Zix (ZIXI) 10-K 6 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 02, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	ZIXI
Entity Registrant Name	ZIX CORP
Entity Central Index Key	855,612
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		54,367,481
Entity Public Float			$ 199,047,593

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 26,457	$ 28,664
Receivables, net	1,209	498
Prepaid and other current assets	2,829	2,908
Total current assets	30,495	32,070
Property and equipment, net	3,976	4,143
Goodwill	2,161	2,161
Deferred tax assets	45,726	48,912
Total assets	82,358	87,286
Current liabilities:
Accounts payable	355	370
Accrued expenses	4,365	4,697
Deferred revenue	25,773	23,182
Total current liabilities	30,493	28,249
Long-term liabilities:
Deferred revenue	1,448	839
Deferred rent	1,347	1,426
Total long-term liabilities	2,795	2,265
Total liabilities	33,288	30,514
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $1 par value, 10,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value, 175,000,000 shares authorized; 78,913,266 issued and 53,643,139 outstanding in 2016 and 77,852,453 issued and 56,546,879 outstanding in 2015	769	767
Additional paid-in capital	374,386	372,400
Treasury stock, at cost; 25,270,127 common shares in 2016 and 21,305,574 common shares in 2015	(97,770)	(82,243)
Accumulated deficit	(228,315)	(234,152)
Total stockholders’ equity	49,070	56,772
Total liabilities and stockholders’ equity	$ 82,358	$ 87,286

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	78,913,266	77,852,453
Common stock, shares outstanding	53,643,139	56,546,879
Treasury stock, shares	25,270,127	21,305,574

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 60,144	$ 54,713	$ 50,347
Cost of revenue	10,533	9,593	8,324
Gross margin	49,611	45,120	42,023
Research and development expenses	9,553	8,317	9,051
Selling, general and administrative expenses	30,742	28,887	26,222
Operating income	9,316	7,916	6,750
Other income (expense):
Investment and other income	246	244	183
Interest expense	33
Total other income	213	244	183
Income before income taxes	9,529	8,160	6,933
Income tax expense	3,692	3,144	2,830
Net income	$ 5,837	$ 5,016	$ 4,103
Basic income per common share	$ 0.11	$ 0.09	$ 0.07
Diluted income per common share	$ 0.11	$ 0.09	$ 0.07
Weighted average shares outstanding
Basic common shares outstanding	53,819,772	56,421,833	57,948,864
Diluted common shares outstanding	54,395,145	57,476,006	58,966,625

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2013	$ 66,234	$ 737	$ 359,154	$ (50,386)	$ (243,271)
Beginning balance, shares at Dec. 31, 2013		74,417,946
Issuance of common stock upon exercise of stock options	$ 748	$ 4	744
Issuance of common stock upon exercise of stock options, shares	407,829	407,829
Issuance of common stock upon vesting of restricted stock units, shares		52,000
Issuance of restricted common stock, shares		140,000
Employee stock-based compensation costs	$ 1,424		1,681	(257)
Treasury repurchase program	(16,239)			(16,239)
Net income	4,103				4,103
Ending balance at Dec. 31, 2014	56,270	$ 741	361,579	(66,882)	(239,168)
Ending balance, shares at Dec. 31, 2014		75,017,775
Issuance of common stock upon exercise of stock options	$ 8,674	$ 26	8,648
Issuance of common stock upon exercise of stock options, shares	2,668,928	2,668,928
Issuance of common stock upon vesting of restricted stock units, shares		65,750
Issuance of restricted common stock, shares		100,000
Employee stock-based compensation costs	$ 1,812		2,173	(361)
Treasury repurchase program	(15,000)			(15,000)
Net income	5,016				5,016
Ending balance at Dec. 31, 2015	$ 56,772	$ 767	372,400	(82,243)	(234,152)
Ending balance, shares at Dec. 31, 2015		77,852,453
Beginning balance, shares at Dec. 31, 2015	77,852,453
Issuance of common stock upon exercise of stock options	$ 205	$ 2	203
Issuance of common stock upon exercise of stock options, shares	123,760	123,760
Issuance of common stock upon vesting of restricted stock units, shares		179,914
Issuance of common stock upon vesting of performance stock units, shares		97,428
Issuance of restricted common stock, shares		518,211
Issuance of restricted performance common stock, shares		141,500
Employee stock-based compensation costs	$ 1,256		1,783	(527)
Treasury repurchase program	(15,000)			(15,000)
Net income	5,837				5,837
Ending balance at Dec. 31, 2016	$ 49,070	$ 769	$ 374,386	$ (97,770)	$ (228,315)
Ending balance, shares at Dec. 31, 2016		78,913,266

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 5,837	$ 5,016	$ 4,103
Non-cash items in net income:
Depreciation and amortization	2,303	2,152	1,623
Employee stock-based compensation expense	1,783	2,173	1,681
Changes in deferred taxes	3,186	2,743	2,398
Changes in operating assets and liabilities:
Receivables	(711)	954	872
Prepaid and other assets	79	(536)	(334)
Accounts payable	(15)	(81)	(1)
Deferred revenue	3,200	1,536	2,127
Accrued and other liabilities	(411)	1,660	848
Net cash provided by operating activities	15,251	15,617	13,317
Investing activities:
Purchases of property and equipment	(2,136)	(1,951)	(3,402)
Net cash used in investing activities	(2,136)	(1,951)	(3,402)
Financing activities:
Proceeds from exercise of stock options	205	8,674	748
Treasury stock	(15,527)	(15,361)	(16,496)
Net cash used in financing activities	(15,322)	(6,687)	(15,748)
(Decrease) increase in cash and cash equivalents	(2,207)	6,979	(5,833)
Cash and cash equivalents, beginning of year	28,664	21,685	27,518
Cash and cash equivalents, end of year	$ 26,457	$ 28,664	$ 21,685

