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ENGLEWOOD, Colo. - Zynex Inc. (NASDAQ: NASDAQ:ZYXI), a company specializing in non-invasive medical devices for pain management, announced today the FDA clearance of its new TensWave device. The product is available by prescription and is designed to deliver TENS (Transcutaneous Electrical Nerve Stimulation) therapy for pain relief.
The TensWave is intended to complement Zynex's existing product line, including the NexWave device, which remains a leading choice for comprehensive electrotherapy solutions. According to Zynex's CEO, Thomas Sandgaard, the TensWave was developed to fill a market niche for a high-quality TENS device that aligns with insurance reimbursement criteria.
The device is portable and user-friendly, allowing for easy integration into patients' daily routines. While it is not a replacement for the NexWave, it offers a drug-free pain management option for patients whose insurance plans exclusively cover TENS therapy.
This FDA clearance represents a new milestone for Zynex in its mission to enhance patient outcomes with innovative medical technology. The company, founded in 1996, continues to market and sell medical devices for pain management and rehabilitation, as well as monitoring systems for hospital use.
The press release contains forward-looking statements and acknowledges that actual results could vary due to various factors, including product acceptance and the availability of insurance reimbursement for TENS therapy.
This news is based on a press release statement from Zynex Inc.
In other recent news, Zynex Inc., a medical technology company, has reported its second quarter financial results for 2024. The company announced a total revenue of $49.9 million, marking an 11% year-over-year growth. However, this figure fell short of analysts' expectations, as did the net income which came in at $1.2 million. In response to these developments, H.C. Wainwright, a well-known firm, adjusted its 12-month price target for Zynex to $16.00 from the previous $21.00, while maintaining a Buy rating on the stock.
Zynex's management highlighted a 20% increase in orders during the second quarter, despite a strategic reduction in the number of sales representatives. The company's future plans include possibly increasing the sales force in 2025, with pain management products projected to remain the primary growth driver. Zynex's revised full-year revenue guidance for 2024 now targets a minimum of $200 million, with diluted earnings per share expected to be at least $0.20. These recent developments provide investors with a clearer picture of the company's financial health and strategic direction.
InvestingPro Insights
Zynex Inc. (NASDAQ: ZYXI) has recently made headlines with the FDA clearance of its TensWave device, signaling the company's ongoing commitment to innovation in pain management. This development comes at a time when Zynex's financial metrics are particularly noteworthy. The company's market capitalization stands at approximately $249.5 million, reflecting its position in the market. Investors may find Zynex's Price/Earnings (P/E) ratio of 43.43 to be on the higher side, indicating expectations of future growth or a premium for the company's earnings quality. Adjusting for the last twelve months as of Q2 2024, this ratio slightly decreases to 40.32.
Despite a challenging market, Zynex's revenue growth remains positive, with a 9.11% increase over the last twelve months as of Q2 2024, and a quarterly revenue growth of 10.97% in Q2 2024. This suggests a consistent upward trajectory in sales, a key indicator of the company's market acceptance and business expansion.
One InvestmentPro Tip that stands out is the company's aggressive share buyback strategy, which often reflects management's confidence in the company's future prospects. Additionally, Zynex's high shareholder yield is a signal of the company's commitment to returning value to its investors. For those interested in deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZYXI, including insights on profitability predictions, liquid assets, and long-term returns.
Lastly, Zynex's non-payment of dividends aligns with the company's focus on reinvesting earnings into growth opportunities such as the TensWave device, which could further drive the company's performance. With a robust gross profit margin of 80.0% over the last twelve months as of Q2 2024, Zynex appears well-positioned to invest in its innovative medical technologies and expand its market footprint.
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