MDHI Projects Break Even With Quickly Accelerating Monthly
Recurring Revenues - Expects Continued Growth
KING OF PRUSSIA, Pa.,
Nov. 5, 2012 /PRNewswire/ -- Medical
Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK) today announced a
major milestone in its corporate history. Due to significantly
accelerating sales and very strong contract extension close ratios,
the company has now added enough MRR (Monthly Recurring Revenues)
to surpass the monthly breakeven point in early 2013.
In addition to contracts for the monitoring of medical alarms,
which produces the MRR, the company expects to also produce ongoing
incremental, high-margin sales of the MediPendant™ medical alarm to
domestic distributors and international customers.
"As we announced recently, our retail promotions have been
highly successful with over 70% of customers selecting to extend
their monitoring contract periods beyond the initial six months.
The strength of our sales is continuing and we are shipping at 100%
of capacity," commented CEO, Ronnie
Adams. "It is important for our investors to remember
that our success will be based on very high quality, high margin
recurring monthly revenues. It is a significant milestone for us to
project surpassing our breakeven point based on these recurring
revenues, but we think that this is just the beginning, as we see
no end in sight to our continued growth. We are clearly increasing
our market share in the rapidly expanding medical alarm/alert
segment."
The company has elected a very conservative accounting treatment
of upgrade revenue by not charging customers credit cards upon
initial sale, but as the contract extension period begins.
Considering the company began selling these contract extensions for
its retail partnership almost six months ago, the company is
expecting acceleration in cash flow as it begins charging customers
credit cards for the periods after the initial six months.
Mr. Adams continued, "We are well on our way now that we are
reaching this important break even MRR event. While our domestic
sales have continued to reach record levels, we are also continuing
to expand our international business. This week we are delivering
another major proposal to establish distribution and services in
one of the most populous countries in the world. We expect our
international business to be very strong moving forward, which will
well augment our extremely fast growing MRR and domestic
distribution."
The MediPendant™ is a second-generation personal medical alarm
and the first 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
up to 600+ feet from their home, and in the event of an emergency,
they can speak and listen to the EMT trained operator directly
through the pendant.
Additional information on the MediPendant™ can be viewed at
www.medipendant.com.
About MDHI
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.
Contact:
Medical Alarm Concepts Holding, Inc.
877-639-2929 Ext. 113
SOURCE Medical Alarm Concepts Holding, Inc.