Company Overview

Company Overview	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Company Overview	1. Company Overview Zix Corporation (“Zix,” the “Company,” “we,” “our,” “us”) provides email encryption, data loss prevention (“DLP”) and Bring-Your-Own-Device (“BYOD”) solutions to meet the data protection and compliance needs of organizations primarily in the healthcare, financial services, and government sectors.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation — The accompanying consolidated financial statements include the accounts of all our wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Our significant estimates include primarily those required in the valuation or impairment analysis of goodwill, property and equipment, revenue recognition, allowances for doubtful accounts, stock-based compensation, litigation accruals, valuation allowances for deferred tax assets and tax accruals. Although we believe that adequate accruals have been made for unsettled issues, additional gains or losses could occur in future years from resolutions of outstanding matters. Actual results could differ materially from original estimates. Cash Equivalents — Cash investments with maturities of three months or less when purchased are considered cash equivalents. Fair Value of Financial Instruments —The Company does not measure the fair value of any financial instrument other than cash equivalents, options, and other equity awards. The carrying values of other financial instruments (receivables and accounts payable) are not recorded at fair value but approximate fair values primarily due to their short-term nature. The carrying values of other current assets and accrued expenses are also not recorded at fair value, but approximate fair values primarily due to their short-term nature. Valuation of Property and Equipment — The accounting policies and estimates relating to property and equipment are considered significant because of the potential impact that impairment, obsolescence, or change in an asset’s useful life could have on the Company’s operating results. We record an impairment charge on the assets to be held and used when we determine based upon certain triggering events that the carrying value of property and equipment may not be recoverable based on expected undiscounted cash flows attributable to such assets. The amount of a potential impairment is determined by comparing the carrying amount of the asset to either the value determined from a projected discounted cash flow method, using a discount rate that is considered to be commensurate with the risk inherent in the Company’s current business model or the estimated fair market value. Assumptions are made with respect to future net cash flows expected to be generated by the related asset. An impairment charge would be recorded for an amount by which the carrying value of the asset exceeded the discounted projected net cash flows or estimated fair market value. Also, even where a current impairment charge is not necessary, the remaining useful lives are evaluated. No impairment was recorded for any of the periods presented. Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: computer and office equipment and software — three years; leasehold improvements — the shorter of five years or the lease term; and furniture and fixtures — five years. Goodwill — We account for the valuation of goodwill and other intangible assets after classifying intangible assets into three categories: (1) intangible assets with finite lives subject to amortization; (2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. For intangible assets with finite lives, tests for impairment must be performed if conditions exist that indicate the carrying value may not be recoverable. For intangible assets with indefinite lives and goodwill, tests for impairment must be performed at least annually or more frequently if events or circumstances indicate that assets might be impaired. Goodwill was $2.2 million, or 3% and 2% of total assets for the years ended December 31, 2016 and 2015, respectively. Our goodwill is not being amortized, but we do evaluate the goodwill for impairment annually in the fourth quarter, or when there is reason to believe that the value has been diminished or impaired. Evaluations for possible impairment are based upon a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned, versus the sum of the carrying value of the assets and liabilities of that unit including the assigned goodwill value. We include our entire Company as the reporting unit. The fair values used in this evaluation are estimated based on the Company’s market capitalization, which is based on the outstanding stock and market price of the stock. Impairment is deemed to exist if the net book value of the unit exceeds its estimated fair value. No impairment was recorded for any of the periods presented. Deferred Tax Assets — Deferred tax assets are recognized if it is “more likely than not” that the benefit of the deferred tax asset will be realized on future federal or state income tax returns. At December 31, 2016, we provided a valuation allowance against a significant portion, $46.0 million, of our accumulated U.S. deferred tax assets, reflecting our historical losses and the uncertainty of future taxable income sufficient to utilize net operating loss carryforwards prior to their expiration. Our total deferred tax asset not subject to a valuation allowance is valued at $45.7 million, and consists of $39.0 million for federal net operating loss carryforwards, $3.7 million relating to temporary timing differences between U.S. GAAP and tax-related expense, $1.7 million relating to U.S. state income tax credits and $1.3 million related to Alternative Minimum Tax credits. If U.S. taxable income increases from its current level in a future period or if the facts and circumstances on which our estimates and assumptions are based were to change, thereby impacting the likelihood of realizing the deferred tax assets, judgment would have to be applied in determining the amount of valuation allowance no longer required. Reversal of all or a part of this valuation allowance could have a significant positive impact on operating results in the period that it becomes more likely than not that certain of the Company’s deferred tax assets will be realized. Alternatively, should our future income decrease from current levels, a resulting increase to all or a part of this valuation allowance could also have a significant negative impact on our operating results. Uncertain Tax Positions — Our Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Leases — A leased asset whose lease terms meet the criteria for capitalization is recorded as an asset and depreciated. If a lease does not meet the criteria for capitalization, it is classified as an operating lease and payments are recorded as rent expense. For 2016 and 2015 we had no leases that qualified as capital leases. Lease renewal options which we are “reasonably assured” of using and the related payments are taken into account when initially classifying and recording the lease as a capital lease obligation or as straight-line rent if an operating lease. Funds provided by the lessor for leasehold improvements are recorded as a deferred lease incentive and amortized as a reduction of rent expense over the lease term. Revenue Recognition — We develop, market and support applications that connect, protect and deliver information in a secure manner. We generate our sales through both a direct sales team and, increasingly, through our channel partners. We derive our revenue from subscription fees for rights related to the use of our software. Software subscription terms typically range from one to three years. Revenue is recognized when all of the following criteria have been met: • persuasive evidence of an arrangement exists, • delivery has occurred or services have been rendered, • the price is fixed and determinable, and • collectability is probable. We record our revenue net of any value added or sales tax. Discounts provided to customers are recorded as reductions in revenue. We have determined that substantially all of our revenue arrangements are in the scope of the software revenue recognition rules. Multiple elements in our software arrangements are sold as a single unit consisting of the following elements: (i) subscription licensed software delivered to the customer’s site, (ii) ongoing customer support and (iii) access to our hosted encryption network (Zix encryption network) during the term of the agreement. (i) Software at the customer site performs critical functions of the email encryption process and is the predominant element in our arrangements. Actions performed by the software at the customer site include identifying when encryption is needed through the use of filters and lexicons, determining the best method of delivery (“BMOD”) by examining secure connection options and selecting the BMOD. BMOD is a key marketing differentiator for us and is defined as the most secure and easiest method to deliver encrypted email. Customers can install the software on their own hardware or we can deliver hardware that we own to the customer site. In recent years more customers have opted to have the software installed on their own hardware, and as a result the number of Zix supplied hardware devices has declined. Any hardware provided as part of our services primarily included manufacturer provided warranty provisions. We recorded no warranty expense in any of the presented periods. (ii) Customer support includes unspecified software upgrades, updates and bug fixes and access to live technical support technicians and on-line knowledge resources. (iii) The Zix encryption network includes access to our central network which facilitates transparent encrypted email exchange among all of our customers by providing public encryption keys (asymmetrical encryption requires two keys- a public key provided by the central network and a private key generated by the software at the customer site). The delivered software element is essential to the functionality and utility of this central network. The network also enables our customers to send encrypted emails to non-Zix customer recipients through a portal. Approximately 9% of our revenue in 2016 was derived from hosted email encryption solutions. We apply general revenue recognition guidance to these hosted arrangements. In all revenue arrangements we cannot determine vendor specific objective evidence (VSOE) and we cannot establish separate units of accounting for the multiple elements of our arrangements that are bundled and sold as one unit. All revenue arrangements are sales of subscription based (i.e. time-based) licenses. We defer revenue until the software is delivered and the service is deployed. Upon deployment, we commence revenue recognition and revenue is recognized ratably over the subscription period generally ranging from one to three years. Software Development Costs —Costs incurred in the development and testing of subscription software products related to research, project planning, training, maintenance and general and administrative activities, and overhead costs are expensed as incurred. The costs of relatively minor upgrades and enhancements to the software are also expensed as incurred. Costs for the development of new software solutions and substantial enhancements to existing software solutions are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No research and development costs have been capitalized because we believe that technological feasibility is established concurrent with general release to customers. Research and development costs associated with software developed for internal use on behalf of our customers are capitalized. To date, capitalized costs for software developed for internal use on behalf of our customers were not material. Advertising Expense — Advertising costs are expensed as incurred. Our operations include advertising expense of $1.9 million, $2.1 million, and $2.9 million in 2016, 2015, and 2014, respectively. Stock-Based Compensation — We currently use the straight-line amortization method for recognizing stock option and restricted stock compensation costs. The measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors are based on the estimated fair value of the awards on the grant dates. The grant date fair value is estimated using either an option-pricing model which is consistent with the terms of the award or a market observed price, if such a price exists. Such cost is recognized over the period during which an employee or director is required to provide service in exchange for the award, i.e., “the requisite service period” (which is usually the vesting period). We also estimate the number of instruments that will ultimately be earned, rather than accounting for forfeitures as they occur. Earnings Per Share (“EPS”) — Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts Basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method. New Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes most current revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for us beginning 2018, and requires using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We have begun an assessment of the guidance and expect our revenue to remain primarily unchanged. We are additionally analyzing the effect of the new guidance on the timing of our recognition of the incremental costs of obtaining contracts. Accordingly, we are still evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and we have not yet determined the method by which we will adopt the standard. Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases (Topic 842), which introduces a lessee model that brings most leases onto the balance sheet. The new ASU eliminates the requirement in U.S. GAAP that entities use bright-line tests in determining lease classifications and requires lessors to provide additional transparency into their exposure to the changes in value of their residual assets and how they manage that exposure. The standard is effective for us beginning 2019. We expect the valuation of the right of use assets and lease liabilities to be the present value of our forecasted future lease commitments and are assessing the discount rate to be applied in these valuations. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. Accounting for Share-Based Payments In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employees of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company currently has been tracking $3.6 million of excess tax benefits that were not previously recognized, as required by existing GAAP, because the related tax deduction did not reduce current taxes payable. Upon adoption of the new standard beginning in year 2017, these benefits will be recorded on a modified retrospective bases through a cumulative-effect adjustment to retained earnings. A valuation allowance will also be recognized as a part of the cumulative-effect adjustment to retained earnings.

