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Dear Shareholders:
Let me begin by acknowledging the countless hours our team has invested developing our business. I have personally spoken at length with our key accounts, strategic partners, employees and investors. Additionally, our team has analyzed a tremendous amount of industry information and collaborated with others outside the company to develop a set of convictions about the future of this business and its value, which I will share in this letter. My goal is to give you our view of the business as it stands today and the challenging, but achievable, work that needs to be done to increase our value to both customers and shareholders. I intend this letter to serve as part of a dialogue with you, our shareholders.
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Over the course of 2009 and into 2010 the Board of Directors, in conjunction with key investors, explored a variety of options for optimizing our business, and conducted discussions with a number of potential strategic partners. At the end of that process, the Board concluded that there are potential partnerships which will provide the company and its shareholders with the best options in growing the business. Our short term and long term goals involve multiple strategic options for increasing shareholder value, including the near-term maximization of cash flow and earnings. We are determined and believe that a strategy of prudent and patient reinvestment in the business will deliver the company to profitability and would yield the best result for investors.
The company has made some recent announcements regarding its strategic partnerships with MedLink, Catrel AB and Anoto. In conjunction with these partners, the company has developed its sales pipeline of over 14 opportunities that management believes, will be valued at $20 million dollars in annual recurring revenue, based on the potential of licensed users of the products. In total, Patient Access Solutions intends to deploy its products to approximately 19,975 home healthcare workers and 2,000 healthcare providers. Two of those opportunities where contracts that were executed and announced; Ohel Children's Services (July 27) and the MedLink Sun Coast RHIO (August 9). The company expects, but cannot guarantee, those opportunities to provide over $800,000 in combined annual recurring revenue. In my opinion, we are well positioned to execute on a majority of these opportunities and are considering additional strategic relationships that would add to our current revenue targets along with our current healthcare provider and hospital base. We're hopeful to make announcements regarding those relationships in the near future.
We are also encouraged by the belief that we have a solid opportunity to ride the tremendous wave of support our digital pen technology (powered by Anoto technology) has received. Our solution's ability to drive down considerable administrative costs in the home healthcare arena has provided the company with a tremendous advantage to sell against our competitors. Our partners, Catrel AB have agreed to expand our business by working with us to design services for other verticals: ie. Law enforcement, Transportation, and Government. Our management is committed to deliver significant operating results by executing on these key objectives for the balance of 2010, and into the future:
We have already taken the first crucial steps in the execution of our plan and are intently focused on building the organization and brand. We believe it is necessary to leverage the full value of our current position and maintaining these objectives should deliver significant improvements in shareholder value and most importantly, operating results.
I am working closely with our Board of Directors to realize success. I intend to provide you with a clear set of metrics to help you monitor our progress and look forward to a continued dialogue with our shareholders as we grow our business and take advantage of market opportunities.
Sincerely,
Bruce Weitzberg
Forward Looking Statements
Statements made in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21 of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements rely on a number of assumptions concerning future events, many of which are outside of the Company's control, and involve risks and uncertainties that could cause actual results to differ materially from opinions and expectations. All information in this release is as of the date hereof. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
-- Increased sales into current markets and focusing on regional opportunities in expanding markets. -- Strategic product development -- Expansion of sales channels thru cross marketing of products and services with technology partners
SOURCE Patient Access Solutions, Inc.
