ATLANTA, GA – March 24, 2011 – Ebix, Inc. (NASDAQ: EBIX) a leading international supplier of On-Demand software and E-commerce services to the insurance industry, today stated that it had received calls from shareholders regarding the sudden drop in the price of its common stock as quoted on NASDAQ. The Company stated that it is not aware of any negative developments within the Company or in its operations that would warrant in such a sudden drop in the price of its stock.
The Company also reiterates its policy of not responding to individual blogs that speculate on the operations or future results of the Company.
The Company also refuted the random implications in a recent blog posted on Seeking Alpha about the Company. The Company normally does not comment on blog posts, but believes it is the author's intention to advance his interests, and the interests of other investors that have taken a position adverse to the long-term growth prospects of the company. It is management's opinion that this post misrepresents and distorts facts not relevant to the Company's current financial position, long-term growth prospects and management policies. To that end, the Company reiterates its long term growth initiatives and expansion opportunities, both domestically and internationally with an expanding distribution channel and broadening a product offering.
The Company holds its directors, officers and employees to the highest ethical standards in both its business operations, and in its efforts to achieve long-term value for its shareholders. The Seeking Alpha post appears to have been issued specifically to cause a decline in the Company’s stock price to support the increase in the short interest in the Company stock, and purchases of stock options related to these short positions. The company is considering filing a formal complaint with the Securities and Exchange Commission's Division of Trading and Markets and Division of Enforcement, to report this anonymous blog targeted at causing a decline in shareholder value. The Company will take other appropriate action if needed to protect its business operations and the reputation of its management team, board of directors, employees and partners.
The Company also reminds investors about the Investor Conference on April 1, 2011:
The Ebix Investor Conference will take place from 8:00 am onwards at the NASDAQ MarketSite®, 4 Times Square, New York and will be attended by the Ebix President and CEO Robin Raina along with many of Ebix’s top tier Senior Managers including the Ebix CFO and Exchange senior management.
The agenda will be as follows-
A strong attendance is expected and registration to attend the meeting is a must.
Registration for attending Conference
With 30+ offices across Singapore, Australia, the US, New Zealand, India, China, Japan 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 that 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 certification for both its development and BPO units in India. For more information, visit the Company’s website at www.ebix.com
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, 2010, included under "Item 1A. 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.