Stock Options and Stock-based E

Stock Options and Stock-based Employee Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options and Stock-based Employee Compensation	3. Stock Options and Stock-based Employee Compensation Below is a summary of common stock options outstanding at December 31, 2016: Authorized Shares Options Outstanding Options Vested Available for Grant Employee and Director Stock Option Plans: 2001 Stock Option Plan 2,525,000 11,400 11,400 — 2001 Employee Stock Option Plan 300,000 4,020 4,020 — 2004 Stock Option Plan 5,000,000 1,116,234 1,116,234 — 2006 Director’s Stock Option Plan 1,100,000 169,500 169,500 — 2012 Incentive Plan 6,300,000 659,125 384,578 2,325,491 Total 15,225,000 1,960,279 1,685,732 2,325,491 Under all of our stock option plans, new shares are issued when options are exercised. Employee and Director Stock Option Plans We have non-qualified stock options outstanding to employees and directors under various stock option plans. The plans require the exercise price of options granted under these plans to equal or exceed the fair market value of the Company’s common stock on the date of grant. The options, subject to termination of employment, generally expire ten years from the date of grant. Historically, our employee options typically vested pro-rata and quarterly over three years. Option grants to employees, officers and directors frequently contain accelerated vesting provisions upon the occurrence of a change of control, as defined in the applicable option agreements. Under the terms of the 2012 Incentive Plan adopted by the Company’s Board of Directors on April 13, 2012 (the “2012 Plan”), 2,700,000 shares are available for issuance, plus a number of additional shares (not to exceed 1,327,000) underlying options outstanding under certain of the Company’s prior equity plans that thereafter terminate or expire unexercised, or are cancelled, forfeited, or lapse for any reason. Our shareholders approved an Amended and Restated 2012 Incentive Plan during our annual meeting held June 24, 2015, increasing the number of shares available for grant by 3,600,000. Awards issued under the 2012 Plan typically vest pro-rata and quarterly over four years. Accounting Treatment We use the straight-line amortization method for recognizing stock option compensation costs. Our share-based awards include (i) stock options, (ii) restricted stock awards, some of which are subject to time-based vesting (“Restricted Stock”) and some of which are subject to performance-based vesting (“Performance Stock”), and (iii) restricted stock units, some of which are subject to time-based vesting (“RSUs”) and some of which are subject to performance-based vesting (“Performance RSUs”). For the twelve months ended December 31, 2016, 2015, and 2014, respectively, the total stock-based compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock was recorded to the following line items of our consolidated statements of income: Year Ended December 31, (In thousands) 2016 2015 2014 Cost of revenue $ 186 $ 182 $ 180 Research and development expenses 246 242 237 Selling, general and administrative expenses 1,351 1,749 1,264 Stock-based compensation expense $ 1,783 $ 2,173 $ 1,681 Our 2016 stock-based compensation expense includes $280 thousand related to the accelerated vesting of awards related to our CFO transition. Our 2015 stock-based compensation expense includes $540 thousand related to the accelerated vesting of awards related to our CEO transition. A deferred tax asset of $506 thousand, $625 thousand, and $462 thousand, resulting from stock-based compensation expense associated with awards relating to the Company’s U.S. operations, was recorded for the twelve months ended December 31, 2016, 2015, and 2014, respectively. As of December 31, 2016, there was $3.3 million of total unrecognized stock-based compensation related to non-vested share-based compensation awards granted under the stock option plans. This cost is expected to be recognized over a weighted average period of 1.7 years. We use the Black-Scholes Option Pricing Model (“BSOPM”) to determine the fair value of option grants. On January 1, 2006, we elected to use the “simplified” method to calculate the estimated life of options granted to employees. The Company continued to use the “simplified” method for all options granted through 2013. The Company elected to use the “historical” method to calculate the estimated life of any options that may be granted beginning 2014. The expected stock price volatility was calculated by averaging the historical volatility of the Company’s common stock over a term equal to the expected life of the options. We granted 373,187 options in 2016. No options were granted in 2014 or 2015. The following weighted average assumptions were applied in determining the fair value of options granted during the respective periods: Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.21 % — — Expected option life (years) 5.3 — — Expected stock price volatility 44 % — — Expected dividend yield — — — Fair value of options granted $ 1.51 — — The assumptions used in the BSOPM valuation are critical as a change in any given factor could have a material impact on the financial results of the Company. The weighted average grant-date fair value of awards of restricted stock and restricted stock units is based on quoted market price of the Company’s common stock on the date of grant. Stock Option Activity There were 123,760 stock options exercised for the twelve months ended December 31, 2016. As a result of these stock option exercises, there was $55 thousand in excess tax benefits recorded in 2016. For the comparative period in 2015, there were 2,668,928 stock option exercises, resulting in a $19 thousand excess tax benefit. In the twelve months ended December 31, 2014, 407,829 stock options were exercised, resulting in a $99 thousand excess tax benefit. The following is a summary of all stock option transactions for the three years ended December 31, 2016: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at January 1, 2014 6,748,374 $ 4.50 Granted at market price — $ — Cancelled or expired (1,850,036 ) $ 7.71 Exercised (407,829 ) $ 1.83 Outstanding at December 31, 2014 4,490,509 $ 3.42 Granted at market price — — Cancelled or expired (47,029 ) $ 4.69 Exercised (2,668,928 ) $ 3.25 Outstanding at December 31, 2015 1,774,552 $ 3.65 Granted at market price 373,187 $ 3.70 Cancelled or expired (63,700 ) $ 3.95 Exercised (123,760 ) $ 1.66 Outstanding at December 31, 2016 1,960,279 $ 3.78 3.90 Options exercisable at December 31, 2016 1,685,732 $ 3.79 3.03 At December 31, 2016, all 1,960,279 options outstanding and all 1,685,732 options exercisable had an exercise price lower than the market value of the Company’s common stock. The aggregate intrinsic value of these options was $2.3 million and $1.9 million, respectively. At December 31, 2015, all 1,774,552 options outstanding and all 1,636,238 options exercisable had an exercise price lower than the market value of the Company’s common stock. The aggregate intrinsic value of these options was $2.5 million and $2.2 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016 and 2015, was $290 thousand and $4.4 million, respectively. Summarized information about stock options outstanding at December 31, 2016, is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.11 - $1.99 102,834 2.27 $ 1.43 102,834 $ 1.43 $2.00 - $3.49 522,938 4.51 $ 2.59 522,938 $ 2.59 $3.50 - $4.99 1,334,507 3.53 $ 4.43 1,059,960 $ 4.61 1,960,279 3.73 $ 3.78 1,685,732 $ 3.79 There were 1,636,238 and 4,135,731 exercisable options at December 31, 2015 and 2014, respectively. Restricted Stock Activity The following is a summary of all Restricted Stock activity during the three years ended December 31, 2016: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at January 1, 2014 648,250 $ 3.06 Granted at market price 140,000 $ 4.66 Vested (184,000 ) $ 2.99 Cancelled — — Non-vested restricted stock at December 31, 2014 604,250 $ 3.45 Granted at market price 100,000 $ 5.18 Vested (240,750 ) $ 3.35 Cancelled (40,250 ) $ 3.57 Non-vested restricted stock at December 31, 2015 423,250 $ 3.91 Granted at market price 573,461 $ 3.75 Vested (292,469 ) $ 3.50 Cancelled (15,000 ) $ 4.11 Non-vested restricted stock at December 31, 2016 689,242 $ 3.94 As a result of vesting Restricted Stock $59 thousand, $84 thousand, and $69 thousand in excess tax benefits were recorded in 2016, 2015, and 2014, respectively. Restricted Stock Unit Activity The following is a summary of all RSU activity during the three years ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at January 1, 2014 179,750 $ 3.00 Granted at market price 55,000 $ 4.66 Vested (52,000 ) $ 2.93 Cancelled — — Non-vested restricted stock units at December 31, 2014 182,750 $ 3.52 Granted at market price 215,000 $ 3.88 Vested (65,750 ) $ 3.29 Cancelled (32,500 ) $ 3.88 Non-vested restricted stock units at December 31, 2015 299,500 $ 3.79 Granted at market price 38,500 $ 3.74 Vested (179,914 ) $ 3.66 Cancelled — — Non-vested restricted stock units at December 31, 2016 158,086 $ 3.92 As a result of these vesting RSU’s $8 thousand in excess tax benefits was recorded in 2016. No excess tax benefits resulted from the vesting of RSU’s in 2015 or 2014. Performance RSU Activity The following is a summary of all Performance RSU activity during the three years ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested performance RSUs at January 1, 2014 — — Granted at market price 100,000 $ 4.66 Vested — — Forfeited (100,000 ) $ 4.66 Non-vested performance RSUs at December 31, 2014 — — Granted at market price 215,000 $ 3.88 Vested — — Forfeited (32,500 ) $ 3.88 Non-vested performance RSUs at December 31, 2015 182,500 $ 3.88 Granted at market price 22,500 $ 3.61 Vested (97,428 ) $ 3.88 Forfeited (16,741 ) $ 3.88 Non-vested performance RSUs at December 31, 2016 90,831 $ 3.81 As a result of these vesting performance RSU’s $15 thousand in excess tax benefits was recorded in 2016. Performance Stock Activity The following is a summary of all Performance Stock activity during the one year ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested performance stock at January 1, 2016 — — Granted at market price 141,500 $ 3.61 Vested (20,000 ) $ 3.61 Forfeited — — Non-vested performance stock at December 31, 2016 121,500 $ 3.61 As a result of these vesting Performance Stock $5 thousand in excess tax benefits was recorded in 2016. The weighted average grant-date fair value of awards of Restricted Stock, RSUs, Performance RSU’s, and Performance Stock is based on the quoted market price of the Company’s common stock on the date of grant.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	4. Supplemental Cash Flow Information Supplemental information relating to taxes and noncash activities: Year Ended December 31, (In thousands) 2016 2015 2014 Interest payments $ 33 $ — $ — Income tax payments $ 670 $ 332 $ 426

Receivables, Net

Receivables, Net	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Receivables, Net	5. Receivables, net (In thousands) December 31, 2016 2015 Gross accounts receivables $ 8,417 $ 7,882 Allowance for returns and doubtful accounts (91 ) (59 ) Unpaid portion of deferred revenue (7,117 ) (7,325 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,209 $ 498 The allowance for doubtful accounts includes all specific accounts receivable which we believe are likely not collectable based on known information. In addition, we record 2.5% of all accounts receivable greater than 90 days past due, net of those accounts specifically reserved, as a general allowance against accounts that could potentially become uncollectible. The reduction for deferred revenue represents future customer service or maintenance obligations which have been billed to customers, but remain unpaid as of the respective balance sheet dates. Deferred revenue on our consolidated balance sheets represents future customer service or maintenance obligations which have been billed and collected as of the respective balance sheet dates. The note receivable represents the remaining outstanding balance of an original note related to the sale of a product line in 2005 in the amount of $540 thousand. This was fully reserved at the time of the sale as the note’s collectability was not assured. The note receivable is fully reserved at December 31, 2016 and 2015.

Prepaid and other current asset

Prepaid and other current assets	12 Months Ended
	Dec. 31, 2016
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Prepaid and other current assets	6. Prepaid and other current assets (In thousands) December 31, 2016 2015 Prepaid insurance, maintenance, software licenses and other $ 2,381 $ 2,596 Deferred commissions 435 364 Tax-related 13 (52 ) Prepaid and other current assets $ 2,829 $ 2,908

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Property and Equipment	7. Property and Equipment (In thousands) December 31, 2016 2015 Computer and office equipment and software $ 24,303 $ 23,797 Leasehold improvements 6,733 6,663 Furniture and fixtures 2,011 1,969 33,047 32,429 Less accumulated depreciation and amortization (29,071 ) (28,286 ) Total Property and equipment, net $ 3,976 $ 4,143 Our operations include depreciation and amortization expense related to property and equipment of $2.3 million, $2.2 million, and $1.6 million in 2016, 2015, and 2014, respectfully.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	8. Goodwill At December 31, 2016 and 2015, we had goodwill totaling $2.2 million. We evaluate goodwill for impairment annually in the fourth quarter, or when there is reason to believe that the value has been diminished or impaired. There were no impairment indicators to the goodwill recorded as of December 31, 2016.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Payables And Accruals [Abstract]
Accrued Expenses	9. Accrued Expenses December 31, (In thousands) 2016 2015 Employee compensation and benefits $ 2,739 $ 3,028 Professional fees 405 467 Taxes 434 399 Other 787 803 Total accrued expenses $ 4,365 $ 4,697

