ZYNX November 20, 2007 09:12 AM US Eastern Timezone
Zynex Announces Record Revenue and Profit
LITTLETON, Colo.--(BUSINESS WIRE)--
Zynex Medical Holdings, Inc. (OTCBB: ZYNX), a provider of pain management systems and electrotherapy products for medical patients with functional disability, announces a 173% increase in revenue the first nine months of 2007 compared to the same period last year and a profit of $1,197,694 for the period.
Net sales and rental income for the three and nine months ended September 30, 2007, were $2,104,446 and $4,946,384, an increase of $1,360,659 and $3,136,646 or 183% and 173%, compared to $743,787 and $1,809,738 for the three and nine months ended September 30, 2006.
Income from operations was $856,144 for the quarter and $1,876,009 for the nine months respectively versus $34,087 and $(50,503) one year ago. Operations generated a cash flow of $437,602 during the first nine months of 2007 which was primarily used to acquire additional equipment. Gross profit margin increased to 92.5% for the quarter and 91.2% for the three quarters.
Selling, general and administrative expenses for the three and nine months ended September 30, 2007 were $1,045,087 and $2,529,281, an increase of $469,057 and $968,947 or 81.4% and 62.1%, compared to $576,030 and $1,560,334 for the same periods in 2006. As a result the net income after taxes was $614,465 for the third quarter and $1,197,694 for the nine months in 2007.
Thomas Sandgaard, CEO, stated: “We further accelerated our revenue growth compared to the two first quarters of 2007 as well as increasing our gross profit margin and net income. We expect the additions to our sales force in the last several months to continue to positively impact revenues and profitability in future quarters.”
About Zynex Medical Holdings, Inc.
Zynex Medical Holdings, Inc. (founded in 1996) engineers, manufactures, markets and sells its own design of electrotherapy medical devices in two distinct markets: standard digital electrotherapy products for pain relief and pain management; and the NeuroMoveTM for stroke and spinal cord injury (SCI) rehabilitation. Zynex's product lines are fully developed, FDA-cleared, commercially sold, and have been developed to uphold the Company's mission of improving the quality of life for patients suffering from impaired mobility due to stroke, spinal cord injury, or debilitating and chronic pain.
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the possible need to obtain additional capital in order to grow our business, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, our dependence on third-party manufacturers to produce our goods on time and to our specifications, the acceptance of our products by hospitals and clinicians, implementation of our sales strategy including a strong direct sales force and other risks described in our 10-KSB Report for the year ended December 31, 2006.
Consolidated Statement of Operations
3 Mos. Ended
September 30,
9 Mos. Ended
September 30,
2007
2006
2007
2006
Net Sales & Rental income
$2,104,446
$743,787 $4,946,384 $1,809,738
Net Income (Loss)
$614,465
$22,892 $1,197,694 $(92,751)
Net Income (Loss) per Common Diluted Share
$0.02
$0.00 $0.04 $0.00
Common Shares Used in Computing Per Share Amounts--Diluted
29,332,352
24,300,389 28,588,545 23,531,017
Contacts
Zynex Medical Holdings, Inc.
Thomas Sandgaard, CEO, 303-703-4906
www.zynexmed.com
