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Strategies & Market Trends : ZixIt Corporation (ZIXI)
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To: Dale Baker who wrote (4080)5/6/2004 12:55:45 PM
From: Kevin Podsiadlik  Read Replies (1) of 4120
 
Herb Greenberg is out with a partial mea culpa on Zix today.

cbs.marketwatch.com

I won't quote the entire article here but by way of an executive summary:

- Zix is bearing out the "in spite of itself" part of Greenberg's recent assessment of the company's prospects for success.

- Zix has not grown its subscriber base nearly as quickly as projected, missing its quarterly target by a whopping 77%. (Reminiscent of the subscription goal of 1.6 million for ZixMail?)

- Zix's seminars on e-prescriptions, designed to attract new subscribers, have been failures. Doctors have proven very reluctant to adopt new technologies, and are doubly distrustful of anything presented to them by the insurance companies.

- The original plan to use Blackberry wireless devices misfired badly, as it turned out that devices did not work well in many hospitals, where wireless coverage is lacking.

- Even the recent ballyhooed deal with Wellpoint is not all it is cracked up to be, as Zix will not collect transaction fees as things stand.

- Zix burned $10 million in cash in Q1 and has only $24 million left, a disturbing rate regardless of management's confidence in the ability to raise cash.

- Lastly, Greenberg dropped a not-so-subtle hint that his own patience is wearing thin with Zix.
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