Zynex Inc (ZYXI) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Zynex third quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to Quinn Callanan from MZ North America.

女士們、先生們，下午好，歡迎參加 Zynex 2024 年第三季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我想將會議交給來自 MZ North America 的 Quinn Callanan。

Thank you, operator, and good afternoon, everyone. Earlier today, Zynex released financial results for the third quarter ended September 30, 2024. A copy of the press release is available on the company's website. Joining me on today's call are Thomas Sandgaard, Chairman, President and Chief Executive Officer; Dan Moorhead, Chief Financial Officer; and Donald Gregg, President of Zynex Monitoring Solutions.

謝謝接線員，大家下午好。今天早些時候，Zynex 發布了截至 2024 年 9 月 30 日第三季的財務業績。新聞稿的副本可在該公司的網站上查閱。參加今天電話會議的還有董事長、總裁兼執行長 Thomas Sandgaard； Dan Moorhead，財務長；以及 Zynex Monitoring Solutions 總裁唐納德·格雷格 (Donald Gregg)。

Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's 2023 Form 10-K and subsequent Form 10-Q, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements.

在我們開始之前，我想提醒您，在本次電話會議中，公司將對未來事件做出預測和前瞻性陳述。我們鼓勵您查看公司過去和未來向美國證券交易委員會提交的文件，包括但不限於公司 2023 年的 10-K 表和後續的 10-Q 表，這些文件確定了可能導致實際結果或事件與這些前瞻性陳述中描述的結果或事件存在重大差異的具體因素。

These factors may include, without limitations, statements regarding product development, product potential, the regulatory environment, sales and marketing strategies, capital resources or operating performance.

這些因素可能包括但不限於有關產品開發、產品潛力、監管環境、銷售和行銷策略、資本資源或經營績效的聲明。

With that, I'll now turn the call over to Thomas.

說完這些，我現在將電話轉給托馬斯。

Thank you, Quinn, and good afternoon, everyone. Thank you for joining us today for the third quarter 2024 earnings call. We are pleased to report on our continued progress as the leading provider of non-opioid pain management solutions and building out cutting-edge patient monitoring solutions. We have been successful in diversifying our revenue stream and building a sustainable, profitable company that delivers better pain management and monitoring solutions for patients and doctors as well as hospitals.

謝謝你，奎因，大家下午好。感謝您今天參加我們的 2024 年第三季財報電話會議。我們很高興地報告，作為非阿片類疼痛管理解決方案的領先提供商，我們不斷取得進展，並打造了尖端的患者監測解決方案。我們成功地實現了收入來源多元化，並建立了一家可持續發展的、盈利的公司，為患者、醫生和醫院提供更好的疼痛管理和監測解決方案。

Our continued revenue growth and sustained profitability that has allowed us to reinvest in our business and return capital to shareholders. I think it's worth reminding the investor community that our 2024 revenue expectation of $200 million is more than 50% higher than we were just 3 years ago. Our continued growth and evolution has afforded us the opportunity to implement greater institutional controls across the company to improve operations, collections and new products introductions as we continue to grow as a business.

我們持續的收入成長和持續的獲利使我們能夠對業務進行再投資並向股東返還資本。我認為值得提醒投資者群體的是，我們 2024 年的收入預期為 2 億美元，比三年前高出 50％ 以上。我們的持續發展和進步為我們提供了機會，可以在整個公司範圍內實施更嚴格的機構控制，以改善營運、收藏和新產品的推出，同時實現業務的持續成長。

As part of this evolution, we have used 2024 to take a deeper analytical look at the sales force. While we have identified 800 sales regions across the United States, we are working to ensure that we have the best people and processes to take advantage of the overall opportunity. As such throughout the year, we have trimmed the sales force to ensure we have the right reps in place to put us in the best position moving forward.

