Email encryption firm Zix says new orders doubled in the first quarter

Email encryption firm Zix says 1Q new orders rise

DALLAS — Zix Corp. said Wednesday that new first-year orders in its fiscal first quarter doubled from a year ago. The e-mail encryption company also affirmed its revenue and adjusted earnings for the quarter.

New, first-year orders are those from new customers or existing customers who added to their orders.

Total orders for its e-mail encryption service came to $9.2 million. Among customers whose contracts came up for renewal in the first quarter ended March 31, 93 percent renewed.

In February, Zix said it expects to post an annual profit for the first time in 2010. It forecast revenue of $34 million to $36 million and earnings of 5 cents per share to 8 cents per share. Excluding one-time items and stock-based compensation costs, earnings should come in between 8 cents per share and 11 cents per share.

Analysts expect Zix to earn 4 cents per share on revenue of $34 million, according to Thomson Reuters. The profit estimate typically excludes one-time items.

Zix, based in Dallas, plans to release first-quarter earnings on April 27 after the market’s close.

Shares of Zix rose 11 cents, or 4.7 percent, to $2.45 on Wednesday.

(This version CORRECTS headline, first paragraph to say ‘doubled,’ correcting company error)