Full Press Release Details
and REPLACING Zynex Medical Announces Third Quarter Net Revenue Increases
Colo.--(BUSINESS WIRE)--Please replace the release dated November 21, 2006
the following corrected version due to multiple revisions.
MEDICAL ANNOUNCES THIRD QUARTER NET REVENUE INCREASES 23%
Holdings, Inc. (OTCBB: ZYNX
pain management systems and electrotherapy products for medical patients with
functional disability, reported its financial results for the quarter and nine
months ended September 30, 2006
rental income for the quarter ended September 30, 2006 increased 23% to
$743,787, compared with $604,141 during the same quarter of 2005. For the
nine-month period, net sales and rental income was $1,809,738, compared with
$1,738,566 for the same period of 2005. The increase in net revenue for the
quarter and nine-month period was primarily due to an increase in prescription
orders for rentals and purchases of the Company's standard electrotherapy
products, and was the result of the Company's more than doubling its sales
through the hiring of sixteen industry-seasoned, professional sales
representatives during the third quarter.
the quarter ended September 30, 2006 increased 11% to $634,596, compared with
$570,736 reported during the same period in 2005. Gross profit for the nine
months ended, September 30, 2006 was $1,576,544, compared with $1,663,405
reported during the prior year's comparable period.
President and CEO of Zynex said, "Our strong increase in sales this quarter
propelled by our newly acquired sales force. We believe that there is demand
the marketplace for Zynex's pain management and NeuroMove products, and, with
our new sales force on board, we are well-positioned for further growth."
Company announced, following a detailed inventory analysis, the Company
concluded that it had undervalued its inventory in prior periods and that the
Company's financial statements (1) for the year ended December 31, 2005 and
the quarters ended September 30, 2005, March 31, 2006 and June 30, 2006 should
be revised to reflect adjustments to the Company's inventory as of such dates.
An adjustment was recorded to decrease accumulated deficit and increase
inventory at January 1, 2006 by $193,108. Additionally, adjustments were
recorded to decrease cost of sales and rentals by $6,530 and $125,153 for the
three and nine months ended September 30, 2005, respectively. The Company will
prepare revised financial statements for the year ended December 31, 2005,
for the quarters ended March 31, 2006 and June 30, 2006 and include them in
amended Form 10-KSB and Forms 10-QSB as of such dates. The Company has filed
Form 10-QSB for the quarter ended September 30, 2006.
Holdings, Inc. (founded in 1996) engineers, manufactures, markets and sells
own design of electrotherapy medical devices in two distinct markets: standard
digital electrotherapy products for pain relief and pain management; and the
NeuroMove(TM) for stroke and spinal cord injury (SCI) rehabilitation. Zynex's
product lines are fully developed, FDA-cleared, commercially sold, and have
developed to uphold the Company's mission of improving the quality of life
patients suffering from impaired mobility due to stroke, spinal cord injury,
debilitating and chronic pain.
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, risks and delays associated with product development, risk of market
acceptance of products, technology or product obsolescence, competitive risks,
reliance on manufacturing partners, dependence on reimbursement from insurance
companies, additional capital needs and other risks described in our Form 10-KSB
for the year ended December 31, 2005.
Consolidated Statement of Operations
| Third Quarter 2006 and 2005 | Nine Months Ended September 30, 2006 and 2005 | ||||||||||||
| 3 Mos Ended Sept. 30 | 9 Mos Ended Sept. 30 | ||||||||||||
| 2006 | 2005 | 2006 | 2005 | ||||||||||
| Net Sales and rental | |||||||||||||
| Income | $ | 743,787 | $ | 604,141 | $ | 1,809,738 | $ | 1,738,566 | |||||
| Net Income (loss) | $ | 22,892 | $ | 135,940 | $ | (92,751 | ) | $ | 386,058 | ||||
| Net Income Per Common | |||||||||||||
| Share Basic | $ | - | $ | 0.01 | $ | - | $ | 0.02 | |||||
| Common Shares Used in | |||||||||||||
| Computing Per Share | |||||||||||||
| Amount-Basic | 24,095,566 | 23,141,330 | 23,531,017 | 23,095,520 | |||||||||
| Net Income Per Common | |||||||||||||
| Share Diluted | $ | - | $ | 0.01 | $ | - | $ | 0.02 | |||||
| Common Shares Used in | |||||||||||||
| Computing Per Share | |||||||||||||
| Amount-Diluted | 24,300,389 | 23,383,878 | 23,531,017 | 23,210,830 |
Relations Group, Inc.
/ Christine Berni, 212-825-3210
Medical Holdings, Inc.