作為這項變革的一部分，我們利用 2024 年對銷售團隊進行了更深入的分析。雖然我們已經確定了美國各地 800 個銷售區域，但我們正在努力確保擁有最優秀的人才和流程來充分利用整體機會。因此，我們在全年中精簡了銷售隊伍，以確保我們擁有合適的銷售代表，從而讓我們在未來處於最佳位置。

We're already seeing the benefits of this approach. And while revenue was essentially flat in the quarter, order growth in the quarter was up 13% year-over-year, and revenue per sales rep on an annualized basis in Q3 was $530,000, an increase of 25% of the third quarter in 2023. We're currently sitting at approximately 17% in terms of higher orders in October this year versus October of last year. As our team continues to mature, we expect to drive sales efficiency even higher.

我們已經看到了這種方法的好處。雖然本季營收基本持平，但本季訂單量年增 13%，第三季每位銷售代表的年化收入為 53 萬美元，較 2023 年第三季成長 25%。與去年 10 月相比，今年 10 月的訂單量目前成長了約 17%。隨著我們團隊的不斷成熟，我們期望進一步提高銷售效率。

We're proud of the Pain Management group's ability to incorporate new products while increasing orders and revenue. We're confident that we can expedite onboarding new salespeople so we can see increased order growth while maintaining a high standard for productivity.

我們為疼痛管理小組能夠在增加訂單和收入的同時推出新產品的能力感到自豪。我們有信心可以加快新銷售人員的入職速度，這樣我們就可以看到訂單成長，同時保持高標準的生產力。

Turning to new products. We received the clearance from the FDA for our new TensWave during the quarter, a device that aims to provide effective pain relief through transcutaneous electrical nerve simulation, which has been clinical prudent to reduce chronic and acute pain without needing medication.

轉向新產品。本季度，我們的新 TensWave 獲得了 FDA 的批准，該設備旨在透過經皮電神經刺激提供有效的疼痛緩解，臨床證明該設備無需藥物即可減輕慢性和急性疼痛。

CMS or Zynex Monitoring Solutions continues to move forward in the third quarter with major milestones to commercialize NiCO, our laser-based pulse oximeter. We're now undergoing the final phase of a manufacturing transfer, FDA clinical trials and commodization readiness prior to FDA submittal and clearance, and Don Gregg will provide further updates on this product in his prepared remarks.

CMS 或 Zynex 監測解決方案在第三季度繼續向前邁進，並取得了重大里程碑，將我們的基於雷射的脈搏血氧儀 NiCO 商業化。目前，我們正處於製造轉移、FDA 臨床試驗和商品化準備的最後階段，之後將提交給 FDA 並獲準批准，Don Gregg 將在其準備好的發言中提供有關該產品的進一步更新。

I find it important to remind everyone of the importance of this one product as we will soon be competing for market share in the world's biggest medical device market, pulse oximetry, with a significantly better mousetrap, a real game changer.

我認為有必要提醒大家這款產品的重要性，因為我們很快就會在全球最大的醫療器材市場——脈搏血氧儀市場中爭奪市場份額，而這款捕鼠器將帶來顯著改善，這將是一個真正的遊戲規則改變者。

We're excited to announce FDA clearance last year for our second-generation blood and fluid monitor, a noninvasive and wireless technology targeted to improve patient outcomes with better fluid management in hospital settings. Overall, we are making great progress in the Patient Monitoring division, which we believe will have significant growth potential for the company.

我們很高興地宣布，我們的第二代血液和液體監測儀去年已獲得 FDA 批准，這是一項非侵入性無線技術，旨在透過在醫院環境中更好地管理液體來改善患者的治療效果。總體而言，我們在患者監測部門取得了巨大進展，我們相信這將為公司帶來巨大的成長潛力。

Looking ahead, we are making significant progress building on our noninvasive approach with at-home pain management devices and diversifying the new products. In tandem, we focused on ramping our Hospital Monitoring division, which represents a large and growing market opportunity. We also expect additional catalysts and regulatory milestones during the year as we work to execute on our strong pipeline on new products.

