##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number 0-15946
 Ebix, Inc.
  DELAWARE
    
    77-0021975(State or other jurisdiction of incorporation or
    
    (I.R.S. Employer Identification No.)organization)5 CONCOURSE PARKWAY, SUITE 3200ATLANTA, GEORGIA
    
    30328(Address of principal executive offices)
    
    (Zip Code)
 678-281-2020
 þ o
 o o þ
  Large accelerated filer o
Accelerated filer þ
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company o o þ




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##### 



INDEX
  
 PART I  FINANCIAL INFORMATIONItem 1. Consolidated Financial StatementsCondensed Consolidated Statements of Income for the three and six months ended June 30, 2010 and 2009 (unaudited)
    
    
    2Condensed Consolidated Balance Sheets at June 30, 2010 (unaudited) and December 31, 2009
    
    
    3Condensed Consolidated Statement of Stockholders Equity and Comprehensive Income for the six months ended June 30, 2010 (unaudited)
    
    
    4Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2010 and 2009 (unaudited)
    
    
    5Notes to Condensed Consolidated Financial Statements (unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4. Controls and Procedures
    
    
    24PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    24Item 1A. Risk Factors
    
    
    24Item 2A. Repurchases of Equity Securities
    
    
    25Item 2B. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 3. Defaults upon Senior Securities
    
    
    25Item 4. Submission of Matters to a Vote of Security Holders
    
    
    25Item 5. Other Information
    
    
    25Item 6. Exhibits
    
    
    25SIGNATURES
    
    
    26EXHIBIT INDEX
    
    
    27Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Operating revenue
    
    $
    32,207
    
    
    $
    22,421
    
    
    $
    63,810
    
    
    $
    43,089Operating expenses:Cost of services provided
    
    
    7,427
    
    
    
    4,532
    
    
    
    14,490
    
    
    
    8,833Product development
    
    
    3,571
    
    
    
    2,753
    
    
    
    6,934
    
    
    
    5,258Sales and marketing
    
    
    1,748
    
    
    
    1,121
    
    
    
    3,074
    
    
    
    2,255General and administrative
    
    
    5,005
    
    
    
    3,925
    
    
    
    10,665
    
    
    
    7,553Amortization and depreciation
    
    
    1,448
    
    
    
    830
    
    
    
    2,880
    
    
    
    1,573Total operating expenses
    
    
    19,199
    
    
    
    13,161
    
    
    
    38,043
    
    
    
    25,472Operating income
    
    
    13,008
    
    
    
    9,260
    
    
    
    25,767
    
    
    
    17,617Interest income
    
    
    127
    
    
    
    39
    
    
    
    215
    
    
    
    91Interest expense
    
    
    (246
    )
    
    
    (273
    )
    
    
    (514
    )
    
    
    (557
    )Other non-operating income
    
    
    1,444
    
    
    
    
    
    
    
    1,761
    
    
    
    Foreign exchange gain
    
    
    233
    
    
    
    346
    
    
    
    336
    
    
    
    752Income before income taxes
    
    
    14,566
    
    
    
    9,372
    
    
    
    27,565
    
    
    
    17,903Income tax expense
    
    
    (556
    )
    
    
    (416
    )
    
    
    (1,171
    )
    
    
    (612
    )Net income
    
    $
    14,010
    
    
    $
    8,956
    
    
    $
    26,394
    
    
    $
    17,291Basic earnings per common share
    
    $
    0.40
    
    
    $
    0.29
    
    
    $
    0.76
    
    
    $
    0.57Diluted earnings per common share
    
    $
    0.36
    
    
    $
    0.24
    
    
    $
    0.67
    
    
    $
    0.47Basic weighted average shares
outstanding
    
    
    34,957
    
    
    
    30,558
    
    
    
    34,853
    
    
    
    30,171Diluted weighted average shares
outstanding
    
    
    39,275
    
    
    
    37,461
    
    
    
    39,305
    
    
    
    37,281
   2




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##### Table of Contents



Ebix, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    20,891
    
    
    $
    19,227Short-term investments
    
    
    7,500
    
    
    
    1,799Trade accounts receivable, less allowances of $646 and $565, respectively
    
    
    24,402
    
    
    
