Zix Earnings: Here’s Why the Stock is Up Now

Zix Corp. (NASDAQ:ZIXI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.47%.

Zix Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20% to $0.04 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 14.12% to $11.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zix Corp. reported adjusted EPS income of $0.04 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $11.66 million.

Quoting Management: “We achieved another consecutive quarter of record revenue and bookings and continue to deliver results that meet, if not exceed, our guidance, reflecting the consistency of our business model,” said Rick Spurr, ZixCorp’s Chairman and Chief Executive Officer. “We continue to see expansion both within our existing customer base and with the addition of new customers. At the same time, we are building on our leadership in email data protection with two new products that more than triple the size of our addressable market and that we believe will lead us to even higher growth rates in 2014. ZixDLP, which addresses an enterprise’s number one data leakage problem, was launched in March. Our second new product is ZixOne, our innovative approach to BYOD. ZixOne is in beta with nearly 30 customers and receiving very positive feedback. ZixOne literally takes 30 minutes or less to connect to a company’s email Exchange server, and then individual employees can download and implement the app in less than a minute. ZixOne can solve the BYOD security issue surrounding corporate email that is a top concern of nearly every CIO and CTO in the corporate world. We remain on track to meet our September 3 general availability date and look forward to delivering this disruptive product to the marketplace.”

Key Stats (on next page)…

Revenue increased 0.34% from $11.76 million in the previous quarter. EPS increased 33.33% from $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved up from a profit of $0.17 to a profit of $0.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)