Learning about php encryption

[AmNoob]

Hello friends
i want to know about php encoders working, nowadays which are in market , like ioncube , zend etc

i did little search and learn something so correct me if am wrong.

>> stage1 :: ioncube , zend etc first convert php source code to php bytecode and then encrypt it
>> stage 2 :: php extension which can be loader of ioncube or zend read that encrypted bytecode , and then decrypt it and then send it to php interpretor.

please correct me if am making mistake somewhere as you can see am Noob !