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Zix Corporation Reports Highest Revenue Quarter as Company Announces First Quarter 2009 Financial Results
Date:4/28/2009

>Note: All gross profit and expenditure explanations below are based on adjusted non-GAAP amounts, the primary adjustment of which is non-cash stock-based compensation under SFAS 123R - 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 First Quarter 2009

                                                     3-month Variance
                       3 Months Ended March 31,       2009 vs. 2008
                       ------------------------       -------------
                           2009         2008            $         %
                           ----         ----          ----      ----

    Email Encryption    $6,242,000    $5,289,000      953,000    18
    e-Prescribing        1,014,000     1,910,000     (896,000)  (47)
                         ---------     ---------    ---------
    Total revenues      $7,256,000    $7,199,000       57,000     1
                     ============= =============      ======== =====

Revenues: The increase in Email Encryption revenue was due to the growth inherent in a 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, a drop in fee revenue after reaching a contractual cap in one customer program, and a first quarter 2008 one-time revenue catch-up. The Company's order backlog (contractually bound service contracts that represent future revenue to be recognized as the services are provided) was a record $38.4 million on March 31, 2009.

Gross Profit: The Company recorded an adjusted gross profit of $4.9 million (68 percent of revenue) fo
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SOURCE Zix Corporation
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