Science & Technology
Mon, July 25, 2011Sun, July 24, 2011Fri, July 22, 2011Thu, July 21, 2011Wed, July 20, 2011Tue, July 19, 2011Mon, July 18, 2011Sun, July 17, 2011Sat, July 16, 2011Fri, July 15, 2011Thu, July 14, 2011Wed, July 13, 2011Tue, July 12, 2011Mon, July 11, 2011Sun, July 10, 2011Sat, July 9, 2011Fri, July 8, 2011Thu, July 7, 2011Ebix Makes Key Announcements
Published in Science and Technology on Friday, July 15th 2011 at 9:00 GMT by Market Wire
ATLANTA--([ BUSINESS WIRE ])--Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today made a few key announcements related to its operations.
- Q2 2011 Earning Results: The Company plans to release its 2011-second quarter earnings results on August 9th 2011 and will host a conference call to review the results at 11:00 a.m. EDT the same day (details below).
- Strong Cash Growth in Q2 2011: The Company also announced strong growth in cash during the second quarter of 2011 in the approximate amount of $19.7 million. The Company started the second quarter with $35.6 million of cash. In the second quarter of 2011, the Company paid approximately $23.8 million in cash for stock buybacks, $6.8 million in cash to Rennes Foundation for retiring a convertible note, $1.67 million in cash to Bank of America towards debt reduction, $0.6 million in cash towards earn outs, and 0.7 million in cash towards non-operating acquisition related severances. After paying approximately $33.5 million in cash in Q2 of 2011 towards non-operating activities, the Companyas cash balance as of 30th June 2011 was approximately $23.8 million.
- Changed Forecast on Taxes: The Company announced that it is revising its forecasted effective tax rate to increase to 16-20% between now and the 2013. The Companya™s changed forecast is driven by its decision to release its entire valuation allowance in Q2 of 2011, based on the projected certainty of its future income; and the Companya™s strategic decision to centralize its international development & IP operations in Singapore. Under Ebixa™s agreement with the Singapore Government, the Company has been given a perpetual tax rate of 10% with no sunset date attached to that rate. While the Company intends to continue growing its offshore development operations in India, the Company intends to do so while centralizing all international development activities in Singapore. The Company believes that Singapore is a more strategic choice as an international headquarters because of its overall political and economic stability, besides its innovation friendly policies.
Since the Company has net operating loss carry forwards of $ 65.8 million in the United States, any income tax expense is expected to be largely a non-cash expense until the net operating loss carry forwards are utilized.
- Future Earnings Outlook: The Company believes that the momentum being experienced in its sales activities, coupled with its recent decision to increase its sales staffing considerably, is expected to allow Ebix to continue to grow its EPS consistently, in spite of the increased tax forecast.
Investor Call Details:
Investors Conference Call: August 9, 2011 at 11 a.m. EDT
Audio Replay URL: [ http://www.ebix.com ], Click on Investor Home Page
Dial-in number: +1-973-409-9690
Audio webcast: [ www.ebix.com/webcast ]
Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995a" This press release contains various forward looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market and management's plans and objectives. The Company has tried to identify such forward looking statements by use of words such as "expects," "intends," "anticipates," "plans," "believes," "will," "should," 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 Company's new products and services can be successfully developed and marketed, the integration and other risks associated with recent and future acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, the Company's ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, the Company's dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Company's ability to effectively protect its applications software and other proprietary information, the Company's ability to attract and retain quality management, and software, technical sales and other personnel, the potential negative impact on the Company's outsourcing business in India from adverse publicity and possible governmental regulation, the risks of disruption of the Company's Internet connections or internal service problems, the possibly adverse effects of a substantial increase in volume of traffic on the Company's website, mainframe and other servers, possible security breaches on the Company's website and the possible effects of insurance regulation on the Company's business. Certain of these, as well as other, risks, uncertainties and other factors, are described in more detail in Ebixa™s periodic filings with the Securities and Exchange Commission, including the companya™s annual report on form 10-K for the year ended December 31, 2010, included under "Item 1. Businessa"Risk Factors." Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors or to publicly update any of the forward looking statements contained herein to reflect future events or developments or changed circumstances or for any other reason. The cash growth numbers presented in the press release are preliminary and non-GAAP.
About Ebix
A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (NASDAQ:EBIX) provides end to end solutions ranging from infrastructure Exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India, China, Japan and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance, while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS based software platforms, Ebix employs hundreds of insurance and technology professionals that provide products, support and consultancy to thousands of customers on six continents. Ebixa™s focus on quality has enabled it to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institutea™s Capability Maturity Model (CMM). Ebix has also earned ISO 9001:2000 certification for both its development and BPO units in India. For more information, visit the Companya™s website at [ www.ebix.com ]