展望未來，我們在家用疼痛管理設備的非侵入性方法開發和新產品多樣化方面取得了重大進展。同時，我們專注於擴大醫院監測部門，這代表著巨大且不斷成長的市場機會。我們也預計，隨著我們致力於推動新產品的強大管道建設，今年還將出現更多催化劑和監管里程碑。

As I mentioned, we continue to add additional rehabilitation products to our offering and the volume of those products as a percentage of overall sales continue to increase. In the first quarter, we reported our non-NexWave private label rehab products made up 25% of our orders, up from low double digits in 2022. We've seen this grown even more in Q3 to just over 31% of total orders.

正如我所提到的，我們繼續增加更多的復健產品，這些產品在整體銷售中的佔比也持續增加。第一季度，我們報告稱，非 NexWave 自有品牌康復產品占我們訂單的 25%，高於 2022 年的兩位數低點。我們看到這一數字在第三季進一步成長，達到總訂單量的 31% 多一點。

And we believe this diversification is important to our future growth as it provides additional tools for our sales team to engage new prescribers and serves to add complementary revenue sources. These efforts to add complementary products to diversify revenue streams and evolve our sales team are part of our effort to institutionalize growth at a higher scale.

我們相信這種多樣化對我們未來的成長至關重要，因為它為我們的銷售團隊提供了額外的工具來吸引新的處方者，並有助於增加補充收入來源。這些增加互補產品以實現收入來源多樣化和發展銷售團隊的努力是我們實現更大規模成長制度化的努力的一部分。

At this time, Zynex has a strong sales core that we can build upon. With this in mind, we continue to expect 2024 net revenue to increase approximately 9% compared to last year to $200 million and diluted earnings per share of at least $0.20 per share. We produced $10 million in cash from operations during the first nine months of the year and had a cash balance of $37 million at the end of the third quarter, up from $31 million earlier in the year.

目前，Zynex 擁有強大的銷售核心，我們可以依賴這一核心繼續發展。考慮到這一點，我們繼續預計 2024 年淨收入將比去年增長約 9% 至 2 億美元，每股攤薄收益至少為 0.20 美元。今年前九個月，我們的營運活動產生了 1,000 萬美元的現金，第三季末的現金餘額為 3,700 萬美元，高於今年稍早的 3,100 萬美元。

We believe that with a diversified product portfolio, multiple sales channels, institutional quality policies and procedures and a lean and efficient sales team, Zynex is poised to capitalize on the long-term opportunity presented by the 800 potential defined sales territories that we have discussed in the past. We've reached some important milestones and see significant progress in our Monitoring division.

我們相信，憑藉多樣化的產品組合、多種銷售管道、機構品質政策和程序以及精簡高效的銷售團隊，Zynex 有望利用我們過去討論過的 800 個潛在指定銷售區域所帶來的長期機會。我們已經達到一些重要的里程碑，並在監控部門取得了重大進展。

I now ask Don Gregg, President of Zynex Monitoring Solutions, to provide updates on that business division.

我現在請 Zynex 監控解決方案總裁 Don Gregg 提供該業務部門的最新情況。

Thank you, Thomas. It is an exciting time to work in Zynex's Monitoring division as we are closing on major milestones to commercialize our NiCO pulse oximeter. The NiCO verification clinical study is concluding in November of this year at a leading medical education institution, and we continue to achieve our program milestones.

謝謝你，托馬斯。現在是加入 Zynex 監測部門的激動人心的時刻，因為我們即將實現 NiCO 脈搏血氧儀商業化的重大里程碑。NiCO 驗證臨床研究將於今年 11 月在一家領先的醫學教育機構結束，我們將繼續實現我們的計畫里程碑。

Throughout the clinical study, we have been monitoring the study results are achieving our goals as expected. We are optimistic we will file our FDA 510(k) premarket submission in Q4 2024. This 510(k) will focus on adult and pediatric clearance for the pulse oximeter and accessories. Assuming all continues to go well and based on historical pulse oximeter clearance data published by the FDA, the 510(k) submittal in Q4 puts us on track for clearance in mid-2025.

