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OBCI is this getting roped into the Corona virus story?
Zynex Announces 2019 Fourth Quarter and Full Year Earnings
ENGLEWOOD, Colo., Feb. 27, 2020 /PRNewswire/ --
2019 Full Year
Revenue increased 42% year over year to $45.5 million
Net income $9.5 million; Diluted EPS $0.28
2019 Revenue, net income and Adjusted EBITDA are the highest in Company history
Adjusted EBITDA increased 11% to $12.1M
2019 Fourth Quarter
Revenue increased 52% year over year to $14.2 million
Orders increased 129%
Net income of $2.9 million; Diluted EPS $0.09
Adjusted EBITDA increased 30% to $4.1 million
Fourteenth consecutive quarter of positive net income
Zynex, Inc. (NASDAQ: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, cardiac monitoring and neurological diagnostics, today reported financial results for its fourth quarter and full year ended December 31, 2019.
Zynex
Fourth Quarter Financial Results Summary:
For the fourth quarter, the Company reported net revenue of $14.2 million, a 52% increase over the fourth quarter of 2018. Gross margins were 80% in the fourth quarter of 2019 and net income was $2.9 million.
Adjusted EBITDA was $4.1 million in the fourth quarter of 2019.
The Company generated $2.1 million of cash from operations during the fourth quarter of 2019. As of December 31, 2019, the Company had working capital of $17.4 million a 137% increase compared to $7.3 million at December 31, 2018. Cash on hand was $14.0 million at the end of the fourth quarter.
President and CEO Commentary:
Thomas Sandgaard, CEO said: "In the fourth quarter, we posted revenue of $14.2 million, which is the highest quarterly revenue in the history of the Company and net income of $2.9 million. Orders grew 129% compared to the fourth quarter of 2018 up from 95% year-over-year growth in the third quarter.
"In the fourth quarter, we continued to focus on the execution of our growth strategy and the related growth of our sales force. We expect the addition of new sales reps to have an impact on order and revenue growth this year and going forward. In addition, we continue to invest in our infrastructure to support the increase in order volume.
"We continue to advocate for pain patients, and for physicians to prescribe our NexWave technology as the first line of defense in treating chronic and acute pain without side effects. We are dedicated to promoting our technology in an effort to remove patient addiction and other side effects from prescription opioids."
First Quarter and Full Year 2020 Guidance:
The estimate range for the first quarter revenue is between $14.0 and $14.5 million with Adjusted EBITDA between $2.3 and $2.8 million as we continue to invest in growing our sales force. The revenue estimate is approximately 52% to 58% above 2019 first quarter revenue of $9.2 million. First quarter revenue is historically affected by health insurance deductibles not being met in the beginning of the year.
Full year 2020 revenue is estimated between $75.0 and $80.0 million with Adjusted EBITDA between $15.0 and $18.0 million. The full year revenue estimate is approximately 65% to 76% above 2019 revenue of $45.5 million.
Conference Call and Webcast Details:
Thursday, February 27, 2020 at 2:15 p.m. MT – 4:15 p.m. ET
To register and participate in the webcast, interested parties should click on the following link or dial in approximately 10-15 minutes prior to the webcast:
https://www.webcaster4.com/Webcast/Page/1487/33247
US PARTICIPANT DIAL IN (TOLL FREE):
1-844-825-9790
INTERNATIONAL DIAL IN:
1-412-317-5170
Canada Toll Free:
1-855-669-9657
I also thought the FDA approval would drive the stock much higher on the news, but the market seems to be shrugging it off. I'm looking forward to tomorrow's earnings and guidance for next quarter.
SEAC I also purchased some around $4. Company is trading at P/E of 10 or less annualized with one-times excluded. The contracts are basically a million upfront and then a million per year for four more years. So if they continue at the same sales rate they've been at the last quarter then revenue should double in a year. The CEO says they've invested $250 million recently in there development, albeit inefficiently, so they are a generation or two ahead of the competition. He says they have a new product that is already developed that they will roll out next year. So there is a chance that sales could accelerate. Cash flow has been a problem but CEO says they will be cash flow positive this quarter.
It looks like clearance of the cardiac monitor. I'm surprised the stock isn't up more on this.
SMDM put in an awful quarter with .76M loss.
https://www.otcmarkets.com/stock/SMDM/news/Singing-Machine-Announces-Third-Quarter-2020-Earnings-Report?id=253887
Thanks, does that mean he exercised some stock options and now owns common stock?
