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Nov. 16, 2015, 10:17 AM
- Insurance software/Web services firm Ebix (EBIX -2%) states it's interested in making a 175 pence/share, or $685M, offer for U.K. software outsourcing/BPO services firm Xchanging (OTC:XCNGF). Such a bid would top a 170 pence/share offer Computer Sciences (CSC +0.4%) made last week, as well as the 160 pence/share deal Xchanging previously agreed to with peer Capita.
- Both Ebix ($1.12B market cap) and CSC are offering cash for Xchanging. Ebix CEO Robin Raina: "We see substantial synergies, economies of scale and growth potential for the combined business. Our interest in making an offer for Xchanging plc is borne out of our belief that a combination of the two companies could be substantially and immediately accretive to Ebix's EPS while also adhering to our other stringent criteria."
- Xchanging is up 5.6% in London to 178.00 pence, as markets bet the bidding war isn't over. Ebix, which recently shot higher following a Q3 beat, is down moderately. Per U.K. law, the company has until Dec. 9 to "announce a firm intention" to bid for Xchanging, or to declare it doesn't intend to do so.
Aug. 24, 2015, 4:29 PM
- The Nasdaq opened down 7.5%, furiously rallied almost to breakeven, and then sold off again in the afternoon to close down 3.8%. Some tech stocks managed to rise nonetheless, while many others posted 5%+ declines.
- Major decliners included Citrix (CTXS -9.3%), Solera (SLH -8.9%), NCR (NCR -7.8%), Nuance (NUAN -6.9%), Infinera (INFN -6.4%), HomeAway (AWAY -6.6%), MagnaChip (MX -6.4%), Yandex (YNDX -7.5%), Neustar (NSR -6%), Ebix (EBIX -7.3%), SGI (SGI -8%), Monster (MWW -7.5%), Silver Spring (SSNI -6.6%), Perion (PERI -11%), and Synchronoss (SNCR -7.5%).
- Solera's decline comes 4 days after the company confirmed it's exploring strategic alternatives, and 5 days after Bloomberg reported a sale is being explored. Yandex has been hit hard in recent weeks by the ruble and crude oil's decline. Infinera is down 20% over the last 3 trading days, albeit still up 34% YTD.
- See also: Morning decliners, Chinese tech stocks, large-cap decliners
Aug. 7, 2015, 9:54 AM
- After rising 255% Y/Y in Q1, EBIX's Risk Compliance Solutions (RCS) revenue rose 264% in Q2 to $13.3M; acquisitions helped out. The core Exchanges segment saw revenue rise 13% to $46.8M, while Broker Systems revenue fell 28% to $3.5M and Carrier Systems 33% to $1.1M.
- GAAP costs/expenses rose 30% Y/Y to $44.3M (compares with 26% revenue growth), and $12.2M was spent on buybacks. $20M was left on Ebix's $100M buyback plan as of July 31; the company is "likely" to authorize a new $100M buyback once the current one is used up.
- The company says it signed "a number of key new contracts" in Q2, and predicts it can "improve its operating margins significantly through a number of efficiency initiatives that have been put in place." A strong dollar had a 5% impact on Q2 revenue growth.
- Q2 results, PR
May 12, 2015, 3:12 PM
- Today's notable tech gainers include insurance software/data exchange provider Ebix (EBIX +5%), Chinese polysilicon maker Daqo (DQ +6.9%), networking SRAM maker MoSys (MOSY +7.7%), enterprise mobility management software firm MobileIron (MOBL +6.3%), U.S. solar installer Solar3D (SLTD +4.3%), and Korean analog/mixed-signal chipmaker MagnaChip (MX +5.3%).
- Notable decliners include Chinese online retailers JD.com (JD -4.4%) and Vipshop (VIPS -5%), Chinese Internet mini-conglomerate Qihoo (QIHU -4.6%), and cloud online learning software provider 2U (TWOU -5.6%). The Nasdaq is down 0.2%.
- Daqo is now up 11% since last Friday's mixed Q1 report. Ebix is up 18% since delivering a Q1 beat last Friday. MobileIron's gains come after the company named well-traveled tech vet Simon Biddiscombe its interim CFO. Solar3D is rallying after issuing a PR that sings the praises a of an upbeat Bernstein report on solar cost declines.
- Qihoo and JD are more than reversing the Monday gains seen amid a Chinese Internet stock rally. 2U has now fully given back the gains seen last week following its Q1 beat.
- Previously covered: Rackspace, Everyday Health, magicJack, WidePoint, LivePerson, YY, STMicroelectronics, ChipMOS, iDreamSky, Leidos, Photronics
May 8, 2015, 5:40 PM
May 8, 2015, 12:55 PM
- EBIX has made fresh highs after topping Q1 estimates. A 255% Y/Y increase in Risk Compliance Solutions (RCS) revenue contributed to the beat, as did an 11% increase in Exchange division revenue to $46.7M. Broker Systems revenue fell 16% to $3.7M, and Carrier System revenue 17% to $1.2M.
