KING OF PRUSSIA, Pa., Oct. 18, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK) today provides its investors with preliminary results for its recently launched Fall promotional activities, which officially began on Monday, October 15th. Thus far sales have been brisk and are meeting the Company's expectations. In only the first few days of the promotion, over 125 units were ordered with most having already been shipped to customers. The rate of customer upgrade to longer contracts remains in excess of 70%, with the vast majority of customers opting for additional twelve month terms. Twelve month extension contract terms are provided at aggressive industry rates.
Ronnie Adams, CEO, commented, "We have staffed and budgeted for approximately 1,500 units to be sold during the 30-day promotional period, which will generate some very meaningful incremental revenues and strong gross margins. This is a significant jump in MRR (Monthly Recurring Revenue) sales, which had been running at approximately 200 MMR sales per month. We have been able to tightly manage our fixed and variable expenses, and we were already well on our way to profitability at the 200 MMR sales per month. The additional units we are expecting to sell and ship during the next 30 days will add approximately $20,000 to our MRR, which had already been growing at a robust rate. This additional MRR, when combined with our current MRR, will easily push us into operating profitability. Once achieving profitability we are expecting profits to continue to expand as the monthly recurring revenue continues to grow incrementally each month."
In addition to MediPendant™ sales associated with monitoring related monthly recurring revenues, the Company continues to sell and ship products for one time gross margins to both domestic and international distributors. This business is expected to grow throughout the end of this year and into 2013.
The coupon promotion available via one of the largest retailers in the country, allows for an additional discount off of the already very attractive price. The package includes the MediPendant™, six months of EMT trained operator monitoring, replacement battery, belt, neck, and armband attachments, and a door lock box so medical personnel can gain access to the user's home in the event of an emergency.
Mr. Adams continued, "The personal medical alarm marketplace is very large and is expected to grow significantly over the coming years as the population ages. We have a unique product and our pricing is on target for the marketplace, and as a result, we believe that for the first time in our corporate history we are now beginning to take market share away from our competitors. We expect this trend to continue as we move into sustained monthly profitability."
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.
Safe Harbor Statement
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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SOURCE Medical Alarm Concepts Holding, Inc.