Atlanta-based Ebix Inc., a leading international provider of software services and IT solutions to the insurance industry, reported financial results for the second quarter and six months ended June 30, 2005.
Ebix’s total revenue rose 31 percent to $6.1 million in Q2 ’05, compared to $4.7 million during the second quarter of 2004. Consistent with Ebix’s ongoing strategy to transition its business focus to a services model, services revenue, which comprised 93 percent of total revenue, grew 32 percent to $5.7 million during Q2 2005, compared to services revenue of $4.3 million in the year ago period.
Ebix’s operating income rose 61 percent to $1.2 million in the 2005 second quarter, compared to operating income of $0.7 million in the second quarter of 2004. The Company also reported a 53 percent increase in net income to $1.1 million, or $0.35 per diluted share, in the second quarter of 2005, versus net income of $0.7 million, or $0.23 per diluted share, in the second quarter of 2004. Q2 ’05 results were based on 3.1 million weighted average diluted shares outstanding during the period, 9,000 fewer than the comparable three-month period in 2004. The modest decrease in the weighted average reflects an initial benefit from the Company’s repurchase of 200,000 shares, at $13.50 per share, in late April 2005. The shares were repurchased from the founders of LifeLink at a 10 percent discount from their $15.00 issuance price at the time of Ebix’s acquisition of LifeLink in February 2004.
For the first six months of 2005, Ebix’s total revenue rose 40 percent to $12.0 million, compared to $8.6 million in the first six months of 2004. Services revenue, which comprised 95 percent of total revenue, grew 42 percent to $11.4 million in the first half of 2005, compared to services revenue of $8.1 million in the year ago period. Software license revenue was $0.6 million in the first half of 2005, compared to $0.6 million in the year ago period.
Ebix’s operating income rose 86 percent to $2.4 million in the first half of 2005, compared to operating income of $1.3 million in the first half of 2004. The Company’s net income rose 86 percent to $2.2 million, or $0.69 per diluted share, in the first half of 2005, compared to net income of 1.2 million, or $0.39 per diluted share, in the first half of 2004. First half results were based on 3.1 million weighted average diluted shares outstanding, compared to 3.0 million weighted average diluted shares outstanding in the year ago period.
Topics Profit Loss
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