Health & Fitness
Health and Fitness
Health and Fitness
Mon, January 5, 2009
Fri, January 2, 2009
Thu, January 1, 2009
Wed, December 31, 2008
Tue, December 30, 2008 RemoteMDx, Inc.: RemoteMDx Reports 88% Revenue Growth in Fiscal Year 2008
SANDY, UT--(Marketwire - December 30, 2008) - RemoteMDx, Inc. (
"RemoteMDx continues to show impressive revenue growth," noted John Hastings, president and chief operating officer. "We attribute this increase primarily to the market acceptance and continued expansion of the company's portfolio of offender management products and services, in concert with the August 2008 commercial release of the TrackerPAL II offender tracking device. In fact, the company has realized a substantial increase in recurring monitoring revenues (the heartbeat of the company) year over year for the fiscal years ended 2006 ($89,914), 2007 ($3,687,935), and 2008 ($10,013,311) respectively," according to Hastings.
"Despite a substantial net loss reported for the year ended September 30, 2008, we note that the company utilized $10,199,191 in cash to support operational and manufacturing expansion during fiscal year 2008, compared to $17,629,814 in cash utilized for the fiscal year ended September 30, 2007. This represents a 42% decrease in year-over-year cash requirements, while revenues increased by 88% during the same time period," continued Hastings.
"The company also shows measurable progress in gross margin," said Hastings, "reporting cost of revenues of $13,108,990 (106% of revenues) for the fiscal year ended September 30, 2008 compared to $13,396,163 (203% of revenues) for the year ended September 30, 2007, resulting in approximately a 90% gross margin improvement, year over year."
The company expects that continuing efforts to drive margin will be enhanced through the recently achieved AT&T Certification, which will allow the company to further reduce its communication expenses. "Likewise, critical recent and ongoing margin progress was gained through monitoring center efficiencies, allowing for a 31% headcount reduction, commensurate with a 41% decrease in overall alarms. This was achieved through the introduction of TrackerPAL II as well as improvements in the patented monitoring software, allowing us to more effectively filter battery, optical strap and non-communication alarms. These and other key margin improvement initiatives will continue to support profitability objectives in the coming year," added Hastings.
Subsequent to the close of the year ended September 30, 2008, Hastings and David Derrick, chief executive officer of the company, surrendered shares of common stock and terminated stock purchase warrants received during 2008. Citing current economic conditions in the United States and the company's own 2009 business plan objectives, these officers indicated that they believed that such equity and warrant grants should be reconsidered upon achievement of further fiscal year 2009 milestones.
The Company also announced today that it has received informal funding commitments from certain of its existing shareholders, including its chief executive officer, which are expected to facilitate the company's progress toward its targeted 2009 revenue, margin and cashflow goals.
"In order to improve the potential of our ongoing success, we recently took many difficult but necessary operational, organizational and financial steps to sustain our profitable business expansion throughout fiscal year 2009. Importantly, through a combination of expense reduction initiatives, quality enhancements, sales force restructuring and distribution realignment, we believe that we are better prepared to increase our recurring revenue streams, while driving improved overall margins and cashflow," said Hastings.
About RemoteMDx
RemoteMDx, through its SecureAlert subsidiary, delivers patented monitoring systems that observe and track offenders no matter where they may be -- in their car, home or office. SecureAlert can intervene in real-time with direct voice communication when an offender is in violation of probation or parole, such as sex offenders who are prohibited from entering school areas, parks, etc. Highly trained case managers monitor the offender's activities 24/7 through satellite mapping and computer systems. The SecureAlert programs allow convicted criminals to re-enter society by keeping them accountable 24 hours a day, every day, while reducing the burdens and costs carried by the criminal justice system. To learn more about RemoteMDx, visit [ www.remotemdx.com ].
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including future growth and earnings opportunities of the Company. Examples of forward-looking statements in this release include references to the results of operations during future periods, the success of implementing future phases of the company's business plan, and the launch of new products. Actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including the Company's ability to retain and to promptly satisfy current backorders and other economic, competitive, governmental, technological, regulatory, manufacturing and marketing risks associated with the Company's business and financial plans. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's most recent filings with the Securities and Exchange Commission.
Non-GAAP Financial Measures
To supplement our reporting of operating results, we use non-GAAP financial measures which we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods.
SecureAlert, TrackerPAL™ and Offender Monitoring Center are trademarks of SecureAlert. RemoteMDx is a trademark of RemoteMDx, Inc.
