Zix affirms 3Q revenue forecast

Zix, which also sells a service that lets doctors order prescriptions through a mobile handheld or Web site, said it's on track to report revenue of $6.6 million to $7 million in the quarter.

Analysts polled by Thomson Reuters on average expect the company to report revenue of $6.9 million and a loss of a penny per share.

Zix also said it generated positive cash flow in the quarter, compared with an outflow of $550,000 in the like quarter a year ago.

The company said it has $13.1 million in cash as of the end of the third quarter.

The e-mail encryption service generated $5.2 million in orders, including $1.2 million in new first-year orders.

The company received a big jump in orders through its partners among manufacturers, offset by softness in direct sales to businesses.

PocketScript, the company's electronic prescription service, had 138 deployments in the quarter compared with a projected of 100.

Zix is scheduled to report earnings after the market's close on Oct. 28.

Shares of Zix fell 3 cents to $1.79 in afternoon trading.