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	10. Fair Value Measurements FASB guidance regarding fair value measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Earnings Per Share and Potentia

Earnings Per Share and Potential Dilution	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share and Potential Dilution	11. Earnings Per Share and Potential Dilution Basic earnings per share are computed using the weighted average number of common shares outstanding for the period. The dilutive effect of potential common shares outstanding is included in diluted earnings per share. The computations for basic and diluted earnings per share for the years ended December 31, 2016, 2015, and 2014, are as follows: Year Ended December 31, 2016 2015 2014 Basic weighted average shares 53,819,772 56,421,833 57,948,864 Effect of dilutive securities: Employee and director stock options 317,329 741,002 782,659 Restricted Stock 149,817 172,126 181,219 RSUs 63,484 100,353 53,832 Performance RSUs 24,449 40,692 51 Performance Stock 20,294 — — Potential dilutive common shares 54,395,145 57,476,006 58,966,625 For the years ended December 31, 2016, 2015, and 2014, weighted average shares related to certain stock options of 1,079,474; 1,005,328; and 3,240,594, respectively, were excluded from the calculation of diluted earnings per share because the stock options were anti-dilutive. Anti-dilutive Restricted Stock, RSUs, and Performance RSUs, and Performance Stock of 109,293; 20,600; 886; and 5,572, respectively, were also excluded from the calculation for the year ended December 31, 2016. Anti-dilutive Restricted Stock, RSUs, and Performance RSUs of 56,542; 33,512; and 24,486; respectively, were also excluded from the calculation for the year ended December 31, 2015. Anti-dilutive restricted stock, RSUs, and Performance RSUs of 147,292; 50,833; and 33,333, respectively, were excluded from the calculation for the year ended December 31, 2014.

Significant Customers

Significant Customers	12 Months Ended
	Dec. 31, 2016
Text Block [Abstract]
Significant Customers	12. Significant Customers In 2016, 2015, and 2014, no single customer accounted for 10% or more of our revenues.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Leases We lease office facilities under non-cancelable operating lease agreements. Our operations include rent expense for these operating leases of $1.4 million in each of 2016, 2015 and 2014. The lease of our headquarters facility in Dallas expires in 2024. A summary of our fixed contractual obligations and commitments at December 31, 2016, is as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Total Operating leases $ 1,448 $ 1,234 $ 1,153 $ 1,035 $ 1,060 $ 3,066 $ 8,996 Claims and Proceedings We are subject to legal proceedings, claims, and litigation against our business. While the outcome of these matters is currently not determinable and the costs and expenses of defending these matters may be significant, we currently do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial statements.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes Components of the income taxes are as follows: (In thousands) 2016 2015 2014 Current: U.S. $ 100 $ 58 $ 67 State 329 196 240 Foreign 75 146 125 Deferred Federal 3,185 2,744 2,396 Foreign 3 — 2 Income tax expense $ 3,692 $ 3,144 $ 2,830 A reconciliation of the expected U.S. tax expense (benefit) to income taxes is as follows: (In thousands) 2016 2015 2014 Expected tax (benefit) expense at U.S. statutory rate $ 3,250 $ 2,775 $ 2,357 Nondeductible expense and nontaxable income 114 133 127 State income taxes 217 129 224 Foreign income taxes 78 146 127 Other 33 (39 ) (5 ) Income tax expense (benefit) $ 3,692 $ 3,144 $ 2,830 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of our U.S. deferred income taxes as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Deferred tax assets: Reserves- Other $ 157 $ 156 U.S. net operating loss carryforwards 81,791 84,591 State net operating loss carryforwards 268 281 Tax credit carryforwards 6,029 6,030 Stock-based compensation 1,536 1,767 Intangible assets 180 98 Depreciable assets 1,422 1,518 Other assets 1,065 1,272 Total deferred tax assets 92,448 95,713 Deferred tax liabilities: Prepaid expenses (696 ) (671 ) Total deferred tax assets 91,752 95,042 Less valuation allowance (46,028 ) (46,134 ) Net deferred tax assets $ 45,724 $ 48,908 The Company has partially reserved its U.S. net deferred tax assets in 2016 and 2015 due to the uncertainty of future taxable income. The Company has U.S. net operating loss carryforwards of approximately $241 million which begin to expire in 2020. The Company has state credits that net of federal tax expense total $1.7 million which can be utilized through 2027 and state net operating losses that have various expiration dates. The Company also has tax credit carryforwards of approximately $4.3 million consisting of business tax credits which begin to expire in 2017 and alternative minimum tax credits which do not expire. We have determined that utilization of existing net operating losses against future taxable income is not limited by Section 382 of the Internal Revenue Code. Future ownership changes, however, may limit the company's ability to fully utilize its existing net operating loss carryforwards against any future taxable income. The Company or one of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various states and in the Canadian federal and provincial jurisdictions. We have not taken a tax position that, if challenged, would have a material effect on the financial statements or the effective tax rate for the twelve-months ended December 31, 2016, or during the prior three years. We have determined it is not reasonably possible for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. We are currently subject to a three-year statute of limitations by major tax jurisdictions.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Postemployment Benefits [Abstract]
Employee Benefit Plan	15. Employee Benefit Plan 401(k) Plan — We have a retirement savings plan structured under Section 401(k) of the Internal Revenue Code covering substantially all of our U.S. employees. Under the plan, contributions are voluntarily made by employees, and we may provide contributions based on the employees’ contributions. Our operating income includes $448 thousand, $389 thousand, and $354 thousand, in 2016, 2015, and 2014, respectively, for net contributions from operations to this plan.

Zix Repurchase Program

Zix Repurchase Program	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Zix Repurchase Program	During the year ended December 31, 2016, the Company repurchased 3,830,352 shares at an aggregate cost of $15.0 million. This completed the $15 million share repurchase authorized by our board of directors in January 2016. During the year ended December 31, 2015, the Company repurchased 3,185,340 shares at an aggregate cost of $15.0 million. This completed the $15 million share repurchase authorized by our board of directors in May 2015. On May 11, 2015, the board of directors also approved the termination of the $10 million share repurchase program announced in January 2015. No shares were repurchased under that program. During the year ended December 31, 2014, we repurchased a total of 4,070,195 shares at an aggregate cost of $16.2 million, as authorized by our board of directors under a $15 million share repurchase program announced November 2013, and a $10 million repurchase program announced July 2014. The 2014 repurchase activity completed both programs.

