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Monday, July 28, 2008

Nighthawk Sets Record With Recent Purchase Order

One of our old favorites, Nighthawk Systems Inc. (OTCBB: NIHK) continues to push forward with publicly stated plans to significantly increase revenues during 2008 and recently announced the largest order ever for its bread & butter remote disconnect units.

During the 2nd week of July, NIHK announced an order for 1,000 of its CEO700 remote disconnect units from Avista Corp. (NYSE: AVA) (“Avista”) of Spokane, Washington. This marked the third order from the utility which generates annual revenues of more than $1.3 billion and provides electric and natural gas service to approximately 633,000 customers .

For those of you not overly familiar with Nighthawk, the company historically provided remote disconnect hardware that in a nutshell allows for the wireless connect and disconnect of virtually any electronic hardware. From electricity meters to hard drives, NIHK’s solutions, namely its CEO700 allowed the company to blossom from annual revenues of $529K in 2005 to roughly $1.7M in ’07 with aspirations to hit the $8M mark in 2008.

The reason for the aggressive outlook in 2008 is that NIHK recently acquired an IPTV set-top box business. For a point of reference, although I personally feel that the outlook may be just a tad on the optimistic side; Analysts are envisioning a market that will house 50 million subscribers by '09 and be worth nearly $40 billion by '10.

Either way, we’re currently looking at a very lucrative, yet fragmented market with no dominant supplier. Even if NIHK can just take a small chunk of the IPTV space, which it appears to be doing through initial contracts with leading hospitality technology providers, that coupled with its thriving utility business creates a very exciting situation going forward. Particularly for people like myself that have been watching the company closely for the past 3 years.

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Wednesday, January 30, 2008

A Reason to Love Red Light Cameras

Nighthawk Systems Inc. (OTCBB: NIHK) continues to set the table for a feast in '08 while many other small-caps prepare for famish. Announcing today that they have entered into a burgeoning new market with a brand new, higher margin product, the hawk appears destined to soar in the coming months.

First and foremost, the company's traditional offering can help save time, money, and energy in virtually any application that utilizes an electronic device. The product is popular and is selling in droves. In an economy on a quest for value, NIHK's offering is not a bad value-proposition.

Diversifying Revenue Streams in 2008

Although deals with energy-related utilities have driven sales to record levels (Q3 sales were the best in 4 yrs.), NIHK's fast-growing offering has been adopted across a vast range of applications. From diesel generators for Verizon Wireless and the State of New Jersey, to exhaust fans at DaimlerChrysler's (NYSE: DCX) Trenton, Michigan engine plant, the company has made some very nice moves over the past year to expand out of its core niche.

This of course, is all in addition to logging their largest remote disconnect order ever and continuing to sign on and retain electrical utility customers at a record pace. Also, don't forget that NIHK recently purchased an IPTV set-top box business that brings with it just under $1M in sales which should hit the books in 2008 (½ came with the sale, about ½ came directly after). This number will grow with any additional orders.
Note: To put this into perspective, consider the fact that NIHK logged about $899,000 in revenues for ALL of 2006.

Back to Today's News:

The company announced today that its partnership with American Traffic Solutions, Inc. ("ATS") has led to an initial order of 600 Nighthawk wireless-control and reboot units. According to today's news release, NIHK has developed a new product line that meets the specific needs of its partner and brings with it higher returns than the company's traditional offering.

One thing that may go unnoticed to the un-trained eye is the fact that although it may be like comparing apples to oranges, this most recent order (600 units) is actually bigger than NIHK's previously stated, largest-ever remote disconnect order (500 units). Although I do not have any price point information, the sheer size of the initial order, coupled with the fact that NIHK has developed a stellar reputation for attracting, larger, repeat orders, have me very optimistic regarding the implications of this deal. On an even more positive note, management stated today that the product has applications in many industries outside of photo enforcement.

Great Read on ATS: "Nonstop growth helps traffic company accelerate"
http://www.azcentral.com/business/articles/0118biz-sr-ats0119-ON.html

More on ATS. . .

Based in Scottsdale, Arizona - ATS is a leading domestic player in the high potential photo traffic safety and enforcement solutions market. Dedicated to technological improvement (ATS was 17 yrs. early to market by some accounts) the company has brought on nearly 200 new employees over the past year in order to keep pace with industry growth and demand for its solutions.

Now battling neck and neck with Redflex Holdings (RDF.AX) - another potential NIHK customer - for domination of the US marketplace, ATS plans to integrate Nighthawk's wireless control system into their existing technology. By employing the Nighthawk wireless control module, the ATS system will have the ability to wirelessly access and control power to equipment at each site independently and simultaneously from a central source. This is another example of how NIHK's products help make their customer's more efficient.

The Low-Down on Photo Enforcement

With research indicating that there are more drivers on our roads than ever before and also that drivers, even those who admit to frequent speeding, think traffic enforcement is too lax (40% of a 2002 survey stated that there was too little enforcement of red light running and speeding), the need for automated enforcement solutions as a complement to traditional methods is paramount. In a testament to their effectiveness, a review of red light camera studies around the world concluded that cameras reduce red light violations by 40-50 percent and reduce injury crashes by 25-30 percent.

In response to these trends, cities and states around the nation have tested red light cameras with tremendous success and are increasingly adopting solutions to help make their communities safer. With photo enforcement solutions now proven to lead to safer driving habits, reduction in traffic crashes, hindrance of dangerous/aggressive driving - while saving lives and increasing police and public safety - widespread adoption is ramping up and ATS is helping to lead the way in North America.

To give you an idea of the value-add here: According to the World Report on Road Traffic Injury Prevention issued in 2004 by the Worth Health Organization and the World Bank "the benefits of speed cameras outweigh their costs by a three-to-one margin, without taking fine revenue into account" In addition, although it is a bit dated, the following tidbit of information exemplifies perfectly the need for automated traffic control systems: in 2000,
the cost of speeding related crashes in the U.S. was an estimated $40.4 billion, or $76,865 PER MINUTE!

