ebix.com Inc. announced results for the third quarter and nine months ended September 30, 2000. Total revenues were $2.9 million for the third quarter of 2000, compared to revenues of $3.1 million for the third quarter of 1999. The net loss for the third quarter of 2000 was $2.5 million or $0.22 per share, compared to a net loss of $4.4 million or $0.43 per share for the same period in the prior year.
For the first nine months of 2000, total revenues were $8.7 million, compared to revenues of $10.4 million for the same period in 1999. The net loss for the first nine months of 2000 was $8.8 million or $0.78 per share, compared to a loss of $11.6 million or $1.30 per share for the first nine months of 1999. Per share amounts reflect a higher number of average shares outstanding in the third quarter and first nine months of 2000 compared to the same periods in 1999 due to the exercise of stock options and common stock warrants.
Results for the third quarter and first nine months of 1999 have been restated and reclassified as a result of a recent reaudit and restatement of the company’s financial results for the transition period ended December 31, 1998 and the fiscal year ended March 31, 1998. As previously reported, that reaudit and restatement followed the company’s re-examination of its financial reporting in response to inquiries from the staff of the Securities and Exchange Commission
. The company also announced that it will respond promptly to a recent request of the NASDAQ Stock Market staff to furnish it with the company’s plan to achieve and sustain compliance with the NASDAQ SmallCap Market listing requirements. The NASDAQ request was made in connection with its current review of the company’s eligibility for continued listing in light of its present failure to meet the NASDAQ requirement that a company satisfy any one of NASDAQ’s minimum net tangible assets, market capitalization, or earnings standards.
“We are continuing to focus on building the ebix.com web site while maintaining tight financial controls and reducing operating expenses,” said Robin Raina, president and CEO of ebix.com. ebix.com recently made an agreement with AltaVista Company whereby ebix.com becomes the exclusive online insurance services provider for AltaVista. “In addition to the ongoing progress in reducing operating losses, our financial position continues to be stable,” Raina said.
“We ended the third quarter with $4.9 million in cash and no long-term debt, enabling us to continue to move forward in building the ebix.com web site,” said Richard J. Baum, senior vice president and CFO of ebix.com. General and administrative expenses increased $466,000, or 46 percent, in the third quarter reflecting a non-cash charge of $389,000 on the sublease of property and a $285,000 loss from arbitration of a lawsuit filed by a former software customer of ebix.com, Inc., partially offset by a reduction of operating expenses.
“While the loss on the sublease of our former office space impacted third quarter results, the decision to relocate our offices to smaller, less expensive facilities is expected to reduce overall operating expenses in future quarters,” Baum also noted.
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