Zynex(US:ZYXI)2019-05-04 15:18Financial Data and Key Metrics Changes - The first quarter revenue was $9.2 million, representing a 34% increase compared to the same quarter last year, with a net income of $2.4 million or $0.07 per fully diluted share [3][11] - Cash position decreased to $9.4 million at the end of Q1 2019 from $10.1 million at the end of 2018, primarily due to a special dividend payment of $2.3 million [3][16] - Gross profit margin remained stable at 81%, indicating a healthy industry for prescription-strength electrotherapy [8][11] Business Line Data and Key Metrics Changes - Device revenue increased by 24% to $2 million compared to $1.6 million last year, while supplies revenue rose by 37% year-over-year to $7.2 million from $5.3 million [11] - Orders grew by 30% year-over-year, driven by the expansion of the sales force [6][11] Market Data and Key Metrics Changes - The company is expanding its sales force, adding approximately 10 new sales representatives each month, aiming for a total of around 250 by the end of 2019 [7][20] - The opioid epidemic is a significant issue, and the company is focusing on getting patients off opioids by promoting its technology as a first line of defense for pain treatment [5] Company Strategy and Development Direction - The long-term goal is to grow market share in prescription pain management and explore potential acquisitions of complementary technologies [22][30] - The company aims to leverage the void left by two large competitors to increase its sales and profitability [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, estimating second-quarter revenue between $9.5 million and $10 million, with EBITDA between $2.3 million and $2.8 million [21] - The company is focusing on clinical studies for the Blood Volume Monitor to validate its effectiveness in various medical scenarios [38] Other Important Information - The company successfully listed on the NASDAQ stock exchange in February 2019, leading to increased trading volume and stock price [9] - The implementation of new lease accounting guidelines resulted in approximately $3.5 million in lease liabilities recorded on the balance sheet [18] Q&A Session Summary Question: Comments on the sales force restructuring and training cycle - Management confirmed that restructuring is underway and a robust training program is in place for new sales representatives [27][28] Question: Percentage of accounts captured from competitors - Management indicated that only a small portion of accounts have been captured so far, with significant potential remaining [28] Question: Examples of potential acquisitions and internal R&D developments - Management is exploring various complementary technologies for pain management and expects to see developments in R&D in the near future [29][30] Question: New marketing materials rollout and trends in orders - Management reported a slight delay in the rollout of new marketing materials but emphasized their potential to help sales representatives engage with physicians [33][34] Question: Trends in profitability from new sales representatives - Management noted that while profitability trends remain stable, early signs suggest that new representatives may become more productive due to improved training [36][37]