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Past Profile

eBlast
TXP Corporation (OTCBB: TXPO)
August 9th, 2007.

 
 TXP CORPORATION (OTCBB: TXPO)

Dear Reader,

For emergent companies there is rarely news more important than that of increased revenues, not just in the obvious benefit of a sustaining influx of capital to the company, but also in the implied value to existing and prospective shareholders. Clearly, a revenue increase of 70% in the three months ended June 30, 2007 compared to the three months ended June 30, 2006 validates at least some element of the company's business plan in a stock market where ideas and products are often plied without profit for years on end.

For this reason, TXP Corporation (OTCBB:TXPO), an Original Design Manufacturer (ODM) for the telecommunications industry, should garner more interest in the market today than before this morning’s release affirming as much.  Another glittering detail in today’s release is the fact that TXP Corporation expanded their customer base to 117 corporate accounts as of June 30, 2007, growing from 89 as of June 30, 2006.

A comprehensive profile on TXP Corp. can be viewed HERE
>>>Spacer>>>
    Breaking *NEWS* From TXP Corp.

Press Release Source: TXP Corporation
Thursday August 9, 8:30 am ET

TXP Corporation Announces 70% Increase in Revenue for the Second Quarter of 2007

RICHARDSON, TX--(MARKET WIRE)--Aug 9, 2007 -- TXP Corporation (OTC BB:TXPO.OB - News), an Original Design Manufacturer (ODM) for the telecommunications industry, today announced financial results for the quarter and six months ended June 30, 2007.

Second Quarter 2007 Highlights:
 
--  Revenue increase of 70% in the three months ended June 30, 2007
    compared to the three months ended June 30, 2006;
--  Increased customer base to 117 as of June 30, 2007 from 89 as of June
    30, 2006;
--  Signed re-seller agreements with two leading Original Equipment
    Manufacturers (OEMs) of telecommunications infrastructure for distribution
    of TXP's Optical Network Terminal (ONT) units;
--  Signed distribution agreement with Eastern Telecommunications to sell
    ONT products and outside plant cabinet retrofit solutions;
--  Launched 7200G family of mini-size Power-over-Ethernet (PoE) based
    Gigabit Passive Optical Network (GPON) ONTs;
--  Completed detailed triple play interop testing with 10 leading Optical
    Line Terminal (OLT) equipment vendors;
--  Obtained ISO 9001:2000 certification for TXP-Texas Prototypes and TXP-
    Retrofit Solutions groups; and
--  Hired two key sales executives.

Michael C. Shores, President and Chief Executive Officer of TXP, commented, "We believe as companies in the telecom and technology sectors strive to be first to market with cutting-edge products, they are coming to appreciate the value of TXP's prototyping and pre-production services. We believe that our ability to provide professional design support capabilities and quick-turn assemblies has enabled our customers to reduce their time to market which, in turn, gives these customers a competitive edge in an industry known for rapid product development."

Mr. Shores continued, "We believe the increase in our total customer served base from 89 as of the second quarter of 2006 to over 117 leading electronics and telecommunications companies as of the second quarter of 2007, is evidence of the acceptance and reputation we are building in the marketplace. We are pleased with the increase in revenue in the second quarter and are experiencing larger projects of longer duration from many of our existing customers, especially in our prototype and quick-turn assembly business."

"One of the great challenges in the telecom industry is to affordably develop and deploy technology that terminates the Passive Optical Network (PON) at the home or business location, thereby reducing the infrastructure costs for 'fiber-to-the-home'-based services. We believe our strategy to become a leading ODM, by private labeling our Broadband Passive Optical Network (BPON) and GPON ONTs for both OEMs and Incumbent Local Exchange Carriers (ILECs), is timed with the accelerating roll-out of new 'fiber-to-the-home' networks needed to deliver high-speed 'triple-play' services. We are very pleased with the rapid progress and major inroads we have made in the less than one year since we formed the ONT business after hiring the former Siemens ONT development team. We believe that our current success of interoperating with ten of the world's leading OLT equipment vendors has proven that true GPON interoperability is already here."

