Zix Corporation Hits High End of Financial Guidance as Company Announces Third Quarter 2009 Financi... (ervices (EMS) with ZixCorp's Email Encry...)

Zix Corporation Hits High End of Financial Guidance as Company Announces Third Quarter 2009 Financial Results

Date:10/27/2009

ervices (EMS) with ZixCorp's Email Encryption Service for EMS

ZixCorp extended one of its anchor customer relationships by renewing its exclusive contract with Humana for the seventh year and expanding the users to 36,000

ZixCorp increased its footprint within the financial services sector in passing the 1,100 mark for financial institutions as customers, while the overall number of members in the ZixDirectory surpassed 18 million

e-Prescribing

e-Prescribing revenue for third quarter 2009 was $1.2 million, up 2 percent when compared with the same quarter in 2008
The Company's PocketScript business met the e-Prescribing deployment guidance of 200 to 250 for the third quarter with approximately 210 deployments
In the third quarter, which historically shows decreased volume with many physicians taking vacations over the summer months, ZixCorp processed over 2.3 million scripts, an increase of approximately 16 percent compared with the third quarter in 2008
ZixCorp continued its previously-announced review with Allen & Co. of strategic alternatives for its e-Prescribing business

Financial Highlights

Note: All gross profit and expenditure explanations below are based on adjusted non-GAAP amounts, the primary adjustments of which are non-cash stock-based compensation under SFAS 123R and non-recurring expense items- see "Use of Non-GAAP Financial Information" below and the "Reconciliation of GAAP to Non-GAAP Financial Measures" presented with attached financial statements.

Revenues by Product Third Quarter 2009

3 Months Ended 3-month Variance
Sept. 30, 2009 vs. 2008
----------------- ----------------
2009 2008 $ %

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