Quarterly Results of Operations

Quarterly Results of Operations (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Results of Operations (Unaudited)	17. Quarterly Results of Operations (Unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015: Quarter Ended (In thousands except per share data) March 31 June 30 September 30 December 31 2016 Revenues $ 14,328 $ 14,930 $ 15,308 $ 15,578 Gross margin 11,791 12,295 12,656 12,869 Net income 1,570 559 1,769 1,939 Basic net income per common share* 0.03 0.01 0.03 0.04 Diluted net income per common share* 0.03 0.01 0.03 0.04 2015 Revenues $ 13,073 $ 13,302 $ 14,011 $ 14,327 Gross margin 10,860 10,873 11,582 11,805 Net income 1,176 1,115 1,927 798 Basic net income per common share* 0.02 0.02 0.03 0.01 Diluted net income per common share* 0.02 0.02 0.03 0.01 * Net income per share is calculated independently for each quarter. The sum of Net income per share for each quarter may not equal the total Net income per share for the year due to rounding differences.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation — The accompanying consolidated financial statements include the accounts of all our wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Our significant estimates include primarily those required in the valuation or impairment analysis of goodwill, property and equipment, revenue recognition, allowances for doubtful accounts, stock-based compensation, litigation accruals, valuation allowances for deferred tax assets and tax accruals. Although we believe that adequate accruals have been made for unsettled issues, additional gains or losses could occur in future years from resolutions of outstanding matters. Actual results could differ materially from original estimates.
Cash Equivalents	Cash Equivalents — Cash investments with maturities of three months or less when purchased are considered cash equivalents.
Fair Value of Financial Instruments	Fair Value of Financial Instruments — The Company does not measure the fair value of any financial instrument other than cash equivalents, options, and other equity awards. The carrying values of other financial instruments (receivables and accounts payable) are not recorded at fair value but approximate fair values primarily due to their short-term nature. The carrying values of other current assets and accrued expenses are also not recorded at fair value, but approximate fair values primarily due to their short-term nature.
Valuation of Property and Equipment	Valuation of Property and Equipment — The accounting policies and estimates relating to property and equipment are considered significant because of the potential impact that impairment, obsolescence, or change in an asset’s useful life could have on the Company’s operating results. We record an impairment charge on the assets to be held and used when we determine based upon certain triggering events that the carrying value of property and equipment may not be recoverable based on expected undiscounted cash flows attributable to such assets. The amount of a potential impairment is determined by comparing the carrying amount of the asset to either the value determined from a projected discounted cash flow method, using a discount rate that is considered to be commensurate with the risk inherent in the Company’s current business model or the estimated fair market value. Assumptions are made with respect to future net cash flows expected to be generated by the related asset. An impairment charge would be recorded for an amount by which the carrying value of the asset exceeded the discounted projected net cash flows or estimated fair market value. Also, even where a current impairment charge is not necessary, the remaining useful lives are evaluated. No impairment was recorded for any of the periods presented. Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives as follows: computer and office equipment and software — three years; leasehold improvements — the shorter of five years or the lease term; and furniture and fixtures — five years.
Goodwill	Goodwill — We account for the valuation of goodwill and other intangible assets after classifying intangible assets into three categories: (1) intangible assets with finite lives subject to amortization; (2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. For intangible assets with finite lives, tests for impairment must be performed if conditions exist that indicate the carrying value may not be recoverable. For intangible assets with indefinite lives and goodwill, tests for impairment must be performed at least annually or more frequently if events or circumstances indicate that assets might be impaired. Goodwill was $2.2 million, or 3% and 2% of total assets for the years ended December 31, 2016 and 2015, respectively. Our goodwill is not being amortized, but we do evaluate the goodwill for impairment annually in the fourth quarter, or when there is reason to believe that the value has been diminished or impaired. Evaluations for possible impairment are based upon a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned, versus the sum of the carrying value of the assets and liabilities of that unit including the assigned goodwill value. We include our entire Company as the reporting unit. The fair values used in this evaluation are estimated based on the Company’s market capitalization, which is based on the outstanding stock and market price of the stock. Impairment is deemed to exist if the net book value of the unit exceeds its estimated fair value. No impairment was recorded for any of the periods presented.
Deferred Tax Assets	Deferred Tax Assets — Deferred tax assets are recognized if it is “more likely than not” that the benefit of the deferred tax asset will be realized on future federal or state income tax returns. At December 31, 2016, we provided a valuation allowance against a significant portion, $ 46.0 million, of our accumulated U.S. deferred tax assets, reflecting our historical losses and the uncertainty of future taxable income sufficient to utilize net operating loss carryforwards prior to their expiration. Our total deferred tax asset not subject to a valuation allowance is valued at $45.7 million, and consists of $39.0 million for federal net operating loss carryforwards, $3.7 million relating to temporary timing differences between U.S. GAAP and tax-related expense, $1.7 million relating to U.S. state income tax credits and $1.3 million related to Alternative Minimum Tax credits. If U.S. taxable income increases from its current level in a future period or if the facts and circumstances on which our estimates and assumptions are based were to change, thereby impacting the likelihood of realizing the deferred tax assets, judgment would have to be applied in determining the amount of valuation allowance no longer required. Reversal of all or a part of this valuation allowance could have a significant positive impact on operating results in the period that it becomes more likely than not that certain of the Company’s deferred tax assets will be realized. Alternatively, should our future income decrease from current levels, a resulting increase to all or a part of this valuation allowance could also have a significant negative impact on our operating results.
Uncertain Tax Positions	Uncertain Tax Positions — Our Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.
Leases	Leases — A leased asset whose lease terms meet the criteria for capitalization is recorded as an asset and depreciated. If a lease does not meet the criteria for capitalization, it is classified as an operating lease and payments are recorded as rent expense. For 2016 and 2015 we had no leases that qualified as capital leases. Lease renewal options which we are “reasonably assured” of using and the related payments are taken into account when initially classifying and recording the lease as a capital lease obligation or as straight-line rent if an operating lease. Funds provided by the lessor for leasehold improvements are recorded as a deferred lease incentive and amortized as a reduction of rent expense over the lease term.
Revenue Recognition	Revenue Recognition — We develop, market and support applications that connect, protect and deliver information in a secure manner. We generate our sales through both a direct sales team and, increasingly, through our channel partners. We derive our revenue from subscription fees for rights related to the use of our software. Software subscription terms typically range from one to three years. Revenue is recognized when all of the following criteria have been met: • persuasive evidence of an arrangement exists, • delivery has occurred or services have been rendered, • the price is fixed and determinable, and • collectability is probable. We record our revenue net of any value added or sales tax. Discounts provided to customers are recorded as reductions in revenue. We have determined that substantially all of our revenue arrangements are in the scope of the software revenue recognition rules. Multiple elements in our software arrangements are sold as a single unit consisting of the following elements: (i) subscription licensed software delivered to the customer’s site, (ii) ongoing customer support and (iii) access to our hosted encryption network (Zix encryption network) during the term of the agreement. (i) Software at the customer site performs critical functions of the email encryption process and is the predominant element in our arrangements. Actions performed by the software at the customer site include identifying when encryption is needed through the use of filters and lexicons, determining the best method of delivery (“BMOD”) by examining secure connection options and selecting the BMOD. BMOD is a key marketing differentiator for us and is defined as the most secure and easiest method to deliver encrypted email. Customers can install the software on their own hardware or we can deliver hardware that we own to the customer site. In recent years more customers have opted to have the software installed on their own hardware, and as a result the number of Zix supplied hardware devices has declined. Any hardware provided as part of our services primarily included manufacturer provided warranty provisions. We recorded no warranty expense in any of the presented periods. (ii) Customer support includes unspecified software upgrades, updates and bug fixes and access to live technical support technicians and on-line knowledge resources. (iii) The Zix encryption network includes access to our central network which facilitates transparent encrypted email exchange among all of our customers by providing public encryption keys (asymmetrical encryption requires two keys- a public key provided by the central network and a private key generated by the software at the customer site). The delivered software element is essential to the functionality and utility of this central network. The network also enables our customers to send encrypted emails to non-Zix customer recipients through a portal. Approximately 9% of our revenue in 2016 was derived from hosted email encryption solutions. We apply general revenue recognition guidance to these hosted arrangements. In all revenue arrangements we cannot determine vendor specific objective evidence (VSOE) and we cannot establish separate units of accounting for the multiple elements of our arrangements that are bundled and sold as one unit. All revenue arrangements are sales of subscription based (i.e. time-based) licenses. We defer revenue until the software is delivered and the service is deployed. Upon deployment, we commence revenue recognition and revenue is recognized ratably over the subscription period generally ranging from one to three years.
Software Development Costs	Software Development Costs —Costs incurred in the development and testing of subscription software products related to research, project planning, training, maintenance and general and administrative activities, and overhead costs are expensed as incurred. The costs of relatively minor upgrades and enhancements to the software are also expensed as incurred. Costs for the development of new software solutions and substantial enhancements to existing software solutions are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. No research and development costs have been capitalized because we believe that technological feasibility is established concurrent with general release to customers. Research and development costs associated with software developed for internal use on behalf of our customers are capitalized. To date, capitalized costs for software developed for internal use on behalf of our customers were not material.
Advertising Expense	Advertising Expense — Advertising costs are expensed as incurred. Our operations include advertising expense of $ 1.9 million, $2.1 million, and $2.9 million in 2016, 2015, and 2014, respectively.
Stock-Based Compensation	Stock-Based Compensation — We currently use the straight-line amortization method for recognizing stock option and restricted stock compensation costs. The measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors are based on the estimated fair value of the awards on the grant dates. The grant date fair value is estimated using either an option-pricing model which is consistent with the terms of the award or a market observed price, if such a price exists. Such cost is recognized over the period during which an employee or director is required to provide service in exchange for the award, i.e., “the requisite service period” (which is usually the vesting period). We also estimate the number of instruments that will ultimately be earned, rather than accounting for forfeitures as they occur.
Earnings Per Share ("EPS")	Earnings Per Share (“EPS”) — Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts Basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method.
New Accounting Standards	New Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes most current revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for us beginning 2018, and requires using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We have begun an assessment of the guidance and expect our revenue to remain primarily unchanged. We are additionally analyzing the effect of the new guidance on the timing of our recognition of the incremental costs of obtaining contracts. Accordingly, we are still evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and we have not yet determined the method by which we will adopt the standard. Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases (Topic 842), which introduces a lessee model that brings most leases onto the balance sheet. The new ASU eliminates the requirement in U.S. GAAP that entities use bright-line tests in determining lease classifications and requires lessors to provide additional transparency into their exposure to the changes in value of their residual assets and how they manage that exposure. The standard is effective for us beginning 2019. We expect the valuation of the right of use assets and lease liabilities to be the present value of our forecasted future lease commitments and are assessing the discount rate to be applied in these valuations. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. Accounting for Share-Based Payments In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employees of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company currently has been tracking $3.6 million of excess tax benefits that were not previously recognized, as required by existing GAAP, because the related tax deduction did not reduce current taxes payable. Upon adoption of the new standard beginning in year 2017, these benefits will be recorded on a modified retrospective bases through a cumulative-effect adjustment to retained earnings. A valuation allowance will also be recognized as a part of the cumulative-effect adjustment to retained earnings.
Fair Value Measurements	FASB guidance regarding fair value measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Stock Options and Stock-based25

