Zix Corporation (ZixCorp), (NASDAQ: ZIXI), the leader in email encryption services, today announced financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Financial Highlights
- Second quarter new first year orders of $2.5 million, a 22% year-over-year increase and an all-time quarterly sales record for ZixCorp
- Second quarter revenue of $10.3 million, an increase of 9.7%, year-over-year, the Company’s 14th consecutive quarterly record in revenue
- Second quarter GAAP net income of $0.04 per share, an increase of 10.1%, year-over-year (1)
- Second quarter Non-GAAP net income of $0.05 per share, an increase of 22.9%, year-over-year (1)
- The Company generated approximately $5 million in cash flow from operations, an increase of $2.5 million, year-over-year
- Cash, cash equivalents and commercial paper investments totaled $18.8 million, an increase of $0.8 million compared to the March 31, 2012, ending cash balance, reflecting a record quarter for cash from operations offset by cash used for share repurchases
“The strong increase in new first year orders during the quarter reflects the increased activity we are seeing in the email encryption market,” said Rick Spurr, ZixCorp’s Chairman and Chief Executive Officer. “To expand our opportunities for future growth and further build on our industry leadership, we are also increasing our investments in new products that will be released in 2013. We are very excited about the growth in our current email encryption business and opening additional new opportunities with a broader set of offerings in the data protection space.”
Second Quarter 2012 Corporate Financial Summary and Other Operational Metrics
|$ in Millions, except per share and % data||Q2 2012||Q2 2011|| % or $
|GAAP Gross Profit||$8.5||$7.7||11.2%|
|GAAP Net Income||$2.6||$2.6||1.0%|
|GAAP Net Income Per Share – Diluted||$0.04||$0.04||10.1%|
|Non-GAAP Adjusted Gross Profit (2)||$8.6||$7.7||11.4%|
|Non-GAAP Adjusted Net Income (2)||$3.1||$2.7||12.8%|
|Non-GAAP Adjusted Net Income Per Share-Diluted (2)||$0.05||$0.04||22.9%|
Adjusted EBITDA (2) (3)
Adjusted EBITDA Margin (2) (3)
|New First Year Orders||$2.5||$2.0||22.0%|
|Bookings Backlog (4)||$55.5||$52.6||5.6%|
|(1)||Changes are based on actuals versus numbers shown in the columns which may reflect rounding|
A reconciliation of GAAP to Non-GAAP adjusted results is attached to this press release and is available on our investor relations Web site at http://investor.zixcorp.com
|(3)||Adjusted earnings before interest, taxes, depreciation and amortization|
|(4)||Service contract commitments that represent future revenue to be recognized as the services are provided|
- ZixCorp unveiled ZixGateway® 4.4 with an enhanced administration dashboard and unique reporting capabilities. The new dashboard combined a modern look and feel with convenient navigation. New reporting capabilities improved visibility into outbound and inbound message data, which enables customers to better understand their email exchange, their use of email encryption and how they are complying with corporate policies and government regulations.
- ZixCorp announced the addition of message recall and two-factor authentication in the latest release of ZixPort ®. The new features will offer compliance and security officers increased control and flexibility of encrypted email messages.
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