MDHI Projects Break Even With Quickly Accelerating Monthly Recurring Revenues - Expects Continued Growth
KING OF PRUSSIA, Pa., Nov. 5, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK) today announced a major milestone in its corporate history. Due to significantly accelerating sales and very strong contract extension close ratios, the company has now added enough MRR (Monthly Recurring Revenues) to surpass the monthly breakeven point in early 2013.
In addition to contracts for the monitoring of medical alarms, which produces the MRR, the company expects to also produce ongoing incremental, high-margin sales of the MediPendant™ medical alarm to domestic distributors and international customers.
"As we announced recently, our retail promotions have been highly successful with over 70% of customers selecting to extend their monitoring contract periods beyond the initial six months. The strength of our sales is continuing and we are shipping at 100% of capacity," commented CEO, Ronnie Adams. "It is important for our investors to remember that our success will be based on very high quality, high margin recurring monthly revenues. It is a significant milestone for us to project surpassing our breakeven point based on these recurring revenues, but we think that this is just the beginning, as we see no end in sight to our continued growth. We are clearly increasing our market share in the rapidly expanding medical alarm/alert segment."
The company has elected a very conservative accounting treatment of upgrade revenue by not charging customers credit cards upon initial sale, but as the contract extension period begins. Considering the company began selling these contract extensions for its retail partnership almost six months ago, the company is expecting acceleration in cash flow as it begins charging customers credit cards for the periods after the initial six months.
Mr. Adams continued, "We are well on our way now that we are reaching this important break even MRR event. While our domestic sales have continued to reach record levels, we are also continuing to expand our international business. This week we are delivering another major proposal to establish distribution and services in one of the most populous countries in the world. We expect our international business to be very strong moving forward, which will well augment our extremely fast growing MRR and domestic distribution."
The MediPendant™ is a second-generation personal medical alarm and the first product in its category that allows for monitored, two-way communications directly through the pendant. Older generations of technology require the user to be in close proximity to the base station in order to speak and listen to the operator. With the MediPendant™, the customer can be anywhere up to 600+ feet from their home, and in the event of an emergency, they can speak and listen to the EMT trained operator directly through the pendant.
Additional information on the MediPendant™ can be viewed at www.medipendant.com.
Medical Alarm Concepts Holding, Inc. (MAC) develops and manufactures innovative products and practical solutions within the framework of a vast growing marketplace. MediPendant's™ patented two-way voice technology enables the user to speak and listen directly through the pendant no matter where the user may be in and around their home. MediPendant™ service also includes advanced features such as three-way calling that enables the operator to link loved ones directly into the emergency call in real time. Text message alerts are also standard, and are used to inform loved ones that the user has contacted an operator or has requested assistance. A standard PERS system does not enable the user to speak and listen through the pendant, thus limiting them to a small area in their home. There is always the risk that the user will not be heard by the call center operator if they are not within a short range of the base station.
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Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission.
Medical Alarm Concepts Holding, Inc.
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