ZIXI Zix Corp

Zix Corporation (ZixCorp�), (Nasdaq:ZIXI), the leader in hosted services for email encryption and e-prescribing, today offered a corporate update by its chief executive officer, Rick Spurr. �ZixCorp�s very strong first quarter built off the great momentum we had leaving 2006, which was the most successful year financially in the company�s history,� said Spurr. �I am very pleased with the tremendous progress we continue to make in cash consumption from operations. Our first quarter ending cash balance of $12.4 million was significantly ahead of our guidance range of $11.0 to $11.3 million, driven by higher than expected customer collections. The cash burn of less than $400,000 represents a substantial improvement over the fourth quarter 2006 rate of $2.1 million. However, the increase in cash receipts was due in part to collecting several payments originally forecasted for Q2, so at this point we expect the next quarter�s cash consumption to increase over Q1�s rate because of these timing shifts, and we are not yet adjusting our full-year cash guidance of burning less than $5.8 million. We do remain on track to achieve cash flow breakeven in 2008 on the way to profitability.� �We had a good start to the year in each of our core businesses � Email Encryption and e-Prescribing,� continued Spurr. �Preliminary revenue estimates are that we will be at least within our guidance range of $4.9 to $5.1 million for the first quarter. In our Email Encryption business, we had a strong quarter in Q1 with estimated new first-year orders of $1.4 million, one of the highest results since we started tracking this metric, and estimated total orders of $5.2 million. This result was driven by a good quarter for both our enterprise and corporate telesales teams, and continued strength in the financial services sector and high customer renewals.� Regarding the company�s e-prescribing business, Spurr said, �We had a good quarter in our PocketScript business as well. We had solid deployments of 507 for the quarter, the quarterly e-script count continues to increase with 1.76 million e-scripts in Q1, which was 50% above the rate in Q1 last year, and we announced our GoldRx� status with SureScripts as an indication of our continued leadership in the industry. The level of activity in e-prescribing remains strong, so we are optimistic about our continued progress and maintaining our leadership position in this emerging market.� About Zix Corporation ZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript� e-prescribing service reduces costs and improves patient care by automating the prescription process between payors, doctors, and pharmacies. For more information, visit www.zixcorp.com. Safe Harbor Statement for ZixCorp The following is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the company's continued operating losses and utilization of cash resources; the company's ability to achieve broad market acceptance for the company�s products and services, including the company�s ability to enter into new sponsorship agreements for the e-prescribing services offered by its PocketScript, Inc. subsidiary and the company�s ability to achieve market acceptance of its Email Encryption business in markets other than the healthcare market; the company�s ability to maintain existing and generate other revenue opportunities, including fees for scripts written, from its PocketScript e-Prescription business; the company�s ability to establish and maintain strategic relationships to gain customers and grow revenues, particularly in its Email Encryption business; the expected increase in competition in the company�s Email Encryption and e-Prescription businesses; and the company's ability to successfully and timely introduce new Email Encryption and e-Prescription products and services or related products and services and implement technological changes. Further details on such risks and uncertainties may be found in the company's public filings with the SEC.