ATLANTA, GA – December 9, 2010 — Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today made a number of announcements related to its operations.
The summary disclosures were in response to frequent queries on a variety of topics from its investor base –
1. Convertible Debt: The Company announced that the only convertible debt remaining as of today is for $5 million with the Rennes Foundation. The Company has fully paid back the convertible debt in the original amount of $20 million from White Box Advisors.
2. Option Exercises by Ebix CEO: The Company disclosed that its CEO Robin Raina has exercised 1,125,009 options to acquire an equal number of shares of Ebix common stock, and conveyed his desire to hold these shares for the foreseeable future. Mr. Raina had continued to hold these options since the date they fully vested on February 1, 2004. Mr. Raina had to exercise these stock options (which had a 10 year life), as they were set to expire in Feb 2011 if not exercised or sold before then. Mr. Raina beneficially holds a total of 3,922,087 shares of Ebix while the Robin Raina Foundation holds 119,005 shares of Ebix stock as of this date.
3. Healthy Exchange Growth Forecast: The Company announced that it expects healthy organic growth in the fourth quarter of 2010, driven primarily by its Exchange channel. The Company believes that a number of key deals signed by the Company in previous quarters and the 4th Quarter of 2010 should drive this growth in both the top line and the bottom line.
4. Acquisition of USIX: The Company announced that it has successfully integrated USIX into its existing Ebix Latin America operations while also leveraging several related operating synergies. In response to investor queries on the topic, the Company also disclosed that USIX revenues for the year 2009 were $2,727,957 (Real R$5,371,643) while the net income was $180,799 (Real R$ 356,013).
5. Analyst Conferences: The Company also announced that it plans to hold a “Meet the Management” Investor Conference in February 2011 in New York. The Conference will allow investors to interact with several key members of the Senior Management team at Ebix. The Company intends to announce the Conference date and venue soon. The Company further indicated that it expects to hold additional smaller investor conferences during 2011 at various locations across the U.S. Those locations and dates will be communicated in the coming months.
Safe Harbor for Forward Looking Statements under the Private Securities Litigation Reform Act of 1995 — This press release contains various forward looking statements and information that are based on management's beliefs, as well as assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, acceptance of the Company's products by the market and management's plans and objectives. The Company has tried to identify such forward looking statements by use of words such as "expects," "intends," "anticipates," "plans," "believes," "will," "should," and similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to various risks, uncertainties and other factors which could cause actual results to vary materially from those expressed in, or implied by, the forward looking statements. Such risks, uncertainties and other factors include the extent to which the Company's new products and services can be successfully developed and marketed, the integration and other risks associated with recent and future acquisitions, the willingness of independent insurance agencies to outsource their computer and other processing needs to third parties, the Company's ability to continue to develop new products to effectively address market needs in an industry characterized by rapid technological change, the Company's dependence on the insurance industry (and in particular independent agents), the highly competitive and rapidly changing automation systems market, the Company's ability to effectively protect its applications software and other proprietary information, the Company's ability to attract and retain quality management, and software, technical sales and other personnel, the potential negative impact on the Company's outsourcing business in India from adverse publicity and possible governmental regulation, the risks of disruption of the Company's Internet connections or internal service problems, the possibly adverse effects of a substantial increase in volume of traffic on the Company's website, mainframe and other servers, possible security breaches on the Company's website and the possible effects of insurance regulation on the Company's business. Certain of these, as well as other, risks, uncertainties and other factors, are described in more detail in Ebix’s periodic filings with the Securities and Exchange Commission, including the company’s annual report on form 10-K for the year ended December 31, 2009, included under "Item 1. Business—Risk Factors." Except as expressly required by the federal securities laws, the Company undertakes no obligation to update any such factors or to publicly update any of the forward looking statements contained herein to reflect future events or developments or changed circumstances or for any other reason.
A leading international supplier of On-Demand software and E-commerce services to the insurance industry, Ebix, Inc., (NASDAQ: EBIX - News) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
With 30+ offices across Brazil, Singapore, Australia, the US, New Zealand, India and Canada, Ebix powers multiple exchanges across the world in the field of life, annuity, health and property & casualty insurance while conducting in excess of $100 billion in insurance premiums on its platforms. Through its various SaaS-based software platforms, Ebix employs hundreds of insurance and technology professionals to provide products, support and consultancy to thousands of customers on six continents. Ebix’s focus on quality has enabled it to be awarded Level 5 status of the Carnegie Mellon Software Engineering Institute’s Capability Maturity Model (CMM). Ebix has also earned ISO 9001:2000 certifications for both its development and BPO units in India. For more information, visit the Company’s website at www.ebix.com.
Aaron Tikkoo, IR
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