Arkados , known as “the HomePlug® Applications Company,” announced today that it has shipped and will report revenue of $60,000 from chip sales for the quarter ended February 28, 2007. The chips are to be used in an iPod® dock demonstrated at CES earlier this year, as well as in other applications. Arkados also has announced that it has $60,000 in backlog, as of February 28, 2007.

Oleg Logvinov, president and CEO of Arkados, said, “This is a significant moment for Arkados, marking the beginning of our transition from a research and development entity to a commercial enterprise. We have gone through the long and arduous process of commercializing our technology, have recognized our first product revenues in the quarter ending February 2007 and anticipate continuation of further product revenues, much of which will be recognized in the later half of calendar year 2007. We have been actively pursuing contracts since the Consumer Electronics Show, at which we established a critical mass in terms of market presence and sales activity.”

The Arkados chips sold will be used for a next-generation iPod dock produced by one of the few companies manufacturing such docks today. The dock uses HomePlug technology to transfer audio from a single iPod to a number of speakers throughout the house — creating whole-house music playing in a completely synchronized fashion. Arkados believes that the almost 100 million consumers who have purchased an iPod from Apple represent a ready-made market for audio and video accessories and that by working with various accessory makers it can maximize its market penetration quickly and efficiently. The flexible Arkados system-on-chip solutions will also be used for other applications.

Logvinov stated, “As a chipmaker, we are positioned to service this demand from any major electronics or networking manufacturer. We have held discussions at various levels with household names in those industries, and we believe that many of these talks may lead to firm orders in the coming months.”