What a bogus report! Again...
by: no_fear_go4it
Long-Term Sentiment: Strong Sell 10/30/03 06:25 pm
Msg: 175950 of 176045
This report looks like more of the same BS they've been putting out quarter after quarter. What other company harps on their "new end-user orders and commitments to purchase" as opposed to their REVENUE? Of course we know why they do this - because their net loss is THREE TIMES THEIR REVENUE!
And look at the wording they use:
<< ZixCorp continues to experience a strong acceptance and market leadership position in the healthcare industry with a 60 percent market share in reference to deals that were available during the quarter. >>
In reference to deals that were available during the quarter? And just how, pray tell, do they determine how many deals were "available"? How would they even know how many deals were DONE in the quarter by the competition if they weren't even invited? Or are they so egotistical to think that they were invited to ALL the "available deals"? What BS. 60% of a meaningless number equates to a meaningless (and misleading) statistic. I can GUARANTEE that they didn't take 60% of the healthcare REVENUE from TMWD last quarter. All one needs to do is compare the numbers.
Who could read the following and actually believe this company is a sound investment:
<< Financial Highlights for the Quarter:
Acquisitions: ZixCorp acquired substantially all the operating assets and businesses of PocketScript, LLC and Elron Software, Inc. on July 22, 2003 and Sept. 2, 2003, respectively, for a combined consideration of approximately $8.9 million which included the issuance of 2,072,305 shares of the company's common stock valued at approximately $7.7 million and a convertible promissory note for $1 million, with scheduled installment payments beginning in September 2004. These acquisitions have created new asset categories on the balance sheet for intangible assets and goodwill totaling approximately $8.2 million at quarter-end.
Revenues: Revenues grew to $2.2 million in the current quarter, which included $584,000 representing the final revenues to be recognized from the previously disclosed terminated distribution agreements with Entrust, Inc. and AOS Technologies, Inc. End-user orders and commitments to purchase received during the third quarter, including those associated with PocketScript and Elron Software since the dates of their acquisition, total $3.7 million. The end-user order backlog as of Sept. 30, 2003, has grown to approximately $8.0 million, which includes deferred revenues on the company's consolidated balance sheet.
Enhanced Financial Condition: ...Additionally, during the quarter ZixCorp received $7,906,000 in cash and issued 1,303,996 shares of common stock resulting from stock option and warrant exercises by employees, former employees and private placement investors.
Cash Utilization: At quarter-end, the company's cash and marketable securities totaled $16.6 million. Net cash used by continuing operations during the third quarter of 2003 was $4,697,000, which includes the operating deficits of PocketScript and Elron Software since their dates of acquisition, as compared to $4,456,000 in the second quarter of 2003 and $4,536,000 in the third quarter of 2002. >>
It's simply amazing how they can continue to issue reports like this with a straight face, and how the hypnotized longs tend to swallow it without gagging. I still expect the stock to drop tomorrow, but not nearly as much as it deserves based on the fundamentals. But the longs will wake up and learn eventually. Sometimes it takes a painful lesson to make it stick. And this stock is a tragedy waiting to happen. |
