Zynex Updates Financial Outlook for 2013
(firmenpresse) - LONE TREE, CO -- (Marketwired) -- 07/12/13 -- Zynex, Inc. (OTCQB: ZYXI), a provider and developer of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis and cardiac monitoring, announced today the Company's updated financial outlook for the remainder of 2013.
During the first half of 2013 the Company encountered industry challenges related to health care reform that has affected its Zynex Medical electrotherapy business. Specifically, because of reimbursement changes for durable medical equipment, uncertainty continues to exist at the medical practitioner level causing a delay and decline in demand for the Company's Zynex Medical electrotherapy products. The Company has also experienced reimbursement challenges from government and third party payors related to certain medical indications for its Zynex Medical electrotherapy products, which is negatively impacting the Company's revenue.
These market factors will have a negative effect on the Company's financial results for the second quarter and full year 2013, resulting in the Company not meeting its original revenue and earnings guidance. Revenue for the second quarter and full year 2013 will be significantly less than anticipated and the Company expects to record a net loss for the second quarter and full year 2013. The Company will announce its financial results for the second quarter of 2013 the week of August 5, 2013.
To minimize the impact of these challenges, the Company has made reductions in its fixed expenses by cutting its annual employee costs by approximately $3 million dollars. The Company also successfully renegotiated its existing building lease, in which, among other things, base rent has been lowered and the Company is now operating in an approximate twelve month free rent period, which results in cash savings over the next twelve months of approximately $1.5 million dollars.
Thomas Sandgaard, CEO stated: "We believe these cost reductions will optimize our organization to the current level of demand for our Zynex Medical electrotherapy products and allow us to capitalize on opportunities in our other divisions. We are committed to returning the Company to profitability and will continue to make expense adjustments as necessary throughout the remainder of 2013. In our Zynex Medical electrotherapy sales channel, we recently added new products that are less impacted by insurance reimbursement. We are also aggressively pursuing other opportunities, which are capital goods and service based where revenues are much less dependent on insurance reimbursement. In Zynex NeuroDiagnostics, we expanded our sales force and have been distributing electroencephalography (EEG) and sleep diagnostic products in the US. We are investing in our Zynex Billing and Consulting division where we expect increased service based revenue going forward. We believe these other divisions serve to diversify our product mix and further reduce our dependency on insurance reimbursement."
Zynex (founded in 1996), operates under three primary business segments; Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical engineers, manufactures, markets and sells its own design of electrotherapy medical devices for electrotherapy, used for pain management and rehabilitation. Zynex Medical's product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex NeuroDiagnostics, sells the company's proprietary NeuroMove device designed to help stroke and spinal cord injury patients and is currently expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, was established to develop and market medical devices for non-invasive cardiac monitoring. For additional information, please visit: .
Certain statements 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, the need to obtain additional capital in order to grow our business, our ability to engage additional sales representatives, the success of such additional sales representatives, 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 from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, 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 uncertain outcome of pending material litigation 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, 2012.
Contact:
Zynex, Inc.
Anthony Scalese
CFO
303-703-4906
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Datum: 12.07.2013 - 19:23 Uhr
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