Zix Corporation (NASDAQ: ZIXI)
Zix Corporation (ZIXI), an email encryption, data loss prevention company yesterday reported their first quarter 2017 financial results.
Zix reported first quarter profits of $1.8 million with an adjusted earnings of $0.07 per share. Zix also reported first quarter revenues of $15.9 million.
Zix Corporation CEO’s Comments
“Q1 was a pivotal quarter in the company’s history, highlighted by the evolution of our corporate brand and the expansion of our email data protection solutions with the acquisition of Greenview Data,” said David Wagner, Zix’s Chief Executive Officer. “In just 33 days following the closing of the Greenview Data acquisition, we launched our newest offering, ZixProtect, which features three new product bundles. ZixProtect allows us to deliver a broader email data protection solution to our customers and significantly expands our addressable market. Looking to the remainder of 2017, we are focused on cross-selling our expanded suite of solutions and investing in our direct sales and customer success teams to continue our progress of generating profitable growth for our shareholders.” Business Wire
ZIXI Technical Analysis
ZIXI opened trading yesterday at $5.38 which was up from the previous day’s trading close of $5.35. Shares closed trading yesterday at $5.21 and spiked up after market to $5.65, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time ZIXI traded above these levels we have to go back to the week of December 1st, 2015 when it traded at $5.68.
Taking a closer look at the daily chart we can see that before the spike up ZIXI had already been in an overall upward trend dating back to November 3rd, 2016 when it traded at $4.11. ZIXI has a float of 48.67 million shares and traded 1.16 times the normal daily trading volume on Tuesday. With such a low float, if enough buyers show up we could see a nice short squeeze.
For trading purposes, I would like to see ZIXI open trading on Wednesday above $5.50 and if it does I would be looking to take a long position at the bell with a limit order as a market order could be too risky. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Zix Corporation provides email encryption, data loss prevention (DLP), and Bring-Your-Own-Device (BYOD) security solutions to the healthcare, financial services, insurance, and government sectors in the United States. The company offers Zix Email Encryption that allows an enterprise to use policy-driven rules to determine email messages that should be sent securely to comply with regulations or company-defined policies.
It also provides ZixDirectory, an email encryption community to share identities; Best Method of Delivery, a patented solution designed to deliver email based on the senders and recipients communications environment and preferences; and ZixGateway, which automatically encrypts and decrypts messages with sensitive content.
In addition, the company offers ZixQuarantine, an email-specific data loss prevention solution that reduces deployment time; and ZixOne, a mobile email app, which provides access to corporate email while never allowing that data to be persistently stored on the device where it is vulnerable to loss or theft.
Zix Corporation sells its email encryption, DLP, and ZixOne services through a direct sales force, and a network of resellers and other distribution partners. The company was formerly known as ZixIt Corporation and changed its name to Zix Corporation in 2002. Zix Corporation was founded in 1983 and is headquartered in Dallas, Texas. Yahoo Finance
