ebix.com Reports Profitable Q2 Results

Atlanta-based ebix.com Inc. reported second quarter net income of $89,000, or $0.04 per share, as compared to net income of $17,000 or $0.01 per share for the second quarter of 2002.

Total revenue for the quarter ended June 30, 2003, increased by $570,000, or 21 percent, to $3,295,000 from $2,725,000 for the comparable quarter of the prior year. This revenue increase was attributable mainly due to increases in revenues from call center activities, hosted ebixASP services, and consulting services partially offset by a decrease in INS-Site revenue and decrease in support revenue associated with legacy products.

Net income for the six months ended June 30, 2003 was $606,000 compared to net income of $215,000 for the six months ended June 30, 2002. Total revenues were $6,907,000 for the six months ended June 30, 2003 compared to revenues of $6,070,000 for the six months ended June 30, 2002.

The company also reported cash equivalents growing to $6,779,000 as of June 30, 2003, from $4,993,000 as of Dec. 31, 2002.

“We are happy to see our cash position becoming consistently stronger over the last two quarters. This is especially encouraging as we continue to make investments in terms of strengthening our infrastructure and resources in the Business Process Outsourcing arena,” commented Robin Raina, chairman, president and CEO of ebix.com, Inc. “We are pleased with the results that our software development and BPO activities are starting to show over the last few quarters.”

“We realize that our success as a quality software niche player and a strong BPO vendor depends on our ability to provide world class services as also our ability to ramp up our production facilities in India, while ensuring that we do this in a planned structured, low risk manner,” said Raina. “Towards that, we are happy to have secured the ISO 9000 certification in the last three months in addition to continuing in our efforts to ramp up our production facilities in India.”

“The continued increases in operating cash flow and net income indicate that our plan for sustained growth is becoming successful,” said Richard Baum, executive vice president and CFO of ebix.com. “Our Indian facilities for software development and call center has the potential of becoming a primary source of growth for our company.”