    22,861Other current assets
    
    
    2,123
    
    
    
    2,628Total current assets
    
    
    54,916
    
    
    
    46,515Property and equipment, net
    
    
    7,705
    
    
    
    7,865Goodwill
    
    
    164,993
    
    
    
    157,245Intangibles, net
    
    
    21,019
    
    
    
    20,505Indefinite-lived intangibles
    
    
    29,299
    
    
    
    29,223Other assets
    
    
    953
    
    
    
    814Total assets
    
    $
    278,885
    
    
    $
    262,167LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable and accrued liabilities
    
    $
    8,417
    
    
    $
    11,060Accrued payroll and related benefits
    
    
    2,930
    
    
    
    3,634Short term debt
    
    
    4,375
    
    
    
    23,100Convertible debt, net of discount of $494 and $706, respectively
    
    
    24,505
    
    
    
    28,681Current portion of long term debt and capital lease obligations
    
    
    463
    
    
    
    596Deferred revenue
    
    
    7,776
    
    
    
    7,754Current deferred rent
    
    
    191
    
    
    
    163Other current liabilities
    
    
    110
    
    
    
    109Total current liabilities
    
    
    48,767
    
    
    
    75,097Revolving line of credit
    
    
    15,600
    
    
    
    Long term debt and capital lease obligations, less current portion
    
    
    3,587
    
    
    
    671Other liabilities
    
    
    2,966
    
    
    
    2,965Deferred tax liability, net
    
    
    5,195
    
    
    
    5,147Put option liability
    
    
    5,097
    
    
    
    6,596Deferred revenue
    
    
    123
    
    
    
    269Long term deferred rent
    
    
    648
    
    
    
    679Total liabilities
    
    
    81,983
    
    
    
    91,424Commitments and Contingencies, Note 6Stockholders equity:Preferred stock, $.10 par value, 500,000 shares authorized, no shares
issued and outstanding at June 30, 2010 and December 31, 2009
    
    
    
    
    
    
    Common stock, $.10 par value, 60,000,000 shares authorized, 34,827,986
issued and 34,787,477 outstanding at June 30, 2010 and 34,474,608 issued
and 34,434,099 outstanding at December 31, 2009
    
    
    3,479
    
    
    
    3,443Additional paid-in capital
    
    
    158,899
    
    
    
    158,404Treasury stock (40,509 shares as of June 30, 2010 and December 31, 2009)
    
    
    (76
    )
    
    
    (76
    )Retained earnings
    
    
    35,017
    
    
    
    8,623Accumulated other comprehensive income (loss)
    
    
    (417
    )
    
    
    349Total stockholders equity
    
    
    196,902
    
    
    
    170,743Total liabilities and stockholders equity
    
    $
    278,885
    
    
    $
    262,167
   3




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##### Table of Contents



Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements Stockholders Equity and Comprehensive Income
 AccumulatedCommon Stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    OtherTreasury
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    ComprehensiveIssued
    
    
    
    
    
    
    Stock
    
    
    Treasury
    
    
    Paid-in
    
    
    Retained
    
    
    (Loss)
    
    
    
    
    
    
    ComprehensiveShares
    
    
    Amount
    
    
    Shares
    
    
    Stock
    
    
    Capital
    
    
    Earnings
    
    
    Income
    
    
    Total
    
    
    IncomeBalance, December 31, 2009
    
    
    34,474,608
    
    
    $
    3,443
    
    
    
    (40,509
    )
    
    $
    (76
    )
    
    $
    158,404
    
    
    $
    8,623
    
    
    $
    349
    
    
    $
    170,743Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,394
    
    
    
    
    
    
    $
    26,394
    
    
    $
    26,394Cumulative translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (766
    )
    
    
    (766
    )
    
    
    (766
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    25,628Repurchase and retirement
of common stock
    
    
    (341,570
    )
    
    
    (34
    )
    
    
    
    
    
    
    
    
    
    
    (4,965
    )
    
    
    
    
    
    
    
    
    
    
    (4,999
    )Vesting of restricted stock
    
    
    180,641
    
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    (19
    )
    
    
    
    
    
    
    
    
    
    
    Conversion of principal
and interest on
Convertible promissory
notes
    
    
    476,662
    
    
    
