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Zix Corporation was incorporated in Texas in 1988. The Company changed its name from Amtech Corporation to ZixIt Corporation in 1999. The Company provides secure, Internet-based applications in a Software-as-a-Service (SaaS) model.

These applications connect, protect and deliver information in a secure manner, enabling the use of the Internet for applications requiring a high level of security in the healthcare, financial services, insurance, and government sectors. It operates two reporting segments, Email Encryption and e-Prescribing.

The Company’s Email Encryption Service provides a user the ability to deliver encrypted email to any Email user at any Email address by using the ZixCorp Best Method of Delivery protocol that automatically determines the most direct and appropriate means of delivery, based on the sender’s and recipient’s communications environment and preferences.

The service supports a number of encrypted email delivery mechanisms, including S/MIME, TLS, OpenPGP push delivery and secure portal delivery. These last two mechanisms enable users to send messages instantly and securely to anyone with an email address, including those who do not have an encryption tool.

The Company’s e-Prescribing delivers many benefits, including improved patient safety through alerts to potential adverse drug or allergy interactions, reduced calls from the pharmacy to the physician, reduced costs for patients and their insurers through increased prescribing within drug formulary guidelines, increased delivery of prescribed drugs via mail order and reduced prescribing errors. This second unit of the company though has not been running well enough and the company has made a decision to wind down it operations by the end of the year.

Even with the decision to shut down the e-Prescribing operation within the company, year-to-date, ZIXI stock has jumped 85%. The rally is part of a larger trend, in which the stock is up 98% over the past five years. With earnings growth in the past year accelerating moderately compared to earnings growth in the past three years, most recent quarterly earnings much higher than analysts’ forecast, and the previous day’s closing price is significantly above its 50 day moving average are all very positive indications on how well this stock is currently performing.

Trading at $3.34, ZIXI is an inexpensive stock worth buying, based on its short-term and long-term performance.

Prices are correct at the time of this writing. Please note that nothing herein constitutes a recommendation to buy or sell. For more info, please refer to our disclaimer page.