在整個臨床研究過程中，我們一直在監測研究結果是否如預期的那樣實現我們的目標。我們樂觀地認為我們將在 2024 年第四季提交 FDA 510(k) 上市前申請。此 510(k) 將專注於脈搏血氧儀及其配件的成人和兒童許可。假設一切進展順利，並根據 FDA 發布的歷史脈搏血氧儀清除率數據，第四季度提交的 510(k) 將使我們預計在 2025 年中期獲得清除。

In addition to completing the NiCO verification study, we have invested in hypoxia lab partnerships to support future 510(k) submissions to achieve additional NiCO market claims and publishing of laser pulse oximetry clinical evidence. These agreements provide the opportunity to perform additional human testing if required in preparation for additional information request from the FDA during our 510(k) submittal.

除了完成 NiCO 驗證研究之外，我們還投資了缺氧實驗室合作夥伴關係，以支持未來的 510(k) 提交，以獲得額外的 NiCO 市場索賠和發布雷射脈搏血氧儀臨床證據。這些協議提供了在我們提交 510(k) 期間為 FDA 提出更多資訊請求做準備時進行額外人體測試的機會（如果需要）。

We continue to file intellectual property protections, engage influential positions and raise awareness of laser pulse oximetry science. We are now in the final months preparing to commercialize and launch the following expected clearance in mid-2025. We continue to participate in open oximetry, a nonprofit oximetry partnership of research organizations and industry created to improve the safety and precision of pulse oximeters in all populations because existing LED pulse oximeters on the market demonstrate lower accuracy in people with darker skin tone.

我們將繼續申請智慧財產權保護、參與有影響力的職位並提高人們對雷射脈搏血氧儀科學的認識。目前，我們正處於最後幾個月的準備階段，準備將業務商業化，並於 2025 年中期推出以下預期的清關措施。我們繼續參與開放式血氧測定，這是研究組織和行業的非營利性血氧測定合作夥伴關係，旨在提高所有人群中脈搏血氧儀的安全性和精確度，因為市場上現有的 LED 脈搏血氧儀對於膚色較深的人群的準確度較低。

The NiCO laser pulse oximeter technology solves the pigmentation challenge. This past weekend, we presented two poster presentations of the NiCO laser pulse oximetry science and its effectiveness at the American Society of Anesthesiologists Annual Meeting.

NiCO 雷射脈搏血氧儀技術解決了色素沉著問題。上週末，我們在美國麻醉醫師協會年會上展示了兩張有關 NiCO 雷射脈搏血氧儀科學及其有效性的海報。

Specifically, the two posters were number one, pulse oximetry in the presence of elevated met hemoglobin or carboxy hemoglobin; and number two, laser-based pulse oximetry eliminates effects of skin pigmentation on SpO2 measurements. Lastly, we've engaged and recruited several industry-leading physicians at major institutions and universities to serve as our champions within the physician community.

具體來說，這兩張海報分別是：第一，在高鐵血紅蛋白或碳氧血紅蛋白升高的情況下進行脈搏血氧測定；第二，基於雷射的脈搏血氧儀消除了皮膚色素沉著對 SpO2 測量的影響。最後，我們在主要機構和大學聘用並招募了幾位領先業界的醫生，作為醫生社群中的佼佼者。

In summary, we've achieved major milestones in Q3 on NiCO commercial development, clinical verification and FDA 510(k) submission readiness. We will continue to close on clinical operational and commercialization milestones in Q4 2024 to create and meet market demand after FDA clearance.

總而言之，我們在第三季在 NiCO 商業開發、臨床驗證和 FDA 510(k) 提交準備方面取得了重大里程碑。在獲得 FDA 批准後，我們將在 2024 年第四季繼續完成臨床營運和商業化里程碑，以創造並滿足市場需求。

I will now turn the call over to Dan Moorhead, Chief Financial Officer, for a more in-depth look at the quarter's financial performance.

現在，我將把電話轉給財務長 Dan Moorhead，以更深入了解本季的財務表現。

Thanks, Don. Please refer to our press release issued earlier today for a summary of our financial results for the third quarter of 2024. In the third quarter, orders increased 13% year-over-year. Net revenue was $50 million compared to $49.9 million in the third quarter of 2023. Device revenue was $14.9 million compared to $16.9 million in the third quarter of last year. Supplies revenue was $35.1 million, up from $33.1 million in the third quarter last year.

