Special Situation Report:Date: October 4, 2007 Newsbreak ! Zix Rises on Possible 3Q Revenue Upside Zix Shares Rise After Company Says It Expects to Meet or Beat 3rd-Quarter Outlook.
NEW YORK (AP) -- Shares of Zix Corp. rose Wednesday after the e-mail encryption and electronic prescription services company said preliminary sales estimates show it will meet or beat its third-quarter revenue guidance due to strong unit sales. The company added it anticipates meeting its goal of being cash-flow positive in the first quarter of 2008.
Dallas-based Zix's shares rose 11 cents, or 5.5 percent, to $2.10 in morning trading. During the past year, Zix's shares have traded between 55 cents and $2.49. Zix, which is scheduled to release its third-quarter financial results in November, had earlier estimated third-quarter sales of between $5.7 million and $6 million. On Wednesday, it said an estimate showed total orders for its e-mail encryption business came to $5.4 million during the period. The company also said it beat the high end of its third-quarter e-prescribing deployment guidance of 450 to 500.
Our Feature Profile:
![]() Zix Corporation (NasdaqGM: ZIXI) Close of Oct. 4, 2007: $2.27
Company ProfileZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(r) e-prescribing service saves lives and saves money by automating the prescription process between payors, doctors and pharmacies. For more information, visit http://www.zixcorp.com.
Why ZIXI Warrants Investment Consideration:
Business Summary: Zix Corporation provides e-communication services that protect and deliver sensitive information to enterprises and consumers in the healthcare, finance, insurance, and government sectors primarily in the United States. It operates through two segments, Email Encryption and e-Prescribing. The Email Encryption segment designs and develops Email Encryption Service, a hosted service that analyzes and encrypts email communications, and addresses reporting needs. Its secure messaging service allows an enterprise to use policy- driven rules to determine which emails need to be sent securely to comply with regulations or corporate policy. This segment also provides related advisory, installation, customization, and training services. The e-Prescribing segment designs and develops its e-Prescribing solution, which enables medical providers to write and transmit prescriptions electronically from the point of care directly to the pharmacy. In addition, this solution offers point-of-care access to drug formularies and drug data. This segment distributes its products and services directly to physicians and healthcare institutions. The company was founded in 1983 and is headquartered in Dallas, Texas.
Mission Statement: ZixCorp is striving to be the leader in the markets that we serve and to deliver the highest value to our customers, partners, employees, and shareholders. We want to transform the way our customers handle and transmit their sensitive information by working to:
To accomplish our Mission, ZixCorp’s goal is to be an indispensable, trusted partner providing platforms that facilitate the secure transmission of sensitive information within our core markets, more specifically:
Key Management:
SEC Filings: Edgar search results for all of ZIXI Corp.'s recent SEC filings can be found at: http://finance.yahoo.com/q/sec?s=ZIXI
Key Statistics:
Contact Information:
Technical Analysis![]()
ConclusionTechnical analysis and solid company fundamentals paint an exciting future for ZIXI. As a top stock pick of the Motley Fool web site, we agree that the company does have a 40% growth potential, especially if the outstanding growth of new members continues to be in the millions. This should undoubtly have a positive impact on growth potential of unit sales, which translates to higher revenue and earnings. We believe investors will be rewarded handsomely by a much higher stock price if the company can meet its objectives and fulfill its mission.
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