Zix (Nasdaq: ZIXI) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Zix met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank significantly.

Gross margin shrank, operating margin expanded, and net margin dropped.

Revenue details
Zix logged revenue of $9.9 million. The three analysts polled by S&P Capital IQ looked for revenue of $9.8 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $8.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The three earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.23 for Q4 were 57% lower than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 81.3%, 90 basis points worse than the prior-year quarter. Operating margin was 29.7%, 840 basis points better than the prior-year quarter. Net margin was 151.4%, 26,950 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.3 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $43.3 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Zix a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zix is buy, with an average price target of $3.81.

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