CEO, Thomas Sandgaard, comments: “As mentioned in our recent 10-Q filing, orders for electrotherapy products have seen steady growth this year, with an average of 997 orders per month in 2015. In September/October as we added several new sales representatives, our October order count rose to 1,116, and November orders reached 1,256, showing an increase of 26% compared to the average orders per month in 2015.
The closure of DJO’s Empi division, announced in November, affected the availability of Empi TENS products at many clinics, and we experienced a large uptick in orders in the last few days of November that more than counteracted the traditional Thanksgiving holiday slowdown.
Based on market feedback, we anticipate December orders for electrotherapy products to be above the 1,500 count, with further progress expected next year. After rightsizing our fixed expenses and infrastructure, Zynex is well positioned to take on new business that Empi is leaving behind. Reimbursement per patient file increased this year due to improvements in billing personnel and processes. We are working diligently with our lender, and developing additional financing options to support the expected growth in the year ahead.”
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. For additional information, please visit: Zynex.com.
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, the need to obtain additional capital or augment our liquidity in order to continue our business, the success of our compound pharmacy and international expansion efforts, 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, 2014.