Zynex Inc., a provider of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis and cardiac monitoring, yesterday posted a 36% increase in first quarter 2011 earnings.
Net revenue of $6.63 million is an increase of 36 percent compared to $4.87 million for the quarter ended March 31, 2010. The company attributes the increase to its aggressive expansion efforts, including the addition of 18 new domestic sales representatives.
Gross profit was $5.18 million compared to gross profit of $3.78 million reported for the first quarter of the year prior.
The company reported a first quarter net loss of $110,000 compared to a net loss of $67,000 for the comparable quarter of 2010.
Thomas Sandgaard, Zynex CEO said the company defied what is usually the slowest quarter of the year by meeting rising demand for its products and volume of orders.
“We were pleased with the 36 percent increase in reported net revenue for the first quarter of 2011, compared to the first quarter of 2010, as the first few months of the calendar year is typically the slowest period for us. Since we primarily deal with health insurance companies, the beginning of each year represents a reset for most patient insurance deductibles, which lowers the amount of expected revenue we are able to report. … we continue to believe we are poised to execute on our strategy and still expect to hit our originally estimated net revenue,” Sandgaard stated.
Zynex anticipates 2011 net revenues of between $30 million and $32 million for 2011 and net income per diluted share of between $0.08 and $0.11.
Sandgaard offered a product update and said it is eyeing acquisition opportunities as it seeks to diversify revenue channels.
“We have made further progress on our blood volume monitor device, currently being developed in our Zynex Monitoring Solutions subsidiary and have recently signed an agreement with OmniVincit, LLC to conduct the first clinical evaluation of our blood monitor device. We have also been actively evaluating our options within our Zynex NeuroDiagnostics subsidiary, in which we are studying the identified markets, evaluating our organic product development options and identifying possible acquisition targets,” he stated. “Our long-term goal is to diversify our revenue base currently being driven by our Zynex Medical, electrotherapy subsidiary, in which we believe our two new subsidiaries, Zynex Monitoring Solutions and Zynex NeuroDiagnostics, will allow us to accomplish through access to additional large markets.”
For more information visit www.zynexmed.com