謝謝，唐。請參閱我們今天稍早發布的新聞稿，以了解我們 2024 年第三季的財務業績摘要。第三季訂單年增13%。淨收入為 5,000 萬美元，而 2023 年第三季為 4,990 萬美元。設備收入為 1,490 萬美元，而去年第三季為 1,690 萬美元。供應收入為 3,510 萬美元，高於去年第三季的 3,310 萬美元。

Device revenue was lower during the quarter due to slowing in our order growth rate over the last couple of quarters, which was affected by the sales rep pruning we did as we focused on sales rep productivity. Gross profit in the third quarter was $39.8 million or 80% of revenue as compared to $40.4 million or 81% of revenue in 2023.

由於過去幾季我們的訂單成長率放緩，導致本季設備收入較低，而這又受到我們為提高銷售代表的工作效率而進行的銷售代表精簡的影響。第三季的毛利為 3,980 萬美元，佔營收的 80%，而 2023 年的毛利為 4,040 萬美元，佔營收的 81%。

Sales and marketing expenses were $20.7 million in the third quarter of 2024 compared to $22.1 million in the same period in 2023. The primary contributor to the decrease in sales and marketing expenses was our head count reduction of sales reps. G&A expenses were $15.3 million in the third quarter of 2024 compared to $12.7 million last year.

2024 年第三季的銷售和行銷費用為 2,070 萬美元，而 2023 年同期為 2,210 萬美元。銷售和行銷費用下降的主要原因是銷售代表人數的減少。2024 年第三季的 G&A 費用為 1,530 萬美元，去年同期為 1,270 萬美元。

Approximately $1 million of the increase in G&A was related to our increased investment in Zynex monitoring. Net income was $2.4 million and $0.07 per diluted share in the third quarter of 2024 compared to net income of $3.6 million or $0.10 per diluted share in 2023.

G&A 費用增加中約 100 萬美元與我們對 Zynex 監控的投資增加有關。2024 年第三季的淨收入為 240 萬美元，每股攤薄收入 0.07 美元，而 2023 年的淨收入為 360 萬美元，每股攤薄收入 0.10 美元。

Adjusted EBITDA for the three months ended September 30, 2024, was $5.1 million as compared to $7.3 million in the quarter ended September 30, 2023. Cash flow from operatiion was $7.1 million in Q3 and $10.3 million year-to-date in 2024. The strong cash flow increased our cash balance on the balance sheet to $37.6 million, up 22% from Q2's balance of $30.9 million. Working capital was $58.5 million as of September 30.

截至 2024 年 9 月 30 日的三個月的調整後 EBITDA 為 510 萬美元，而截至 2023 年 9 月 30 日的季度為 730 萬美元。2024 年第三季的營業現金流為 710 萬美元，年初至今的營業現金流為 1,030 萬美元。強勁的現金流使我們資產負債表上的現金餘額增加至 3,760 萬美元，較第二季的 3,090 萬美元餘額增加 22%。截至 9 月 30 日，營運資金為 5,850 萬美元。

With that, I'll now turn the call back over to Thomas.

說完這些，我現在將電話轉回給湯瑪斯。

Thank you, Dan. We've had a strong start to the fourth quarter. And with the continued growth in orders in the fourth quarter of this year, we expect total revenues to come in at least $53.6 million, which is 13% above revenue in the fourth quarter of '23 and diluted earnings per share of $0.09.

謝謝你，丹。我們的第四季開局強勁。隨著今年第四季訂單的持續成長，我們預計總收入將至少達到 5,360 萬美元，比 23 年第四季的營收成長 13%，每股攤薄收益為 0.09 美元。

As for our 2024 outlook, I'll reiterate that we expect total revenues to be at least $200 million, representing growth of approximately 9% over 2023 and diluted earnings per share of approximately $0.20. We're incredibly proud of the growth that we have consistently demonstrated over the past several years. Top line revenue has produced high levels of profitability and free cash flow, which has allowed us to invest in our operations, launch a new business line to diversify our revenue stream.

