Zix Earnings Remain A Concern

Zix (ZIXI) delivered moderate Jun 2013 results springing just above its own guidance. The company’s revenue increased 14.5% YoY against its own guidance of $11.5 million - $11.7 million. Zixi EPS declined 30% due to a decline in net income margin of 10 points. After-market Zix stock price remained rather constant (improved by 0.47% - 7:56PM EDT), which wasn’t good enough to sell the story of positive investor sentiments.

The company doesn’t look attractive at its current P/E level of ~30 given its poor margins, weak operating levers and a low market capitalization.

ZIXI revenue chart - Q2 2013
Source: Zix Corp revenue chart by Amigobulls

Other Stock Market Updates

Yahoo Doesn't seem to recover from its downfall yet

Baidu’s Pre-Market sentiment isn’t too exciting

Shanda games Booming due to the boom in the Chinese gaming industry

Google buys stake in Himax technologies

Read our news letter here- Amigobulls Internet daily July 24, 2013

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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