PDEX might be fairly valued on a trailing basis, but I think the larger opportunity is in their self-branded products they have in development which could be huge, but will take some time to play out.
Thoracic Driver
Arthroscopic Shaver (1)
ENT Shaver
Arthroscopic Attachment
CMF Driver
SEAC there were some recent insider sales
https://www.otcmarkets.com/stock/SEAC/disclosure
I don't think the blood volume monitor is priced in. I would say it is a buy the news event.
ZYXI gets European patent on blood volume monitor. FDA and CE marking must be coming soon.
https://finance.yahoo.com/news/zynex-obtains-european-patent-blood-142000568.html
ITCC - was there a promo on this one?
I own this. They have some huge government deals, but they aren't allowed to say much about them. The proof will have to come from earnings, or a buyout.
I have a FRAN position. They have been closing unprofitable stores and the CEO seems to have a clear, reasonable picture of what he wants to do. Hopefully there are no unanticipated costs associated with closing these stores, but they have already closed some of them, and returned to profitability. In the last quarter they were heavily discounting items that weren't selling to get rid of the excess inventory. Now with those gone hopefully the new batch have been selling with higher margins.
OPXS announces a shared award. Backlog is down to $23.6M versus the $25M they announced Nov 12. I hope that is because they are working through it. Not sure what value they are assigning to this in the backlog since it is said that the exact number of units is yet to be determined.
Optex Systems Holdings, Inc. Announces a Shared $35 Million Award from Defense Logistics Agency
ACCESSWIRE ACCESSWIREDecember 3, 2019
RICHARDSON, TX / ACCESSWIRE / December 3, 2019 / Optex Systems Holdings, Inc. (OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announces a shared award for a maximum of $35 Million for Improved Commander Weapon System (ICWS) periscopes under a three year Indefinite Delivery - Indefinite Quantity (IDIQ) contract with two additional optional years.
Optex and another recipient have been awarded this shared award from Defense Logistics Agency, Land and Maritime. Each company's portion of the award will depend on price and performance over the ordering periods. Both companies have produced the product in the past and both companies are currently in production under different contracts.
Danny Schoening, CEO of Optex commented, "While the exact number of units to be ordered is yet to be determined, we know this item is critical to the continued production and support of the M1A2 Abrams Tank. Given this demand and this approved IDIQ contract, Optex is ready to react to the Government's needs for this mission critical periscope."
With this order, Optex's current backlog stands at over $23.6 Million.
TTLO - congrats on your purchase. And thanks for the alert though I did not buy any. Always impressed by how you make money in these companies that others don't have the stomache for.
I own XPEL. During the time period of this contest it was listed on the NASDAQ and enjoyed multiple expansion as it has also continued to execute well. They have had ~40% growth for a very long time and have continued to execute and move into international markets and produce new products. They still have a bright future, but the stock is not very cheap. They will probably be listed on the Russell 2000 in 2020, so I think they will stay strong in the next few months because of that and because they are executing well.
DGSE was a turnaround that took a few years and finally started working out. They are a chain of jewelry stores in Texas. During the past big gold move they started buying gold and were doing well with that until the the gold move ended and took their profits with it. So they started refocusing on the jewelry store business which lowered revenue temporarily as they exited the gold business. Now they are moving into the recommerce space, reselling used cellphones and other things, and it seems to be working out. There was some sort of acquisition/merger that started the recent run. I owned them during the turnaround but got out when I could because I got impatient that it was taking too long and the market didn't like the lower revenues, and I wasn't sure whether this recommerce initiative was going to work out.
I don't know anything about HEBT.
Congrats otcbargains. Thanks SKILLZ
It closed decisively above $9.39
Strong move above that level today. Not sure what is prompting all the buying today. Let's see if it holds.
From the call, the potential recovery from insurance is over $2Million. What they do not recover they will seek to recover from the vendor. It was a low-margin Black Friday product for Walmart that was damaged. It is difficult to get all information from Walmart to provide the insurers.
They will be impacted by tariffs going forward and have already paid tariffs of $200K. They aren't able to quickly and easily move their manufacturing out of China.
The China channel is open online but will take time to develop in stores.
Yeah SMDM had a disappointing quarter. The increased gross margin is most likely due to the higher margin carpool karaoke product.
Yes, better than I expected.
Are you selling it?
I noticed that also
SMDM - China is a big market, so could be big if successful. I believe the products are already manufactured over there, I would guess if they sold them there they could save on their shipping charges. I wonder if this is in response to the tariffs. Their margins are already thin and I would guess the Chinese market is competitive. I expect this coming earnings report to be big because of their Carpool Karaoke microphone.