至於我們對 2024 年的展望，我重申，我們預計總收入至少​​為 2 億美元，比 2023 年增長約 9%，每股攤薄收益約為 0.20 美元。我們為過去幾年來的持續成長感到無比自豪。營業收入產生了高水準的獲利能力和自由現金流，這使我們能夠投資於我們的運營，推出新的業務線來實現收入來源多元化。

The business we have created and the profitability we're able to generate allows us a high degree of flexibility to allocate capital in several ways. We have shown the ability to continue investing in our business and return cash to shareholders simultaneously. We believe both these avenues produced substantial shareholder value.

我們所創建的業務和能夠產生的盈利能力使我們能夠高度靈活地以多種方式分配資本。我們已經展現出繼續投資於我們的業務並同時向股東返還現金的能力。我們相信這兩種途徑都會產生巨大的股東價值。

And with that, operator, please open the call for questions.

接線員，請開始提問。

(Operator Instructions) Avi Dahan, RBC.

（操作員指示） Avi Dahan，RBC。

Hey, good afternoon. This is Avi on for Shagun. So first on order growth, there is a pretty big deceleration in third quarter relative to your previous quarters. And I know you mentioned it on the call as kind of it was largely because of sales rep pruning. Can you just dig into it a bit deeper because the last couple of quarters, you were in like the mid -- like within the 20%, and then year-over-year, you're down a good chunk of amount. If you could just dive into like dynamic during the quarter, how orders are trending so far through Q4? And then I have a follow-up.

嘿，下午好。這是 Shagun 的 Avi。首先就訂單成長而言，第三季與前幾季相比出現了相當大的減速。我知道您在電話中提到了這一點，這主要是因為銷售代表的減少。您能否深入剖析一下，因為在過去幾個季度中，您的銷售額處於中等水平，大約在 20% 以內，但與去年同期相比，您的銷售額下降了很大一部分。如果您可以深入了解本季的動態，那麼截至第四季的訂單趨勢如何？然後我有一個後續問題。

Yeah. So far in this quarter, we see a 17% year-over-year October versus October. And I think going forward, we'll be in the high teens, not necessarily hitting the very consistent 20% we've been sitting at. But definitely a double-digit order growth, and we expect to see that continue also well into next year.

是的。本季度迄今為止，我們看到 10 月環比成長了 17%。我認為，展望未來，我們的成長率將處於 10% 左右，不一定會達到目前穩定的 20% 左右。但訂單量肯定是兩位數的成長，而且我們預計這種成長還將持續到明年。

All right. Thank you. And then can you just give us an update on the strategic review process and where you are with that? And if there's any updates to timing and whatnot? Thank you.

好的。謝謝。那麼您能否向我們介紹一下戰略審查流程的最新進展以及目前的情況？時間安排和其他方面有沒有更新？謝謝。

It continues. There's no real news to announce there other than we -- over the period, we've received a couple of letters of intent. And we continue to move forward with one interested entity in particular. But it's not something we see will close in the very immediate time frame.

它還在繼續。除了我們在這段期間收到了幾封意向書之外，沒有什麼真正的新聞可以宣布。我們將繼續與某個有興趣的實體推進合作。但我們認為這不會在短期內結束。

Jeffrey Cohen, Ladenburg Thalmann.

傑弗瑞‧科恩、拉登堡‧塔爾曼。

Hey, good afternoon. Thanks for taking your questions, I guess firstly, could you discuss a little bit about TensWave as far as the transcutaneous stim affiliated with it and perhaps talk about the indications and if a patient would be on both TensWave as well as NexWave simultaneously?

嘿，下午好。感謝您回答問題，首先，您能否談談有關 TensWave 的相關經皮刺激，並談談其適應症，以及患者是否可以同時使用 TensWave 和 NexWave？

No, I don't see that happening, Jeff. The NexWave has three modalities, interferential current. Tens stimulation, which is much lower frequency, but more commonly known and used. And then it has neuromuscular electrical stimulation. There are situations where just a -- and some of that is dictated by insurance coverage, where a Tens-only device is -- will be approved for a patient.

