Atlanta-based Ebix Inc., an international developer and supplier of software and e-commerce solutions to the insurance industry, has reported financial results for the first quarter ended March 31, 2005.
For the quarter, Ebix’s total revenue rose 50 percent to $5.9 million, compared to $3.9 million during the first quarter of 2004. Service revenue, which comprised 97 percent of total revenue, grew 54 percent during the three-month period compared to the same period of the prior year. As anticipated, software license revenue continued to decline during Q1 ’05 as Ebix has shifted its strategic focus over the last few years to sell services, with the software forming a component of its services offering.
The company achieved a 119 percent year-over-year increase in operating income to $1.2 million in the 2005 first quarter compared to $0.6 million in the first quarter of 2004. Ebix also reported a 140 percent increase in net income to $1.1 million, or $0.33 per diluted share, in the first quarter of 2005 versus net income of $0.4 million or $0.15 per diluted share, in the first quarter of 2004. First quarter 2005 results were based on 3.2 million weighted average shares outstanding during the period, as compared to 2.9 million weighted average diluted shares outstanding during the comparable three-month period in 2004.
“We are pleased with the results–particularly as they reflect an overall strong performance by most of our domestic and international divisions, namely Consulting, BPO, Lifelink and International Services,” Robin Raina, Ebix president and CEO said. “Our recent repurchase of 200,000 shares from the original Lifelink owners is another positive sign which reflects our optimism in the business. The transaction was significant both in terms of our ability to fund that repurchase from within as well as its future benefit to our reported earnings per share for the remainder of 2005.
“As a pragmatic management team, we understand that good results need to be consistent,” Raina said. “Accordingly, we intend to make strong efforts to continue to grow both revenue and EPS in a proportionate and stable manner over the long term. We believe we are off to a strong start in this regard for 2005.”
Topics Profit Loss
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