Zix Corporation Q3 2009 Earnings Call Transcript

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2009-10-27 19:31:08.0

Tags: Attrition, Zix Corp., Doctor, Call Transcript, Earnings, Question, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Jon Hickman with MDB Capital. Please proceed.

Jon Hickman MDB Capital

Hello, can you hear me?

Susan Conner

Yes.

Rick Spurr

Yes.

Jon Hickman MDB Capital

I was wondering if you could talk about your ability to retain the doctors that you sign up on this e-Prescribing banner.

Rick Spurr

Yes, sure. So we hadn’t seen any change in retention certainly for the negative. If anything, it’s improving and that’s due to we think longevity of usage by the docs, the longer they use it, the more comfortable they are with it of course. And the legislative landscape that’s made it clear to the medical community that you’ve got to move towards electronic digitization of medical exchanges.

Jon Hickman MDB Capital

So, could you give us how many doctors are you – are actually actively using these days?

Rick Spurr

We are still just north of 3000 and so whatever attrition we have had, we’ve back-filled with new active docs from new deployments.

Susan Conner

And Jon, to be specific, Rick is right. We are, at the end of September, 3075, so just short of 3100. And we have finally started to see what we have told you guys about for – actually I think we’ve been telling you for about 12 months about this shift to one of our doctor groups on to an EMR and we knew that was coming and that has actually occurred and that’s really the biggest drop that you see in these numbers from the last quarter. So, other than that, we haven’t seen any unusual change in the attrition rate.

Jon Hickman MDB Capital

Okay, thanks.

Susan Conner

Thank you, Jon.

Operator

Your next question comes from the line of Fred Ziegel with Blue Water Capital Markets. Please proceed.

Fred Ziegel Blue Water Capital Markets

Hi, everybody.

Rick Spurr

Hello, Fred.

Susan Conner

Hi, Fred.

Fred Ziegel Blue Water Capital Markets

Couple of questions. Rick – I guess one to Rick and one to Susan – I think you commented that your channel partner revenues were on the weak side, so my question on that part of the business outside of what you can’t control, which is the economy, are there any steps you can take or are planning on taking to get the OEM business moving at a brisker pace than it’s been.

 

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