SOURCE: digiMedical Solutions, Inc.

April 19, 2007 11:32 ET

digiMedical Solutions, Inc. Issues Update on $7.5 Million in Revenue for 2006 and Releases 2006 Financials

CEO David Lee Releases Letter to Shareholders to Wrap Up 2006 and Discuss Plans for 2007

DALLAS, TX -- (MARKET WIRE) -- April 19, 2007 -- digiMedical Solutions, Inc. (PINKSHEETS: DGMS) today released unaudited financials for the period from June 8, 2006 to December 31, 2006. Last June, digiMedical reorganized its operations into Game Technologies, Inc. and subsequently changed the company name to digiMedical and the ticker to DGMS; therefore, the company is releasing unaudited financials reflecting operations after the reorganization.

Additionally, CEO David W. Lee issued an update on the Company's $7.5 million in revenue for 2006 in a Letter to Shareholders. The shareholder letter released today and included in its entirety below provides additional detail on the company's business plan and the company's plans for 2007.

Dear Fellow Shareholders and Interested Investors,

I wanted to update you today as the Company releases unaudited financials for the period from June 8th, 2006 to December 31, 2006. For the first 6 months of operations, ending December 31, 2006, we hit our expected $7.5 million in revenue, and more importantly, we did it with a $-3,889.35 EBITDA per month.

In 2007, we have plans to further reduce costs throughout the company, as well as increase our sales through new pharmacy acquisitions and through organic growth by continuing to sign on doctors and patients to the digiRX™ solution.

Business Plan Summary

digiMedical is a pharmacy and medical technology company focused on developing next generation, digital medical technology with an emphasis on digital prescriptions that closely align the doctor, pharmacist and patient. With handwritten errors on the rise, loss of prescriptions, lack of timely processing of prescriptions and verifying patients' information, our business model streamlines and improves the prescription handing process, from start to finish.

Our business grows by:

  1)    acquiring pharmacies and converting them to new, streamlined
        digital pharmacies to leverage our technologies to maximize
  2)    streamlining the prescription fulfillment process by leveraging
        digiMedical proprietary Microsoft-based technologies,
  3)    updating the front-end of the pharmacy to increase
        over-the-counter sales,
  4)    going out and signing on additional doctors and clinics, and
  5)    finding other prescription vending opportunities.
Our Technology Philosophy

We see our business as the ideal blend of technology and business methodology in the pharmacy industry. We must continue to grow and forge ahead with our technology product lines such as digiRX™, digiReAuth™ and digiRXStream™. To accomplish this, in 2007 we established a partnership with Microsoft. My background is as a System Architect and System Engineer and I believe one of the strongest and most leveragable operating systems is from Microsoft. Microsoft's technology platform is widespread -- found on PCs world-wide including most likely the one you are reading this from right now. This backbone of technology allows information to move from one PC to another with very little effort. This technology backbone is also crucial to our business model because we are in the business of transporting patient data and prescriptions to and from doctors' offices and pharmacies across the nation. Simply put, Microsoft has provided a common technology platform and data highway to and from clinics, doctors' offices and pharmacies. This allows digiMedical the ease of focusing our technology on solving the issues doctors and patients face in managing their data, not on the "hows" of moving the data. This year we expect to build an even stronger relationship with Microsoft by having each of our software solutions individually certified by Microsoft.

Expansion Plans for 2007

In 2006, we acquired 4 pharmacies in South Florida and 2 pharmacies in Texas and implemented our prescription handling software suite to streamline and digitize the pharmacies.

In 2007, we are continuing to track and pursue new pharmacy acquisition candidates. The company goal for 2007 is to repeat the same formula as last year and purchase another pharmacy chain that we have already targeted that generates an estimated $15 million in annual revenue. After the acquisition, we would apply our business model and technologies to convert the newly acquired pharmacy chain to a digital pharmacy chain.

In addition to evaluating and pursuing pharmacy acquisitions, we are also in the process of moving our smallest pharmacy into a new larger and more accessible location in Bonita Springs, Florida. The re-location of this pharmacy is expected to increase the store's revenue over 5 times. The new location is on the busiest highway in Bonita Springs and is strategically located just 30 minutes south of Ft. Myers and 30 minutes north of Naples.

Finally, we will continue to sign new doctors and clinics onto digiRX™, digiReAuth™ and digiRXStream™. Specifically, we have been ramping up sales in the Dallas Fort Worth market place, which is currently virtually untapped. We have had several requests by area doctors and clinics for presentations on our technology and how our technologies can improve processes and lower overhead in their offices.

Move to the OTCBB

We have already engaged counsel to help us get up to date on our filings and qualify us for a move to the OTCBB. We are aggressively working toward moving off the Pink Sheets. We will keep you updated on this progress.

Closing Remarks

Our business model is clear and proven and the numbers we have released today reflect that. We still face many challenges and we continue to proactively identify these challenges and overcome them. For example, one challenge we have identified and have been addressing is the effect our rapid growth is having on our cash flow requirements to replenish drug supplies in the pharmacies. To mitigate this challenge, we have been negotiating with drug wholesalers, such as McKesson, Cardinal and AmerisourceBergen, for better terms as they supply our pharmacies. We are also working with other companies that provide receivable financing. As with this example, we will continue to proactively identify and address challenges to our business.

We have found that doctors, patients and pharmacists have been long awaiting our technology and methodology solutions and eagerly sign up to start their partnership with our company. We are very excited by the market's positive response and look forward to continued rapid growth in 2007.

Thank you for taking this time read my remarks. Additionally, we look to you as shareholders for input and advice and ask you to relay our story to your friends and neighbors. We are very thankful for your continued support. We recognize your part in our company and are anxious to continue to report periodically on our progress. We work to see your investments improve.


David W. Lee
Chief Executive Officer
digiMedical Solutions, Inc.
To be added to digiMedical's corporate e-mail list for shareholders and interested investors, please send an e-mail to

A PDF full version of these unaudited financials may be found at

About digiMedical Solutions, Inc.™ (

digiMedical Solutions, Inc.™ is a pharmacy and medical technology company focused on developing next generation, digital medical technology with an emphasis on digital prescriptions (d-Prescriptions) that closely align the doctor, pharmacist and patient. The company's planned growth will come from three channels: direct marketing of the company's wireless based d-prescription technology to physicians, acquisition of independent pharmacy chains and the sale of select territories to "market partners" licensed to exploit the digiMedical Solutions™ model. digiMedical Solutions, Inc.™ currently owns and operates six pharmacies throughout Texas and Florida and is a Microsoft Independent Software Vendor (ISV). digiMedical Solutions™ unique business model connects physicians, patients and pharmacies with next generation medical technologies.

Forward-Looking Statement

Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward-Looking Statements" for purposes of safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-Looking Statements may be identified by words including "anticipate," "await," "envision," "foresee," "aim at," "believe," "intends," "estimates" including without limitation, those relating to the company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the Forward-Looking Statements. Readers are directed to the company's filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the company's business and results of operations.

Contact Information

  • Contact:
    digiMedical Solutions, Inc.
    Investor Relations
    Stasi Turrell