Stock Options and Stock-based Employee Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Common Stock Options Outstanding	Below is a summary of common stock options outstanding at December 31, 2016: Authorized Shares Options Outstanding Options Vested Available for Grant Employee and Director Stock Option Plans: 2001 Stock Option Plan 2,525,000 11,400 11,400 — 2001 Employee Stock Option Plan 300,000 4,020 4,020 — 2004 Stock Option Plan 5,000,000 1,116,234 1,116,234 — 2006 Director’s Stock Option Plan 1,100,000 169,500 169,500 — 2012 Incentive Plan 6,300,000 659,125 384,578 2,325,491 Total 15,225,000 1,960,279 1,685,732 2,325,491
Summary of Total Stock-based Compensation Expense Resulting from Stock Options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock	For the twelve months ended December 31, 2016, 2015, and 2014, respectively, the total stock-based compensation expense resulting from stock options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock was recorded to the following line items of our consolidated statements of income: Year Ended December 31, (In thousands) 2016 2015 2014 Cost of revenue $ 186 $ 182 $ 180 Research and development expenses 246 242 237 Selling, general and administrative expenses 1,351 1,749 1,264 Stock-based compensation expense $ 1,783 $ 2,173 $ 1,681
Weighted Average Assumptions Applied in Determining Fair Value of Options Granted	The following weighted average assumptions were applied in determining the fair value of options granted during the respective periods: Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.21 % — — Expected option life (years) 5.3 — — Expected stock price volatility 44 % — — Expected dividend yield — — — Fair value of options granted $ 1.51 — —
Summary of All Stock Option Transactions	The following is a summary of all stock option transactions for the three years ended December 31, 2016: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Outstanding at January 1, 2014 6,748,374 $ 4.50 Granted at market price — $ — Cancelled or expired (1,850,036 ) $ 7.71 Exercised (407,829 ) $ 1.83 Outstanding at December 31, 2014 4,490,509 $ 3.42 Granted at market price — — Cancelled or expired (47,029 ) $ 4.69 Exercised (2,668,928 ) $ 3.25 Outstanding at December 31, 2015 1,774,552 $ 3.65 Granted at market price 373,187 $ 3.70 Cancelled or expired (63,700 ) $ 3.95 Exercised (123,760 ) $ 1.66 Outstanding at December 31, 2016 1,960,279 $ 3.78 3.90 Options exercisable at December 31, 2016 1,685,732 $ 3.79 3.03
Summarized Information about Stock Options Outstanding by Range of Exercise Prices	Summarized information about stock options outstanding at December 31, 2016, is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $1.11 - $1.99 102,834 2.27 $ 1.43 102,834 $ 1.43 $2.00 - $3.49 522,938 4.51 $ 2.59 522,938 $ 2.59 $3.50 - $4.99 1,334,507 3.53 $ 4.43 1,059,960 $ 4.61 1,960,279 3.73 $ 3.78 1,685,732 $ 3.79
Summary of All Restricted Stock Activity	The following is a summary of all Restricted Stock activity during the three years ended December 31, 2016: Restricted Shares Weighted Average Fair Value Non-vested restricted stock at January 1, 2014 648,250 $ 3.06 Granted at market price 140,000 $ 4.66 Vested (184,000 ) $ 2.99 Cancelled — — Non-vested restricted stock at December 31, 2014 604,250 $ 3.45 Granted at market price 100,000 $ 5.18 Vested (240,750 ) $ 3.35 Cancelled (40,250 ) $ 3.57 Non-vested restricted stock at December 31, 2015 423,250 $ 3.91 Granted at market price 573,461 $ 3.75 Vested (292,469 ) $ 3.50 Cancelled (15,000 ) $ 4.11 Non-vested restricted stock at December 31, 2016 689,242 $ 3.94
Summary of All Restricted Stock Unit Activity	The following is a summary of all RSU activity during the three years ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested restricted stock units at January 1, 2014 179,750 $ 3.00 Granted at market price 55,000 $ 4.66 Vested (52,000 ) $ 2.93 Cancelled — — Non-vested restricted stock units at December 31, 2014 182,750 $ 3.52 Granted at market price 215,000 $ 3.88 Vested (65,750 ) $ 3.29 Cancelled (32,500 ) $ 3.88 Non-vested restricted stock units at December 31, 2015 299,500 $ 3.79 Granted at market price 38,500 $ 3.74 Vested (179,914 ) $ 3.66 Cancelled — — Non-vested restricted stock units at December 31, 2016 158,086 $ 3.92
Summary of All Performance RSU Activity	The following is a summary of all Performance RSU activity during the three years ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested performance RSUs at January 1, 2014 — — Granted at market price 100,000 $ 4.66 Vested — — Forfeited (100,000 ) $ 4.66 Non-vested performance RSUs at December 31, 2014 — — Granted at market price 215,000 $ 3.88 Vested — — Forfeited (32,500 ) $ 3.88 Non-vested performance RSUs at December 31, 2015 182,500 $ 3.88 Granted at market price 22,500 $ 3.61 Vested (97,428 ) $ 3.88 Forfeited (16,741 ) $ 3.88 Non-vested performance RSUs at December 31, 2016 90,831 $ 3.81
Summary of All Performance Stock Activity	The following is a summary of all Performance Stock activity during the one year ended December 31, 2016: Restricted Stock Units Weighted Average Fair Value Non-vested performance stock at January 1, 2016 — — Granted at market price 141,500 $ 3.61 Vested (20,000 ) $ 3.61 Forfeited — — Non-vested performance stock at December 31, 2016 121,500 $ 3.61

Supplemental Cash Flow Inform26

Supplemental Cash Flow Information (Tables)	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities	Supplemental information relating to taxes and noncash activities: Year Ended December 31, (In thousands) 2016 2015 2014 Interest payments $ 33 $ — $ — Income tax payments $ 670 $ 332 $ 426

Receivables, Net (Tables)

Receivables, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Summary of Net Receivables	(In thousands) December 31, 2016 2015 Gross accounts receivables $ 8,417 $ 7,882 Allowance for returns and doubtful accounts (91 ) (59 ) Unpaid portion of deferred revenue (7,117 ) (7,325 ) Note receivable 458 458 Allowance for note receivable (458 ) (458 ) Receivables, net $ 1,209 $ 498

Prepaid and other current ass28

Prepaid and other current assets (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Schedule of Prepaid and Other Current Assets	(In thousands) December 31, 2016 2015 Prepaid insurance, maintenance, software licenses and other $ 2,381 $ 2,596 Deferred commissions 435 364 Tax-related 13 (52 ) Prepaid and other current assets $ 2,829 $ 2,908

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property Plant And Equipment [Abstract]
Summary of Property and Equipment	(In thousands) December 31, 2016 2015 Computer and office equipment and software $ 24,303 $ 23,797 Leasehold improvements 6,733 6,663 Furniture and fixtures 2,011 1,969 33,047 32,429 Less accumulated depreciation and amortization (29,071 ) (28,286 ) Total Property and equipment, net $ 3,976 $ 4,143

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Payables And Accruals [Abstract]
Summary of Accrued Expenses	December 31, (In thousands) 2016 2015 Employee compensation and benefits $ 2,739 $ 3,028 Professional fees 405 467 Taxes 434 399 Other 787 803 Total accrued expenses $ 4,365 $ 4,697

Earnings Per Share and Potent31

Earnings Per Share and Potential Dilution (Tables)	12 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Computations of Basic and Diluted Earnings Per Share	The computations for basic and diluted earnings per share for the years ended December 31, 2016, 2015, and 2014, are as follows: Year Ended December 31, 2016 2015 2014 Basic weighted average shares 53,819,772 56,421,833 57,948,864 Effect of dilutive securities: Employee and director stock options 317,329 741,002 782,659 Restricted Stock 149,817 172,126 181,219 RSUs 63,484 100,353 53,832 Performance RSUs 24,449 40,692 51 Performance Stock 20,294 — — Potential dilutive common shares 54,395,145 57,476,006 58,966,625

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Summary of Fixed Contractual Obligations and Commitments	A summary of our fixed contractual obligations and commitments at December 31, 2016, is as follows: (In thousands) 2017 2018 2019 2020 2021 Thereafter Total Operating leases $ 1,448 $ 1,234 $ 1,153 $ 1,035 $ 1,060 $ 3,066 $ 8,996

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Components of Income Taxes	Components of the income taxes are as follows: (In thousands) 2016 2015 2014 Current: U.S. $ 100 $ 58 $ 67 State 329 196 240 Foreign 75 146 125 Deferred Federal 3,185 2,744 2,396 Foreign 3 — 2 Income tax expense $ 3,692 $ 3,144 $ 2,830
Schedule of Reconciliation of Tax Expense Benefit to Income Taxes	A reconciliation of the expected U.S. tax expense (benefit) to income taxes is as follows: (In thousands) 2016 2015 2014 Expected tax (benefit) expense at U.S. statutory rate $ 3,250 $ 2,775 $ 2,357 Nondeductible expense and nontaxable income 114 133 127 State income taxes 217 129 224 Foreign income taxes 78 146 127 Other 33 (39 ) (5 ) Income tax expense (benefit) $ 3,692 $ 3,144 $ 2,830
Components of Deferred Income Taxes	Components of our U.S. deferred income taxes as of December 31, 2016 and 2015 are as follows: (In thousands) 2016 2015 Deferred tax assets: Reserves- Other $ 157 $ 156 U.S. net operating loss carryforwards 81,791 84,591 State net operating loss carryforwards 268 281 Tax credit carryforwards 6,029 6,030 Stock-based compensation 1,536 1,767 Intangible assets 180 98 Depreciable assets 1,422 1,518 Other assets 1,065 1,272 Total deferred tax assets 92,448 95,713 Deferred tax liabilities: Prepaid expenses (696 ) (671 ) Total deferred tax assets 91,752 95,042 Less valuation allowance (46,028 ) (46,134 ) Net deferred tax assets $ 45,724 $ 48,908

Quarterly Results of Operatio34

Quarterly Results of Operations (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Summary of Quarterly Results of Operations	The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015: Quarter Ended (In thousands except per share data) March 31 June 30 September 30 December 31 2016 Revenues $ 14,328 $ 14,930 $ 15,308 $ 15,578 Gross margin 11,791 12,295 12,656 12,869 Net income 1,570 559 1,769 1,939 Basic net income per common share* 0.03 0.01 0.03 0.04 Diluted net income per common share* 0.03 0.01 0.03 0.04 2015 Revenues $ 13,073 $ 13,302 $ 14,011 $ 14,327 Gross margin 10,860 10,873 11,582 11,805 Net income 1,176 1,115 1,927 798 Basic net income per common share* 0.02 0.02 0.03 0.01 Diluted net income per common share* 0.02 0.02 0.03 0.01 * Net income per share is calculated independently for each quarter. The sum of Net income per share for each quarter may not equal the total Net income per share for the year due to rounding differences.

