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LONE TREE, CO -- (Marketwired) -- 08/13/15 -- Zynex, Inc.
(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 monitoring and compound pharmacy, announced today its second quarter 2015 financial results.
President and CEO Commentary:
Thomas Sandgaard, CEO commented: "We made excellent progress in the electrotherapy segment during the second quarter and are seeing the benefits from the nationwide rollout of our EZ Rx order program. Orders for compound pharmacy transdermal pain creams were negatively impacted by TRICARE ceasing reimbursement early in the second quarter. Revenue has stabilized over the past few quarters at just over $3.0 million. Based on the recent order and billing trend, we anticipate total net revenue for the third quarter of 2015 to be in the range of $3.2 to $3.4 million with positive earnings before interest, taxes depreciation and amortization."
Sandgaard continued: "We continue to be very optimistic about the development of our new Blood Volume Monitor. We completed building the first production units and have recently signed an agreement for placement of units with hospitals for field testing and validation. We expect to submit our complete application to the FDA by the end of the third quarter."
Summary of Financial Results:
The Company's net revenue was $3,073,000 for the second quarter of 2015, compared to $1,349,000 for the second quarter of 2014. For the six month period of 2015, net revenue was $6,256,000 compared to $4,516,000 in the same 2014 period. The net revenue increases for both the three and six month periods reflect higher sales of transdermal pain creams, which were $200,000 higher in the second quarter and $585,000 higher during the six month 2015 period. In the previous year second quarter 2014 and six month period, revenue was negatively impacted by a backlog of consumable supplies which shifted the revenue into the third quarter 2014 period.
The Company reported Selling, General and Administrative ("SG&A") expenses of $2,270,000 for the second quarter of 2015, compared to $2,947,000 for the quarter ended June 30, 2014, a 22% reduction. For the six months ended June 30, 2015, SG&A expenses were $4,980,000 compared to $6,403,000 in the 2014 period. Decreases in the Company's SG&A expenses are primarily attributable to reduced operating expenses, headcount reductions, and lower building rent.
For the second quarter 2015, the Company reported a net loss of $493,000, or $0.02 per share, compared to a net loss of $5,553,000, or $0.18 per share in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $1,389,000, or $0.04 per share, compared to a net loss of $6,983,000, or $0.22 per share in 2014.
The Company's line of credit balance as of June 30, 2015 was $4,620,000, compared to $4,442,000 at December 31, 2014.
Thursday, August 13, 2015 at 9:00 a.m. MT - 11:00 a.m. ET
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Phone Access Details
Participant Toll Free Dial-in Number: 877-407-9124 Conference ID #: 13616933
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 operates a non-sterile compound pharmacy providing topical and transdermal pain creams. 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
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 need to obtain additional capital or augment our liquidity in order to continue our business, the success of our compound pharmacy and international expansion efforts, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, 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, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2014.Brian Alleman Zynex, Inc. (303) 703-4906 NEXT ARTICLE
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