"TXP's new 7200G family of mini-size, power over Ethernet-based (PoE) GPON ONTs is currently believed to be the smallest GPON ONT available in the market which makes them well suited for operators deploying Fiber-to-the-Premise (FTTP) in multi-dwelling and single living units worldwide. Another notable milestone achieved during the second quarter was obtaining ISO 9001:2000 certification for our prototype and retrofit solutions groups. Meeting this standard opens doors to companies whose mandates require that vendors possess this certification. ISO certification combined with the recent hiring of two key sales directors may help lay the groundwork for additional penetration of TXP's target markets."

Total revenue for the second quarter of 2007 increased 70% to approximately $3.3 million, compared with approximately $1.9 million for the same period in 2006. Operating loss for the second quarter was approximately $1.1 million, compared to operating loss of $676,000 for the same period last year. The increase in operating loss primarily reflects the hiring of Siemens' former ONT development team. As a result, TXP added 35 full-time employees and amended its lease in November of 2006 and expanded the operating facility by 16,000 square feet. Net loss for the second quarter of 2007 was approximately $1.5 million, or $(0.01) per share, compared to a net loss of approximately $4.8 million, or $(0.05) per share, for the same period in 2006. Net loss included $61,000 in income related to change in fair value of derivative financial instruments and $4.3 million in expense related to change in fair value of derivative financial instruments for the second quarters of 2007 and 2006 respectively.

Full results will be available in the company's Form 10-QSB report for the three and six months ended June 30, 2007, to be filed with the SEC.

You may view the entire news release HERE
>>>Spacer>>>
    About TXP Corp.

TXP Corporation ("TXP") ("TXPO") an Original Design Manufacturer (ODM), specializes in quick-turn complex circuit card assemblies and optoelectronic prototyping, new product introduction, and pilot production of electronic assemblies for Technology Innovators and Original Equipment Manufacturers (OEM) and Contract Manufacturers (CM) in the U.S.  The company has approximately 80 employees and is located in a 47,271 square-foot high-tech facility in Richardson, Texas, the heart of the “Telecom Corridor” in the Dallas Metroplex.
 
You've heard of an OEM.  Now, let me explain what an ODM is

An Original Design Manufacturer (ODM) is a company that manufactures a product that ultimately will be branded by another company for sale. Such companies allow the branding firm to produce (either as a supplement or solely) without having to engage in the organization or running of a factory. The ODM business has grown in recent years and many are now sufficient in size to handle production for multiple clients, often providing a large portion of overall production. A primary attribute of this business model is that the ODM owns and/or designs in-house the products that are branded by the buying firm.

TXP helps the engineering teams of its customers ready new products for volume manufacturing

TXP technology focuses on complex printed circuit board assemblies, photonics, optoelectronics, and advanced packaging solutions. TXP has three primary business units: TXP-iPhotonics, TXP-Retrofit Solutions, and TXP-Texas Prototypes

TXP-iPhotonics develops and markets via an (ODM) Original Design Manufacturing model a family of ONT products to both OEMs and the ILECs to be private label branded.  The ONT technology terminates the passive optical network at the home or business location, and enables integrated voice, video and high-speed Internet access. 

TXP-Retrofit Solutions provides custom engineering kits to enable ILECs (Incumbent Local Exchange Carriers) to upgrade their local access service delivery infrastructure at minimum cost and time. TXP's retrofit kits enable a wide range of next-generation telecom platforms to easily fit into the variety of remote cabinets that have been broadly deployed by ILECs over the last 30 years. 

TXP-Texas Prototypes provides pre-manufacturing services for the electronics industry that help original equipment manufacturers (OEMs) bring products to market both faster and more cost effectively. TXP excels in both global design and supply chain solution services for new product development, which include: prototyping and quick-turn electronic assembly; new product introduction; pilot production; material supply chain development; as well as the transfer of products into production. 

The Future and TXP iPhotonics

To better understand the iPhotonics business opportunity it is important to understand today’s competition between CATV companies and ILECs. The coax cable infrastructure of CATV’s has always had far greater bandwidth carrying capacity than the copper wire infrastructure of an ILEC.  But only recently have CATVs started taking advantage of their bandwidth capabilities to steal residential and some business customers from ILECs. The only way ILECs can compete with CATVs, and maybe surpass them, is to put a fiber-based service delivery infrastructure in place, even if VDSL-over-copper provides significant improvements. Whether it be FTTH (Fiber to the Home) or FTTC (Fiber to the Curb), the “ultimate” solution means deploying fiber out to, or much closer to, customers. Ultimately, TXP believes the CATV’s will be forced into doing the same thing.