With the majority of competition in the space coming from International counterparts (RedFlex Holdings and Gatsometer B.V. are two key players), ATS is rapidly emerging as a key player. Just to provide a point of reference, ATS reportedly now has about 700 cameras operating nationwide and 1,110 under contract while Redflex recently hit the milestone of 1,000 operating contracts back in November. So, clearly, ATS is kicking butt and taking names when it comes to its penetration of North American roadways.

Great Read on Red Light Camera Statistics

While many small-cap ventures flounder in the market, NIHK continues to cash in on its proven ability to develop products that save its customers time and money. Now partnered with the likes of Verizon Wireless, American Traffic Solutions, and American Messaging, NIHK targets a broader range of markets and applications than ever before with a seemingly constantly evolving offering. I like what I'm seeing out of the company and expect more good news to follow. Check back soon for updated coverage on NIHK and our opinion on why the company is definitely one to watch in the New Year
.

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Thursday, January 17, 2008

Nighthawk Gaining Notoriety

In the midst of my fishing for relevant information on the M2M industry, I first stumbled upon some very impressive analyst forecasts. As I scrolled down the Article however, realized that the first company name attached to the document was none other than Nighthawk Systems Inc. (OTCBB: NIHK).

This is great for NIHK from a business perspective. Being the featured company in a leading online periodical for a booming industry. With Berg Insight AB, http://www.berginsight.com/, projecting global wireless M2M modules shipments for utility meters to reach 4.5 million in 2011, up from and estimated 1.85 in 2007 and 1.55 in 2006, the future looks very bright for Nighthawk if they can stay in the limelight and keep making improvements to the current revenue run rate.

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NIHK Featured on Video Cast!

NIHK Should Be Resilient In a Trying 2008

Given today's extremely uncertain economic climate, investors are paying closer attention to where they put their money than ever before. As inflation hits a 17- year high and everyday items such as gasoline, milk, and even beer chip away at a growing percentage of our paychecks, the search is on for stocks that will pull their weight in the New Year.

This year will have many opportunities fighting for their chance to decorate your stock ticker, but with the outlook for 2008 far more uncertain than that of 1998, it is important to do your research. This time of year, the consumer shifts focus financially and we should see some changes in the market.

Where, Oh Where, Do Your Dollars Go?

Already looking to be well-poised to perform in 2008 is Nighthawk Systems Inc. (OTCBB: NIHK) which we have been tracking for the better part of two years. Subscribers likely know more about NIHK than they want or need to but knowing your animal is vital when every investing dollar affects the bottom line more than ever.

Now boasting a pair of high-potential business segments rooted in two burgeoning markets M2M (machine-to-machine) and IPTV (Internet Protocol Television) - NIHK has positioned itself to cash in on a pair of major trends that should hold steady despite the ongoing economic slowdown. Haven't you heard? IPTV is the new satellite.

Nighthawk is Moving with the Market

With products and services that capitalize on both the world's need to conserve energy and the next step in the video signal revolution, Nighthawk has built a very solid business over the past few years. Among recent successes, NIHK has recently announced its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business. So, clearly measurable progress is being made from an operational standpoint.

Today's news is excellent because it quite accurately exhibits Nighthawk's ability to turn first-time customers into long-term business partners. Nebraska Public Power District ("NPPD") has been working with NIHK for more than three years in effort to expand their remote disconnect initiative, just like many other energy-related utilities. With the technology age churning out revolutionary products seemingly daily, long standing customers in an industry like NIHK's is a testament, not only to their caliber of product, but to their staying power in the marketplace.

Make a Client vs. Keep a Client

If you're not seeing the trend here, check back through NIHK's string of press throughout '07. It's chock full of news regarding orders and more importantly re-orders from the likes of Verizon Wireless as well as numerous utilities throughout the country including El Paso Electric, Southwest Arkansas Electric Cooperative, and Cheyenne Light, Fuel & Power Company.

Nighthawk's ability to generate first-time and repeat business in such a rapid fashion has greatly accelerated its growth rate to date. This is evidenced by management stating that in Q3 was their best in 4 years and also that during the quarter they sold and produced more CEO700 whole house disconnect devices than in any quarter in its history. Please remember that this best quarter was without any IPTV sales (no shipments until Q4), which are now starting to provide a very nice boost to the already surging growth rate.

IPTV - The Video Revolution

In terms of consumer adoption, Internet Protocol Television (IPTV), viewed by many as the next step in the video revolution, is an industry set to explode. More specifically, analysts envision the market to house 50 million subscribers by '09 and be worth nearly $40 billion by '10. Although these may be optimistic industry outlooks, NIHK is already shipping set-top boxes to customers in effort to fulfill orders valued at just under $900,000. For a company that logged about that during '06, I like what I'm seeing from this newly acquired venture.

In regards to the M2M space, research firm IDATE forecasts the market to potentially reach $270 billion by 2010. While largely focused in the wonderful world of energy-related utilities, NIHK has sold horizontally through various alliances into applications such as traffic control, exhaust fan control, and many others. Since their products can essentially turn any electrical device on or off remotely, growth in the M2M space should translate into growth for NIHK, particularly as they strive to explore new applications for their products as well as alliances that help increase their brand recognition.

2008 is shaping up to be a year in which emerging small-cap ventures thrive due to their niche positions in resilient markets, while other not-so-lucky ventures fall by the wayside. Luckily, NIHK is strongly positioned in 2 resilient markets. With the stock now teetering on a bottom while showing some strong upwards momentum in recent days as the broader market gets crunched, Nighthawk Systems Inc. should be on your radar screen going forward if it isn't already.

Don't forget, the stock ran up to its 52-week high of $.24 last April on much weaker fundamentals and with nowhere near the growth potential currently being exhibited. So, we could be in for another bull run if growth continues at such a rapid pace.

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Tuesday, January 15, 2008

Solid News Out of NIHK

Nighthawk Systems Inc. (OTCBB: NIHK) shares appear to be reaching a bottom after being beat down considerably over the past three months and today’s news could be just what it takes to incite a move upwards.

