Ebix Inc., an Atlanta-based international developer and supplier of software and e-commerce solutions to the insurance industry, has reported financial results for the fourth quarter (Q4 ’04) and year ended Dec. 31, 2004.
For the full year 2004, Ebix’s revenue rose 38.4 percent to $20.0 million, compared to $14.4 million during 2003. Income before income taxes increased 35 percent to $2.4 million in 2004, versus $1.8 million last year. Ebix’s net income for 2004 rose to $2.2 million, compared to net income of $1.7 million in 2003.
Diluted earnings per share were $0.72 in 2004, versus $0.71 in 2003, reflecting a 32 percent increase in weighted average diluted shares outstanding to 3,104,000 in 2004, compared to 2,349,000 in 2003. The increase in weighted average diluted shares principally reflects shares issued in conjunction with funding two acquisitions completed in 2004 as well as an increase in the number of employee options with a strike price below the 2004 average stock price.
Revenue for Q4 ’04 increased 70 percent to $5.7 million, compared to $3.4 million in the fourth quarter of 2003 (Q4 ’03). Q4 ’04 net income was $103,000, or $0.03 per diluted share, versus Q4 ’03 net income of $489,000, or $0.20 per diluted share. Weighted average diluted shares outstanding were 3,223,000 and 2,457,000 in the 2004 and 2003 fourth quarter periods, respectively.
“Company-wide, we continue to work toward building our business and industry position by balancing long-term growth investments in areas such as infrastructure, R&D for new products and services with the need to achieve nearer-term financial performance,” said Robin Raina, Ebix president and CEO said. “To that end, I am extremely pleased with our results – as the year 2004 saw us growing revenue and net income while also nearly doubling our product development expenditures. Additionally, during 2004 we built a world-class state of the art carrier system product – BRICS, and secured CMM Level 4 certification for our development operations ahead of our timetable.”
“Despite our strong financial and operational performance in 2004, our net income improvement was mitigated on a per share basis as 2004 results reflected a significantly higher weighted average of diluted shares. Additionally, our 2004 results did not reflect a full year’s benefit of the LifeLink and Heart acquisitions, which closed in late February and early July 2004 respectively.
“As a prudent management team, we intend to make substantial efforts to grow revenue, net income and EPS in 2005, while continuing to fund our growth initiatives.”
Topics Profit Loss
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