    47
    
    
    
    
    
    
    
    
    
    
    
    4,400
    
    
    
    
    
    
    
    
    
    
    
    4,447Exercise of stock options
    
    
    37,645
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    
    
    
    
    178Deferred compensation and
amortization related to
options and restricted
stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    905
    
    
    
    
    
    
    
    
    
    
    
    905Balance, June 30, 2010
    
    
    34,827,986
    
    
    $
    3,479
    
    
    
    (40,509
    )
    
    $
    (76
    )
    
    $
    158,899
    
    
    $
    35,017
    
    
    $
    (417
    )
    
    $
    196,902
   4




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##### Table of Contents



Ebix, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
 Six months Ended June 30,2010
    
    
    2009Cash flows from operating activities:Net income
    
    $
    26,394
    
    
    $
    17,291Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation and amortization
    
    
    2,880
    
    
    
    1,573Stock-based compensation
    
    
    217
    
    
    
    100Restricted stock compensation
    
    
    688
    
    
    
    513Provision for doubtful accounts
    
    
    203
    
    
    
    90Debt discount amortization on convertible debt
    
    
    211
    
    
    
    Unrealized foreign exchange (gain)loss on forward contracts
    
    
    (49
    )
    
    
    (144
    )Unrealized foreign exchange (gain)loss
    
    
    (530
    )
    
    
    Gain on put option
    
    
    (1,499
    )
    
    
    Changes in assets and liabilities, net of effects from acquisitions:Accounts receivable
    
    
    (1,795
    )
    
    
    (2,617
    )Other assets
    
    
    387
    
    
    
    (387
    )Accounts payable and accrued expenses
    
    
    (1,926
    )
    
    
    (483
    )Accrued payroll and related benefits
    
    
    (709
    )
    
    
    (532
    )Deferred revenue
    
    
    (303
    )
    
    
    1,092Deferred rent
    
    
    (31
    )
    
    
    Deferred taxes
    
    
    (369
    )
    
    
    (1,125
    )Other current liabilities
    
    
    33
    
    
    
    178Net cash provided by operating activities
    
    
    23,802
    
    
    
    15,549Cash flows from investing activities:Acquisition of MCN, net of cash acquired
    
    
    (2,931
    )
    
    
    Acquisition
of Trades Monitor, net of cash acquired
    
    
    (2,749
    )
    
    
    Acquisition of Connective Technologies, net of cash acquired
    
    
    (1,337
    )
    
    
    Investment in ConfirmNet
    
    
    (2,975
    )
    
    
    (3,094
    )Investment in IDS
    
    
    
    
    
    
    (1,000
    )Investment in Acclamation, net of cash acquired
    
    
    
    
    
    
    (85
    )Investment in Facts, net of cash acquired
    
    
    
    
    
    
    (5,704
    )Investment in Periculum, net of cash acquired
    
    
    
    
    
    
    (200
    )(Purchases)maturities of marketable securities, net
    
    
    (5,701
    )
    
    
    (1,618
    )Capital expenditures
    
    
    (899
    )
    
    
    (1,200
    )Net cash used in investing activities
    
    
    (16,592
    )
    
    
    (12,901
    )Cash flows from financing activities:Repayments on line of credit, (net)
    
    
    (7,500
    )
    
    
    Proceeds from term loan
    
    
    10,000
    
    
    
    Principal payments of term loan obligation
    
    
    (2,344
    )
    
    
    Repurchases of common stock
    
    
    (4,999
    )
    
    
    (505
    )Proceeds from the exercise of stock options
    
    
    178
    
    
    
    1,422Payments of capital lease obligations
    
    
    (552
    )
    
    
    (78
    )Principal payments of debt obligations
    
    
    
    
    
    
    (742
    )Net cash provided by/(used in) financing activities
    
    
    (5,217
    )
    
    
    97Effect of foreign exchange rates on cash
    
    
    (329
    )
    
    
    (344
    )Net change in cash and cash equivalents
    
    
    1,664
    
    
    
    2,401Cash and cash equivalents at the beginning of the period
    
    
    19,227
    
    
    
