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DALLAS--(BUSINESS WIRE)--March 16, 2005--
Following Subsequent Events, Debt Restructuring, and Sale of Two Products, Company Automatically Extends Filing of Its 2004 Annual Report on Form 10-K
Zix Corporation (ZixCorp(R)), (Nasdaq:ZIXI), a global provider of secure e-messaging, e-prescribing, and e-transaction applications and services, today announced that it has filed Form 12b-25 with the SEC for an automatic 15-day extension to file its Annual Report on Form 10-K for the year ended Dec. 31, 2004. The filing delay is not the result of the need to restate any prior period financial results.
The company stated that additional time is required to analyze, prepare, and review the required Form 10-K disclosures to appropriately incorporate two material developments. One relates to its $20 million convertible notes due 2005-2008 and the other to the sale of its Message Inspector(R) and Web Inspector(R) products.
On March 16, ZixCorp and the holder of the notes agreed in principle to amend the terms of the notes. Under this amendment, ZixCorp will redeem the notes due Nov. 2, 2005 ($5 million principal amount) by July 31, 2005, and the notes due Nov. 2, 2008 ($5 million principal amount) by Dec. 31, 2005, with ZixCorp's common stock. Also, the overall cash balance ZixCorp is required to maintain and the amount of cash to be held in a collateral account will be reduced. These amendments are subject to negotiation of definitive agreements with the holders of the notes, which ZixCorp plans to complete no later than March 31, 2005.
On March 14, the company announced via press release that it sold its Message Inspector(R) and Web Inspector(R) products, which will be the subject of a Form 8-K to be filed by March 17.
By extending the filing, the company expects to file its Annual Report on Form 10-K no later than March 31, 2005.
About Zix Corporation
Zix Corporation (ZixCorp(R)) provides easy-to-use-and-deploy e-communication services that protect, manage, and deliver sensitive information to enterprises and consumers in healthcare, finance, insurance and government. ZixCorp's eSecure services enable policy-driven email encryption, content filtering and send-to-anyone capability while its eHealth services improve patient care, reduce costs, and improve efficiency through e-prescribing and e-lab solutions. For more information, visit www.zixcorp.com.
CONTACT: Zix Corporation
Peter Wilensky, 214-515-7357
Christa Osswald, 214-370-2175
SOURCE: Zix Corporation