Zix Corporation CEO Provides Corporate Update
July 10 2007 - 9:15AM
Business Wire
Zix Corporation (ZixCorp�), (Nasdaq:ZIXI), the leader in email
encryption and e-prescribing services, today offered a corporate
update by its chief executive officer, Rick Spurr. �ZixCorp
continues to perform ahead of plan in 2007, specifically with
respect to our net cash consumption,� said Spurr. �I am very
pleased that we were able to maintain the strong results this
quarter that we delivered in Q1. Our second quarter ending cash
balance of $12.1 million was well ahead of our guidance range of
$11.3 to $11.5 million. The cash burn for the first half of this
year of $700,000, compared with an $11.5 million burn for the first
half of last year, is due to significant increases in cash receipts
from both the Email Encryption and e-Prescribing businesses coupled
with the tremendous operational improvements we have made over the
past year. Even with fourth quarter�s seasonal decrease in Email
Encryption cash collections and annual expenditures typically made
in Q4, we remain on track to burn less than $4.8 million for all of
this year and to achieve positive cash flow as we enter 2008 on the
way to profitability.� �We had a good quarter in each of our core
businesses � Email Encryption and e-Prescribing,� continued Spurr.
�Preliminary company-wide revenue estimates are that we will meet
or exceed our guidance range of $5.0 to $5.3 million. In our Email
Encryption business, we had a strong quarter for new order bookings
with estimated new first-year orders of $1.4 million and estimated
total orders of $6.9 million, which is by far a record for this
business and more than 25 percent higher than any previous quarter.
We saw continued demand for our service model in both healthcare
and financial services, and high customer satisfaction as evidenced
by strong renewals.� Regarding the Company�s e-prescribing
business, Spurr said, �We had a solid quarter in our PocketScript
business as well. We had increased deployments of 557 for the
quarter, the quarterly e-script count continued to grow with 1.84
million e-scripts in Q2, and our customers continue to see
significant value from our service and remain highly satisfied. To
that point, we had two customers, Independence Blue Cross and
Aetna, sign up in Q2 to pay for renewals of their active
prescribers, which, along with previous contracts and other
expressions of intent to do the same, means that six out of our
seven programs have decided to renew the subscription license for
their active prescribers. We continue to see a high level of
interest in the market and expect to announce new pilots in the
second half of the year.� ZixCorp to Announce Second Quarter 2007
Results on August 7 The Company's second quarter 2007 operating
results will be released after close of the U.S. financial markets
on August 7, 2007. The company will hold a conference call to
discuss this information on August 7 at 5:00 p.m. ET. A live
Webcast of the conference call will be available on the investor
relations portion of ZixCorp's Web site at
http://investor.zixcorp.com. Alternatively, participants can listen
to the conference call by dialing 617-597-5380 or toll-free
866-510-0712 and entering access code 60467146. An audio replay of
the conference will be available until August 14, by dialing
617-801-6888 or toll-free 888-286-8010, and entering the access
code 64920829, and after that date via Webcast on the Company's Web
site. 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.
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