不，我不認為會發生這種事，傑夫。NexWave 有三種模式，幹擾電流。數十次刺激，頻率要低得多，但更為人所知和使用。然後它進行神經肌肉電刺激。在某些情況下，只有一種情況——其中一些是由保險範圍決定的，即僅限 Tens 的設備——才會被批准用於患者。

So we now have our own device, our own manufactured device that produces that with slightly more variations of the various modalities and those you find in the NexWave. What we can say about our Tens modalities compared to what else you find in the market, it's a much higher quality. It's a much better controlled output that actually provides benefits as it's supposed to versus what else is out there.

所以我們現在有了自己的設備，我們自己製造的設備，可以生產出比 NexWave 中不同模式略有變化的設備。我們可以說，我們的 Tens 模式與市場上其他產品相比，品質要高得多。與其他產品相比，它的控制效果更好，可以真正提供應有的益處。

So it's a very high-quality Tens yet. It's when the situation speaks for that we supply that device instead of a NexWave. Most patients still use the NexWave and in the IFC modality simply because it's so much more effective.

所以它還是一款非常高品質的 Ten。當情況需要時，我們會提供該設備而不是 NexWave。大多數患者仍然使用 NexWave 和 IFC 模式，因為它更有效。

Okay. Got it. That's helpful. Was there any share repurchase during the quarter at all, third quarter?

好的。知道了。這很有幫助。第三季度，有沒有進行任何股票回購？

Did not buy back anything during the quarter. The plan is still open, but for the time being, we hadn't purchased any.

本季沒有回購任何東西。該計劃仍然開放，但目前我們還沒有購買任何東西。

Okay. Got it. And as far as the rehab business, I know you did discuss orders and percent of total orders relative to orders. Could you talk about top line revenue or you'll tell us when that hits 10% of the business?

好的。知道了。就康復業務而言，我知道您確實討論過訂單以及相對於訂單的總訂單百分比。您能談談營業收入嗎？

Yeah, we are obviously closing in on that number. In terms of the amount of orders we get on all those other products that are now NexWave, we're now up to 31% consistently. And we gained, obviously, a lot more experiences for those products and a good cash collections, et cetera, on those products.

是的，我們顯然正在接近這個數字。就我們現在所獲得的所有其他 NexWave 產品的訂單數量而言，我們現在的訂單量持續增加 31%。顯然，我們在這些產品上獲得了更多的經驗，並透過這些產品獲得了良好的現金收入等等。

Okay, perfect. I think that does it for us. Thanks very much for taking the questions.

好的，完美。我認為這對我們來說已經完成了。非常感謝您回答這些問題。

Yi Chen, H.C. Wainwright.

陳懿，H.C.溫賴特。

Thank you for taking my questions. My first question is, do you intend to add additional sales rep before the end of 2024? And how many sales rep in total do you expect to have by year-end?

感謝您回答我的問題。我的第一個問題是，您是否打算在 2024 年底前增加銷售代表？您預計到年底總共會有多少位銷售代表？

Obviously, long term, we still need all of those 800 geographical territories to be filled. We expect -- we have started to process after a lot of trimming earlier in the year of adding sales reps again. We'll probably be for the next 18 months, I see us adding a net of 10 reps on a monthly basis going forward from here, so that will include additional trimming but obviously, more additions to the sales force than that.

顯然，從長遠來看，我們仍然需要填補所有這 800 個地理區域。我們預計—在年初進行了大量精簡後，我們已經開始再次增加銷售代表。我預計，未來 18 個月內，我們每月將淨增加 10 名銷售代表，因此這將包括額外的裁員，但顯然，銷售隊伍的新增人員會比這更多。

Since we, at this point, have had all 800 territories populated at some point, it will actually be easier for new reps than in the past to get into those territories and take our clinics that there may still be sending in prescriptions as we have an inside sales team handling those better producing clinics here while we are we're staffing up again.

