provider for the
embedded computing industry.
Highlights for the year ended December 31, 2007 (the
“Year”), updated to April 28, 2008, include:
o Revenues for the Year approximately doubled to $194,786,
compared with $85,138 for the year ended December
31, 2006.
o Losses for the Year were $3.9 million, compared
with $4.2 million for the year ended December 31,
2006.
o Cash used in operating activities declined to $3.0
million from $3.8 million for the year ended December
31, 2006.
o The Company announced a new sales and marketing
initiative in early 2007 whereby it embarked on a
major expansion of its strategy of marketing and selling
its core technology, LEOs, and the associated platform
development kit “LDKxxxx.” The new strategy
expanded the Company's sales and marketing focus from
the consumer electronics market to the broader embedded-system
market, which includes the automotive, RFID, industrial
control and medical devices sectors. To execute this
strategy, Lee Faulk, with vast sales experience in
the hardware and software businesses within the computer
industry, joined Empower's team as Director of Sales
and Marketing for embedded system technologies.
o Added five field sales companies to greatly increase
the visibility of Empower Technology products in the
embedded market within strategically important territories.
With their established customer base, these representative
firms allow Empower to do deep market penetration
both quickly and effectively.
o Signing of a software development license agreement
and a strategic partnership agreement with Navigon
Inc. This partnership is advancing and integrating
infotainment, driving safety and navigation technologies
in the automotive and transportation industries.
o Granting by the US Patent Office of a patent for
a pen-based (or stylus-based) handwriting recognition
method for computing devices. The patent is for an
improved system and method for pen-based handwritten
and keystroke data input into a computer system (such
as a smart phone or a tablet computer with pen/stylus-based
handwriting input capability). The system and method
receives pen-based data entry from multiple related
input boxes within a handwriting area on a digitizer
pad. Character strokes entered into each input box
or group of input boxes are saved and interpreted
together to allow more complete recognition of naturally
written characters. Improvements on keyboard layouts
are also disclosed.
o Launch of a new line of development kits for 2008
with the EDK (Empower Development Kit), which replaces
the successful LDK (LEOs Development Kit) series.
The existing LDK591x series continues to be available.
The first in the EDK series is the EDK6446 development
kit for Texas Instruments' (TI) dual-core TMS320DM6446,
DM6443, and DM6441 DaVinci™ technology processors.
The EDK6446 will help designers accelerate the development
of digital video applications such as portable media
players, set top-boxes, industrial handheld/tablets,
video security and surveillance, automotive infotainment
systems and video telephony.
o Launch of three new portable navigation devices
(PND) to meet the demands of the dynamic GPS market
in North America . All three new models feature a
large 4.3” widescreen LCD touch panel:
o P2000 - the basic model features navigation and
bluetooth hands-free;
o P2200 - the photo unit that includes our basic unit's
features plus a built-in camera; and
o P2800 - the executive unit that includes our basic
unit's features, plus a wireless back up camera and
iPodPTMP remote connectivity.
o Signed a Volume Software Licensing Agreement with
Navigon. The Agreement enables Empower’s new
P2xxx line of PND’s, to ship with Navigon navigation
software loaded in each unit. This agreement integrates
Navigon’s leading edge navigation software with
Empower’s latest automotive grade navigation
software platform – “Euler”. Euler
integrates a wide range of features besides navigation
such as media player for MP3 and video, digital camera,
photo viewer, iPodPTMP remote access connectivity
and rearview wireless camera. NAVIGON’s navigation
software delivers an intelligent, premium navigation
experience with features like intuitive menus, 2D
or 3D maps, spoken turn-by-turn directions and street
names via advanced text to speech, Lane Assistant
and Automatic Speed Warnings as well as millions of
pre-loaded points of interest.
“It was a solid year of development, building
for sales anticipated in 2008 and beyond.” said
Paul Leung, Empower’s Chairman, President &
CEO. “We anticipate revenue to continue to improve
through the new sales and marketing strategies that
Empower has devised during the course of our marketing
transition:
o Creating an efficient sales network consisting
of manufacturer’s representatives and major
electronics and technologies distributors to market
and to sell LEOs, LDK and EDK platform development
kits among developers, manufacturers, value-added
resellers and system integrators.
o Advancing to five Manufacturers Rep Agencies (approximately
equivalent to having at least 10 commissioned salesmen)
that have a sales territory covering most of the major
technology markets in the United States of America.
o Widening the focus of the Company’s sales
and marketing efforts from the consumer electronics
market to the broader embedded-system market, which
includes the personal navigation device, RFID, industrial
control and medical devices sectors.
o Accelerating the process of turning Empower customers
choosing our technology as their development platforms
(“design wins”) into engineered products
and the purchase of our hardware and software solutions
and licenses.
The increase in revenue in 2007 signals that turning
design wins into engineered products is progressing
well and reinforces the benefits of this marketing
strategy. We are working hard on a number of projects
and expect payback on these efforts in the form of
product orders in 2008.”
The consolidated financial statements and the Company’s
Management Discussion and Analysis (‘MD&A’)
as at December 31, 2007, were prepared in accordance
with Canadian generally accepted accounting principles.
The full statements and MD&A are available on
SEDAR (www.sedar.com).
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 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 Instruments™ 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 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 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:
Exponent Communications Inc.
Toll-free: (866) 914-5861
Tel: (604) 625-1185
Fax: (604) 625-1186
Email: info@exponentcommunications.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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