Now competing in two burgeoning markets - M2M (machine-to-machine) and IPTV (Internet Protocol Television) – NIHK announced an initial order for their landmark CEO700 wireless disconnect units today from Central Hudson Gas & Electric. The new customer is a wholly-owned subsidiary of CH ENERGY GRP HLDG (NYSE:CHG), which logged just under $1 billion in 2006 revenues, serves more than 371,000 clients across the state of New York, and trades in the $40.00 range.

One thing that I like very much about today’s release is that NIHK was able to successfully customize their remote disconnect solution to meet the needs of a major utility. Over roughly the past year, Nighthawk has exhibited their dedication to becoming more of a flexible solutions provider as opposed to a box slinger, as I have mentioned previously.

This is great for the company because it helps build their reputation as a value-added partner. In my opinion a key attribute that potential customers, particularly energy-related utilities, are looking for in vendors these days as they delve deeper into the new world of smart metering and remote disconnect technologies.

What would you rather, somebody who hands you a box and tells you “here, use it” or a value added partner that evaluates your specific situation and molds a solution to your problem? It seems like a very simple choice and that electric utilities are increasingly making it in favor of NIHK.

Another thing that I find interesting about today’s release is that the company is gaining a major foothold in New York, a region striving to reduce energy consumption with major support from its government. With Governor Eliot Spitzer calling to reduce state resident’s energy bills through the implementation of smart metering technology, NIHK is positioning itself in a market with very high growth potential for its remote disconnect products.

http://readme.readmedia.com/news/show/Green-Response-to-Govs-2008-State-of-the-State-Address/34415

With NIHK recently announcing its best quarter in 4 years, the largest remote disconnect order in corporate history, and initial shipments from the newly-acquired IPTV set-top box business, we are very optimistic in regards to what the next few months hold for the company

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Friday, January 11, 2008

US Oil Bill Hits All Time High. Is This Just the Tip of the Iceberg?


Driving a 9.3% spike in the US trade deficit during November was a 16.3% increase in its foreign oil bill (US Commerce Department). This incline brings our tab to an all-time high of $34.4 billion. A number which should likely grow over the coming months as oil prices flirt with $100 on a per barrel basis.

On another bleak note, US consumer confidence hit all time low levels, as it is measured by the RBC Cash Index.

With the White House kicking around the idea of tax cuts, analysts believe that US consumers are indeed quite weary of what the near-term holds.

"People are anxious because everything sounds pretty awful these days," said Bill Cheney, chief economist at John Hancock Financial Services Group in a recent article issued by the associated press.

You Gotta Be In It To Win It!

While many investors have their hands on the panic button, ready to push it, now is definitely not the time to go hiding under a rock due to the uncertain economical climate we are currently being exposed to. In my opinion, now is the time to dig your heels in and put your money into both defensive investments and those that you feel may be least effected by a recession or at least a struggling economy.

From our small-cap portfolio, Marmion Industries Corp (OTCBB: MMIO), Nighthawk Systems Inc. (OTCBB: NIHK), and a newcomer, Legacy Systems Holding Inc. are all somewhat resistant to economic downturn because they serve markets that will thrive with or without a very stable economy.

NIHK's remote disconnect device business in gaining steam in the utility sector as energy providers look to cut costs and become more efficient.

MMIO, builds and installs HVAC systems for the petrochem industry as well as schools, municipalities, etc. Number one, growth in the petrochem space will continue. Number two, both the industrial and commercial segments must install new age ventilation systems that help conserve energy.

Legacy has developed a potentially breakthrough "green" clean wafer technology that is already gaining widespread recognition in the semiconductor industry.

Just a few ideas for the next few months folks. We'll be interviewing executives from these organizations as well, so please send over any suggested questions that you'd like to have answered and we'll do our best to hook you up.

Have a great weekend!!!

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Tuesday, January 08, 2008

Will 2008 Be the Year for Smart Metering, Nighthawk Systems? I Believe So.

2008 May Be a Breakthrough Year for Remote Disconnect, Advanced Metering Technology

Big names including ESCO Technologies (NYSE: ESE), American Electric Power (NYSE: AEP), Comverge (NASDAQ: COMV), and Southern California Edison (AMEX: SCEDM) are making moves to become more involved in the world of Advanced Metering Infrastructure (AMI).

Definition of AMI - http://en.wikipedia.org/wiki/Advanced_Metering_Infrastructure

As AMI becomes increasingly adopted around the world, providers of remote disconnect devices – a key element of AMI, particularly in developing regions – will be in greater demand.

One provider that we are quite privy to here is Nighthawk Systems Inc. (OTCBB: NIHK). Now dabbling in both the world of IPTV as well as Remote Disconnect, NIHK has its sights set on a record 2008. And rightfully so after announcing in December both the largest order for their disconnect devices in company history as well as significant initial orders for their IPTV set-top boxes.

Already outpacing 2006 revenues during the first nine months of 2007, NIHK appears to have logged its second consecutive year of record sales in a row. With two thriving business segments situated in two very hot markets, look out for yet another banner year out of the company during ’08.

Good Read on Smart Metering:

http://media.cleantech.com/2204/whats-so-smart-about-smart-metering

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Wednesday, December 05, 2007

Message From Nighthawk Systems CEO

Good morning!

The following release went out this morning an announces that we have received our largest single order for CEO700 whole house remote disconnect devices in our history! Back in May, we received our largest initial order ever from the Town of Smyrna, Delaware, and then in August we received our (then) largest single order from Avista Utilities.

Now the Town of Smyrna has topped that with an order for 500 units. So every few months we have been setting a record for the size of an order of CEO700’s, and I think there is a good chance that this trend will continue in early 2008 as new budget money becomes available. Smyrna has become a very good customer in a very short timeframe.

A new city ordinance goes into effect today that requires many customers and all new apartment/rental developments to install remote disconnect devices. That is GREAT news as I believe this most recent order is just part of a much larger overall need that Smyrna will have, as it is a growing area experiencing some rapid development.

They have told us that, based on their experience so far, they believe they can save substantial dollars using our devices that would otherwise be spent on additional personnel because of their growing customer base and customer service obligations.