由於我們此時已經在某個時候覆蓋了所有 800 個地區，因此新銷售代表實際上比過去更容易進入這些地區並接管我們可能仍在發送處方的診所，因為我們有一個內部銷售團隊在這裡處理那些生產更好的診所，同時我們正在再次配備人員。

So we put quite a bit of an effort into making sure that new additions to the sales force will have a higher success rate in the past. So the selection of candidates we have optimized and we believe our training continues to be better and better. So we should be able to not necessarily have to do so much trimming as we've done for several periods in the past while we built the sales force.

因此，我們付出了相當大的努力來確保新加入銷售團隊的人能夠獲得更高的成功率。因此，我們對候選人的選擇進行了優化，我們相信我們的培訓會越來越好。因此，我們不必像過去建立銷售團隊的幾個時期那樣進行如此大的裁減。

A lot of it really comes down to sales productivity and that number -- that basically says how much cash do you collect per sales rep -- per the average sales rep on an annualized basis. That's really -- but a lot of it comes down to. So we continue to make improvements in that area, and that will continue for an infinite time, I would expect.

這在很大程度上取決於銷售效率和數字——基本上就是說每個銷售代表每年能收取多少現金——平均每個銷售代表每年能收取多少現金。確實如此——但很多事情都歸結於此。因此，我們將繼續在該領域做出改進，而且我預計這種改進將持續很長時間。

And my follow-up question is how many sales reps do you think you need to effectively market NiCO pulse oximeter once it's cleared by the FDA?

我的後續問題是，一旦 NiCO 脈搏血氧儀獲得 FDA 批准，您認為需要多少銷售代表才能有效地推銷它？

So, hi. Yi Chen, this is Don Gregg. We have been looking at a direct and indirect sales force. We've will be deciding that in probably Q1 of 2025 on how we'll definitely go to market, but we're going to start out with a couple of handfuls of reps and what I call area managers or area directors. And our call points are very specific and they're very focused on certain segments of the market initially. So we will want to ensure that we're going to have a very controlled launch of this product.

嗨！易晨，這是唐·格雷格。我們一直在關注直接和間接銷售隊伍。我們很可能會在 2025 年第一季決定如何進入市場，但我們將從幾位銷售代表和我所說的區域經理或區域主管開始。我們的呼叫點非常具體，並且最初非常關注特定的細分市場。所以，我們要確保這個產品能夠得到非常可控的推出。

And so I think that given the clearance would be about mid-2025, we would start that ramp just before that through the end of the year through 2025, and then 2026 would be more of a ramp to a larger number.

因此，我認為，鑑於審批時間將在 2025 年中期，我們將在那之前開始增加產量，直到 2025 年年底，然後 2026 年產量將進一步增加。

Okay. Do you believe the monitoring -- the monitor division will be independently a profitable operation compared to the pain management division?

好的。您是否認為，與疼痛管理部門相比，監測部門將成為一個獨立的獲利部門？

They are entirely independent. We don't even have the organization in the same building. And of course, the call points are so different that there are no synergies on the sales side either.

他們是完全獨立的。我們甚至不在同一棟大樓裡有組織。當然，由於呼叫點差異很大，銷售方面也沒有綜效。

Yes. We do believe -- we believe they'll be profitable long term. Obviously, there's going to be a ramp to get to that point. But yes, long term, they should be profitable.

是的。我們確實相信——我們相信他們會長期獲利。顯然，要到達那個點，必須要有一個坡道。但從長遠來看，他們應該是獲利的。

Hope you wouldn't be doing it. Thank you,

希望你不會這麼做。謝謝你，

I will now turn the call back over to Thomas Sandgaard for closing remarks. Please go ahead.

現在我將電話轉回給托馬斯·桑德加德，請他作最後發言。請繼續。

Yeah. Thank you for joining us today. We are pleased with our performance this quarter and the consistent growth our team is delivering. We look forward to leveraging that momentum throughout the rest of the year and speaking to you at upcoming investor event. We appreciate your time and interest in Zynex. Have a great day. Thank you.

是的。感謝您今天加入我們。我們對本季的表現以及團隊的持續成長感到滿意。我們期待在今年剩餘時間繼續保持這一勢頭，並在即將舉行的投資者活動中與您交談。我們感謝您對 Zynex 的時間和關注。祝你有美好的一天。謝謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。