Monday, December 06, 2010

Consumer/Retail Stocks; Update on YesDTC (OTCBB: YESD.PK) - On Track for Substantial Revenue Growth

Update on YesDTC (YESD) � On Track for Substantial Revenue Growth
December 6, 2010 ( newswire) - Things continue to progress on schedule at YesDTC Holdings (YESD), which is the public company where I am CEO. Below, is an update on what is happening at the Company. We continue to be very excited about our future prospects, especially relating to the WordSmart product rights acquisition for which we are now already recognizing revenue. As we have indicated previously, our revenue target for this product line alone during 2011 is $12 million.
WordSmart � On November 1st, we announced we had acquired the product informational and Internet rights for an innovative knowledge and vocabulary-building product called WordSmart. The 30-minute infomercial and website are hosted by Alex Trebek, the host of Jeopardy!, which is seen by approximately nine million people every day. We began recognizing revenue as of November 15th, which was right on schedule with our plans. While total sales of all WordSmart and related product lines easily exceeded $20 million last year, the assets we acquired produced just under $15 million during 2009. While those numbers will not be hit this year due to several operational issues, we have spent the last month and a half reworking the back office systems to improve efficiencies. This includes new call center operations, shipping and receiving, new packaging and restructuring the media purchasing function. Our thought is that we will be able to significantly improve profitability of the program while still maintaining a robust sales level. Our plan is to produce approximately $12 million of revenue from this product line alone during 2011. We are currently also negotiating with Alex Trebek to expand his endorsement of the product to include several areas within the social networking space. We could not be more positive concerning our prospects for the WordSmart product line.
Medical Alarm (MediPendant) � About a month ago we began an infomercial test for a product called Medipendant, which is a personal medical alarm system that allows for full two-way speak and listen capabilities through the pendant. This product area is a proven one with the entrenched competitor, LifeAlert (The �I�ve Fallen and Can�t Get Up People�), producing tens of millions of dollars per month in revenue. We were very pleased with our test runs of the new infomercial and saw a very low cost per call and a significant response to the offer. We are now in process of moving the call center functions in-house in order to ensure that a large number of those who call will be converted into actual sales. We think the opportunities for MediPendant are very significant.
SimplyMusic � We began running the Simply Music learn at home music program early last summer. We will be enhancing the offer to include not only the DVD system on how to learn to play the piano or keyboard, but to also to include a full function keyboard at a very attractive price. We sourced these keyboards directly from China and have private labeled the instruments as the �Simply Music Keyboard.� The new infomercial is currently being completed and we are expecting to begin airing the new offer sometime just before Christmas.
PureSleep � We have also acquired certain product marketing rights to the PureSleep anti-snoring device. This has been a very successful product here in North America and we plan to expand the marketing to other English-speaking countries and additionally into Asia. We recently received our first order out of Hong Kong where we will be partnering with a local company to begin running a two minute infomercial for the product. We are expecting to be on the air in Hong Kong and certain southern Chinese cities by January 15th. Much of our activities are currently focused on converting all of the materials from English into both Cantonese and Mandarin. The test airing will be small, but depending on the results, could lead to something very big for us in Asia.
Cash Flow � With all of the projects we have underway we have had to bring in some additional cash into the Company. Our opportunities are rather extensive at the moment and, of course, pursuing opportunities requires working capital. Toward this end, I have been able to add cash into the Company directly from my pocket. We think this is the best route to pursue to raise capital as we certainly do not want to bring any toxic convertible debt into play. It is likely I, and a few of the other of the large current investors in YesDTC, will further demonstrate our commitments to YesDTC through the addition of funds in order to ensure growth targets can be met. We have retained a media finance company that will assist us in paying for the media to advertise the WordSmart product. This will provide us a great deal of leverage in order to substantially ramp our revenues.
Law Suits � It is unfortunate to that we had to hire an Internet specialty law firm to defend the Company against slanderous and libelous Internet postings that have hurt the Company. It is a little bit difficult to negotiate deals with partners when there are so many lies and outright incorrect postings on various stock message boards. We simply will not tolerate this and have decided to fight these people by filing lawsuits against them. We are in process of issuing subpoenas to several Internet site owners in order to force disclosure of the identities of the offending parties. We think this process will take approximately two weeks. Shortly thereafter we expect our attorney to file suits against five or six individuals. While this could potentially be a very expensive process for YesDTC and the offending parties, we will nevertheless not rest until our name is cleared, these parties are punished, and awards for damage are assessed. As we announced in a recent press release, I will be reimbursing the Company personally for all legal fees concerning this matter.
Overall Outlook � We are very excited about the outlook for the Company. We have begun recognizing some substantial revenues and we believe this revenue stream will grow significantly over the coming months. We expect a lot to happen over the next 60 days. This will include a relaunch of the Simply Music program to include the private label keyboard, airing of the Chinese version of the PureSleep infomercial, a very aggressive rollout of a revamped WordSmart product and back office, and a continuing program for the MediPendant product line in order to drive call traffic into the in-house call center. We certainly think it is an exciting time for the Company. With the WordSmart product line likely to produce approximately $12 million next year, we think we will have a large and growing revenue stream developing for full-year 2011. These additional programs, however, (MediPendant, PureSleep, Simply Music and two other we have not yet announced) will surely be substantially additive to what will be an already robust growth rate for the company taste on WordSmart revenues.
It is clearly a very exciting time at YesDTC.
The WordSmart Infomercial is linked below. The see the Simply Music program please go to and to see the MediPendant infomercial please go to The English version of the PureSleep two minute short form spots can be see at
Joe Noel

YesDTC Holdings, Inc
Christian Kirsebom
(925) 247-6666
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