Value Microcaps Motherboard

[linuspop]

Great report from EBIX this morning. The stock isn't as cheap as it was when HWEB mentioned it a few months back, but it doesn't look overvalued here either...

Ebix Second Quarter EPS Rose 52% to a Record $0.35 Per Share on 31% Increase in Revenue; First Half 2005 EPS Rose 77% to $0.69 Per Share
Business Wire - August 01, 2005 08:26

ATLANTA, Aug 01, 2005 (BUSINESS WIRE) -- Ebix, Inc. (NASDAQ:EBIX), a leading international provider of software services and IT solutions to the insurance industry, today reported financial results for the second quarter (Q2 '05) and six months ended June 30, 2005. Ebix will host a conference call and webcast to review the quarter tomorrow, Tuesday, August 2nd at 10:00 a.m. EDT (details below). Both the call and webcast are open to the general public.

Telephone: Domestic - 800-899-5685. International - 212/676-4906.

Live Webcast/Replay: available at http://www.ebix.com and archived for 90 days.

Ebix's total revenue rose 31% 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% of total revenue, grew 32% 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% 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% 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% 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% to $12.0 million, compared to $8.6 million in the first six months of 2004. Services revenue, which comprised 95% of total revenue, grew 42% 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% 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% 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.

Ebix President and Chief Executive Officer Robin Raina commented on the record results, "With earnings per share for the first six months of fiscal '05 nearly matching our EPS total for the entire 2004 year, a record year for the Company, Ebix continues to outpace its own standards in driving growth to the bottom line. We believe our strong performance year-to-date reflects the strength of our insurance industry expertise, specialized service offerings, and global footprint, which are becoming valued by a growing base of industry professionals worldwide. Further, 2005 marks the first year in which Ebix will benefit from full-year contributions from both our LifeLink and Heart Consulting acquisitions. Ebix's performance is clearly benefiting from their successful integration."

Mr. Raina added, "In addition to strong trends in Australia and our increasing global diversification, our recent share repurchase as well as the absence of some non-recurring costs experienced in 2004 have also proven to be positive catalysts for our 2005 first half results. Our management team and staff is never content resting on their laurels, and we will continue to strive for consistent long-term growth as we further establish Ebix as the premier international developer and supplier of software and IT outsourcing solutions exclusively to the global insurance market. It was particularly gratifying that our corporate quest for growth was recognized by FORTUNE Small Business, which in their July/August issue named Ebix as one of the 100 fastest growing small companies in America."