Zix (Nasdaq: ZIXI) reported earnings on Feb. 19. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins contracted, net margins dropped.

Revenue details
 Zix reported revenue of $11.7 million. The three analysts polled by S&P Capital IQ anticipated a top line of $11.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $9.9 million.

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 $0.05. The two earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. Non-GAAP EPS of $0.05 for Q4 were 78% lower than the prior-year quarter's $0.23 per share. GAAP EPS of $0.06 for Q4 were 74% lower than the prior-year quarter's $0.23 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 82.4%, 110 basis points better than the prior-year quarter. Operating margin was 13.2%, 1,650 basis points worse than the prior-year quarter. Net margin was 34.1%, 11,730 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $11.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $50.1 million. The average EPS estimate is $0.20.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 543 members out of 779 rating the stock outperform, and 236 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Zix a green thumbs-up, and give 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 $4.58.

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