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Zix Corporation Hits High End of Financial Guidance as Company Announces Third Quarter 2009 Financial Results
Date:10/27/2009

DALLAS, Oct. 27 /PRNewswire-FirstCall/ -- Zix Corporation (ZixCorp®) (Nasdaq: ZIXI), the leader in hosted services for email encryption and payor-sponsored e-prescribing, today announced financial results for the third quarter ended September 30, 2009. ZixCorp recorded third quarter revenues of $7.8 million and a GAAP net loss of $0.7 million for the quarter, or $0.01 loss per share, compared with revenues of $6.7 million, and a GAAP net loss of $1.5 million, or $0.02 loss per share, in the corresponding quarter in 2008. Reporting a positive result for the first time, adjusted net income (see "Use of Non-GAAP Financial Information" below and the attached "Reconciliation of GAAP to Non-GAAP Financial Measures") was $0.8 million, or $0.01 per share, compared with an adjusted net loss of $0.8 million, or $0.01 loss per share, in the corresponding period in 2008.

"I'm very pleased to report ZixCorp's first ever profits, on an adjusted basis, which is a measure that we use to evaluate the performance of the Company and make planning decisions," said Rick Spurr, Chairman and Chief Executive Officer for ZixCorp. "Record overall revenues, driven by continued strength in our Email Encryption business, reflect our successful subscription model that combines the healthy addition of new sales with a track record of high renewals in our customer base. The improvement in our renewal rate and several competitive win-backs are further indications of our strength in the marketplace with our superior Software as a Service (SaaS) solution and its management of shared public encryption keys in our ZixDirectory. This robust growth in our top-line performance on a primarily fixed cost infrastructure, combined with targeted cost-cutting actions we've undertaken recently in our e-Prescribing business, have enabled us to achieve this significant
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