Zix Corporation (ZIXI) has reported an 142.86 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.94 million, or $0.04 a share in the quarter, compared with $0.80 million, or $0.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.74 million, or $0.07 a share compared with $4.03 million or $0.07 a share, a year ago.

Revenue during the quarter grew 8.73 percent to $15.58 million from $14.33 million in the previous year period. Gross margin for the quarter expanded 21 basis points over the previous year period to 82.61 percent. Total expenses were 78.51 percent of quarterly revenues, down from 91.45 percent for the same period last year. This has led to an improvement of 1294 basis points in operating margin to 21.49 percent.

Operating income for the quarter was $3.35 million, compared with $1.22 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3.83 million compared to $3.88 million in the prior year period. At the same time, adjusted operating margin contracted 253 basis points in the quarter to 24.56 percent from 27.09 percent in the last year period.

"2016 was a strong and important year for us in many regards. Not only did we achieve a company record of $60.1 million in revenue, reflecting 10% growth over the prior year, but we also experienced double-digit growth in many of our key metrics, including total orders, GAAP net income per share, and adjusted EBITDA," said Dave Wagner, Zix's chief executive officer. Operationally, we strengthened our number one market share position for email encryption, enhanced our core solutions even further, and made significant progress along our seven growth pillars. Q4 demonstrated positive results for the quarter and, going forward, indicate a stronger outlook for our business. "As we look to 2017, we will continue to invest in our core encrypted email solution, with particular emphasis on our hosted platform and customer success. Additionally, we plan to invest in expanding our solutions to address adjacent markets beyond our own."

For fiscal year 2017, Zix Corporation forecasts revenue to be in the range of $64.50 million to $66 million. The company expects diluted earnings per share to be in the range of $0.10 to $0.12 and expects diluted earnings per share to be in the range of $0.28 to $0.28 on adjusted basis.

For the first-quarter 2017, Zix Corporation forecasts revenue to be in the range of $15.60 million to $15.70 million. The company expects diluted earnings per share to be in the range of $0.02 to $0.03. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.06 to $0.06.

The company has spent $2.14 million cash to meet investing activities during the year as against cash outgo of $1.95 million in the last year.

The company has spent $15.32 million cash to carry out financing activities during the year as against cash outgo of $6.69 million in the last year period.

Cash and cash equivalents stood at $26.46 million as on Dec. 31, 2016, down 7.70 percent or $2.21 million from $28.66 million on Dec. 31, 2015.

Working capital drops significantly

Zix Corporation has witnessed a decline in the working capital over the last year. Current ratio was at 1 as on Dec. 31, 2016, down from 1.14 on Dec. 31, 2015.

Days sales outstanding went up to 4 days for the quarter compared with 2 days for the same period last year.

At the same time, days payable outstanding went down to 80 days for the quarter from 92 for the same period last year.