- Ebix attributes its sales growth to "revenue growth from Life, Annuity, Underwriting, CRM and Health Ecommerce services in addition to revenue growth generated from the Company's 2014 acquisitions of HealthCare Magic, Vertex, and Oakstone, partially offset by the drop in revenue from international locations as a result of the strengthening U.S. dollar and a decrease in revenues from the company's pharmaceutical and P&C Carrier backend operations." A strong dollar had a $1.9M impact on sales.
- EPS received a lift from $22.3M worth of buybacks. Thanks in part to acquisitions, GAAP costs/expenses rose 35% Y/Y to $43.3M.
- Q1 results, PR
Apr. 8, 2015, 3:12 PM
- With the Nasdaq up 0.7% and high-beta names performing especially well, only a handful of tech companies are posting outsized losses. A larger number are posting big gains.
- Notable gainers include Chinese auto sites Autohome (ATHM +6.3%) and Bitauto (BITA +6.7%), insurance software firm Ebix (EBIX +4.8%), Russian online payments leader Qiwi (QIWI +5%), touchscreen tech developer Neonode (NEON +7.8%), IT services firm WidePoint (WYY +4.9%), and online video ad-buying platform TubeMogul (TUBE +4.4%).
- Autohome and Bitauto have joined a long list of Chinese Internet stocks that have shot higher following an overnight rally in Hong Kong. Ebix is about $1.50 away from a 52-week high of $31.55. Qiwi is now up 9% on the week amid a broader rally in U.S.-traded Russian firms (aided by rising oil prices and a stronger ruble).
- Previously covered: Yahoo, Rambus, Qualys, Digital Ally, Silicon Motion, Energous
Mar. 13, 2015, 12:45 PM
Mar. 13, 2015, 10:01 AM
- EBIX has surged to new highs after soundly beating Q4 estimates, thanks in large part to an acceleration in Y/Y revenue growth to 19% from Q3's 1%.
- The Vertex and i3 acquisitions helped Ebix's risk compliance/BPO division revenue rise 192% Y/Y to $11.4M. The company's core Exchanges division saw revenue rise 6% to $44.2M, thanks to both existing products and the Oakstone acquisition. Broker Systems revenue fell 9% to $4.1M, and Carrier Systems revenue fell 26% to $932K.
- GAAP operating expenses (including cost of services) rose 20% to $39.6M; op. margin was flat at 35%. $55.5M worth of shares have been repurchased since August. The company says it plans to "review our dividend plan along with the pace of the share buy back plan, with a view towards ensuring that we provide enhanced value to our shareholders."
- CEO Robin Raina: "We intend to grow our business both organically and through accretive acquisitions in 2015 and beyond. Ebix has proven that it is able to acquire niche recurring revenue businesses at cost effective prices, generating accretive returns on investment expeditiously..."
- Q4 results, PR
Feb. 17, 2015, 2:00 PM
Jan. 6, 2015, 10:15 AM
- EBIX says it has "reached a resolution with the Internal Revenue Service with respect to the previously disclosed audit of Ebix's income tax returns for the taxable years 2008 through 2012."
- No "adverse assessments or deficiencies were asserted with respect to any recurring operating transactions." The assessment is expected to have a ($1.4M) impact on Q4 net income, after taking into account "previously established and disclosed provisions for uncertain tax positions."
- Shares have jumped to their highest levels since the June 2013 Goldman deal termination.
Nov. 11, 2014, 3:51 PM
- Activist Barrington Capital says it owns "a significant stake" in EBIX, and declares "it is imperative that Ebix promptly take action to improve its board oversight in order to ensure that shareholder interests are protected." The firm has named four board candidates, and wants to talk with management about them.
- Barrington: "We believe that the Company's disappointing share price performance is attributable to questions and uncertainty regarding the Company that have been weighing heavily on the Company's stock price. While we have followed many public companies in our 14-year history, we cannot recall one that has been the subject of so many investigations and lawsuits."
- In addition to criticizing its board oversight, Barrington asserts Ebix has "provided shareholders with limited visibility regarding its tax structure," and could "do a much better job growing its revenues organically." It also wants "more clarity and better disclosure" regarding various investigations, and larger buybacks.
- Shares are at their highest levels since May.
Aug. 25, 2014, 2:03 PM
- Ebix (EBIX +3.9%) says it plans to buy back up to $80M worth of shares over the next 12 months. The company also states it has repurchased 471K shares since June 30, bringing its diluted count down to 38.2M.
- Ebix had only $34.3M in cash and short-term investments at the end of Q2. Debt totaled $37.1M. A recently-closed $150M credit facility could be used on buybacks, at the cost of increasing debt.
Aug. 8, 2014, 5:40 PM
Aug. 7, 2014, 5:36 PM
Aug. 6, 2014, 10:46 AM
- A slew of banks have jointly provided EBIX with a 5-year credit facility worth $150M. The company has "the option to request an increase in the Credit Facilities of up to [$200M], without Lender approval, subject to receipt of additional lender commitments."
- $33M of the funds will be used to pay off an existing credit line; the remainder will be available to finance "growth and share repurchase initiatives."
- The insurance software vendor, which is still dealing with multiple legal/regulatory probes, had $6.1M in net cash as of May 9.
Ebix Inc provides a series of application software products for the insurance industry from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries.
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