ENGLEWOOD, Colo., April 7, 2020 /PRNewswire/ -- Zynex, Inc.
(NASDAQ: ZYXI), an innovative medical technology company
specializing in manufacturing and selling non-invasive medical
devices for pain management, stroke rehabilitation, cardiac
monitoring and neurological diagnostics, today announced orders and
an increased revenue estimate for Q1 and the full year 2020.
Orders in the first quarter were 126% above the number of orders
in the first quarter of 2019 and 3% sequentially above the fourth
quarter of 2019. In the fourth quarter of 2019, orders grew 129%
year-over-year.
Due to the solid increase in orders and strong collections the
Company has updated its previous estimate for the first quarter of
2020 to between $14.9 and
$15.4 million compared to the
previous estimate of between $14.0
and $14.5 million. First quarter
Adjusted EBITDA is now expected to come in between $2.8 and $3.3
million, up half a million from the previous estimate.
The Company is increasing its full year 2020 revenue estimate to
between $78 and $83 million. The Company previously provided
guidance for revenue in the full year 2020 of between $75 and $80
million.
The updated revenue estimate is now approximately 72% to 83%
above last year's full year revenue of $45.5
million.
2020 full year estimated adjusted EBITDA remains unchanged at
$15.0 to $18.0
million.
Thomas Sandgaard, CEO of Zynex
said: "Similar to many companies we have seen the impact of the
COVID-19 pandemic, not only on the availability of physicians to
prescribe our products but also on navigating employee and supply
chain issues. March orders were down 15% compared to the average
number of orders in January and February
2020, which is a smaller decline than we had expected
considering the nationwide impact of COVID-19. The numbers have
since stabilized and remain constant through the last 3 weeks of
March and the early days of April. This speaks volumes to the
relationships our sales force has with many prescribers and the
need for them to prescribe non-opioid, non-addictive prescription
strength solutions for their patients in pain.
As a reminder, revenue from an order is typically recognized
over the time a patient uses our device and related supplies and
therefore a short-term slowdown in orders has less impact on
revenue and cash collections. Our cash collections in the first
quarter of this year were strong which adds to our confidence in
the full year estimates.
We continue to add sales reps and train our sales force. In the
month of March, we added 32 sales reps and we still expect to reach
our goal of filling all 400 territories throughout the US by
November of this year.
Our operations continue without interruption despite a few of
our employees staying at home due to suspected illnesses or anxiety
during this difficult period. Our supply chain remains
un-interrupted as we previously secured non-Chinese second sources
for all our components and raw materials. In addition, it is our
practice to keep several months of finished products on the shelf;
have over 4 months of components on-hand for internal assembly and
12-18 months of orders placed with our vendors on top of the
in-house materials. It is critical for us to have the ability to
ship immediately to a patient in pain.
Our prescription-strength NexWave device is a healthy
alternative to prescribing opioids as the first line of defense
when treating pain. We continue to add additional sales reps in
territories throughout the US that we have not covered
previously.
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."
About Zynex
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 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
This press release contains "forward-looking statements"
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by
words such as: "anticipate," "intend," "plan," "goal," "seek,"
"believe," "project," "estimate," "expect," "strategy," "future,"
"likely," "may," "should," "will" and similar references to future
periods. Examples of forward looking statements, include
among others, statements we make around guidance related to orders,
sales and revenue, expected operating results, such as revenue
growth and earnings, growth and financial results.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore you should not rely on any of
these forward looking statements. The Company makes no
express or implied representation or warranty as to the
completeness of forward looking statements or, in the case of
projections, as to their attainability or the accuracy and
completeness of the assumptions from which they are derived.
Factors that could cause actual results to materially differ from
forward-looking statements include, but are not limited to, 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 for our products from health insurance companies,
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 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,
2019 as well as Forms 10-Q, 8-K and 8-K/A, press releases and
the Company's website.
Any forward-looking statement made by us in this press
release is based only on information currently available to us and
speaks only as of the date on which it is made. We undertake no
obligation to publicly update
any forward-looking statement, whether written or oral,
that may be made from time to time, whether as a result of new
information, future developments or otherwise.
Contact:
Zynex, Inc.
(303) 703-4906
Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com
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SOURCE Zynex