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Zix Corporation Reports Another Record-High Revenue Quarter as Company Announces Second Quarter 2009 Financial Results
Date:7/28/2009

evenues by Product Second Quarter 2009

                                                                  3-month
                                                                  Variance
                                 3 Months Ended June 30,       2009 vs. 2008
                                 ----------------------        --------------
                                    2009        2008              $        %
                                 ----------  ----------        --------- -----
     Email Encryption            $6,379,000  $5,667,000        $712,000   13%
     e-Prescribing                  992,000   1,291,000        (299,000) (23%)
                                 ----------  ----------        ---------
     Total revenues              $7,371,000  $6,958,000        $413,000    6%
                                 ==========  ==========        ========



Revenues: The increase in Email Encryption revenue was due to the growth inherent in our successful subscription model with steady additions to the subscriber base coupled with a high rate of renewing existing customers. The decline in e-Prescribing revenue was driven primarily by fewer new prescriber deployments in 2008 and early 2009 compared with 2007, which led to a decline in deployment fees and a drop in fee revenue after reaching a contractual cap in one customer program. The Company's order backlog (contractually bound service contracts that represent future revenue to be recognized as the services are provided) was a record $41.4 million on June 30, 2009.

Gross Profit: The Company recorded an adjusted gross profit of $5.1 million (69 percent of revenue) for the second quarter 2009, compared with $4.5 million or 65 percent of revenue for the same period in 2008. The adjusted gross profit contribution by business unit was $5.3 million (83 percent) from Email Encryption and negative $0.2 million (n
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SOURCE Zix Corporation
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