KING OF PRUSSIA, Pa., Aug. 6, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK), today provided investors with an update on growth of the MediPendant business, an outline of its path to profitability, an overview of the company's business model, information about recent and projected sales, and an update on returning to fully reporting status.
The Company recently launched a strategic alliance partnership with the largest warehouse club stores in the United States for sales of the Company's MediPendant™ product.
During the June quarter, a total of approximately 4,000 MediPendants were sold. Due to the strong growth being realized for the reasons discussed below, the company is expecting to sell more units during the September quarter than were sold during the June quarter. As is also discussed below, Medical Alarm Concepts is expecting to move into profitability prior to the end of the year, if not sooner.
Medical Alarm Concepts is experiencing rapid growth in both Internet and retailer-based sales. Recurring monthly revenue being realized by these sales are now growing to the level where the company is getting closer to covering its fixed operating expenses. The company is not at liberty to discuss its retail oriented sales, but sales remain brisk with orders being taken and product being shipped on a daily basis.
Ronnie Adams, CEO, commented, "Our recurring revenue is growing at a strong rate. For example, last week we shipped 50 units to new customers who had ordered our MediPendant with monitoring services. This growth will help us reach profitability very soon. An additional additive dynamic is the strong sales we are also realizing into our key distributors.
The company recently began offering customers of its large retail partner the opportunity to extend an additional 3 – 12 months to their monitoring agreements from the 6 months provided in their initial price. The upgrade rate has now climbed to in excess of 75%, providing the company with additional high-margin revenue.
Mr. Adams continued, "The interesting thing about our business, however, is that we have an additional revenue stream that is also growing. International distributors are buying our units for deployment within their networks and we have been able to capture their attention and orders. We have already announced one contract for this distribution business and we expect to have additional distribution shipments for revenue through the end of the year. With the rapidly accelerating monthly revenue business and these meaningful distribution orders, we believe we will be profitable prior to years end if not sooner, and we will be able to sustain profitability as the monthly recurring revenues continue to grow."
"The positive potential wildcard for us between today and the end of the year will be the early Fall promotion with our large retail partner. This promotion accounts for approximately 40% of our partner's online sales for our category and we believe it is quite an honor to participate. Our partner has given us a forecast for the promotion of between 1,500 and 2,500 units. With our business already quickly trending toward profitability based on the current ramp in Internet and distributor-based product sales (exclusive of revenues from this large promotion), we really are not sure of the degree to which our business will be positively affected. However, when we analyze the potential for this many new customers coming on board in such a relatively short period of time, and considering our 75% upgrade rate, the possibilities are very exciting. We are planning on adding some temporary staff to help us meet this additional demand."
As a result, Medical Alarm Concepts is pleased to reiterate its expectation for profitability prior to year's end, if not sooner. Due to the recurring nature of large portions of the Company's revenue streams, management believes this profitability will be sustainable into future periods
Relative to Medical Alarm Concepts regaining its fully reporting status, Mr. Adams commented, "We plan to soon rehire our auditor in order to return the company to fully reporting status. Some of the internal accounting work in preparation of this audit has already been completed. Over the past few months we have undergone a significant reorganization of our business and we are happy to say that this process has largely been completed. We strategically decided to utilize our limited resources to reorganize the company and to build our business at the expense of maintaining our fully reporting status with the Securities & Exchange Commission. We were able to do this because we are a voluntary reporting organization, but we nevertheless believe it is important for us to restore our fully reporting status as soon as possible. We believe our investors will be very pleased to see a balance sheet that is sustainable for our business sector and an income statement that shows positive earnings upon completion of our audit and upon our upcoming filings with the commission. We are targeting returning to fully reporting status by the end of this calendar year."
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. For more information, go to www.medipendant.com.
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.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.