Zynex, Inc. (ZYXI) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.53 million, or $ 0.02 a share in the quarter, against a net loss of $0.32 million, or $0.01 a share in the last year period.
Revenue during the quarter surged 36 percent to $3.63 million from $2.67 million in the previous year period. Gross margin for the quarter expanded 1136 basis points over the previous year period to 75.74 percent. Operating margin for the quarter period stood at positive 17.15 percent as compared to a negative 8.47 percent for the previous year period.
Operating income for the quarter was $0.62 million, compared with an operating loss of $0.23 million in the previous year period.
Thomas Sandgaard, chief executive officer commented: "Revenue came in at $3.6 million, 36% above the third quarter last year. We reported a net income of $532,000, a significant improvement compared with the third quarter 2015 loss of $501,000. Year-to-date we experienced positive cash from operations of $1.2 which essentially allowed us to reduce the balance on our line of credit by a million dollars in the period. I am excited to see continued improvements in our bottom line results as a result of revenue increases, increased gross profit margin and lower fixed expenses."
Operating cash flow improves significantly
Zynex, Inc. has generated cash of $1.21 million from operating activities during the nine month period, up 1,375.61 percent or $1.13 million, when compared with the last year period.
The company has spent $0.07 million cash to meet investing activities during the nine month period as against cash inflow of $0.06 million in the last year period
The company has spent $1.03 million cash to carry out financing activities during the nine month period as against cash outgo of $0.17 million in the last year period.
Cash and cash equivalents stood at $0.09 million as on Sep. 30, 2016, up 121.95 percent or $0.05 million from $0.04 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Zynex, Inc. was negative $4.46 million on Sep. 30, 2016 compared with negative $3.67 million on Sep. 30, 2015. Current ratio was at 0.48 as on Sep. 30, 2016, down from 0.52 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 203 days for the quarter from 26 days for the last year period. Days sales outstanding went down to 84 days for the quarter compared with 94 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 121 days for the previous year period. At the same time, days payable outstanding went up to 292 days for the quarter from 241 for the same period last year.
Debt comes down significantly
Zynex, Inc. has recorded a decline in total debt over the last one year. It stood at $3.30 million as on Sep. 30, 2016, down 29.22 percent or $1.36 million from $4.66 million on Sep. 30, 2015. Total debt was 68.60 percent of total assets as on Sep. 30, 2016, compared with 93.65 percent on Sep. 30, 2015.
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