Zynex Inc (NASDAQ:ZYXI) is looking to new product launches and tighter cost controls to drive growth in 2025, as CEO Thomas Sandgaard said the company is positioning itself for long-term expansion despite a challenging start to the year.
“We expect to complete our FDA submission for our NiCO laser pulse oximeter in the next couple of weeks, which we believe can be a significant driver of new customers, revenue streams and will diversify our product offering,” Sandgaard said in a statement accompanying its first quarter results.
“Overall, we remain optimistic about the growth opportunities both in pain management and patient monitoring.”
The submission of the NiCO device marks a key milestone for the company as it seeks to broaden its portfolio beyond its core pain management and rehabilitation products. Sandgaard said the new device, which provides non-invasive monitoring, could open new revenue channels in the fast-growing patient monitoring market.
A look ahead
Looking ahead, Zynex expects second-quarter revenue of at least $27 million and projects improving results through the remainder of the year as it benefits from seasonal demand and recent cost-cutting measures. The company reduced its overall staff by 15% in the first quarter and expects to realize annual savings of approximately $35 million.
Despite a temporary suspension of payments from its largest insurance customer, Tricare, Zynex continues to serve those patients while awaiting a decision on its appeal, expected by June. The disruption contributed to a first-quarter net loss of $10.4 million and revenue of $26.6 million.
Still, Sandgaard pointed to improving sales force productivity, even with 39% fewer reps, as a sign that the company’s strategy is working. “We were encouraged by the strong performance of the current sales reps,” he said.
At the end of Q1 on March 31, the company held $23.9 million in cash and $40.1 million in working capital.