ZIKI Winds Down ePrescription Business

Analyst Jonathan Ruykhaver of ThinkEquity LLC maintains his "buy" rating on Zix Corporation (NASDAQ: ZIXI)(FREE stock trend analysis).

ZIXI has announced its intention to close its ePrescription business. Earlier Zix’s board of advisors worked for six months to explore the strategic options for this business. The divestiture would help the company to concentrate more effectively on its growing core business.

The analyst expects ZIKI to generate improved cash flows and profitability over time due to the divestiture. The company is enjoying strong fundamentals in its email encryption business, ThinkEquity adds.