Connectyx Files First Quarter Financial Results Reflecting 21% Revenue Increase Over First Quarter Last Year
Published: May 12, 2011
STUART, FL--(Marketwire - May 12, 2011) - Connectyx Technologies Holdings Group, Inc. (PINKSHEETS: CTYX) ("Connectyx"), www.connectyx.com, manufacturer and distributor of the MedFlash®, a Personal Health and Wellness Management System (ePHM) designed for maintaining personal health records (PHR), filed its first quarter, 2011 financial results recording a 21% increase in revenues compared to the first quarter of 2010. Significantly, the company reduced its operational expenses by 75% through outsourcing and transitioning to a marketing plan that includes marketing partners.
The Company has posted their financial statements in accordance with the OTC guidelines and can be viewed by going to http://www.otcmarkets.com/stock/CTYX/financials.
Connectyx signed six (6) marketing agreements for the joint marketing and distribution of the company's MedFlash Personal Health and Wellness Management System to physicians and end users:
- Provider Services of America, (PSA) which has business relationships with many physician networks, urgent care centers and hospitals representing more than 400,000 physicians
- Health Matters International, (HMI) -- an umbrella company including two new health divisions, Langdon Drugs and SurgicalEscape, focusing on prescription medications, diabetes, medical tourism/travel, pet medications, nutritional supplements, and over the counter (OTC) medications
- Selected Market Insurance Group, (SMIG) initially purchased 5,000 MedFlash licenses and is forecasting a total of 50,000 licenses to be purchased over the next twelve months to be sold to its insurance customers
- Atrium Travel Club is offering MedFlash to its many traveler members looking for discounted travel and travel-related services
- Net Savings Link.Com is offering MedFlash to its Net Savings' premier wellness products being sold to its large national member network
- MedFlash® is a preferred vendor of the National EYEPA's twenty-seven state Independent Professional Associations (IPA) representing approximately 4,500 doctors -- 4,200 ODs (Doctors of Optometry) and 300 MDs and a total of 6,600 physician locations
- MASA Assist (MASA), one of the country's leading Medical Evacuation companies with over 500,000 members, placed a follow-on order for an additional 10,000 MedFlash licenses
The company changed its business plan from focusing on selling to end users to including large member organizations with subscribers and members. These member organizations provide Connectyx with access to millions of consumer members. Although, there is a ramp up time necessary for complete implementation of the various marketing initiatives for the selling of the MedFlash health and wellness portal, the company anticipates additional revenue to be recognized throughout the remaining quarters of 2011. Separately from the large organizations, Connectyx continues to have new members sign up directly with the company which is resulting in high gross margin revenues.
Ronn Schumann, CEO of Connectyx Technologies, said, "We are pleased to report that our revenues continue to grow, although we anticipate a much more robust growth in revenue during the latter part of 2011. The year of 2010 was a year of transition from concentrating on selling directly to end users to shifting our focus to signing up large organizations and affinity groups that cater to our key demographic over the age of 50 who have an interest in being proactive in monitoring their own health. To this end, we are seeing an increasing interest from these organizations to develop joint marketing agreements with us providing MedFlash and the organizations providing the audience."
Mr. Schumann continued, "As we moved to our new marketing partner business model, we also reduced our overhead and outsourced many functions in order to reduce our breakeven point. With our much lower cash flow positive threshold, any one of our new marketing agreements has the potential to move Connectyx to profitability. And we continue to identify and target new member organizations to add to our distribution network."
Mr. Schumann added, "Our shareholders should not be surprised to see MedFlash in some national advertising through one of our marketing partner's own marketing plans during the later part of June. This marketing campaign, along with many other opportunities that are part of our pipeline will result in a number of new partners before the end of this quarter."
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Connectyx Technologies provides unique products for the healthcare market including MedFlash®, the electronic Personal Health Manager (PHM). Compatible with Google Health and Microsoft's Health Vault, the MedFlash® PHM is an easy to use Personal Health and Lifestyle Manager that is accessible using a powerful web portal suite. The MedFlash® PHM also features a 24/7/365 call center, a USB flash drive and our (soon to be released) smart phone applications. The MedFlash® PHM provides member benefits including instant access to your Emergency Medical Profile and Personal Health Record in the event of an accident or a medical emergency. Whether traveling, at work, or at home, First Responders have an invaluable advantage when they have access to this time critical information. Far more than just an emergency flash drive, the MedFlash® PHM can be accessed on any computer, securely and with complete privacy. There are also lifestyle and wellness features that provide significant health benefits to members and risk mitigation for employers and insurers alike. Connectyx products are developed with the needs of patients, families, doctors and First Responders in mind. For more information, please visit our websites at: www.connectyx.com and www.medflash.com
Safe Harbor Act: This communication includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this communication.
Connectyx Technologies Holdings Group, Inc.