SAN FRANCISCO, June 15 /PRNewswire-FirstCall/ -- YesDTC Holdings, Inc. (OTC Bulletin Board: YESD), a direct-to-consumer marketer and global distributor of consumer goods and products, today issued the following shareholder letter from CEO, Joseph Noel.
Dear Shareholders of YesDTC,
I am very pleased to inform you that we are progressing according to plan in establishing YesDTC as a successful DRTV (Direct-Response-Television) company. We have already had a successful test run of our first product, Simply Music™, and are now in the process of making an infomercial for MediPendant™. (Please see below for more details on both these products). In addition, we have acquired the rights to distribute all of BioElectronics Corporation's product line throughout Japan, including the Allay™ Menstrual Pain Therapy and ActiPatch™ Therapy products, in addition to several new products we expect to announce soon. We are also in the process of negotiating to acquire the international rights for a very successful direct to consumer sleep product here in the United States. I hope to be able to announce this in the near future. As you can imagine, I am excited about the outlook for YesDTC, which is now a fully reporting, over-the-counter bulletin board company that trades under the ticker symbol YESD.
I believe two associations we have established with industry leaders and the direct response television (DRTV) market are of particular importance to the success of YesDTC. The first of these is our association with Schulberg Media Works, which is run by a longtime business associate, Jon Schulberg. Jon is clearly one of the original pioneers in the DRTV and venture marketing space and he has been responsible for the creation of some of the most successful marketing and infomercial campaigns in DRTV history. In fact, you may have even seen some of his campaigns on television for popular brands such as Tempur-Pedic, Guthy-Renker, Sony, 24-Hour Fitness, Rhino Records, HarperCollins and PureSleep, among many others. Regarding YesDTC, the Schulberg Media Works team is responsible for the creative aspects of our marketing campaigns. We have also formed a strong relationship with The 440 Group, a very successful direct response marketing consulting firm, which is responsible for the setup and operation of all of our back office functions including media buying, call centers and order fulfillments, among others.
Several weeks ago, we launched our first product marketing campaign for a highly successful, learn-by-trial music program called Simply Music. In this campaign, YesDTC acquired a previously developed 30 minutes infomercial, which was produced by Schulberg Media Works and has been very successful in the past. At present, we are just ending the testing phase of the Simply Music launch by YesDTC and I am happy to report that we have seen a great deal of success so far. Over the coming weeks, we will be ramping up our media spend, which I believe will begin to generate strong revenues for the Company from this program. Of course, while it is as of yet to be seen exactly how much revenue YesDTC can generate here, it is also important to remember that many of these DRTV campaigns generate millions of dollars per year. In addition, I also believe that the Simply Music initiative can be highly profitable even at relatively low revenue levels because the margins are particularly strong given: first, we were able to capitalize on an existing marketing campaign that had already been created, rather than having to build all advertising and promotional materials from scratch; and second, because our variable costs from selling this product are mainly comprised of simply making a copy of the Simply Music CD for each item sold.
Overall, while Simply Music is our first campaign, it is certainly not the only campaign on which we are currently focusing our time and efforts. Several weeks ago, we announced that YesDTC had become the exclusive DRTV marketer for a product called MediPendant™, which is a personal alarm device produced by Medical Alarm Concepts Holdings, Inc. (OTC Bulletin Board: MDHI).
The personal medical alarm industry is a fast growing and very profitable segment where, for example, a well known company Life Alert Emergency Response, Inc. ("Life Alert"), generates a strong recurring revenue stream every month. This company currently has the single largest market share with its Life Alert® alarm product. I believe the MediPendant™ technology YesDTC plans to offer is a generational leap ahead of that offered by Life Alert in that it is a true two-way voice system that allows a person in need of assistance to talk directly through the pendant to EMT trained personnel at a call center – in fact, the technology is so flexible that EMT personnel at the call center can conference in a friend or family member to participate in the emergency call. This capability gives people in need of personal medical alarms a significant degree of comfort, as it is not always necessary to dispatch first responders to a person's home – sometimes emergencies are better solved by family members rather than having someone from the fire department kick in the front door, for example, which is what can happen when medical alarms from other companies are activated. We are already working on the campaign for this product and plan to launch it on television within the next 60 days.
