Zynex, Inc. (NASDAQ: ZYXI) reported Q1 EPS of $0.09, $0.03 better than the analyst estimate of $0.06. Revenue for the quarter came in at $15.2 million versus the consensus estimate of $14.57 million.

President and CEO Commentary:

Thomas Sandgaard, CEO said: "I am excited to announce our fifteenth consecutive quarter of positive net income. In the first quarter, we posted revenue of $15.2 million, which is the highest quarterly revenue in the history of the Company and net income of $2.9 million. Orders grew 126% compared to the first quarter of 2019.

We were able to generate $0.6 million in cash from operations despite increasing our inventory by over $1.0 million. We are focused on ensuring our patients get pain relief from our device quickly and therefore we increased our inventory levels to protect against any supply chain slow-downs due to COVID-19. Our employees have demonstrated remarkable dedication and have been rock solid during this crisis making sure we continue to operate effectively. We can\'t thank them enough.

In the first quarter, we continued to focus on the execution of our growth strategy and the related growth of our sales force by adding 32 sales reps in March and 48 in April. We expect the addition of new sales reps to have an impact on order and revenue growth later this year and going forward. In addition, we continue to invest in our infrastructure to support the increase in order volume.

We continue to advocate for pain patients, and for physicians to prescribe our NexWave technology as the first line of defense in treating chronic and acute pain without side effects. We are dedicated to promoting our technology in an effort to remove patient addiction and other side effects from prescription opioids."

GUIDANCE:

Zynex, Inc. sees Q2 2020 revenue of $17.5-18 million, versus the consensus of $16.95 million.

• The estimated range for second quarter revenue is between $17.5 and $18.0 million with Adjusted EBITDA between $3.2 and $3.7 million as we continue to invest in growing our sales force. The revenue estimate is approximately 70% to 75% above 2019 second quarter revenue of $10.3 million. We continue to see the impact of the COVID-19 pandemic, not only on the availability of physicians to prescribe our products but also on navigating employee and supply chain issues. Our order volumes have stabilized and remained steady during the last 3 weeks of March and through April.
• Full year 2020 estimates are unchanged. Revenue is estimated between $78.0 and $83.0 million with Adjusted EBITDA between $15.0 and $18.0 million. The full year revenue estimate is approximately 72% to 83% above 2019 revenue of $45.5 million.

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