Ebix Q2 Profit Down - Quick Facts

(RTTNews) - Ebix Inc. (EBIX) reported that its second-quarter net income declined 25% to $13.5 million from the prior year's $18.1 million, with earnings per share decreasing to $0.35 from $0.47 in the same quarter last year. The net income in the latest-quarter was impacted negatively by the increase in the a variable stock put option liability of $1.6 million associated with the issuance of stock to PlanetSoft shareholders worth $5 million, as also by the company increasing certain tax reserves by $2.5 million in the quarter.

Operating margins for the latest-quarter were higher at 37.8% as compared to 37.1% last year. The operating margins in the latest-quarter were positively impacted by a $5.8 million gain from the reduction of the earn out accrual relating to its acquisition of PlanetSoft, while being negatively impacted by certain legal and extraordinary operational costs adding up to $4.5 million in the second-quarter of 2013.

The company was also negatively impacted by the impact of lower initial operating margins from some of the businesses acquired in 2012 and 2013, as compared to its existing operations. The company expects a portion of the legal costs in the second-quarter of 2013 to continue for a few more quarters, impacting our operating margins negatively.

Total revenue for the quarter was $51.0 million, an increase of 7% from last year revenue of $47.7 million.

In the pre-market trade, EBIX is currently trading at $10.40, down $0.77 or 6.89%.