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Empower Technologies™ Reports Q1 2008 Results
May 29, 2008, Richmond,
British Columbia – Empower Technologies Corporation (TSX-V: EPT) today reported its financial results for the period ended March 31, 2008. Empower (or “the Company”) is a provider of embedded system technologies and solutions.
Highlights for the period ended March 31, 2008 (the “Quarter”), updated to May 28, 2008, include:
o Revenues for the Quarter on a par with the first quarter of 2007 at $17,632, compared with $16,936.
o Loss for the Quarter was $0.8 million, compared with $0.8 million also for the quarter ended March 31, 2007.
o Cash used in operating activities increased to $0.8 million from $0.7 million for the quarter ended March 31, 2007, due to Navigon software licensing payments and purchase of inventory.
o Launching a new line of development kits: the EDK (Empower Development Kit), which replaces the successful LDK (LEOs Development Kit) series. 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 Launching three new portable navigation devices 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, featuring navigation, bluetooth hands-free and traffic advisory data;
o P2200 - the photo unit, including our basic unit's features plus a built-in camera; and
o P2800 - the executive unit which includes our basic unit's features, plus a wireless back up camera and iPod remote connectivity to enhance driving safety.
o Completing our North American sales force of manufacturer’s representatives with the signing of Maxima Consulting which covers all of Canada. Empower has signed four international distributors to cover Greater China (Mainland and Taiwan), Korea, India and Israel. The Company plans to add more resellers and distributors internationally as well as expand the sales network into Europe and South America.
o Signing a Volume Software Licensing Agreement with Navigon to enable Empower’s new P2000 series PNDs (Portable Navigation Devices) to ship with Navigon navigation software. This volume software licensing 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, iPodTM remote access connectivity, and rearview wireless camera.
o Extending the expiry date of our common share purchase warrants issued on February 20, 2007, and February 27, 2007, (the “Warrants”) and scheduled to expire on February 20, 2008, and February 27, 2008, for an additional nine months. The amended exercise expiry date of the Warrants will now be the close of business on November 30, 2008 (5:00 p.m. PST). The exercise price for the Warrants remains at $0.90 per common share.
o Gaining the Company’s largest sale to date - a 5 year volume Purchase Order (PO) from Advantec Computer Systems, LLC (“Advantec”) to supply industrial handheld computers to their Value Added Resellers (VAR). Under the Agreement, Advantec will distribute Empower’s OEM/ODM (“Original Equipment Manufacturer” / ”Original Design Manufacturer”) industrial handheld and tablet to the healthcare, hospitality, field repair, utilities, transportation, retail, public safety, government and other industrial vertically integrated customers through Advantec’s vast VAR and SI (“System Integrator”) distribution network. The sale from this five (5) year PO is valued at about $40 million US dollars.
“During the Quarter, we continued to build momentum for our sales and marketing effort. These efforts were rewarded by the order from Advantec after the end of the Quarter.” said Paul Leung, Empower’s Chairman, President & CEO. “We anticipate our efforts will yield more results in the future. We are very pleased with the sales and the market penetration of our latest embedded development platform – EDK6446. Also, we are very pleased with our latest embedded solution – P2000 series of personal navigation devices, which are now becoming available for demonstration and sale.”
The consolidated financial statements and the Company’s Management Discussion and Analysis (‘MD&A’) as at March 31, 2008 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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