Ebix Takes a Revenue Hit From Lagging Acquisition
Ebix's latest earnings call revealed a 6.9% decrease in the company's quarterly revenue, dropping from $53.8 million in Q3 2012, to $50.3 million.
The insurance industry software supplier explained that it was negatively affected by $1.6 million because of the "strengthening of the U.S. dollar," as well as a $1.3 million drop in revenue from PlanetSoft, which the company acquired in 2012.
Margins and cash showed no signs of improvement, either. Ebix's operating margin dropped 1.5% compared to the same time last year, due to "certain legal and extraordinary operational costs," which totaled $3.7 million. Net income, meanwhile, sank 27%, to $18.1 million.
Despite the setbacks, Ebix President, Chairman, and CEO Robin Raina said in a statement that he was pleased with the company's quarterly performance. "On a constant currency basis," he said, "the Company revenues grew sequentially from $51.5 million in Q2 of 2013 to $51.9 million in Q3 of 2013." Additionally, the company "continued to strengthen our recurring business, by signing new clients while at the same time retaining our existing client base."
The article Ebix Takes a Revenue Hit From Lagging Acquisition originally appeared on Fool.com.Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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