Medical Alarm Concepts Kicks Off Major Retail Promotion - Customer Upgrade Rate Remains Strong at Over 70%
KING OF PRUSSIA, Pa., Oct. 10, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today announces the commencement of a major retail promotion that will allow consumers to acquire the most advanced personal medical alarm technology on the market today at very attractive pricing. The company is also announcing today that customer contract extension rates remain very strong with over 70% of retail customers signing up for additional three, six, or twelve month commitments to begin after the initial six month contract period provided via the retail purchase.
Ronald Adams, CEO, of Medical Alarm Concepts commented, "We are very proud of this promotion as it will enable those who need it, to acquire this second generation life-saving technology at a very attractive price with no installation fees, long-term contracts, or installation charges. We are providing the market place with a product we feel is clearly superior and we are providing it at a very attractive price. Medical Alarm Concepts is expecting very robust sales and strong rates of contract upgrades when this promotion kicks off on October 15th."
The coupon promotion, which is available via one of the largest retailers in the country, allows for an additional $25 discount off the already very attractive pricing. The package includes the MediPendant™, six months of EMT-trained operator monitoring, replacement battery, belt, neck, and armband attachments, and a door lockbox, so medical personnel can gain access to the user's home in the event of an emergency.
The Company has elected a conservative accounting treatment of upgrade revenue by not charging customer's credit cards upon initial sale, but as the contract extension period begins. Considering the company began selling these contract extensions approximately four months ago, beginning in December, Medical Alarm Concepts will begin the process of charging customers who have extended their contracts. Recognition of the revenue associated with these contract extensions will occur as the services are provided, and the cash flow associated will occur at the beginning of the customer's renewal period.
Adds Adams, "Beginning in December we will begin recognizing cash flows from the contract extensions sold four to six months earlier. Just as our retail sales have consistently expanded since the program was instituted, we expect a corresponding growing of cash flow injection as the initial six-month contract periods expire and as the contract extensions kick in. The result will be strong growing cash flow for the corporation, which will move us into an operating positive cash flow. We believe we are well on our way to profitability and to producing strong gains in shareholder value. While this retail promotion is very important to Medical Alarm Concepts, we stress to our investors that the company was already strongly trending toward profitability, a much stronger balance sheet and fully reporting SEC status. This promotion, and the hundreds of new MediPendant™ sales and contract extensions it is expected to generate, holds the promise to meaningfully accelerate this process. We could not be more pleased with where we are as a corporation, and as we continue to make investments and improvements to maximize shareholder value. It is clearly a very exciting time at Medical Alarm Concepts."
The MediPendant™ is a second-generation personal medical alarm and the only 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 within 600 feet of their home, and in the event of an emergency, 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 Holdings, 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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