In several respects, FTTH initiatives are a reprise of the ADSL infrastructure upgrades which began in the mid-1990’s and have succeeded in delivering true “broadband” services to nearly 50% of all homes in the U.S. and approximately 20% of homes globally. ADSL aims to deliver high-speed data services and internet access.  FTTH delivers voice, data, and video services. ADSL (and the successor technology VDSL) is utilized to extract much higher bandwidth delivery capability from the existing copper-based local loop network.  PON (Passive Optical Network) is the FTTH technology that ILECs have broadly chosen to deliver much higher bandwidth.  These bandwidths are larger than their archrival competitors, the CATV companies.  An ONT is the device which is located at the individual customer premise to receive PON-delivered services.  Where ADSL service rollouts had the benefit of already-deployed copper wire loops to all customers, PON requires the ILEC to install, at considerable cost, fiber cables to each customer premise. Think: Movies-on-Demand



 

TXP became an ODM when it acquired the optical network terminal (ONT) business of Siemens in December 2006

An ODM works closely with OEM’s to develop generally high volume products which are product line adjuncts for the ODM.  In this case, ONT’s will be used by telephone companies to deliver voice, data, and video services (triple play services) to residential and business customers.

TXP’s core technology focus is on complex printed circuit board (PCB) assemblies for high speed, digital, analog, and RF technologies.  By working closely with their customers' engineering groups and being highly responsive to their requirements throughout the design processes, TXP can be an integral part of customer operations, accelerate their time-to-market and time-to-volume production as well as reducing their overall product costs. 

As part of its Siemens acquisition TXP was granted access to 18 patents surrounding Siemens Optical Network Terminal (ONT) technology, supporting both Broadband Passive Optical Network (BPON) and Gigabit Passive Optical Network (GPON) standards.

Material supply chain management services increased 49% from $286,000 in 2005 to $427,000 in 2006
a
TXP expanded its customer base from 67 in 2005 to 103 in 2006 and had current active customers for the quarter of 26 and 38 for 2005 and 2006, respectively.

TXP's top five customers accounted for 95% of revenue in 2005 and 50% of revenue in 2006.

>>aa
     Other Recent News From TXP Corp.

Press Release
Tuesday July 10, 7:30 am ET

TXP Expands Board of Directors With Leading Industry and Financial Executives

RICHARDSON, TX, Jul 10, 2007 (MARKET WIRE via COMTEX) -- TXP Corporation (OTCBB: TXPO), an Original Design Manufacturer (ODM) for the telecommunications industry, today announced that William L. Martin and Pat LaVecchia have been appointed to the Company's Board of Directors. Mr. LaVecchia will serve as head of the audit committee when it is established by the Board of Directors and replaces Robert Bruce as a board member, who will continue as Chief Financial Officer for the company. As a result, TXP's board now consists of 5 directors, including 2 independent directors.

To read the complete release and disclaimer, Click Here
 


Recent Price: $0.32 (8/09/07)  Avg. Vol. (3 mo): 42,554
Mkt Cap: $35.97M   Shares Outstanding: 125M
52-Week High/Low $0.62 - $0.20 
State of Incorporation: Nevada   Edgar Filing Status: Current EDGAR Filer
CIK: 0001171749 - Sector: Technology - Industry: Business Software & Services

TXPO is a fully reporting company. To view the TXPO SEC filings, Click Here


Chart courtesy of BigCharts
aa
    TO CONTACT TXP CORPORATION

TXP Corporation
1299 Commerce Drive, Richardson, TX 75081
Phone: 214-575-9300 - Fax: 214-575-9314
Web Site: www.txpcorporation.com

Media: Eric Miscoll
     TXP Corporation - (214) 575-9300

     Investor Relations: David K. Waldman and Klea K. Theoharis
     Crescendo Communications - (212) 671-1020


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