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Significant Accounting Policies [Line Items]
Cash investments maturities	3 months
Goodwill	$ 2,161,000	$ 2,161,000
Goodwill to total asset	3.00%	2.00%
Impairment	$ 0	$ 0	$ 0
Accumulated deferred tax assets	46,028,000	46,134,000
Total deferred tax asset not subject to a valuation allowance	45,724,000	48,908,000
Temporary timing differences between U.S. GAAP and tax-related expense	3,700,000
Income tax credits	6,029,000	6,030,000
Alternative Minimum Tax credits	1,300,000
Warranty expense	0	0	0
Research and development expenses	9,553,000	8,317,000	9,051,000
Advertising expense	1,900,000	$ 2,100,000	$ 2,900,000
Accounting Standards Update No. 2016-09 [Member]
Schedule Of Significant Accounting Policies [Line Items]
Excess tax benefits that were not previously recognized, to record as cumulative-effect adjustment to retained earnings	$ 3,600,000
Customer Concentration Risk [Member] | Sales Revenue Net [Member]
Schedule Of Significant Accounting Policies [Line Items]
Revenue in percentage	9.00%
Minimum [Member]
Schedule Of Significant Accounting Policies [Line Items]
Software subscription term	1 year
Maximum [Member]
Schedule Of Significant Accounting Policies [Line Items]
Software subscription term	3 years
Federal [Member]
Schedule Of Significant Accounting Policies [Line Items]
Federal net operating loss carryforwards	$ 39,000,000
State [Member]
Schedule Of Significant Accounting Policies [Line Items]
Income tax credits	$ 1,700,000
Computer and Office Equipment [Member]
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciated or amortized Property and equipment	3 years
Office Equipment [Member]
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciated or amortized Property and equipment	3 years
Software [Member]
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciated or amortized Property and equipment	3 years
Research and development expenses	$ 0
Leasehold Improvements [Member]
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciated or amortized Property and equipment	5 years
Furniture and Fixtures [Member]
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful lives of depreciated or amortized Property and equipment	5 years

Stock Options and Stock-based36

Stock Options and Stock-based Employee Compensation - Summary of Common Stock Options Outstanding (Detail) - shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	15,225,000
Options Outstanding	1,960,279	1,774,552	4,490,509	6,748,374
Options Vested	1,685,732
Available for Grant	2,325,491
2001 Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	2,525,000
Options Outstanding	11,400
Options Vested	11,400
Available for Grant	0
2001 Employee Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	300,000
Options Outstanding	4,020
Options Vested	4,020
Available for Grant	0
2004 Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	5,000,000
Options Outstanding	1,116,234
Options Vested	1,116,234
Available for Grant	0
2006 Director's Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	1,100,000
Options Outstanding	169,500
Options Vested	169,500
Available for Grant	0
2012 Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Authorized Shares	6,300,000
Options Outstanding	659,125
Options Vested	384,578
Available for Grant	2,325,491

Stock Options and Stock-based37

Stock Options and Stock-based Employee Compensation - Additional Information (Detail) - USD ($)	Jun. 24, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiry of option		10 years
Vesting period of options		3 years
Shares available for issuance		15,225,000
Additional shares underlying options outstanding	3,600,000
Total unrecognized stock-based compensation related to non-vested stock-based compensation awards		$ 3,300,000
The number of years over which cost is expected to be recognized		1 year 8 months 12 days
Deferred tax assets, tax deferred expense compensation and benefits employee compensation		$ 506,000	$ 625,000	$ 462,000
Options granted during period		373,187	0	0
Stock option exercised		123,760	2,668,928	407,829
Excess tax benefit on exercise of employee stock options		$ 55,000	$ 19,000	$ 99,000
Options outstanding		1,960,279	1,774,552	4,490,509	6,748,374
Options, options exercisable		1,685,732
Number Exercisable		1,685,732	1,636,238	4,135,731
Tax benefit from restricted stock vested		$ 59,000	$ 84,000	$ 69,000
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate intrinsic value of options exercised		$ 290,000	$ 4,400,000
Employee and Director Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding		1,960,279	1,774,552
Options, options exercisable		1,685,732	1,636,238
Aggregate intrinsic value of options outstanding		$ 2,300,000	$ 2,500,000
Aggregate intrinsic value of options exercisable		1,900,000	2,200,000
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Tax benefit from restricted stock units vested		8,000	0	$ 0
Non-vested Performance RSUs [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Tax benefit from restricted stock units vested		15,000
Non-vested Performance Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Tax benefit from restricted stock units vested		5,000
CFO [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense related to accelerated vesting of awards		$ 280,000
CEO [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense related to accelerated vesting of awards			$ 540,000
2012 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period of options		4 years
Shares available for issuance		2,700,000
Additional shares underlying options outstanding		1,327,000

Stock Options and Stock-based38

Stock Options and Stock-based Employee Compensation - Summary of Total Stock-based Compensation Expense Resulting from Stock Options, Restricted Stock, RSUs, Performance RSUs, and Performance Stock (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,783	$ 2,173	$ 1,681
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	186	182	180
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	246	242	237
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,351	$ 1,749	$ 1,264

Stock Options and Stock-based39

Stock Options and Stock-based Employee Compensation - Weighted Average Assumptions Applied in Determining Fair Value of Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rate	1.21%	0.00%	0.00%
Expected option life (years)	5 years 3 months 18 days	0 years	0 years
Expected stock price volatility	44.00%	0.00%	0.00%
Expected dividend yield	0.00%	0.00%	0.00%
Fair value of options granted	$ 1.51	$ 0	$ 0

Stock Options and Stock-based40

Stock Options and Stock-based Employee Compensation - Summary of All Stock Option Transactions (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Shares, Outstanding, Beginning Balance	1,774,552	4,490,509	6,748,374
Shares, Granted at market price	373,187	0	0
Shares, Cancelled or expired	(63,700)	(47,029)	(1,850,036)
Shares, Exercised	(123,760)	(2,668,928)	(407,829)
Shares, Outstanding Ending Balance	1,960,279	1,774,552	4,490,509
Shares, Options Exercisable	1,685,732
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 3.65	$ 3.42	$ 4.50
Weighted Average Exercise Price, Granted at market price	3.70	0	0
Weighted Average Exercise Price, Cancelled or expired	3.95	4.69	7.71
Weighted Average Exercise Price, Exercised	1.66	3.25	1.83
Weighted Average Exercise Price, Outstanding, Ending Balance	3.78	$ 3.65	$ 3.42
Weighted Average Exercise Price, Options Exercisable	$ 3.79
Weighted Average Remaining Contractual Term, Outstanding	3 years 10 months 24 days
Weighted Average Remaining Contractual Term, Options exercisable	3 years 11 days

Stock Options and Stock-based41

Stock Options and Stock-based Employee Compensation - Summarized Information about Stock Options Outstanding by Range of Exercise Prices (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Stock Options [Line Items]
Number Outstanding	1,960,279	1,774,552	4,490,509	6,748,374
Weighted Average Remaining Contractual Life, Options Outstanding	3 years 8 months 23 days
Weighted Average Exercise Price, Options Outstanding	$ 3.78
Number Exercisable	1,685,732	1,636,238	4,135,731
Weighted Average Exercise Price, Options Exercisable	$ 3.79
$ 1.11 - $ 1.99 [Member]
Schedule Of Stock Options [Line Items]
Range of Exercise Prices, Lower range	1.11
Range of Exercise Prices, Upper range	$ 1.99
Number Outstanding	102,834
Weighted Average Remaining Contractual Life, Options Outstanding	2 years 3 months 7 days
Weighted Average Exercise Price, Options Outstanding	$ 1.43
Number Exercisable	102,834
Weighted Average Exercise Price, Options Exercisable	$ 1.43
$ 2.00 - $ 3.49 [Member]
Schedule Of Stock Options [Line Items]
Range of Exercise Prices, Lower range	2
Range of Exercise Prices, Upper range	$ 3.49
Number Outstanding	522,938
Weighted Average Remaining Contractual Life, Options Outstanding	4 years 6 months 4 days
Weighted Average Exercise Price, Options Outstanding	$ 2.59
Number Exercisable	522,938
Weighted Average Exercise Price, Options Exercisable	$ 2.59
$ 3.50 - $ 4.99 [Member]
Schedule Of Stock Options [Line Items]
Range of Exercise Prices, Lower range	3.50
Range of Exercise Prices, Upper range	$ 4.99
Number Outstanding	1,334,507
Weighted Average Remaining Contractual Life, Options Outstanding	3 years 6 months 11 days
Weighted Average Exercise Price, Options Outstanding	$ 4.43
Number Exercisable	1,059,960
Weighted Average Exercise Price, Options Exercisable	$ 4.61

Stock Options and Stock-based42

Stock Options and Stock-based Employee Compensation Expense - Summary of All Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	423,250	604,250	648,250
Shares, Granted at market price	573,461	100,000	140,000
Shares, Vested	(292,469)	(240,750)	(184,000)
Shares, Cancelled	(15,000)	(40,250)	0
Shares, Non-vested, Ending balance	689,242	423,250	604,250
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.91	$ 3.45	$ 3.06
Weighted Average Fair Value, Granted at market price	3.75	5.18	4.66
Weighted Average Fair Value, Vested	3.50	3.35	2.99
Weighted Average Fair Value, Cancelled	4.11	3.57	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.94	$ 3.91	$ 3.45

