Zix Corporation CEO Provides Corporate Update for Second Quarter 2009
July 07 2009 - 4:01PM
PR Newswire (US)
Current estimates have the Company expecting to achieve its
guidance DALLAS, July 7 /PRNewswire-FirstCall/ -- Zix Corporation
(ZixCorp(R)), (NASDAQ:ZIXI), the leader in hosted services for
email encryption and payor-sponsored e-prescribing, today offered a
corporate update by its chief executive officer, Rick Spurr. "The
second quarter was another solid quarter for ZixCorp and we are on
target to report within the range of our previously-issued
guidance," said Spurr. "Preliminary estimates are that we should
meet our revenue guidance of $7.3 to $7.6 million and our guidance
for adjusted earnings per share (which excludes non-cash
stock-based compensation, non-recurring items, and uses an
effective tax rate of less than 1 percent) of ($0.01) to $0.00 per
share. With the positive indications of future demand for our
services, particularly in the Email Encryption business, I feel
very upbeat about the direction in which the business is heading."
"In its Email Encryption business, ZixCorp delivered a record $10.0
million in total orders, including $1.7 million in new first-year
orders, the second highest result in the Company's history,"
continued Spurr. "Similar to the Company's highest quarter for new
first-year orders when the HIPAA Security Rule went into effect in
April 2005, we believe a key driver for this quarter's strong
performance was the increased demand from healthcare resulting from
the expansion of HIPAA under the American Recovery and Reinvestment
Act. Despite a lower renewal rate for the second quarter of 86
percent due to various factors which we will discuss in detail
during our upcoming conference call, we remain optimistic about our
future success in this business because of the encouraging signs of
demand for Email Encryption and our recognized leadership position
in the industry." About the Company's e-Prescribing business, Spurr
said, "Following the earlier announcement that ZixCorp is reviewing
strategic alternatives for its e-Prescribing service, we continue
with business as usual with respect to executing our existing
contracts and providing services to our customers. Our PocketScript
business achieved our e-Prescribing deployment guidance for the
second quarter with approximately 325 deployments. ZixCorp
processed over 2.5 million scripts in the quarter, an increase of
approximately 19 percent compared with the same quarter in 2008. In
light of our announcement concerning the assessment of this
business, we are no longer in negotiations for a large contract
with a national payor that could have almost doubled the number of
currently active prescribers. We are, however, engaged in payor
discussions to improve the profitability of our e-Prescribing
business through new pricing arrangements and service
enhancements." ZixCorp to Announce Second Quarter 2009 Results on
July 28 The Company's second quarter 2009 operating results will be
released after close of the U.S. financial markets on July 28,
2009. A conference call will be held to discuss this information on
July 28 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 617-213-8064 or
toll-free 866-770-7051 and entering access code 40200276. An audio
replay of the conference will be available until August 4, by
dialing 617-801-6888 or toll-free 888-286-8010, and entering the
access code 36658027, and after that date via Webcast from the
Company's Web site. About Zix Corporation Zix Corporation is the
leader in email encryption and payor sponsored e-prescribing
services. ZixCorp offers the simplicity of Software as a Service
with the convenience of customizable encryption policies. ZixCorp
provides automated key management "in the cloud" for all its
customers, resulting in a scalable, reliable, easy-to-use and
simple-to-administer service. ZixDirectory(SM) is the largest email
encryption directory in the world enabling seamless and secure
communication among communities of interest. ZixDirectory connects
over 17 million members. ZixCorp's PocketScript(R) e-prescribing
service saves lives and saves money 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. Many of the
foregoing statements by Mr. Spurr are forward-looking statements,
not a guarantee of future performance, and involve substantial
risks and uncertainties. Actual results may differ materially from
those projected in these forward-looking statements. These risks
and uncertainties include, but are not limited to, the following:
the fact that the preliminary financial results included in this
press release could be subject to change based on adjustments that
are deemed appropriate by the Company during the process of
finalizing its quarterly financial statements; the Company's
continued operating losses and its PocketScript e-Prescribing
service's 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 its PocketScript e-Prescribing
business 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-Prescribing 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-Prescribing businesses; the
Company's ability to successfully and timely introduce new Email
Encryption and e-Prescribing products and services or related
products and services and implement technological changes; and
whether the Company will enter into a strategic transaction with
respect to its e-Prescribing business and the effects of any such
transaction on the Company and its stockholders. Further details
pertaining to such risks and uncertainties may be found in the
Company's public filings with the SEC. The Company does not intend,
and undertakes no obligation, to update or revise any
forward-looking statement, except as required by federal securities
regulations. 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/
Copyright