NEW YORK, NY / ACCESSWIRE / January 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 January Update Note.

Based in Lone Tree, CO, Zynex, Inc. (OTCQB: ZYNX) ("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 50,000 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 the potential to raise its visibility in its industry as well as among institutional investors restricted from investing in OTC companies.

Highlights of the note are as follows:

Zynex Pre-Announces Better than Expected 4Q17 Results

On January 8, 2018, Zynex released a positive pre-announcement for its 4Q17 results, with highlights as follows:

• Revenues are now expected to be in a range of $7.5mn to $8.0mn, up sequentially from $6.8mn in FY3Q17 and more than twice year-ago revenues of $2.9mn in 4Q16.
• Management increased its full year 2017 revenue outlook to a range of $22.8mn - $23.3mn, above the high end of its prior guidance of $22.3mn- $22.8mn and our estimate of $22.5mn.
• Company expects to file its full results by March 31, 2018.

Increasing Estimates On Strong Pre-Announcement

Zynex continues to report accelerating momentum in the market as management pre-announced better than expected 4Q17 top line results, which were above the high end of its prior guidance and our estimates. Zynex now expects revenues to be between $7.5mn and $8.0mn in 4Q17. The midpoint of this range, $7.75mn, implies impressive sequential growth of nearly 14% from $6.8mn in 3Q17, and over 165% YoY growth from $2.9mn in 3Q16. For the full year, the company is now targeting a range of $22.8mn to $23.3mn, the midpoint of which implies annual revenue growth of 73% over 2016. Considering the positive pre-announcement, we are raising our full year 2017 revenue estimate to $23.1mn, versus our prior estimate of $22.5mn. For the full year, Zynex had previously guided to Adjusted EBITDA, which excludes share compensation, to be in a range of $8.6mn - $9.1mn, versus $1.3mn in 2016. We expect Zynex to be at the top end of this range.

Zynex to Repurchase Shares

On December 6, 2017, Zynex announced that it would seek to increase shareholder value by instituting a share repurchase program. As part of the announcement, CEO Thomas Sandgaard stated that the company would seek to repurchase up to $2mn of the company's common stock with excess free cash flow generated from the company's high earnings leverage.

Raising Price Target to $5.25

We are raising our price target for Zynex to $5.25 following the positive pre-announcement, which was above our estimates. The target suggests a fair value of 25x 2017E EPS of $0.21 and potential upside of 62.7% from the recent close of $3.38.

Please review important disclosures 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 with the 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 business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

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