This will serve as a fantastic case study for Nighthawk to use, and we certainly hope other municipalities will adopt similar ordinances. A precedent has certainly been set! For a look at a draft of the ordinance, you can go to:

http://www.smyrnadelaware.com/gov_notices/watsewelec.pdf.


Have a great day!

H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.



Nighthawk Systems Receives Largest

Remote Disconnect Order in Company History


-- Newly Adopted Ordinance Expected to Spur Additional Orders--

SAN ANTONIO, TX – 12/5/07 – Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, announced today that it has received the largest single order for its CEO700 remote disconnect devices in its history from the Town of Smyrna, Delaware. Smyrna first ordered units from Nighthawk in May of this year, and has recently adopted an ordinance which will require certain customers and any newly constructed rental properties to install remote disconnect collars on meters. This latest order of 500 units represents the third order placed by Smyrna for remote disconnect units in 2007.

The CEO700 gives electric utilities the ability to remotely connect and disconnect power to residential electric meters on a moment’s notice, improving customer service response times and saving the utilities significant time and money compared to the traditional manual method that requires truck rolls and field personnel. By utilizing Nighthawk’s remote disconnect solution, Smyrna can avoid additional personnel costs typically associated with a growing utility customer base without sacrificing customer service.

H. Douglas Saathoff, Nighthawk’s Chief Executive Officer, commented, “Each successive quarter we’re getting larger orders from customers, which is obviously fantastic. I’m excited that use of our equipment over the past six months has proven to be sufficiently effective to support a new ordinance in Smyrna requiring use of remote disconnect collars. With the delivery of this order, Smyrna will now have in excess of 1,000 devices available for use, and we look forward to providing them with units going forward as their own customer base and service needs continue to grow.”

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.

Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT:

Doug Saathoff

dsaathoff@nighthawksystems.com

(877) 7-NIGHTHAWK, Ext 701

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NightHawk Systems: Flying High Heading Into 2008

Nighthawk Systems Inc. (OTCBB: NIHK) may be my favorite small-cap pick for 2008. NIHK announced a major milestone today with a contract for the sale of a record number of their “bread and butter” CEO700 product.

With recent news indicating that NIHK is already shipping product to meet more than $800,000 worth of orders for its newly acquired IPTV set-top box business, record sales in from the traditional business have me quite bullish on the company’s future.

Today's Record Order Likely Not the Last From Smyrna

To make today’s news even more powerful, the 500 unit follow-up sale to the Town of Smyrna, Delaware is likely not the last to stem from the relationship. Smyrna plans to equip just about every residence in the town with remote disconnect units using Nighthawk products.

NIHK Products Help Conserve Energy In More Ways Than One.

From a macro perspective, this looks like the beginning of a trend towards electrical utilities mandating that each and every residence, particularly troubled accounts, are equipped with remote disconnect units. And Nighthawk products can remotely control these devices saving money on gas, personnel, and trips to the hospital for dog attacks.

As energy prices soar, this makes sense on so many levels.

From our perspective, we are now looking at a company that is just scratching the surface of two hot and emerging markets. With utilities striving harder than ever to reduce costs and the Internet emerging as a viable and dominant telecommunications medium, NIHK has positioned itself at the forefront of two potentially explosive opportunities.

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Thursday, November 29, 2007

Message From Nighthawk Systems CEO

Good morning!

I hope that everyone had a great Thanksgiving last week. The following announcement went out this morning and discusses the fact that we have started shipping our MediaPro IP3000 HD set-top boxes (“STB’s”) to our major hospitality customer.

This is significant because it starts the revenue stream and cash inflows from the STB business that we purchased about six weeks ago. We’ve got over $900,000 in orders in-house related to this business, so we’ll begin to see this turning to revenue in this current fourth quarter!

As I say in the release, our employees have worked very hard to re-kindle or establish relationships with vendors to get production going on the units in such a short timeframe. I’m obviously happy to start seeing some financial benefits of the STB business so quickly!

This release will also serve as a great marketing tool for us. We believe that we have the best high-definition STB on the market. As other potential customers see this release, it will validate for them that our units are being purchased and produced for use in some of the finest hotels in the U.S.

Have a great day!

Doug

H. Douglas Saathoff

Chief Executive Officer

Nighthawk Systems, Inc.

Nighthawk Systems Initiates Shipments of IPTV Set-Top Boxes

-- Units Feature MPEG-4 (H.264) High-Definition Technology--


SAN ANTONIO, TX - 11/29/07- Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management solutions and IP video set-top boxes, announced today it has initiated shipments of its MediaPro IP3000HD video set-top box units to a leading hospitality services provider, and expects to continue making regular shipments to the customer throughout the remainder of 2007. These shipments allow Nighthawk to begin recognizing revenues from the recently-acquired set-top box operation. Nighthawk had previously disclosed that it had assumed a backlog of approximately $400,000 in orders for the units when it acquired the IPTV set-top box operations of Eagle Broadband in October, and had received an additional order for approximately $480,000 of the units subsequent to making the acquisition.

The MediaPro IP3000HD is a high-definition set-top box with a compact footprint and quiet, fan-less design that delivers exceptional streaming video quality for both NTSC and PAL broadcast standards. It uses an advanced system-on-chip architecture including an integrated graphics accelerator and dedicated multimedia engines executing in parallel to deliver the highest performance 2D, 3D graphics and video capabilities with motion compensation for video playback. Capable of supporting a variety of leading middleware and video-on-demand systems, including Java Script capabilities, the MediaPro IP3000HD platform delivers the advanced content system security and digital rights management (DRM) needed by a wide variety of industries and markets. It supports both high definition MPEG-4 AVC (H.264) and MPEG-2 video standards.

H. Douglas Saathoff, Nighthawk’s CEO, commented, “I’m extremely pleased that we’ve already begun shipping products from our contract manufacturing facility overseas. Our employees have worked hard to establish new relationships with key vendors in a short timeframe in order to get this process started. We look forward to continual strengthening of these relationships with vendors, and further enhancement of the Nighthawk MediaPro brand within the hospitality marketplace.”

About Nighthawk Systems, Inc.

Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet providers and fire departments in over 40 states. Nighthawk also designs and manufactures an advanced line of set-top boxes that are utilized to deliver high-definition multi-media content and applications to the hospitality industry.

Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company’s website at www.nighthawksystems.com.

Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT:

Doug Saathoff

dsaathoff@nighthawksystems.com

(877) 7-NIGHTHAWK, Ext 701

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Thursday, October 25, 2007

Motorola Expects Big Things From IPTV Market

Motorola Expects Big Things from IPTV Market

It appears that Nighthawk Systems Inc. (OTCBB: NIHK) picked the right market, particularly if IPTV expert Motorola is on point with recent estimates on industry growth.

Motorola expects that:

The residential IPTV subscriber base to balloon from nearly 4.6 at the end of ’06 to nearly 60 million by the end of 2011; and
Shipments of IPTV set-top boxes to reach 7 million in 2007 and grow to more than 20 million by the end of 2011.

Now coming to market with an industry leading M2M and IPTV products, NIHK is beginning to gain some serious traction in two of the world’s hottest markets.

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Wednesday, October 24, 2007

Another Record Quarter On The Horizon For NIHK

Nighthawk Systems Inc. (OTCBB: NIHK) provided guidance today on rosy 3rd quarter earnings today that saw revenues improve on the $899,000 logged during Q2 and increase nearly 55% over Q3 '06.

Investors embraced the news with open arms as the stock traded up over 11% to .1140 on volume exceeding 5,000,000 shares. With its traditional business making record quarterly growth seem somewhat commonplace recently, adding on the high potential IPTV set-top box biz provides a new level of hope for the company bringing annual revenues into the double digit million range.

For the near to mid-term, the IPTV business may prove to be the icing on the cake for NIHK. With management stating that revenues for the first nine months of 2007 already exceed those of calendar year 2006, I'd say things were chugging along just fine prior to the recent acquisition.

CEO Doug Saathoff states in today's release that the IPTV biz could possibly accelerate near-term revenue growth rates by a multiple of two. If that's the case, the market may have awoken to some extent today and started pricing that potential into shares. Just a thought.

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Tuesday, October 16, 2007

Sales Keep Heading Up Up Up!




Yesterday was a good day for MicroStockProfit subscribers. If you jumped on our Monday morning pre-market Nighthawk Systems (OTCBB: NIHK) alert, you likely got a nice investment gain to go with your frenzied Monday morning. Closing Friday at $0.08, NIHK was on our radar for a strong following week in the market. Hopefully, many of you got to pull a little off the table as it traded up on HUGE volume yesterday morning and closed at $0.106 (just a hair off its intraday high of $0.107) - a gain of over 32%! Not a bad way to kick off your week.

Now on with the show. . .



Over the past year, we have seen quite a bit out of Execute Sports Inc. (OTCBB: EXCS). The company has emerged from virtual upheaval and is reaching milestone after the milestone. Today, EXCS is out with yet another positive news release that should have investors and shareholders excited for the future of the rapidly emerging water sports player. According to EXCS, preliminary orders for 2008 OEM produced Life Vests will increase by nearly 61% over 2007 production.

While the 61% figure on its own doesn't do a heck of a lot for us, after peeling through a number of recent corporate announcements, I stumbled upon news dated 4/17/07" Execute Sports, Inc. Announces 2007 OEM Sales Rapidly Approaching $1 Million"

So applying a little "back of the napkin" math and making the assumption that overall OEM sales are growing at roughly the same rate as OEM life vests, pre-orders for 2008, which hasn't even technically begun yet, equate to nearly $1,600,000 in 2008 revenues. Even if life vest sales contribute only 30% to overall OEM sales and this is the only private label OEM product experiencing such tremendous growth, we're still looking at a very healthy increase since these are 2008 orders are being logged with about 2.5 months left in 2007.

For a company that logged only $2,000,000 in 2006 revenues, this is a major deal - particularly since OEM/Private label sales make up only a small portion of the company's overall sales and we are only speaking in terms of preliminary orders. Actual 2008 OEM sales will likely be much higher given the many months that Execute now has to log more orders.


Sometimes, a list is the best way to get a handle on company details. Let's take a look at some of the positive forces that are currently working in sync to foster a positive future for Execute Sports. Here are a few of my favorites in non-chronological order.

1. The Chart - EXCS shares have found support in the $.02 range and investors don't seem at all willing to part with the stock at lower prices. It appears that we have reached a bottom, and judging by the ongoing improvements being made on behalf of management, it doesn't seem like we can stay parked here forever. The company is simply performing too solidly, both from a financial and operational perspective for that to happen.

2. Record Sales - After announcing all-time record high sales for the second quarter back in July, Execute has issued a string of very positive corporate announcements regarding many aspects of their stellar sales performance. As of 9/27/07, Year-to-date internet sales had increased 38% over 2006 and Execute branded products were accounting for nearly ½ of ALL online sales in each of their core product lines. This rapid growth (online sales just started in March of '06) has been facilitated through management's ability to get their products online with leading retailers including: The Sports Authority, Dick's Sporting Goods, Joe's Outdoors, Sport Chalet, Modell's and MC Sports.

3. Recent $5,000,000 Sugar Sand Boat Acquisition - By purchasing Sugar Sand, Execute, recognizes the benefits of both a cash influx of $7-10 million during year one and the addition of a complementary brand. U.S. law stipulates that all recreational boats must carry one wearable PFD for each person aboard and that each passenger under 12 years of age must wear a flotation device at all times. Essentially, for every Sugar Sand jet boat that is sold, the company has the opportunity to sell a few additional PFDs. In addition, Sugar Sand has developed a very strong dealer/distributor network to which Execute can pitch its brand to for the first time. This move should also provide the cash and equity necessary to fund further growth through acquisition. How could management possibly pass this deal up?

4. Audited Financials Improving by almost every Conceivable Metric - The improvement to both revenue and gross profit over the trailing three quarters is a direct indication that management has got its act together and is ready to move toward profitability. Operating income improved during the second quarter over the previous reporting period and SG&A expenses stayed flat despite substantial revenue growth (44%). Simply put, the corporate re- organization was a smashing success and the company is much more operationally efficient now than it was just one year ago. I expect upcoming financials to bring more of the same improvement, but only time will tell.

