RemoteMDx Reports Operationally Positive Cash Earnings
2008-02-14 09:00 ET - News Release
SANDY, UT -- (MARKET WIRE) -- 02/14/08
RemoteMDx (OTCBB: RMDX), a national leader in tracking and monitoring offenders through GPS-enabled technologies for local, state and federal law enforcement agencies, reported today for the quarter ended December 31, 2007 being operationally positive cash earnings on total revenues of $6,005,545.
When compared to the same period ending December 31, 2006 that showed $988,237 in revenues, and a loss before research, depreciation and amortization of $4,934,427, RemoteMDx shows impressive financial growth as it continues to execute on its Business Plan.
"As sales continue to grow, the Company is quickly taking steps to implement all facets of its 2008 Business Plan," said James Dalton, President of RemoteMDx. "RemoteMDx will continue to focus on its sales growth but in tandem is also concentrating on its gross profit margin and profitability. At this time the Company is over 50% of the way into achieving its targeted gross profit margins and expects that continued improvements to the monitoring center and its technologies will allow it over the next six months to achieve its goals."
"RemoteMDx attributes this increase in positive operating cash flow and improved margins to its continued honing of its business model and over a six fold increase in total revenues," stated Mike Acton, Chief Financial Officer of RemoteMDx. Of the $6,005,545 in total revenues, $2,400,000 was generated from the sale of intellectual property that did not pertain to RemoteMDx's core business.
The Company reported a $2,352,383 net loss but had earnings before research, depreciation and amortization of $706,495 for the December 31, 2007 quarter as compared to a $7,813,649 loss and a loss before research, depreciation and amortization of $4,934,427 for the December 31, 2006 quarter.
Working capital during the quarter increased to $3,708,000 from $2,568,000 and total assets increased to $21,988,000 -- up over $6,700,000 from the September 30, 2007 quarter.
RemoteMDx's 2008 Business Plan calls for revenues for the calendar year ending December 31, 2008 to total $49,000,000 with a run rate of revenues in excess of $100 million by year's end. Correspondingly, operating income of $10 million and a run rate in operating income of $56 million is also projected by year's end. The Plan requires no further dilution to shareholders. In order to achieve these numbers the Company must continue to focus its resources on expanding its sales and products, improving its monitoring center technology, and negotiate more cost effective communication costs. It forecasts that it will have an extraordinary loss for the March 31st quarter due to the redemption of its SecureAlert Series A Preferred which by so doing, will increase future profitability by over 30%. The June 30 quarter will post an overall profit that will continue to grow. By year's end the Plan calls for the Company monitoring approximately 40,000 offenders that represents less than 1% of the number of offenders on parole or probation.
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