I don't own it yet, but FRAN looks compelling to me.
OPXS In the first sentence of their 8k they filed yesterday they seem to be making it clear that the purpose for the director change is to uplist to NASDAQ.
"
On November 4, 2019, the Board of Directors of Optex Systems Holdings, Inc. (the “Company”) appointed three new directors: Larry Hagenbuch, Dale Lehmann and Rimmy Malhotra, all of whom have been qualified as independent as defined under Nasdaq Listing Rules by the Board."
OPXS board shakeup
Optex Systems Holdings, Inc. Announces Appointment of New Board Members
Press Release | 11/04/2019
RICHARDSON, TX / ACCESSWIRE / November 4, 2019 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announces the appointment of three new Board Members and the resignation of three current Board Directors.
Danny Schoening, CEO of Optex commented, "We are extremely pleased with today's announcement as it achieves two critical objectives which we believe are in the best interests of our shareholders. First, it transforms our Board so it now consists of a majority of Independent Directors. Second, it adds three new Board Directors who have distinct and valuable skill sets that we believe will help Optex maximize its long-term potential. We would also like to thank the resigning Directors for their years of valuable service to the Board."
Larry Hagenbuch joins the Board and has accepted the role of Audit Committee Chair. Larry is currently a Managing Director at Huron Consulting Group. Prior to that, Larry was the Chief Operating Officer and Chief Financial Officer for J. Hilburn, Inc., a custom clothier for men from Dec 2009 to May 2019. He served on the board of directors of Remy International (REMY) from November 2008 until that company's sale to BorgWarner in November 2015, where he served on the audit and compensation committees. Larry also currently serves on the board of directors for both Arotech (ARTX) and HireQuest (HQI). Larry has served in senior management positions for SunTx Capital Partners, Alix Partners, GE / GE Capital, and American National Can Group, Inc. Larry began his professional career in the United States Navy.
Dale Lehmann joins the Board as an industry expert having over 30 years of management, strategy, product development, delivery and operational experience in the electro-optical industry. Dale was the Director of Business Development & Strategy for General Dynamics Global Imaging Technologies Group from 2014 through 2017. Prior to that, Dale was the Senior Vice President & General Manager of the Infrared Products Group for L-3 Communications/Cincinnati Electronics from 1995 through 2014. Dale currently sits on the Board of Directors for Adimec USA, a provider of application specific imaging solutions.
Rimmy Malhotra joins the Board and has accepted the role of Compensation Committee Chair. Rimmy currently manages The Nicoya Fund, an investment partnership whose partners include, high net worth individuals, entrepreneurs and family offices and has acted in that capacity since 2013. He currently serves as Vice-Chairman of HireQuest, a NASDAQ listed staffing operator. He holds an MBA from The Wharton School in Finance, MA in International Affairs from The University of Pennsylvania and a Bachelor of Science in Computer Science from Johns Hopkins University.
Concurrent with these additions, Bill Bates and Karen Hawkins have stepped down from the Board to enable a majority independent Board going forward and after several years of service, David Kittay has stepped down to pursue other interests.
ABOUT OPTEX SYSTEMS
Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.
Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.
You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.
Contact:
IR@optexsys.com
1-972-764-5718
SOURCE: Optex Systems Holdings, Inc.
View source version on accesswire.com:
https://www.accesswire.com/565220/Optex-Systems-Holdings-Inc-Announces-Appointment-of-New-Board-Members
I think that is likely the perspective that is driving the stock this low.
"If ZYXI is so profitable, why did their competitors leave the space?"
They didn't leave. The competitors were being toooooo scammy and the OIG told one they could not be in this space anymore, and told the other one that they would have to pay a big hefty fine, but the company negotiated a smaller fine if they left the space, and the judge said "Ok". You could view the fact that they didn't fight to stay in the space as a negative, but I just think they have other lines of healthcare business where they can act unabated in their scamminess. The OIG also inspected ZYXI but didn't find anything to fine them over as they were acting in the norms of healthcare scamminess. Before these competitors left it wasn't as profitable of an opportunity as there were 3 players competing. So then ZYXI now finds itself the lone survivor in an area where FDA approval is required for devices being sold.
"Why have no larger companies entered the space with a superior product? "
I think larger companies would come in with a superior product if they could do it easily, but they have to have the scammy FDA approval to be obtained. ZYXI itself has a great blood volume monitor that can detect internal bleeding but they are waiting for scammy FDA approval.
