Email Encryption business continues to drive performance for CompanyDALLAS, April 28 /PRNewswire-FirstCall/ -- Zix Corporation (ZixCorp(R)), (Nasdaq: ZIXI), the leader in hosted services for email encryption and payor-sponsored e-prescribing, today announced financial results for the first quarter ended March 31, 2009. ZixCorp recorded first quarter revenues of $7.3 million and a GAAP net loss of $1.5 million for the quarter, or $0.02 per share, compared with revenues of $7.2 million, and a GAAP net loss of $1.7 million, or $0.03 per share, in the corresponding quarter in 2008. Adjusted net loss was $0.7 million, or $0.01 per share, compared with an adjusted net loss of $1.0 million, or $0.02 per share, in the corresponding quarter in 2008.
"I am pleased that, in this current economic environment, ZixCorp was able to record its highest revenue quarter ever, driven by the 18 percent year-on-year revenue growth in our Email Encryption business," said Rick Spurr, chairman of the board and chief executive officer. "We believe compliance will continue to drive demand for our Email Encryption services, whether because of our ability to conform to European standards through our newly-opened UK data center or the expansion of entities covered by HIPAA under the recently-enacted federal stimulus package. In fact, our recently-announced new partnership with Webroot provides further evidence of the growing demand for email encryption services. Our market leadership, superior SaaS architecture, and the largest shared directory of email addresses in the industry, with our management of encryption keys 'in the cloud,' indicate our Email Encryption business remains well-positioned for continued growth. In our PocketScript business, we continue to pursue larger payor contracts while we deploy new deals that were secured in the last two quarters. Despite recording revenue in this business of about half of last year's amount, as described later in this release, I am encouraged by the growth in usage by our physicians, where we saw year-over-year growth in scripts written on essentially the same-sized active prescriber base. This trend, combined with the incorporation of e-prescribing as an essential element of healthcare IT in the recently-enacted federal stimulus package, reinforces our belief that e-prescribing is a fundamental technology on which a connected healthcare system can be built."
* Corporate Highlights Company-wide first quarter 2009 revenue of $7.3 million is up 1 percent over the comparable quarter in 2008, meeting the upper half of previously-issued revenue guidance of $7.1 to $7.4 million
* Cash and cash equivalents at March 31, 2009 were $12.2 million, reflecting a timing difference in payments of $1.1 million from two long-time customers expected in Q1 but not received until the middle of April. Accordingly, the Company considers the temporary decline in cash a normal part of the payment and receipt cycle
* Adjusted earnings (see "Use of Non-GAAP Financial Information" below and the attached Reconciliation of GAAP to Non-GAAP Financial Measures) were ($0.01), meeting previously issued guidance of ($0.01) to ($0.02)
Business Highlights
* Email Encryption Email Encryption revenue for first quarter 2009 was $6.2 million, up 18 percent when compared with the same quarter in 2008
* New first-year orders of $1.1 million, compared with $1.4 million in the same quarter in 2008. Total orders for the quarter were $7.4 million, compared with $8.7 in the first quarter of 2008
* ZixCorp maintained a strong renewal rate for eligible contracts at 95 percent
* The ZixDirectory(TM), the community of users which forms the backbone of ZixCorp's Email Encryption Service, achieved a new milestone, topping 16 million members at a growth rate of approximately 100,000 new addresses added each week
* ZixCorp recently announced the establishment of a European data center in the United Kingdom to enable its European customers to comply with European Union privacy and security rules
* e-Prescribing e-Prescribing revenue for first quarter 2009 was $1.0 million compared with $1.9 million for the first quarter in 2008. This drop in revenue was due primarily to the decline in fee revenue after a contractual cap was reached in one payor program, the decrease in deployment revenues as the rate of new physician deployments has declined in 2008 and early 2009 when compared with 2007, as well as the first quarter 2008 impact of a one-time revenue item resulting from the achievement of certain performance-related metrics in a single contract
* The Company's PocketScript business achieved the top end of the e-prescribing deployment guidance of 250 to 350 for the first quarter with 350 deployments
* ZixCorp released PocketScript(R) 6.9, a new version of its e-prescribing application. This release provides more robust information to physicians at the point of care to enhance the decision support and leverages the latest standards to keep PocketScript current with its certifications
* The Company signed an expansion contract with Blue Cross Blue Shield of Massachusetts covering up to 400 new prescribers
* ZixCorp's PocketScript e-Prescribing service processed over 2.5 million e-scripts in the first quarter, an increase of 12 percent over the first quarter of 2008
Financial Highlights
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.
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http://zixencryption.comLabels: 2009, financial results, First Quarter, Revenue, Zix Corporation