Zix Corporation CEO Provides Corporate Update for Second Qu...( DALLAS July 7 /- Zix Corporation (Zix...),Health

DALLAS, July 7 /PRNewswire-FirstCall/ -- Zix Corporation (ZixCorp(R)), (Nasdaq: ZIXI), the leader in hosted services for email encryption and payor-sponsored e-prescribing, today offered a corporate update by its chief executive officer, Rick Spurr.

"The second quarter was another solid quarter for ZixCorp and we are on target to report within the range of our previously-issued guidance," said Spurr. "Preliminary estimates are that we should meet our revenue guidance of $7.3 to $7.6 million and our guidance for adjusted earnings per share (which excludes non-cash stock-based compensation, non-recurring items, and uses an effective tax rate of less than 1 percent) of ($0.01) to $0.00 per share. With the positive indications of future demand for our services, particularly in the Email Encryption business, I feel very upbeat about the direction in which the business is heading."

"In its Email Encryption business, ZixCorp delivered a record $10.0 million in total orders, including $1.7 million in new first-year orders, the second highest result in the Company's history," continued Spurr. "Similar to the Company's highest quarter for new first-year orders when the HIPAA Security Rule went into effect in April 2005, we believe a key driver for this quarter's strong performance was the increased demand from healthcare resulting from the expansion of HIPAA under the American Recovery and Reinvestment Act. Despite a lower renewal rate for the second quarter of 86 percent due to various factors which we will discuss in detail during our upcoming conference call, we remain optimistic about our future success in this business because of the encouraging signs of demand for Email Encryption and our recognized leadership position in the industry."

About the Company's e-Prescribing business, Spurr said, "Following the earlier
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