Message #18 From:
NewsBot Date: August 18, 2006 05:49:00 AM
ZYNX News Zynex Medical Announces Financial Results for the Second Quarter of 2006
LITTLETON, Colo.--(BUSINESS WIRE)--Aug. 18, 2006--Zynex Medical Holdings, Inc. (OTCBB: ZYNX) reported its financial results for the quarter ended June 30, 2006.
Net sales and rental income for the quarter ended June 30, 2006 was $560,860, compared to $589,483 during the same quarter of 2005, a decrease of $28,623 or 4.9% and an increase of $55,769 or 11.0% compared to $505,091 in the first quarter of 2006.
Net sales and rental income for the six months ended June 30, 2006 was $1,065,951, compared to $1,134,426 in 2005, a decrease of $68,475 or 6.0%. The decrease in net revenue is primarily attributable to an increase in the reserve for insurance carriers' contractual adjustments and bad debt, coupled with a first quarter 2005 reduction of $69,000 to an accounts receivable reserve.
Gross profit for the quarter ended June 30, 2006 was $541,537 or 96.6% of net revenue. This represents an increase of $25,304 or 4.9% from the gross profit of $516,233 or 87.6% of net revenue for the comparable period in 2005.
Gross profit for the six-months ended June 30, 2006 was $982,801, or 92.2% of net revenue, an increase of $8,737 or 0.9% compared to gross profit of $974,064 or 85.9% of net revenue in the comparable 2005 period. The increase in gross profit and its increase as a percentage of total revenue for the quarter and six months ended June 30, 2006 as compared with the same periods in 2005 are primarily due to an increase in rental revenue, which produces a higher profit margin than sales revenue and a 2006 update to our inventory costing procedures.
Net income (loss) for the quarter and six months ended June 30, 2006 was $1,910 and ($62,915) compared to net income of $75,416 and $131,496 for the comparable 2005 periods.
Domestic orders for the Company's combined standard electrotherapy products and its proprietary NeuroMove (TM) received during the six months ended June 30, 2006 increased 25.2% from the comparable 2005 period. Domestic orders are projected to increase further as the Company's recently engaged sixteen new sales representatives accelerate their Zynex sales activities. All sixteen representatives have extensive experience in electrotherapy and medical technology sales, and their expertise is expected to significantly broaden the Company's client base.
Thomas Sandgaard, President and CEO, said: "Enhancing our sales and marketing team with the addition of sixteen seasoned sales veterans will equate to significant progress in the further development of our strategic initiatives. With these positive new developments and our clear vision, we are fully confident that we are on the right path to solid growth."
About Zynex Medical Holdings, Inc.
Zynex Medical Holdings, Inc. (founded in 1996) engineers, manufactures, markets and sells its 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 been developed to uphold the Company's mission of improving the quality of life for patients suffering from impaired mobility due to stroke, spinal cord injury, or debilitating and chronic pain.
Safe Harbor Statement
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, 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
3 Mos. Ended June 30 6 Mos. Ended June 30
2006 2005 2006 2005
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Net Sales and Rental
Income $560,860 $589,483 $1,065,951 $1,134,426
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Net Income (Loss) $1,910 $75,416 ($62,915) $131,496
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Net Income (Loss) per
Common Share
Basic
Diluted $0.00 $0.00 $0.00 $0.01
$0.00 $0.00 $0.00 $0.01
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Common Shares Used In
Computing Per Share
Amounts
Basic
Diluted 23,277,197 23,074,024 23,244,065 23,072,210
23,616,412 23,237,948 23,244,065 23,230,567
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