Stock Options and Stock-based43

Stock Options and Stock-based Employee Compensation - Summary of All Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	299,500	182,750	179,750
Shares, Granted at market price	38,500	215,000	55,000
Shares, Vested	(179,914)	(65,750)	(52,000)
Shares, Cancelled	0	(32,500)	0
Shares, Non-vested, Ending balance	158,086	299,500	182,750
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.79	$ 3.52	$ 3
Weighted Average Fair Value, Granted at market price	3.74	3.88	4.66
Weighted Average Fair Value, Vested	3.66	3.29	2.93
Weighted Average Fair Value, Cancelled	0	3.88	0
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.92	$ 3.79	$ 3.52

Stock Options and Stock-based44

Stock Options and Stock-based Employee Compensation - Summary of All Performance RSU Activity (Detail) - Non-vested Performance RSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance	182,500	0	0
Shares, Granted at market price	22,500	215,000	100,000
Shares, Vested	(97,428)	0	0
Shares, Cancelled	(16,741)	(32,500)	(100,000)
Shares, Non-vested, Ending balance	90,831	182,500	0
Weighted Average Fair Value, Non-vested, Beginning balance	$ 3.88	$ 0	$ 0
Weighted Average Fair Value, Granted at market price	3.61	3.88	4.66
Weighted Average Fair Value, Vested	3.88	0	0
Weighted Average Fair Value, Cancelled	3.88	3.88	4.66
Weighted Average Fair Value, Non-vested, Ending balance	$ 3.81	$ 3.88	$ 0

Stock Options and Stock-based45

Stock Options and Stock-based Employee Compensation - Summary of All Performance Stock Activity (Details) - Performance Stock [Member]	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares, Non-vested, Beginning balance | shares	0
Shares, Granted at market price | shares	141,500
Shares, Vested | shares	(20,000)
Shares, Cancelled | shares	0
Shares, Non-vested, Ending balance | shares	121,500
Weighted Average Fair Value, Non-vested, Beginning balance | $ / shares	$ 0
Weighted Average Fair Value, Granted at market price | $ / shares	3.61
Weighted Average Fair Value, Vested | $ / shares	3.61
Weighted Average Fair Value, Cancelled/Forfeited | $ / shares	0
Weighted Average Fair Value, Non-vested, Ending balance | $ / shares	$ 3.61

Supplemental Cash Flow Inform46

Supplemental Cash Flow Information - Supplemental Cash Flow Information Relating to Taxes and Non-Cash Activities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract]
Interest payments	$ 33
Income tax payments	$ 670	$ 332	$ 426

Receivables, Net - Summary of N

Receivables, Net - Summary of Net Receivables (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts Notes And Loans Receivable Net Current [Abstract]
Gross accounts receivables	$ 8,417	$ 7,882
Allowance for returns and doubtful accounts	(91)	(59)
Unpaid portion of deferred revenue	(7,117)	(7,325)
Note receivable	458	458
Allowance for note receivable	(458)	(458)
Receivables, net	$ 1,209	$ 498

Receivables, Net - Additional I

Receivables, Net - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Percentage of doubtful debts on accounts receivable	2.50%
Note receivable on a product line	$ 540	$ 540
Date of note receivable, reserved	Dec. 31, 2016	Dec. 31, 2015

Prepaid and Other Current Ass49

Prepaid and Other Current Assets - Schedule of Prepaid and Other Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Prepaid Expense And Other Assets Current [Abstract]
Prepaid insurance, maintenance, software licenses and other	$ 2,381	$ 2,596
Deferred commissions	435	364
Tax-related	13	(52)
Prepaid and other current assets	$ 2,829	$ 2,908

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 33,047	$ 32,429
Less accumulated depreciation and amortization	(29,071)	(28,286)
Total Property and equipment, net	3,976	4,143
Computer and Office Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	24,303	23,797
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	6,733	6,663
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment gross	$ 2,011	$ 1,969

Property and Equipment - Additi

Property and Equipment - Additional information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 2,303	$ 2,152	$ 1,623

Goodwill - Additional Informati

Goodwill - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 2,161,000	$ 2,161,000
Goodwill impairment	$ 0

Accrued Expenses - Summary of A

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts Payable And Accrued Liabilities Current [Abstract]
Employee compensation and benefits	$ 2,739	$ 3,028
Professional fees	405	467
Taxes	434	399
Other	787	803
Total accrued expenses	$ 4,365	$ 4,697

Earnings Per Share and Potent54

Earnings Per Share and Potential Dilution - Computations of Basic and Diluted Earnings Per Share (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted Average Number of Shares [Line Items]
Basic weighted average shares	53,819,772	56,421,833	57,948,864
Potential dilutive common shares	54,395,145	57,476,006	58,966,625
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	317,329	741,002	782,659
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	149,817	172,126	181,219
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	63,484	100,353	53,832
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	24,449	40,692	51
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Effect of dilutive securities	20,294

Earnings Per Share and Potent55

Earnings Per Share and Potential Dilution - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee and Director Stock Options [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,079,474	1,005,328	3,240,594
Restricted Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	109,293	56,542	147,292
Restricted Stock Units (RSUs) [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	20,600	33,512	50,833
Performance RSUs [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	886	24,486	33,333
Performance Stock [Member]
Weighted Average Number of Shares [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	5,572

Significant Customers - Additio

Significant Customers - Additional Information (Detail) - Customer	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Customer accounted for revenue	0	0	0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments And Contingencies Disclosure [Abstract]
Rental expense on operating lease	$ 1.4	$ 1.4	$ 1.4
Operating leases, expiration year	2,024

Commitments and Contingencies58

Commitments and Contingencies - Summary of Fixed Contractual Obligations and Commitments (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
2,017	$ 1,448
2,018	1,234
2,019	1,153
2,020	1,035
2,021	1,060
Thereafter	3,066
Total	$ 8,996

Income Taxes - Components of In

Income Taxes - Components of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
U.S.	$ 100	$ 58	$ 67
State	329	196	240
Foreign	75	146	125
Deferred
Federal	3,185	2,744	2,396
Foreign	3		2
Income tax expense (benefit)	$ 3,692	$ 3,144	$ 2,830

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Tax Expense Benefit to Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Expected tax (benefit) expense at U.S. statutory rate	$ 3,250	$ 2,775	$ 2,357
Nondeductible expense and nontaxable income	114	133	127
State income taxes	217	129	224
Foreign income taxes	78	146	127
Other	33	(39)	(5)
Income tax expense (benefit)	$ 3,692	$ 3,144	$ 2,830

Income Taxes - Components of De

Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Reserves- Other	$ 157	$ 156
U.S. net operating loss carryforwards	81,791	84,591
State net operating loss carryforwards	268	281
Tax credit carryforwards	6,029	6,030
Stock-based compensation	1,536	1,767
Intangible assets	180	98
Depreciable assets	1,422	1,518
Other assets	1,065	1,272
Total deferred tax assets	92,448	95,713
Deferred tax liabilities:
Prepaid expenses	(696)	(671)
Total deferred tax assets	91,752	95,042
Less valuation allowance	(46,028)	(46,134)
Net deferred tax assets	$ 45,724	$ 48,908

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes [Line Items]
Operating loss carryforwards	$ 81,791	$ 84,591
Unrecognized tax benefits to significantly increase or decrease	12 months
Statute of limitations by major tax jurisdictions	3 years
Internal Revenue Service (IRS) [Member]
Income Taxes [Line Items]
Operating loss carryforwards	$ 241,000
U.S. net operating loss carryforwards expire	2,020
State [Member]
Income Taxes [Line Items]
Federal tax expense net/tax credit carryforwards	$ 1,700
Operating loss carryforwards, expiration dates	2,027
General Business Tax Credit Carry Forward [Member]
Income Taxes [Line Items]
Federal tax expense net/tax credit carryforwards	$ 4,300
Tax credit carry forward began to expiration	2,017

Employee Benefit Plan - Additio

Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation And Retirement Disclosure [Abstract]
Net contribution from operations to employee benefit plan	$ 448	$ 389	$ 354

Zix Repurchase Program - Additi

Zix Repurchase Program - Additional Information (Detail) - USD ($)	May 11, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 31, 2016	May 31, 2015	Jul. 30, 2014	Nov. 30, 2013
Equity, Class of Treasury Stock [Line Items]
Shares repurchased				4,070,195
Treasury repurchase program		$ 15,000,000	$ 15,000,000	$ 16,239,000
Share repurchase program authorized amount					$ 15,000,000	$ 15,000,000	$ 10,000,000	$ 15,000,000
January 2016 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased		3,830,352
Treasury repurchase program		$ 15,000,000
May 2015 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased			3,185,340
Treasury repurchase program			$ 15,000,000
January 6, 2015 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased	0
Share repurchase program authorized amount	$ 10,000,000

Quarterly Results of Operatio65

Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 15,578	$ 15,308	$ 14,930	$ 14,328	$ 14,327	$ 14,011	$ 13,302	$ 13,073	$ 60,144	$ 54,713	$ 50,347
Gross margin	12,869	12,656	12,295	11,791	11,805	11,582	10,873	10,860	49,611	45,120	42,023
Net income	$ 1,939	$ 1,769	$ 559	$ 1,570	$ 798	$ 1,927	$ 1,115	$ 1,176	$ 5,837	$ 5,016	$ 4,103
Basic net income per common share	$ 0.04	$ 0.03	$ 0.01	$ 0.03	$ 0.01	$ 0.03	$ 0.02	$ 0.02	$ 0.11	$ 0.09	$ 0.07
Diluted net income per common share	$ 0.04	$ 0.03	$ 0.01	$ 0.03	$ 0.01	$ 0.03	$ 0.02	$ 0.02	$ 0.11	$ 0.09	$ 0.07