Data security specialist Zix Corporation (ZIXI) posted better than Wall Street anticipated results in the third quarter on Wednesday.
Zix specializes in the security of email services, which is still one of the primary vulnerabilities in the infrastructure of businesses. Until now, a significant number of breaches into the system have been carried out via email, for example through malicious code, phishing attacks, etc. The core product of Zix is the ZixArchive cloud solution, which offers extensive and automated email archiving and 48 other sources of data. Via a single web interface, ZixArchive is rapidly deployed and easily controlled.
Zix’s revenue was $54.8 million in the third quarter, resulting in adjusted net earnings of $9.2 million, or $0.17 per share. The firm also posted $222.3 million in annual recurring revenue (ARR)
Zix Management expects sales in the range of $56.4 million to $57.4 million in the fourth quarter. At the same time, thanks to its recent acquisition of Cloudally’s backup and disaster recovery business, the company expects to earn around $1 million. At $0.16-$0.17, adjusted earnings per share are the forecast. This could carry between $217 million and $218 million in overall revenue in 2020.
Zix works with large customers because its solutions provide an innovative set of capabilities for data archiving and structuring. In the fields of wellness, finance and public administration, Zix offers services to prominent U.S. government agencies.
With a market capitalization of over $300 million, Zix Corporation (ZIXI) stock was down -0.44 percent on Friday but has gained 0.75 percent over the past week. The stock’s performance over the last six month remained impressive with an increase of 22.80 percent, but yearly performance failed to remain in green as it currently stands at a loss of more than -5 percent while the trend continues with a drop of -0.29 percent since start of the year.