Full Press Release Details
96% Year over Year Order Growth
CO - October 12, 2020 - 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."
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
release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
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.
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.
Investor Relations Contact:
Amato and Partners, LLC
Investor Relations Counsel