5. Product Placement & Brand Recognition Have Never Been Better - With Kawasaki re-ordering, Execute products being prominently featured on major television outlets including MTV, ESPN, and the E channel, and the company's all-star sales team introducing its revamped 2008 line at the world's largest water sports expo recently, product placement and brand recognition have never been better. This bodes extremely well for future growth as the world is just getting their first taste of Execute Sports products.




Execute Sports Inc. keeps getting more attractive. Financial or revenue news is always a good jump start for EXCS stock but I think this little company is just getting started. Take, for instance, a look at the OTC Bulletin Board for companies currently trading in the $.02 range. Measure them against Execute's recent performance, its strong sales and revenue increase through 2007 and you will see why we like to call this one our diamond in the rough.

I suggest watching this one closely over the next few months as the Sugar Sand segment becomes more integrated into Execute's daily operations, financials are released, and business as usual continues. It may take a while for the affects of the increased orders to be seen in the market, but EXCS is building a strong foundation for an explosive 2008.


Traders - We are looking for a similar performance from EXCS as we saw yesterday with NIHK.




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Monday, October 15, 2007

Yahoo Finance Users Bullish on Nighthawk Systems Inc - NIHK

A quick peek at the Yahoo Finance home page not too long ago yielded some very promising results. It appears that yahoo finance communities are every bit as bullish on NIHK as we are here at MSP.

Here's a link to the page: http://finance.yahoo.com/

Below is the same list currently residing on the Yahoo finance page:

Yahoo! Finance Essentials
Community Sentiment
Popular Stories
Stocks everyone is talking about. (What's this?).
Bullish
Biogen Idec Inc. (BIIB)
Nighthawk Systems Inc. (NIHK.OB)
Costco Wholesale Corp. (COST)
Bearish
Level 3 Communications Inc. (LVLT)
BEA Systems Inc. (BEAS)
CEL-SCI Corp. (CVM)
Data provided by Collective Intellect.

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Nighthawk Expands Revenues - Focus

Nighthawk Systems Inc. (OTCBB: NIHK) filed an 8K after market on Friday and a press release this morning that holds the potential to increase revenues by $6,000,000 over the next twelve months and transform the company into a much larger M2M industry player, as well as open many cross-marketing doors.

In a move that helps NIHK build the critical mass necessary to successfully target larger deals and also reach profitability, the company has agreed to acquire the IPTV Set-Top box business from Eagle Broadband. For those of you unfamiliar with the IPTV acronym, our friends from Wikipedia will clear things up for you:

http://en.wikipedi a.org/wiki/Iptv

"IPTV (Internet Protocol Television) is a system where a digital television service is delivered by using Internet Protocol over a network infrastructure, which may include delivery by a broadband connection. A general definition of IPTV is television content that, instead of being delivered through traditional broadcast and cable formats, is received by the viewer through the technologies used for computer networks.

For residential users, IPTV is often provided in conjunction with Video on Demand and may be bundled with Internet services such as Web access and VoIP. The commercial bundling of IPTV, VoIP and Internet access is referred to as "Triple Play" service (adding mobility is called "Quadruple Play"). IPTV is typically supplied by a service provider using a closed network infrastructure. This closed network approach is in competition with the delivery of TV content over the public Internet, called Internet Television. In businesses, IPTV may be used to deliver television content over corporate LANs."


$6,000,000 Cash Influx With Much Greater Potential

Since I have a pretty deep understanding of what transpired with Eagle's IPTV business over the past 6 months, I have a pretty good idea of the potential that this deal holds for NIHK's future.

In terms of overall opportunity added on with the acquisition, Internet Protocol Television (IPTV) is an industry that is about to explode. More specifically, analysts envision the market to be worth nearly $40 billion by '10 with more than 50 million subscribers. That's all well and good you might say, but what does that mean if the company's products have no traction in key consumer markets. Well have no fear - NIHK already has an ace up their sleeve.

Ace in the Hole with New Set-Top Box Business

Prior to its sale, the boys at Eagle Broadband made some valuable inroads with one of the world's leading hospitality IP solution vendors before the big telecoms could make it to market with a viable offering. Under the terms of the agreement, the company would follow up an initial shipment of 500 units with a $6M contract that was staggered out over 13 months if all went well.

If NIHK is able to deliver on this new contract and pave the way for a bigger relationship down the road, the possibilities are very interesting. Based strictly on our estimate of, say, 505,000 hotel rooms under their hospitality customer's umbrella, and at an average selling price of $500 for EAG's set- top boxes (likely a sickeningly discounted); it is safe to assume NIHK experiencing the following revenues at specific penetration rates:

5% penetration = $12,600,000
10% penetration = $25,300,000
15% penetration = $37,900,000

* Please remember that these figures are only estimates and represent only potential revenues derived as a result of a strengthened relationship with its unnamed customer in today's news and do not take into consideration the growth of NIHK's historical business.

This deal is a home run for a number of reasons. Hey, I'd say any acquisition that boosts revenues by more than 600% near-term and holds the potential for 4000% gains down the road is a winner. I'm guessing the market will react favorably off the bat, so dig your heels in and conduct a little due diligence on your own behalf on the IPTV industry, the potential set-top box deal on hand, and the prospects of NIHK's historical business

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Tuesday, September 25, 2007

Green Light For Nighthawk

Let's imagine for a minute a scenario that every driver has to admit to at one time or another. There you are approaching a traffic light that just barely turned yellow. You are late, traffic is backed up, you just can't wait to be out of that suit and tie, dinner is on the table, your boss has already called to find out where you are - whatever the reason, a red light right now would just compound your problems.

So you scour the intersection for any unnoticed police men and upon seeing that the coast is clear, you are SO tempted to just put the pedal to the metal and put this intersection behind you. Well these days, if you are like me, you are a little older, a little wiser and definitely aware that running a yellow or red light also runs the risk of getting a ticket in the mail with your handsome mug on it - probably even shamefully on a cell phone.

