This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Zix Corporation (NASDAQ: ZIXI), the leader in email encryption services, today announced financial results for the third quarter ended Sept. 30, 2012.
Third Quarter 2012 Financial Highlights
Third quarter new first year orders of $2.6 million, including a one-time catch up of approximately $300,000
New first year orders for the nine months ended Sept. 30, 2012, were $6.8 million compared to $5.2 million for the same period last year, representing 31.0% year-over-year growth
Third quarter revenue of $11.0 million, an increase of 15.3%, year-over-year, the Company’s 15th consecutive quarterly record in revenue
Third quarter GAAP net income of $0.03 per share, a decrease of 18.9%, year-over-year (1)
Third quarter Non-GAAP net income of $0.04 per share, an increase of 3.6%, year-over-year (1)
The Company generated approximately $4.6 million in cash flow from operations, a decrease of $0.1 million, year-over-year
Cash and cash equivalents totaled $23.0 million, an increase of $4.2 million compared to the June 30, 2012, ending cash balance
“We are pleased with our new first year order performance over the last two quarters reflecting our product leadership, channel expansion and increasing demand in the marketplace. The positive results to date have us well-positioned to achieve our full-year goals,” said
Rick Spurr, ZixCorp’s Chairman and Chief Executive Officer.
Third Quarter 2012 Corporate Financial Summary and Other Operational Metrics
$ in Millions, except per share and % data
% or $Change (1)
GAAP Gross Profit
GAAP Net Income
GAAP Net Income Per Share – Diluted
Non-GAAP Adjusted Gross Profit (2)
Non-GAAP Adjusted Net Income (2)
Non-GAAP Adjusted Net Income Per Share-Diluted (2)
Adjusted EBITDA (2) (3)
Adjusted EBITDA Margin (2) (3)
New First Year Orders
Bookings Backlog (4)
(1) Changes are based on actuals versus numbers shown in the columns which may reflect rounding
(2) 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 enhanced its partner program with upgraded marketing and sales support and improved program infrastructure. Program changes were implemented to maximize channel growth and continue to recruit qualified value added resellers while assisting partners in lead generation and accelerating the sales cycle.
Growing at approximately 100,000 members per week, ZixDirectory® increased its membership to 33 million. ZixDirectory continues to be the largest email encryption community in the world and demonstrates the growing strength of ZixCorp’s unique email encryption approach.
For the fourth quarter 2012, the Company forecasts revenue to be between $11.2 million and $11.5 million and fully diluted adjusted earnings per share to be $0.03. Based on that fourth quarter guidance, the Company expects to be at or near the high end of the Company’s previous revenue guidance of $42 million to $43 million for the full year 2012. The Company now expects Non-GAAP adjusted earnings per share of $0.17 for the full year, tightening its guidance toward the high end of its most recent forecast.