Please go to Medical Alarm Concept's website for more information at http://medipendant.com/. Also, here is a link to an interview I did with Howard Teicher, the CEO of Medical Alarm Concepts: http://bit.ly/dCHrZ0.
As many of you already know, we have also acquired the rights to distribute all of BioElectronics Corporation's product line throughout Japan. We have already selected one of the leading DRTV marketer's in Japan to be our partner and are currently undergoing a legal review of the regulatory status. I believe the BioElectronics technology could do very well in Japan, as many of this country's consumers are very accepting of alternative medicines and therapies. I expect to produce an update relative to the regulatory status and our marketing efforts in Japan shortly, within the coming weeks. The Company has already produced the infomercials, so we will be able to market the products quickly, when everything is ready. The Bioelectronics product line includes the Allay Menstrual Pain Therapy, which is a new drug-free product that effectively treats the pain and discomfort often associated with menstruation. This product has a soft, hypoallergenic and biodegradable cover that tucks comfortably and discreetly into clothing and features a wafer-thin microchip that pulses gentle, therapeutic energy waves to reduce inflammation and alleviate painful menstrual cramping. The other offering by Bioelectronics is ActiPatch™, which includes a variety of retail products that provide clinically proven relief for up to 30 days.
Additionally, we are in the process of completing negotiations to acquire the international rights to a major brand that is selling very well here in the United States. While it is too early for us to discuss all of the details, this brand is currently generating millions of dollars in revenue here in the United States and is just beginning to see international market penetration. Through our partnership with both Schulberg Media Works and The 440 Group, we have been able to put forth a proposal to acquire all of the rights to market this product outside of the United States. The sleep-products category in which the original company operates is growing quickly both domestically and internationally and I believe the successful acquisition of this brand will allow YesDTC to significantly grow its revenue base over the short-term. I also believe this is a revenue opportunity potentially worth tens of millions of dollars per year. I expect to complete contract negotiations over the next week or so and will keep all of you posted on our progress.
As some of you may know, there are only a few publicly traded DRTV companies. We are finding that our public currency creates a wealth of opportunities. In addition to the above mentioned campaigns, we are currently discussing the acquisition of additional successful brands that should further accelerate YesDTC's growth.
Thus far in the June quarter, YesDTC has already begun to generate meaningful revenues. I expect this revenue growth to significantly accelerate during the third quarter as the MediPendant™ campaign begins, the media spend on Simply Music accelerates and, most importantly, as our Japanese marketing activities begin to bare fruit. Going forward, I would expect revenue generation in the December 2010 quarter to continue to accelerate as other campaigns get underway. Simply put, we plan to produce meaningful growth this year and to be a major force in the potentially very profitable DRTV space.
Thank you very much for your support thus far and thank you also in advance for your continued support in future periods as we move forward. Please watch YesDTC closely over the coming months for these roll outs and other important marketing campaigns.
Joseph A. Noel
Chief Executive Officer
YesDTC Holdings, Inc.
About YesDTC Holdings, Inc.
YesDTC Holdings, Inc. is a direct-to-consumer marketing company specializing in direct response television (DRTV), internet and retail marketing programs. More information on YesDTC Holding can be found at www.yesdtc.com and additional information on Schulberg Media Works can be found at www.smw.tv.
Certain statements in this press release may constitute "forward-looking statements" that involve risks and uncertainties. These include statements about our expectations, plans, objectives, assumptions or future events. You should not place undue reliance on these forward-looking statements. Information concerning factors that could cause our actual results to differ materially from these forward-looking statements can be found in our periodic reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.
SOURCE YesDTC Holdings, Inc.