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."
MDHI
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.
Contact:
Medical Alarm Concepts Holding, Inc.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.