NEW YORK, NY / ACCESSWIRE / August 16, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Zynex, Inc. (OTCQB: ZYXI).
The report is available here: ZYXI August 2018 Update Note.
Based in Lone Tree, CO, Zynex, Inc. (OTCQB: ZYXI, "Zynex") produces medical devices that utilize electrotherapy to treat pain and rehabilitation. The company's flagship product, NexWave™, is an FDA-cleared electrotherapy medical device that offers non-invasive, non-addictive treatment of chronic and acute pain. With a growing active installed base of over 60,000 devices, NexWave™ provides Zynex with a high margin revenue stream with recurring attributes from supplies and consumables. Beyond NexWave™, Zynex offers additional solutions for pain management, neuro-monitoring and stroke recovery. Zynex is in the process of completing an impressive turnaround, and appears well-positioned for growth. Upcoming catalysts include continued execution in NexWave™ and possible regulatory clearance for the CM1500, a new class 2 device targeting the large unmet need for post-surgery blood volume monitoring. Zynex has also announced its intention to uplist shares to a national exchange - likely the NYSE American or Nasdaq CM - which has potential to raise its visibility in its industry as well as among institutional investors restricted from investing in OTC companies.
Highlights from the note include:
Zynex reports growing revenue, Adj. EBITDA in 2Q18
On August 2, 2018, Zynex released positive 2Q18 results during which the company reported nice top line growth and continued profitability and cash flow.
Highlights were as follows:
- 2Q18 revenues grew by 50% YoY to reach $7.6mn. Results compared to revenues of $5.0mn in 2Q17 and $6.9mn in 1Q18. Results were within guidance and represented 50% YoY growth and 10% sequential growth, respectively.
- Revenue included strong NexWave product supply sales, which rose 55% to $5.9mn in 2Q18 versus $3.8mn in 2Q17, as the company continues to grow its installed base. Product device sales increased to $1.7mn from $1.2mn in 2Q17 and $1.6mn in 1Q18.
- Adjusted EBITDA increased by more 40% YoY to $2.8mn in 2Q18, versus $2.0mn in 2Q17. Adjusted EBITDA margins remained strong at 37% of revenues.
- 3Q18 EPS rises to $0.07. Zynex reported its eighth consecutive quarter of positive GAAP EPS, with 2Q18 expanding to $0.07 versus $0.05 in the year ago period.
- Zynex has generated approximately $3.6mn of cash from operating activities during the first half of 2018, and has repurchased $2.0mn of shares.
- The company ended 2Q18 with $6.3mn of cash on hand and no debt.
- Zynex guided to further growth in 3Q18. Guidance calls for sequential growth in 3Q18, with revenue expected to be in a range of $7.7mn to $8.2mn. Management expects adjusted EBITDA to be between $2.8mn and $3.3mn, also suggesting sequential growth. The company guided to EPS of $0.08.
$6.75 price target for Zynex
We see Zynex as emerging from a turnaround situation into a growth and cash flow story. We note Zynex has been a strong performer as shares have risen by 166% over the last twelve months as of the recent price of $2.90 on August 9, 2018. The target of $6.75 implies a valuation of 22.3x our 2018E EPS estimate of $0.30.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Zynex, Inc.
Zynex, 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. www.Zynex.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
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