"Just makes no sense for a very profitable medical device company like ZYXI to spend nothing on R&D."
R&D is very expensive and earns the company nothing for many years as can be seen by their blood volume monitor, and right now they are able to take over the old business left over by the competitors who were forced out. It is difficult and expensive to sell doctors on a new machine, and so they are selling doctors on their TENS IFC machine who were previously prescribing these competitors machines. They are doing the reasonable thing IMO. Why spend money on new opportunities when there is a large untapped market directly before them? They are currently spending money on studies on their blood volume monitor to make sure it can withstand unlikely events such as earthquakes, etc., so they are spending some money on research related items to ensure they get through scammy FDA approval.
"Especially when they have such a limited product offering."
They also have a device that can help people rehab after a stroke, but it is not as easy to sell. They also have the blood volume monitor in the works waiting on approval any day. They are preparing for a possible acquisition, which would be a better move in my opinion than trying to develop something else from scratch. Once they have saturated the TENs IFC space and have a big sales presence I believe they will start selling their other devices.
"Instead they put all their resources into hiring more & more salespeople."
They are doing what seems to be the most prudent thing to do in their situation. As a shareholder, I would be unhappy with them spending money on research into some new unproven product instead of spending money on salespeople.
"You probably saw this but there was a negative article on Seeking Alpha last week:"
Yes, I read that article saying that the Zynex abusive pricing model is unsustainable. I, however believe that the Zynex abusive pricing model is well within the norms of healthcare system scamminess judging by its recent OIG inspection in which the inspectors had nothing to report. Also judging by my own experience whenever I go to any medical professional - the abusive healthcare pricing models are in no way kept in check by my own insurance company. Your experience may vary.
"I'm curious to see how this one plays out."
Me too. I'm also watching to see if anything looks wrong to me, but it is currently playing out the way I would expect it to. I was hurt the first time ZYXI had explosive growth which quickly deteriorated, so I am on the lookout.
The whole healthcare system is scammy IMO.
ZYXI makes a lot of their money through a large markup on commodity items. There is a risk that the insurance companies will crack down on this. However, I view it as similar to the risk that the insurance companies might crack down on overpriced Tylenol pills or other supplies at the clinic down the street. However ZYXI is currently the only player in this space, growing revenues at >40%, and accelerating. The earnings are down because they are aggressively hiring salespeople on salary, plus they are paying taxes this versus no taxes last year (so now Uncle Sam is getting his cut too).
ZYXI ($9.50) Accelerating revenue growth from 36% last quarter up to 45% this quarter. Might be 95% revenue growth down the road a few quarters. Rate of new salesperson hiring moving to 15 per month up from 10 per month.
Great quarter. Accelerating revenue growth from 36% last quarter up to 45% this quarter. He addressed the bear attack. They aggressively cut back on the non-performing sales reps so the absolute number has not increased much but now the sales people are exclusive to ZXYI. The only negative was a reduction in net income due to the increased SG&A investment. It sounds like he is planning for a great deal of growth. Now the pace of hiring has increased from 10 sales people per month to 15 per month which occurred in September.
Great quarter. Accelerating revenue growth from 36% last quarter up to 45% this quarter. He addressed the bear attack. They aggressively cut back on the non-performing sales reps so the absolute number has not increased much but now the sales people are exclusive to ZXYI. The only negative was a reduction in net income due to the increased SG&A investment. It sounds like he is planning for a great deal of growth. Now the pace of hiring has increased from 10 sales people per month to 15 per month which occurred in September.
I met with RFIL CEO at the microcap rodeo. He is a competitive pure sales guy. He simplifies the business into something easy to sell, then sells it. I'd guess he'll be able to increase margins at the new acquisition.
SCIA - Do you have any expectations for this quarters results? Seems like the China thin film deal was sort on hold. Also they were building out a new part of their lab. I'm not sure if that will eat into their profits. The ex-CEO salary and severance might be gone now.
This article argues that the health system has an incentive to keep prices high
https://www.npr.org/sections/health-shots/2018/05/25/613685732/why-your-health-insurer-doesnt-care-about-your-big-bills
I am holding my position. I don't find anything new in this article. And I expect the report that will come out soon to be great. There is some risk in the stock. But there is allot of upside from here if the insurance companies don't crack down on them. They have said that reimbursement rates are the same that they have been for twenty years.
SMSI - folks on the StoryTrading WhatsApp group seem to think the stock will have around a $.12 quarter versus street estimates of .06-.08 they do alot of monitoring of the app downloads and interviewing of sprint salespeople.