Zynex, Inc. (OTCBB: ZYXI), a provider and developer of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis and cardiac monitoring, announces its first quarter 2012 unaudited financial results.

The Company’s total net revenue increased 35% to $8,944,000 for the three months ended March 31, 2012 from $6,633,000 for the three months ended March 31, 2011. The Company’s revenue base for the first quarter of 2012 was primarily driven by its Zynex Medical subsidiary, in which strong demand continues from its products, and a small amount of revenue was derived from its Zynex NeuroDiagnostics subsidiary. The Company generated net income of $320,000, or $0.01 per share in the first quarter of 2012, versus a net loss of $110,000, or less than $0.01 per share in the first quarter of 2011.

The Company reported a gross profit of $7,131,000, or 80% of net revenue, for the first three months of 2012, as compared to a gross profit of $5,189,000, or 78% of net revenue, for the first three months of 2011.

The Company reported Selling, General and Administrative (SG&A) expenses of $6,645,000, or 74% of net revenue, for the three months ended March 31, 2012, as compared to $5,328,000, or 80% of net revenue, for the three months ended March 31, 2011. Increases in the Company’s SG&A expenses during the first three months of 2012 were primarily attributable to sales and marketing, specifically for sales commissions (based on the 35% increase in net revenue) and investments made to expand the Company’s Zynex Medical field sales force.

The Company generated a first quarter 2012 income from operations of $486,000, income before income taxes of $393,000 and net income of $320,000, or $0.01 per share, versus a first quarter of 2011 loss from operations of $139,000, loss before income taxes of $197,000 and net loss of $110,000, or less than $0.01 per share.

Thomas Sandgaard, CEO stated: “We were pleased with our first quarter 2012 profitability and 35% increase in total net revenue as compared to the first quarter of 2011. The first few months of the calendar year is typically the slowest period for us, as we primarily deal with health insurance companies. The beginning of each year represents a reset for most patient insurance deductibles, which lowers the amount of expected revenue we are able to report. Achieving a 35% increase in net revenue is representative of the strong demand for our Zynex Medical electrotherapy products and volume of orders we continue to obtain quarter over quarter. Although our Zynex Medical subsidiary still represents the majority of reported revenue, we are encouraged to see an increasing contribution from our Zynex NeuorDiagnostics subsidiary where revenue increased at a rate slightly higher than expected. We continued to invest in our Zynex Medical sales team, through the addition of field sales representatives, which allowed us to expand our reach and penetration in key geographic markets. We completed the asset acquisition of NeuroDyne Medical Corp., through our Zynex NeuroDiagnostics subsidiary, during the first quarter of 2012 and are now in process with integrating it into our corporate, Lone Tree facility and introducing its products into our existing distribution channels. Our Zynex Monitoring Solutions subsidiary continues to make progress on further developing our non-invasive blood volume monitor, including planning for additional clinical trials during 2012.”

Outlook:

The Company confirms its initial guidance of anticipated total net revenue of between $38 million and $40 million for 2012 and net income per diluted share of between $0.06 and $0.08 for 2012.

Conference Call and Webcast Information:

Zynex, Inc. will host an earnings conference call and webcast at 9:00 a.m. MDT (11:00 a.m. EDT) today to discuss its first quarter 2012 financial results. Please note questions can only be submitted via the webcast user interface. Parties without access to the internet may join the presentation in listen only mode by dialing the toll free number provided below.

Webcast Information- http://www.visualwebcaster.com/event.asp?id=86761

Conference Call Information- 877-675-4753, pass-code 2589547

About Zynex

Zynex (founded in 1996), operates under three primary business segments; Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical engineers, manufactures, markets and sells its own design of electrotherapy medical devices for electrotherapy, used for pain management and rehabilitation. Zynex Medical’s product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex NeuroDiagnostics, sells the company's proprietary NeuroMove device designed to help stroke and spinal cord injury patients and is currently expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, has been established to develop and market medical devices for non-invasive cardiac monitoring.

For additional information, please visit: http://www.ir-site.com/zynex/default.asp.

Safe Harbor Statement

Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital in order to grow our business, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2011.