ZixCorp Reports Positive Preliminary Results for the Fourth Quarter of 2014 and Planned Cost Reductions in 2015
January 13 2015 - 7:35AM
Business Wire
Zix Corporation (ZixCorp), (NASDAQ: ZIXI), a leader in
email data protection, today announced selected preliminary
financial results for its fourth quarter ended Dec. 31, 2014, ahead
of its scheduled presentation and investor meetings tomorrow, Jan.
14, at the Needham Growth Conference.
Fourth Quarter Selected Preliminary Financial Results
- New first year orders for the fourth
quarter are expected to exceed $2.5 million, an increase of
approximately 55% as compared to third quarter and 8%
year-over-year
- Total revenue for the fourth quarter is
expected to be $12.9 million, an increase of approximately 1% as
compared to third quarter and 5% year-over-year, and in line with
the Company’s previously provided revenue guidance for the
quarter
- Total ZixOne customers increased 57% to
more than 260 with the addition of approximately 96 new ZixOne
customers in the fourth quarter, compared to 56 new customers in
the third quarter and 45 new customers in the second quarter
- ZixOne new seats sold during the
quarter increased approximately 120% sequentially with the addition
of more than 7,700 new seats
- ZixDLP new seats sold during the
quarter increased more than 265% sequentially with the addition of
approximately 52,000 new seats
- New products, ZixOne and ZixDLP,
contributed approximately 12% of the new first year order total for
the fourth quarter
2015 Planned Cost Reductions
ZixCorp plans to reduce research and development and other
expenses associated with the successful launch of ZixOne. The
Company will share details relating to 2015, including revenue and
adjusted earnings per share guidance, in its final fourth quarter
and year-end financial results conference call on Tuesday, Feb. 17,
2015. Additional earnings call details will be announced in late
January.
“We are pleased to see a rebound in new sales in the fourth
quarter, resulting in a solid increase in our new first year
orders,” said Rick Spurr, ZixCorp’s Chief Executive Officer.
“As we look ahead to 2015, we are very optimistic about the
opportunities we see for growth of our base email encryption
business and for continued market traction of ZixOne, our new BYOD
offering that significantly increases our addressable market. With
the positive market momentum we are generating with this unique and
disruptive solution and the investments we have made to expand our
presence in this large new market segment, we are now able to
prudently scale back expenses, primarily research and development
expenses, associated with the successful launch of ZixOne. We have
a significant opportunity for growth with ZixOne, and we look
forward to reporting on our progress in the year to come.”
Needham Conference Details
Mr. Spurr will present at the Needham Growth Conference
Wednesday, Jan. 14, 2015, at 4:10 p.m. ET. The conference is being
held at The New York Palace in New York City.
Mr. Spurr will give a 25-minute presentation on ZixCorp and its
financial performance through the third quarter of 2014, as well as
discuss the above referenced select preliminary financial results
for the fourth quarter of 2014. The presentation will be followed
by a 15-minute question and answer session.
The audio portion of this presentation will be broadcast in a
live webcast, and an archive of the webcast will be available for
90 days. Access to the webcast will be available at
http://wsw.com/webcast/needham69/zixi or
http://investor.zixcorp.com.
About Zix Corporation
ZixCorp is a leader in email data protection. ZixCorp offers
industry-leading email encryption, a unique email DLP solution and
an innovative email BYOD solution to meet your company’s data
protection and compliance needs. ZixCorp is trusted by the nation’s
most influential institutions in healthcare, finance and government
for easy to use secure email solutions. ZixCorp is publicly traded
on the Nasdaq Global Market under the symbol ZIXI, and its
headquarters are in Dallas, Texas. For more information, visit
www.zixcorp.com.
Statements in this release that are based on preliminary
information, are not purely historical facts or that necessarily
depend upon future events, including statements about forecasts of
sales, or revenue or earnings, or other statements about
anticipations, beliefs, expectations, hopes, intentions or
strategies for the future, may be forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended. Readers are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements are
based upon information available to ZixCorp on the date this
release was issued. ZixCorp undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Any
forward-looking statements involve risks and uncertainties that
could cause actual events or results to differ materially from the
events or results described in the forward-looking statements,
including risks or uncertainties related to market acceptance of
new ZixCorp solutions and how privacy and data security laws may
affect demand for ZixCorp email data protection solutions. ZixCorp
may not succeed in addressing these and other risks. Further
information regarding factors that could affect ZixCorp financial
and other results can be found in the risk factors section of
ZixCorp’s most recent filing on Form 10-K with the Securities and
Exchange Commission. Statements in this release about fourth
quarter financial results are based on preliminary information and
remain subject to revision. Readers are cautioned not to place
undue reliance on these preliminary financial results.
ZixCorpInvestor RelationsTodd Kehrli or Jim Byers,
323-468-2300zixi@mkr-group.comorPublic RelationsTaylor Stansbury
Johnson, 214-370-2134tjohnson@zixcorp.com
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