Kasteel Research
Long/short equity, medium-term horizon, value, special situations

Zix CEO's Overconfidence Led To The Current Sell-Off

Two days ago, Zix (NASDAQ:ZIXI) reported its quarterly earnings. The market didn't like it, perhaps focusing on poor guidance regarding the anticipated ZixOne, which leads to a postponing of higher revenue growth. As a result, the share price tumbled 10%.

In my last article, I made assumptions regarding the potential of the ZixOne product, based on CEO Rick Spurr's commentary. Nevertheless, nothing positive came from that product, according to the last conference call. In fact, ZixOne is not as well received as the traditional email encryption solution. In this article, I'm going to demonstrate that the CEO was overconfident about ZixOne as well as make my own assumptions about the share price based on sales of...

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