For some, red light cameras are vicious, nasty little contraptions that only cause trouble. But every time we hear that another red light camera is being installed, it is music to our ears! Sure it makes the roadways safer but we particularly rejoice because one of our favorite investments has a hand in the red light camera phenomenon.

New Applications, New Markets = New Growth


As if Verizon Wireless, American Messaging, and SkyTel weren't doing enough for sales, Nighthawk Systems Inc. (OTCBB: NIHK) took a huge step forward from an operational standpoint today, announcing an alliance with American Traffic Solutions ("ATS").

Based in Scottsdale, Arizona - ATS is a leading domestic player in the high potential photo traffic safety and enforcement solutions market. Over the past few years, cities and states around the nation from Columbus-Ohio to Ventura-California have tested red light cameras with tremendous success.

Check out this report to get a better feel for what this market is all about:
http://www.stopredlightrunning.com/pdfs/Focus%20on%20Safety.complete.FINAL..pdf

For Nighthawk, Red Means Green

With photo enforcement solutions now proven to lead to safer driving habits, reduction in traffic crashes, hindrance of dangerous/aggressive driving - while saving lives and increasing police and public safety - widespread adoption is on the horizon and ATS is helping to lead the way in North America.

To give you an idea of the value-add here: According to the World Report on Road Traffic Injury Prevention issued in 2004 by the Worth Health Organization and the World Bank "the benefits of speed cameras outweigh their costs by a three-to-one margin, without taking fine revenue into account" In addition, although it is a bit dated, the following tidbit of information exemplifies perfectly the need for automated traffic control systems: in 2000, the cost of speeding related crashes in the U.S. was an estimated $40.4 billion, or $76,865 per minute.

With the majority of competition in the space coming from International counterparts (RedFlex Holdings and Gatsometer B.V. are two key players), ATS appears to be holding its own. The company is contracted to install and operate more than 850 red light and speed cameras across the country and more than 220 red light cameras in 19 Texas communities. Going forward, NIHK's customized PT10000 boards and firmware will be implemented into ATS traffic management equipment, which has been achieving stellar sales. This should provide a nice bump to revenues, likely during the fourth quarter of this year and beyond.

Multiple Products = Multiple Revenue Streams

Although most of the buzz lately has been generated by NIHK's CEO700 units gaining record traction within both the utility industry and in green applications, this most recent agreement involves the company's PT1000 board and firmware. In a world where there are simply too many violations and not enough police, ATS solutions, with the help of NIHK products, assist law enforcement in keeping the streets safe from mischievous motorists. Of course, we are thrilled to see NIHK targeting a continuously expanding pool of opportunity, through multiple partnerships, with multiple products.

With research indicating that there are more drivers on our roads than ever before and also that drivers, even those who admit to frequent speeding, think traffic enforcement is too lax (40% of a 2002 survey stated that there was too little enforcement of red light running and speeding), the need for automated enforcement solutions as a complement to traditional methods is paramount. In a testament to their effectiveness, a review of red light camera studies around the world concluded that cameras reduce red light violations by 40-50 percent and reduce injury crashes by 25-30 percent.

Nighthawk saw second quarter revenues improve 60% over Q1 and recently announced its largest sale ever. In addition, the company's PT1000 boards were just implemented in a statewide generator automation project with Verizon before being chosen by ATS. Needless to say, NIHK is now faced with the largest market opportunity in company history. Management's dedication to pursuing favorable business relationships that directly correlate with increased sales volume is taking NIHK to new heights. The only question is: when will the market at large wake up and smell the profits?

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Tuesday, August 07, 2007

Record Order For NIHK

Yesterday, I spent my afternoon watching the game and thinking about work. I just hate how that always seems to happen! At any rate, there I am recumbently watching a slow going game on a warm afternoon when I can no longer control the urge and decide to see what was on CNBC.

However, to my utter confusion, the remote was not next to me as it should be. I was suddenly hit with panic. Where could that darn thing be?
I begin to practically overturn the couch looking for it. Lo and behold one of my daughters had taken off with it for some reason or another but do you know what I did? Absolutely nothing! I sat and watched the game drawl on because I was definitely NOT going to get up to change the TV channel. Yeah right!

To think that fifty years ago, the first television remote control (besides the kid of the house) was called "Lazy Bones" and was actually on a string. Before that, the public reveled at the newly released garage door opener and its many wonders.

Power: On!
Now I don't mean to get into the history of the remote control (as fascinating as I am sure you would find it) but it got me thinking what I always think: 1. Who was the genius who created the remote? and 2. Who were the forward thinking investors who backed it?

These days, the remote control is not only a staple for televisions viewers across the world, but also used in every other area of life you can (but likely don't) think of.

Why, you may ask, do I spend my afternoons pondering the nuances of remote controls? Well it happens that one of the companies I really like these days is in the market of making every kind of remote you have likely never thought of - and doing it well.

I think it is shaping up to be a record year at Nighthawk Systems Inc. (OTCBB: NIHK). After announcing not long ago that Q2 revenues are expected to be the highest in 48 months, NIHK is out with big news this morning noting the company's largest single sale ever.

Company Keeping Good Company

The order is from Avista Utilities of Spokane, Washington and trumps the largest sale in corporate history announced back on 5/31 to the Town of Smyrna, Delaware (a 300 unit order a la Rumsey Electric, a leading U.S. electrical wholesaler).

This should provide a nice boost to Q3 & year-end financials and also bolster the company's rapidly growing utility customer base while opening the doors to a solid recurring revenue prospect (in the past, repeat orders have typically been larger for NIHK).

One important thing to note here is that although relationships with Verizon Wireless, SkyTel, and American Messaging all pack the punch to change the face of Nighthawk with just one order - NIHK has developed a nationwide distribution network chock-full of leading players capable of bringing in record orders themselves.

Leaner and Meaner By The Day

In addition to becoming more operationally efficient and attracting new and repeat business, seemingly on a daily basis, NIHK also benefits from playing in some surging markets - Utility, Industrial, and Building Automation to name a few.

As smart metering/smart grid programs roll out nationwide, commercial/industrial energy users continue to consume nearly 63% of US produced energy, and the need to become more efficient in the design and development of energy infrastructure reaches paramount heights, the demand for Nighthawk's products has never been greater.

