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

and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with our GAAP gross profit, operating income and net income. For more information, see the consolidated statements of income and the "Reconciliation of GAAP to Non-GAAP Financial Measures" contained in this press release.



                               ZIX CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS


                                               September 30,
                                                   2009       December 31,
                                               (unaudited)       2008
                                               ------------   -----------
    ASSETS
    Current assets:
      Cash and cash equivalents                $12,392,000  $13,245,000
      Marketable securities                         25,000            -
      Receivables, net                             681,000      476,000
      Prepaid and other current assets           1,065,000    1,145,000
                                                 ---------    ---------
        Total current assets                    14,163,000   14,866,000
    Restricted cash                                      -       28,000
    Property and equipment, net                  2,333,000    2,236,000
    Goodwill and other assets                    2,437,000    2,227,000
                                                 ---------    ---------
        Total assets                           $18,933,000  $19,357,000
                                               ===========  ===========


    LIABILITIES AND STOCKHOLDERS' DEFICIT
    Current liabilities:
      Accounts payable and accrued expenses     $3,733,000   $2,916,000
      Deferred revenue                          14,505,000   14,960,000
      License subscription note payable            123,000            -
                                                   -------      
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SOURCE Zix Corporation
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