MMRGlobal Gives Sales and Revenue Guidance
MMRGlobal, Inc. (OTCBB: MMRF) (www.mmrglobal.com) today gave guidance in the form of projected sales, portions of which may be recognized as deferred revenue ("Sales"). For the 12 months ending December 31, 2010 the Company expects Sales of $2.7 million or 350 percent over 2009. Based on the knowledge of management today, the Company also projects Sales of $28 million for the 12 months ending December 31, 2011 or an increase of over 800 percent. Sales for the first six months of 2010 are expected to exceed the first six months of 2009 by more than 20 percent not including any revenues from International Licensing in 2010. This demonstrates that the Company's core Sales are growing at a pace of over 100 percent after excluding the licensing revenues the Company reported last year. These projections do not include revenues from Chartis in 2010 which may occur, or any revenues from new affinity sales, China, India, integration to wireless devices, clinical trials, biotech assets or revenue that may be recognized through acquisitions.
According to Ingrid Safranek, Chief Financial Officer, "With the launch of MMRPro, the Company is taking the proactive step of early-adopting Accounting Standards Update ("ASU") 2009-13, Revenue Recognition (Topic 605) Multiple-Deliverable Revenue Arrangements. This allows the Company to consistently record revenue on these sales up to and through the Company's mandatory adoption date of January 1, 2011. Additionally, this new ASU is closer to the FASB's proposed alignment with International Financial Reporting Standards. Adoption of this new standard results in revenue being reported earlier than under the old accounting rules."
"Management has taken what we believe to be a cautious approach to our guidance by carefully evaluating our sales and marketing agreements, distribution channels and long lead times for time-to-market, which the Company has experienced in the past," added Safranek.
The Company has modeled patient upgrades internally as follows: Patient upgrades will come from MMRPatientView through MMRPro sales from resellers and distributors, and National Payment Providers ("NPP"). The Company projects that the average MMRPro user will have 2.5 physicians, each with 2,000 active patient charts, or 5,000 patients per MMRPro placement. The Company projects that doctors will upgrade an average of two patients per month to MMRPatientView (www.mmrpatientvideos.com), which should continue to increase year-over-year as the public becomes more aware of the importance of having a personal health record ("PHR") and the government mandates the use of PHRs in healthcare reform. Physicians receive 35 percent of all revenue from patient upgrades, which the Company believes can result in substantially more income to doctors than the $44,000 in government stimulus programs. Kodak distributors and resellers and NPP receive an additional 15 percent as long as their MMRPro sale is active which should be no less than three years.
According to Robert H. Lorsch, Chairman and Chief Executive Officer of MMRGlobal, "In addition to the Company's core business, we foresee incremental growth from the effects of an acquisition strategy by adding business units that sell complementary products and services to MMRPro customers, and from our targeted expansion into the Pacific Rim with Kodak, and India with Nihilent. As part of the acquisition strategy, the Company could introduce a full-blown Electronic Medical Records product after meaningful use criteria are finalized. We continue to work with GRSworldwide on opportunities to introduce the Company's products and services to the clinical trials market. Also, it is impossible to predict revenues, if any, which could come from the Company's pre-merger Favrille biotech assets. While the Company continues to explore opportunities involving those assets, we remain focused on our core business, which is the development and marketing of professional and consumer-based health information technology products and services."
Last Sunday, on June 27th, the Company ran a 30-second commercial during the 37th Annual Daytime Emmy Awards primetime television special. The Company converted more than 20 percent of all visitors to its website to an e-mail address and more than 5 percent to paid accounts despite a 30-day free trial. MMR will continue to exploit its commercial advertising on the Web and in direct marketing materials through its agreement with E-Mail Frequency.
The Company is in the process of translating its consumer websites into seven foreign languages in support of its Chartis agreement and believes that once completed, this could result in additional licensing and/or direct international marketing opportunities. To learn more about MMR Global, Inc. and its products, visit www.mymedicalrecords.com, www.mmrpro.com and view our product videos at www.mmrtheater.com.