    9,475Cash and cash equivalents at the end of the period
    
    $
    20,891
    
    
    $
    11,876Supplemental disclosures of cash flow information:Interest paid
    
    $
    276
    
    
    $
    429Income taxes paid
    
    $
    1,275
    
    
    $
    2,873
 Supplemental schedule of noncash financing activities:
    5




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Ebix, Inc. and Subsidiaries
 
 Notes to Condensed Consolidated Financial Statements
 Note 1: Description of Business and Summary of Significant Accounting Policies
 Description of Business
  For the Three Months Ended
    
    
    For the Six Months EndedJune 30,
    
    
    June 30,(dollar amounts in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Carrier Systems
    
    $
    2,155
    
    
    $
    2,701
    
    
    $
    4,490
    
    
    $
    5,527Exchanges
    
    
    22,749
    
    
    
    13,162
    
    
    
    45,620
    
    
    
    25,195BPO
    
    
    3,985
    
    
    
    3,714
    
    
    
    7,478
    
    
    
    7,075Broker Systems
    
    
    3,318
    
    
    
    2,844
    
    
    
    6,222
    
    
    
    5,292Totals
    
    $
    32,207
    
    
    $
    22,421
    
    
    $
    63,810
    
    
    $
    43,089
 Summary of Significant Accounting Policies
 Basis of Presentation
 Fair Value of Financial Instruments
 Revenue Recognition and Deferred Revenue
  6




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Accounts Receivable and the Allowance for Doubtful Accounts Receivable
 Goodwill and Other Indefinite-Lived Intangible Assets
  (In thousands)Beginning Balance (December 31, 2009)
    
    $
    157,245Additions
    
    
    7,622Foreign currency translation adjustments
    
    
    126Ending Balance (June 30, 2010)
    
    $
    164,993
 Finite-lived Intangible Assets
 LifeCategory
    
    (yrs)Customer relationships
    
    
    420Developed technology
    
    
    37Trademarks
    
    
    510Non-compete agreements
    
    
    5
  7




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##### Table of Contents



June 30,
    
    
    December 31,2010
    
    
    2009(In thousands)Finite-lived intangible assets:Customer relationships
    
    $
    21,681
    
    
    $
    19,773Developed technology
    
    
    8,263
    
    
    
    7,935Trademarks
    
    
    218
    
    
    
    218Non-compete agreements
    
    
    418
    
    
    
    418Backlog
    
    
    140
    
    
    
    140Total intangibles
    
    
    30,720
    
    
    
    28,484Accumulated amortization
    
    
    (9,701
    )
    
    
    (7,979
    )Finite-lived intangibles, net
    
    $
    21,019
    
    
    $
    20,505Indefinite-lived intangibles:Customer/territorial relationships
    
    $
    29,299
    
    
    $
    29,223
  Income Taxes
  Recent Relevant Accounting Pronouncements
 Note 2: Earnings per Share
   8




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##### Table of Contents



For the Three months
    
    
    For the Six monthsEnded June 30,
    
    
    Ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(In thousands, except per share data)Net income
    
    $
    14,010
    
    
    $
    8,956
    
    
    $
    26,394
    
    
    $
    17,291Convertible debt interest
(excludes imputed interest)
    
    
    
    
    
    
    135
    
    
    
    10
    
    
    
    298Net income for diluted earnings
per share purposes
    
    $
    14,010
    
    
    $
    9,091
    
    
    $
    26,404
    
    
    $
    17,589Diluted shares outstanding
    
    
    39,275
    
    
    
    37,462
    
    
    
    39,305
    
    
    
    37,282Diluted earnings per common share
    
    $
    0.36
    
    
    $
    0.24
    
    
    $
    0.67
    
    
    $
    0.47
  For the Three months
    
    
    For the Six monthsEnded June 30,
    
    
    Ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(In thousands)Basic Weighted Average Shares Outstanding
    
    
    34,958
    
    
    
    30,559
    
    
    
    34,852
    
    
    
    30,173Incremental Shares
    
    
    4,317
    
    
    
    6,903
    
    
    
    4,453
    
    
    
    7,109Diluted Shares Outstanding
    
    
    39,275
    
    
    
    37,462
    
    
    
    39,305
    
    
    
    37,282
 Note 3: Business Combination
      9




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Note 4: Debt with Commercial Bank
    Note 5: Convertible Debt
   10