The beauty of it all is, NIHK products can be used to conserve energy everywhere - from a diesel generator, to turning off the power in 24C when the bum doesn't pay his bill.

Sales and Stock - Both in Uptrend

If that doesn't scream that NIHK has the macro trends on its side, check out this recent commentary from England & Company - a Washington, DC-based investment bank focused on the middle market:

"With oil circling $75 per barrel and natural gas trading at $6.50 per million BTUs and likely to go higher, conservation is on the minds of all Americans. Although oil is a critical component in transportation and an important feedstock into many manufactured goods, its role in the production of electricity is limited to approximately 3% of generation output in the US in 2005. With its cost, natural gas is predominantly used to fuel smaller plants, accounting for 19% of total megawatt output. As measured in megawatts of generating output, coal is king, producing approximately 50% of electricity generated in the US. With the continuing increase in demand (especially peak load) over the next several decades, the US Department of Energy estimates that an additional 258 gigawatts generating capacity will be required by 2030, representing a total investment of approximately $412 billion dollars. (Source: US Energy Information Administration.)"

"We believe that the challenges inherent with balancing economic growth and good stewardship of the environment present tremendous opportunities for companies involved in infrastructure and industrial technology markets."

Don't forget also that Chartwell Inc. revealed back in 2004 that 55% of utility organizations used, planned to use, or were using technologies that allow for the remote connect/disconnect of energy meters AND also that approximately 2.3% of U.S. electric meters were individually disconnected and reconnected on more than 4 occasions resulting in estimated costs of more than $1.2 billion to utility providers.

I'd wager that if you took a head count now, these figures are much higher. Chartwell's research accurately predicted an ongoing surge in utility organization investment in process improving technologies.

NIHK goes to show that remote controls not only occasionally keep lazy people like me from working my Sunday afternoon away but meet needs that never even occurred to me before - and in a big way! I can't help but wonder how many more uses there are for the remote control. How will this little invention continue to make the world even more efficient and convenient?

The way I see it, this is just the beginning for utility automation on a global level as well as growing demand for energy conserving products. What a great time to be on board with Nighthawk.

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Wednesday, August 01, 2007

Nighthawk Nails Another One

With the U.S. Dept. of Energy estimating an investment of approximately $412 billion dollars (or roughly the Federal Deficit in FY 2004) will be required to provide enough additional electrical generating capacity to fuel the country over roughly the next quarter century - the need to conserve power is reaching epic proportions.

Another Big (Repeat) Order

In a world where conservation is crucial, Nighthawk Systems Inc. (OTCBB: NIHK) is cashing in on its proven ability to develop Telemetry or M2M products capable of remotely controlling virtually any electronic device in the world - from your kitchen light to a diesel generator.

Announcing a deal today with El Paso Electric (one of NIHK's largest historical customers) as part of an ongoing automation program, the company continues to log progressively larger orders and revenue figures with a growing number of repeat and first time customers. Simply put, business has never been better!

Big Names - Big Contracts

For those of you that are new to the deal, just one year ago, NIHK closed at $.04 (3/31/06). Since then, the stock has trended upwards, reaching a high of close to $.25, before settling back into the dime range where its sits today.

The run up has been by no means artificial. Nighthawk is now experiencing record revenue growth and positioning itself for very bright future in the surging M2M space via partnership with a terrific trio of telemetry partners in Verizon Wireless, American Messaging (formerly SBC Global), and Skytel (a division of Bell Industries).

Improving Utility Efficiencies


As electricity consumption increases (EIA estimates 40% bump in usage by 2030), trumping today's record levels - electrical utilities are still faced with an age old problem: Even as costs skyrocket and demand increases, it's the utility not the consumer that feels the pinch.

This is evidenced by electricity prices failure to keep pace with inflation during 1985-2000 (1.1% vs. 2.4% per yr.) as well as consumption reaching record levels today as average household spending declines.

In effort to optimize efficiencies and not get buried, the industry invests heavily in improvement. With electrical companies expending an estimated $1.9 billion on Demand Side Management (DSM) programs in '05 and saving enough electricity during 1985-2000 to power nearly 74 million average U.S. homes for one year - the willingness to pay for infrastructure enhancement is quite evident.

A Diamond in the Rough?

Although other options exist for quenching America's growing thirst for natural resources exist - such as simply ramping up current production levels and developing alternative/renewable energy sources - becoming more energy efficient is by far the most economical choice and seems to be where the industry is placing its chips for the time being.

This is where NIHK is poised to build a much improved position in the surging M2M marketplace - and remember - electrical utility optimization is just one of many potential cash cow applications at Nighthawk's fingertips (check the 7/11/07 on cell tower automation deal w/Verizon)

With Nighthawk expecting to report "its highest quarterly revenue results in four years, with revenues increasing more than 50% over the first quarter of 2007 and approximately 35% over the same quarter in 2006" and all industry trends pointing towards go, we think that NIHK is on the verge of building a blockbuster M2M hardware company.

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Monday, July 30, 2007

Message From Nighthawk Systems CEO

Good morning!

I hope everyone had a great weekend. The following release went out this morning and announces the third order for PT1000’s from City, Water Light & Power (CWLP) of Springfield , Illinois .

CWLP uses a custom version of the PT1000 that we build into an enclosure as a capacitor bank controller. CWLP first ordered these units from us back in 2006 and with that order became one of our largest customers for the entire year. Since then, they’ve ordered twice more from us in 2007. With so many announcements of sales of CEO700’s to various utilities, it might be easy to forget that we have other products that are useful to electric utilities.

Going forward, as we enhance our products over the remaining months of 2007, I think you will see Nighthawk products used in various applications by the utilities, broadening our revenue base and further strengthening the relationships we already have with our electric utility customers.

Have a great week.

Doug

Nighthawk Systems Receives Third Order From City Water, Light & Power Of Springfield , Illinois
-- Units are Part of Ongoing Capacitor Bank Control Project --

SAN ANTONIO, TX - 7/30/07 - Nighthawk Systems, Inc. (OTC BB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions