Exhibit 99.1
EBIX ANNOUNCES RECORD RESULTS WITH 48 CENTS DILUTED EPS
Revenue Rises Fifteen Percent to $7.0 Million in Q2 of 2006
ATLANTA, GA — August 14, 2006 — Ebix, Inc. (NASDAQ: EBIX), a leading international developer and supplier of software and e-commerce solutions to the insurance industry, today reported record financial results for the second quarter of 2006. The results marked the highest EPS in any one quarter that the company has reported in its thirty year history.
The company reported total revenue of $7.03 million for the quarter, compared to $6.13 million for the second quarter of 2006, marking a fifteen percent increase in revenues. These results include two months of revenue from Ebix’s recent acquisition of Infinity Consulting.
Net income after taxes for the quarter rose thirty eight percent to $1.50 million, or $0.48 per diluted share, up from $1.08 million, or $0.35 per diluted share, in the second quarter of 2005—an earnings per share growth of thirty seven percent. Results for the second quarter of 2006 were based on 3.14 million weighted average diluted shares outstanding, as compared to 3.06 million in the second quarter of 2005. Basic earnings per share in the second quarter of 2006 were $0.54 as compared to $0.39 in the second quarter of 2005.
The company’s operating expenses for the quarter grew by twelve percent to $5.52 million as compared to $4.94 million for the second quarter of 2005. The company attributed the increase primarily to the recent acquisition of Infinity consulting in the beginning of May 2006.
The company also reported that its cumulative net income at the end of six months of 2006 grew by 22 percent to $ 2.63 million as compared to cumulative net income of $ 2.15 million at the end of six months of 2005. The six month cumulative diluted EPS for 2006 also grew by twenty two percent to $0.84 as compared to cumulative diluted EPS of $0.69 at the end of six months of 2005.
Robin Raina, president and CEO, Ebix said, “These are record results for the company and we are quite pleased with them. Over the last five years Ebix has continually evolved — moving successfully first from a survival phase to a consolidation phase, and since last year, we have worked tirelessly to reach the high growth phase. With that goal in mind, we remain focused on increasing revenue along with net income proportionately.”
Raina added: “In the last quarter, Ebix successfully completed the acquisition of Infinity consulting, an insurance software services vendor, without any external cash resources. In the coming days, we intend to make additional acquisitions in the insurance market place, with the objective of becoming a dominant back-end software player in the insurance industry.”
About Ebix
A CMMI 5 Company, Ebix, Inc. is a leading international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for
the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.
Ebix strives to work collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges. Ebix combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of organizations.
With bases in United Kingdom, Singapore, Australia, the US, New Zealand, India and Canada, Ebix employs insurance and technology professionals who provide products, support and consultancy to more than 3,000 customers on six continents. Ebix’s focus on quality has enabled its development unit in India to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model Integrated (CMMI). Ebix has also earned ISO 9001:2000 certification for both its development and call center units in India. For more information, visit the Company’s Web site at www.ebix.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This press release contains various forward-looking statements and information that are based on Ebix management’s beliefs, as well as assumptions made by and information currently available to management. Ebix has tried to identify such forward looking statements by use of such words as “will,” “expects,” “intends,” “anticipates,” “plans,” “believes” and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Ebix.com website and other new products and services can be successfully developed and marketed, the risks associated with any future acquisitions, and integrating recently completed acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, possible governmental regulation and/or other adverse consequences resulting from negative perception of the outsourcing of business processes to foreign countries, Ebix’s ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, Ebix’s ability to raise additional capital to finance future acquisitions and meet other funding needs, Ebix’s dependence on a few customers(including one that is Ebix’s largest stockholder), Ebix’s dependence on the insurance industry, the highly competitive and rapidly changing automation systems market, Ebix’s ability to effectively protect its applications software and other proprietary information, Ebix’s ability to attract and retain quality management, and software, technical sales and other personnel, the risks of disruption of Ebix’s Internet connections or internal service problems, the possible adverse effects of a substantial increase in volume of traffic on Ebix’s website, mainframe and other servers, possible security breaches on the Ebix website, the possible effects of insurance regulation on Ebix, the possible effects of the Securities and Exchange Commission’s investigation of Ebix’s financial reporting, and possible future terrorist attacks or acts of war. Certain of these, as well as other risks, uncertainties and other factors, are described in more detail in Ebix’s periodic filings with the Securities and Exchange Commission, including Ebix’s quarterly report on Form 10-Q for the quarter ended September 30, 2004. Except as expressly required by the federal securities laws, Ebix undertakes no obligation to update any such factors or any of the forward-looking statements contained herein to reflect changed circumstances or future events or developments or for any other reason.
CONTACT:
Robin Raina, President/CEO | Tony Sapienza/ Amy Krigman |
Ebix, Inc. | Topaz Partners |
678 -281-2020 | 781-404-2437 |
| tsapienza@topazpartners.com or |
| akrigman@topazpartners.com |
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