MDHI News
Medical Alarm Announces Preliminary Results for Fall Promotion
2012-10-18 08:35 ET - News Release
KING OF PRUSSIA, Pa., Oct. 18, 2012 /PRNewswire/ -- Medical Alarm Concepts Holding, Inc. (OTCQB: MDHI.PK) today provides its investors with preliminary results for its recently launched Fall promotional activities, which officially began on Monday, October 15th. Thus far sales have been brisk and are meeting the Company's expectations. In only the first few days of the promotion, over 125 units were ordered with most having already been shipped to customers. The rate of customer upgrade to longer contracts remains in excess of 70%, with the vast majority of customers opting for additional twelve month terms. Twelve month extension contract terms are provided at aggressive industry rates. Ronnie Adams, CEO, commented, "We have staffed and budgeted for approximately 1,500 units to be sold during the 30-day promotional period, which will generate some very meaningful incremental revenues and strong gross margins. This is a significant jump in MRR (Monthly Recurring Revenue) sales, which had been running at approximately 200 MMR sales per month. We have been able to tightly manage our fixed and variable expenses, and we were already well on our way to profitability at the 200 MMR sales per month. The additional units we are expecting to sell and ship during the next 30 days will add approximately $20,000 to our MRR, which had already been growing at a robust rate. This additional MRR, when combined with our current MRR, will easily push us into operating profitability. Once achieving profitability we are expecting profits to continue to expand as the monthly recurring revenue continues to grow incrementally each month." In addition to MediPendant™ sales associated with monitoring related monthly recurring revenues, the Company continues to sell and ship products for one time gross margins to both domestic and international distributors. This business is expected to grow throughout the end of this year and into 2013.
