Tuesday, August 20, 2013 10:09:02 AM
Moving forward, every time a new unit is sold and the buyer keeps the system for more than 6 months, MDHI's recurring revenue rises. Even if there was no additional revenue, MDHI's cancelled debt means cash flow and profit rise.
MDHI continues to cancel debt. MDHI continues to sell new units through Costco. In the past 2 quarters MDHI added distribution through Coventry which is probably part of the increased revenue we will see as the audited financials continue to be released. That distribution network has been greatly expanded and the unit sales will continue to increase as the whole Aetna company now has access to MDHI's product.
This doesn't even account for the international growth that will be coming in the future.
In other words it is easy to mislead about the revenue trajectory MDHI will produce basing all future revenue from a 6 month snap shot.
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