Zix Corporation CEO Provides Corporate Update for Q4 and Year-End 2008
January 08 2009 - 3:14PM
PR Newswire (US)
Company's Email Encryption business continues to drive overall
performance DALLAS, Jan. 8 /PRNewswire-FirstCall/ -- Zix
Corporation (ZixCorp(R)), (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. "We
ended the year on a high note in our Email Encryption business, as
we booked the highest orders for the year in the fourth quarter,"
said Spurr. "Our new first-year orders for Q4 2008 were $1.5
million, which was the second highest quarter for orders closed in
the company's history. The ZixDirectory(TM), the community of users
that forms the backbone of ZixCorp's Email Encryption Service,
achieved a new milestone, topping 14 million members with an
increased growth rate of 100,000 new addresses added each week. The
company also successfully renewed its OEM contract with Google,
which, when combined with its new partners in 2008 - MessageLabs
(recently acquired by Symantec) and Code Green Networks - positions
the business for a strong 2009." "Driven by its Email Encryption
business, ZixCorp overall completed another solid year, in which
the company achieved significant milestones with positive cash flow
in each quarter of 2008," continued Spurr. "Preliminary revenue
estimates are that we will meet our guidance of $6.8 to $7.1
million for the fourth quarter, giving the company full-year 2008
estimated revenues of between $27.7 and $28 million. Our year-end
unrestricted cash balance of $13.2 million exceeded our guidance of
$13.1 million. This solid financial foundation will provide the
platform for growth in each of our core markets. We believe the
catalysts for this growth, which we have previously discussed -
MIPPA legislation combined with continued payor interest in funding
initial deployment costs in e-Prescribing and contributions from
our OEM partners in Email Encryption - will lead to future success
in these businesses." About the company's e-Prescribing business,
Spurr said, "Our PocketScript business exceeded the e-Prescribing
deployment guidance of 150 for the fourth quarter with
approximately 200 deployments. These deployments do not reflect a
significant contribution from our recently signed contracts with
BCBS Alabama, Aetna in New Jersey or UnitedHealthcare in Texas. We
processed over 2 million e-scripts in the fourth quarter, bringing
the full year total prescriptions processed to 8.6 million, an
increase of more than 16 percent over 2007. With the new Medicare
incentive period beginning this year and ongoing discussions we are
holding with our payor customers, we believe that 2009 may be the
year that we see acceleration in this market." ZixCorp to Announce
Fourth Quarter and Year-End 2008 Results on February 17 The
company's fourth quarter and year-end 2008 operating results will
be released after close of the U.S. financial markets on February
17, 2009. The company will hold a conference call to discuss this
information on February 17 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 617-614-3926 or toll-free 800-299-7928 and entering access
code 97361301. An audio replay of the conference will be available
until February 24, by dialing 617-801-6888 or toll-free
888-286-8010, and entering the access code 27898401, 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(R)
e-prescribing service reduces costs and improves patient care by
automating the prescription process between payors, doctors, and
pharmacies. For more information, visit http://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 following statements by Mr. Spurr are forward-looking
statements, not a guarantee of future performance, and involve
risks and uncertainties: "The company also successfully renewed its
OEM contract with Google, which, when combined with its new
partners in 2008 - MessageLabs (recently acquired by Symantec) and
Code Green Networks - positions the business for a strong 2009.";
"This solid financial foundation will provide the platform for
growth in each of our core markets."; "We believe the catalysts for
this growth, which we have previously discussed - MIPPA legislation
combined with continued payor interest in funding initial
deployment costs in e-Prescribing and contributions from our OEM
partners in Email Encryption - will lead to future success in these
businesses."; and, "With the new Medicare incentive period
beginning this year and ongoing discussions we are holding with our
payor customers, we believe that 2009 may be the year that we see
acceleration in this market." The forward-looking statements
contained in this release are not a guarantee 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 use 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 or expand existing sponsorship agreements
for the e-prescribing services offered by its PocketScript, Inc.
subsidiary and the company's ability to continue realizing
acceptance of its Email Encryption business in its core markets of
healthcare and financial and to achieve market acceptance of its
Email Encryption business in other markets; the company's ability
to maintain existing and generate other revenue opportunities,
including fees for scripts written or value added services for its
payor customers from its PocketScript e-Prescription business; the
company's ability to establish and maintain strategic and OEM
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 pertaining to such risks and uncertainties may be
found in the company's public filings with the SEC. DATASOURCE: Zix
Corporation CONTACT: Public Relations, Geoff Bibby,
+1-214-370-2241, , or Investor Relations, Peter Wilensky,
+1-214-515-7357, , both of Zix Corporation Web Site:
http://www.zixcorp.com/
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