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 September 30, 2010. The Company also generated record net revenues of $6,657,000 for the three months ended September 30, 2010, which represents a 42% increase over third quarter 2009 net revenue and a 16% increase sequentially over the second quarter of 2010. Year to date net revenue of $17,274,000 increased 30% over the prior year to date net revenue. Thomas Sandgaard, CEO, stated: "We are excited with the continued revenue growth and outlook of the Company. The investment in our sales team continues to generate a significant increase in orders."
“We are excited with the continued revenue growth and outlook of the Company. The investment in our sales team continues to generate a significant increase in orders.”
Zynex's third quarter 2010 gross profit of $5,231,000 is also a record and reflects a 79% gross profit margin, unchanged from the previous quarter's gross profit margin. SG&A expenses in the third quarter totaled $4,606,000 compared to $2,906,000 in the third quarter 2009 and increased by 5% in the third quarter of 2010 as compared to $4,390,000 in the second quarter of 2010. SG&A expenses reported in the third quarter of 2010 included expenses of $200,000, related to the transition of the Company's Chief Financial Officer. The Company reported positive net income for the quarter ended September 30, 2010 of $368,000, which showed significant improvement over the second quarter of 2010, as expenditures made in prior quarters have helped drive further top-line growth. The Company's continued focus on strengthening its balance sheet resulted in strong cash collections from customers in the quarter, which resulted in a cash position of $593,000 as of September 30, 2010 and a net reduction of the amount outstanding under the Company's revolving line of credit.
Zynex is providing guidance for the full year of 2010 net revenues of between $24 million and $25 million.
Thomas Sandgaard, CEO, said: "I am happy to announce that our third quarter revenue came in at the high end of our estimated range of $6.2 to $6.8 million. We continued the trend of sequentially growing our top line 16%, significantly more than our selling, general and administrative expenses which only increased 5% between the second and third quarter. Our cash position also improved by $500,000, while at the same time the use of our Line of Credit decreased. We have previously made investments in our infrastructure that we believe put us in a position to finish the year strong and prepare us for continued growth in 2011."
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