Zynex Announces Second Quarter 2016 Results

LONE TREE, Colo., Aug. 22, 2016 /PRNewswire/ -- Zynex (OTCQB: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, neuro diagnostics, cardiac and blood volume monitoring, announced today its second quarter 2016 financial results.

Zynex

President and CEO Commentary:

Thomas Sandgaard, CEO commented: "Revenue came in at $3.3 million, 7% above the second quarter last year. We came closer to a breakeven result with a net loss of $227,000, a significant improvement compared with the second quarter 2015 loss of $501,000.

"Our orders are currently running at a level twice of the same time last year and since our revenue is mostly recurring from monthly rentals and monthly supplies sent to our patients we expect to see higher revenues later this year as more patients continue to use our electrotherapy products, primarily the NexWave device. It is also worth noting that our lack of liquidity has made it difficult to keep up with order volume in production and has slowed down sales growth. We have paid down the balance on our line of credit from the beginning of the year from $4,002,000 to $3,284,000 by the close of second quarter 2016. Our revenue expectation for 2016 remains around $16 million and with positive net income."

Summary of Financial Results:

The Company's net revenue was $3,286,000 for the second quarter of 2016, compared to $3,073,000 for the second quarter of 2015. Gross profit margin in the quarter was 71%.

The Company reported Selling, General and Administrative ("SG&A") expenses of $2,495,000 for the second quarter of 2016, compared to $2,270,000 for the quarter ended June 30, 2015, an increase of $225,000 primarily attributed to an increase in sales commissions.

For the second quarter 2016, the Company reported a net loss of $227,000, or $0.01 per share, compared to a net loss of $501,000, or $0.02 per share in the same period of 2015. For the six months ended June 30, 2016, the Company reported a net loss of $672,000, or $0.02 per share, compared to a net loss of $1,389,000, or $0.04 per share in the first half of 2015.

Cash provided by operations in the first half 2016 was $953,000 versus uses of negative $194,000 in the first half of 2015.

The Company's line of credit balance as of June 30, 2016 was $3,284,000, a reduction of $718,000 since December 31, 2015.

The company holds it second quarter 2016 on Monday, August 22 at 9:00am MT (11:00am ET).

To register and participate in the webcast, interested parties should click on the following link approximately 10-15 minutes prior to the webcast:

https://www.webcaster4.com/Webcast/Page/1487/16775

Phone Access Details

US Participant Toll Free Dial-In Number:

1-877-870-4263

International Dial-In Number:                   

1-412-317-0790

About Zynex 
Zynex, founded in 1996, markets and sells its own design of electrotherapy medical devices used for pain management and rehabilitation; and the company's proprietary NeuroMove device designed to help recovery of stroke and spinal cord injury patients. Zynex is also developing a new blood volume monitor for use in hospitals and surgery centers. For additional information, please visit: Zynex.com.

Safe Harbor Statement
Statements made in this presentation include financial estimates and forward-looking statements that are not historical facts. Each of these estimates and forward-looking statements involves risk and uncertainties. These estimates are based on present circumstances, information currently available, and assumptions about future revenues, industry growth, and general economic conditions. Estimates are inherently uncertain as they are based on assumptions concerning future events. No representations can be made as to the accuracy of such information or the reliability of such assumptions.

To read full press release, please click here.

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