ENGLEWOOD, Co., Oct. 12, 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 for Q3 2020.
Thomas Sandgaard, CEO of Zynex
said: "Similar to most 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. Our order growth during this pandemic has been
encouraging with 96% growth year over year and 87% sequentially but
was slightly lower than what we originally projected for Q3.
During Q3, we continued to aggressively hire sales reps as we
eclipsed 400 sales reps in early September. We expect to have
approximately 500 sales reps in the U.S. by the end of 2020 and
over 600 by the end of 2021.
Due to lower than expected orders in the second and third
quarter related to COVID-19, the Company is updating its previous
revenue estimate for the third quarter of 2020 to between
$20.0 and $20.5 million compared to the previous estimate
of between $22.3 and $22.8 million. Third quarter Adjusted EBITDA is
in-line with the previous estimate and is expected to come in
between $2.3 and $2.8 million.
The Company's full year 2020 revenue estimate is between
$80 and $81
million which is within the previously announced range of
$80 to $85
million. We are narrowing the estimate ranges for the year
since 3 of the 4 quarters are complete.
The revenue estimate is approximately 76% to 78% above last
year's full year revenue of $45.5
million.
2020 full year estimated adjusted EBITDA will be $12.5 to $13.5
million. The decrease for the full year versus the prior
estimate of $15 to $18 million is primarily related to the
accelerated hiring of sales reps which was aided by the increased
number of available candidates related to COVID-19. The
acceleration of sales rep hiring is a positive for our future but
with the effects of COVID-19 on our revenue, there is a near-term
effect on profitability.
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 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 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,
forecasts, 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 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, the impact of
COVID-19 on the global economy and other risks described in our
filings with the Securities and Exchange Commission, including but
not limited to our Annual Report on Form 10-K for the year
ended December 31, 2019 as well as our quarterly reports
on Form 10-Q and current reports on Form 8-K.
Any forward-looking statement made by us in this 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.
(800) 495-6670
Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel
admin@amatoandpartners.com
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SOURCE Zynex