LITTLETON, Colo.--(BUSINESS WIRE)--Zynex, Inc. (OTCBB: ZYXI), a provider of pain management systems and electrotherapy products for medical patients with functional disability, announces a record number of orders and billed patients in the three months ended June 30, 2010. The company generated record net revenues of $5,742,000 for the second quarter ended June 30, 2010. The company’s second quarter 2010 net revenues represent a 32% increase over second quarter 2009 and 18% sequentially over the first quarter of 2010. Zynex’s second quarter 2010 gross profit of $4,520,000 is also a record and reflects a 79% gross profit margin. SG&A expenses in the second quarter totaled $4,390,000 up 78% compared to $2,463,000 in the second quarter 2009 and up 14% sequentially compared to $3,847,000 in the first quarter of 2010. The increase in the SG&A for the quarter was primarily due to sales commissions paid on the record level of orders as well as increased staff headcount to support the growing volume of business. Net Income of $30,000, although down from the second quarter 2009, showed improvement versus the first quarter 2010 as the expenditures the company made in recent quarters have helped drive further growth in the top-line. The company experienced near-record cash collections from customers in the quarter. Although cash flow from operations was negative in the quarter, a large portion of that was due to cash outlays for prior year federal tax payments as well as a build-up in inventory to stock the larger sales force with equipment. Results for the first six months of 2010 included net revenues of $10,617,000 and net loss of $37,000.
