NEW YORK (TheStreet) -- Zix Corp (ZIXI) stock is gaining Thursday on the news it will launch Google Apps Message Encryption (GAME), a program specifically designed at the request of Google (GOOG) for the Google Apps infrastructure. The tool provides secure email to Google Apps users.
"Emails sent to users on other email systems such as Yahoo and Microsoft Exchange are vulnerable as they traverse the public Internet. GAME allows encryption of email to every possible recipient, giving Google Apps customers the confidence that they are protecting the sensitive information of their customers and partners," the companies said in a joint statement.
By late afternoon, shares were up 9% to $3.39.
"We rate ZIX CORP (ZIXI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."