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##### Table of Contents



Note 6: Commitments and Contingencies
 Lease Commitments
 Contingencies
 Self Insurance
 Note 7: Income Taxes
 Effective Tax Rate
   11




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Accounting for Uncertainty in Income Taxes
  Note 8: Derivative Instruments
    12




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##### Table of Contents



Note 9: Geographic Information
  Six months ended June 30, 2010
 TheAmericas
    
    
    Australia
    
    
    New Zealand
    
    
    India
    
    
    Singapore
    
    
    TotalRevenue
    
    $
    47,813
    
    
    $
    13,326
    
    
    $
    711
    
    
    $
    
    
    
    $
    1,960
    
    
    $
    63,810Fixed assets
    
    $
    3,994
    
    
    $
    718
    
    
    $
    33
    
    
    $
    2,736
    
    
    $
    224
    
    
    $
    7,705Goodwill and intangible assets
    
    $
    152,877
    
    
    $
    459
    
    
    $
    
    
    
    $
    
    
    
    $
    61,975
    
    
    $
    215,311
 Six months ended June 30, 2009
 TheAmericas
    
    
    Australia
    
    
    New Zealand
    
    
    India
    
    
    Singapore
    
    
    TotalRevenue
    
    $
    32,160
    
    
    $
    9,525
    
    
    $
    573
    
    
    $
    
    
    
    $
    831
    
    
    $
    43,089Fixed assets
    
    $
    2,588
    
    
    $
    439
    
    
    $
    34
    
    
    $
    1,566
    
    
    $
    41
    
    
    $
    4,668Goodwill and intangible assets
    
    $
    74,861
    
    
    $
    52,041
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    126,902
  13




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##### Table of Contents



Item 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 As used herein, the terms Ebix, the Company, we, our and us refer to Ebix, Inc., a
Delaware corporation, and its consolidated subsidiaries as a combined entity, except where it is
clear that the terms mean only Ebix, Inc.
 Safe Harbor for Forward-Looking Statements
   
    
    Regarding Notes 4 and 5 of the Condensed Notes to the Condensed Consolidated Financial
Statements, and our future liquidity needs discussed under Liquidity and Financial
Condition, our ability to generate cash from operating activities and any declines in our
credit ratings or financial condition which could restrict our access to the capital
markets or materially increase our financing costs;
    
    With respect to Note 6 of the Condensed Notes to the Condensed Consolidated Financial
Statements, Commitments and Contingencies, and Contractual Obligations and Commercial
Commitments in MD&A, changes in the market value of our assets or the actual cost of our
commitments or contingencies;
    
    With respect to our acquisitions, our ability to efficiently and effectively integrate
acquired business operations, and our ability to accurately estimate the fair value of
tangible and intangible assets; and,
    
    With respect this Management Discussion & Analysis of Financial Condition and Results
of Operation and the analysis of the three and six month revenue
trends, and the actual future level of demand
for our products during the immediately foreseeable future.
  14




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##### Table of Contents



www.ebix.com www.sec.gov
  Company Overview
    Offices and Geographic Information
  Results of Operations  Three-Months Ended June 30, 2010 and 2009
 Operating Revenue
   15




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For the Three Months Ended
    
    
    For the Six Months EndedJune 30,
    
    
    June 30,(dollar amounts in thousands)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Carrier Systems
    
    $
    2,155
    
    
    $
    2,701
    
    
    $
    4,490
    
    
    $
    5,527Exchanges
    
    
    22,749
    
    
    
    13,162
    
    
    
    45,620
    
    
    
    25,195BPO
    
    
    3,985
    
    
    
    3,714
    
    
    
    7,478
    
    
    
    7,075Broker Systems
    
    
    3,318
    
    
    
    2,844
    
    
    
    6,222
    
    
    
    5,292Totals
    
    $
    32,207
    
    
    $
    22,421
    
    
    $
    63,810
    
    
    $
    43,089
  Cost of Services Provided
  Product Development expenses
  Sales and Marketing Expenses
  General and Administrative Expenses
  Amortization and Depreciation Expenses
   16




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##### Table of Contents



Other Non-Operating Income
  Income Taxes
  Results of Operations Six-Month Periods Ended June 30, 2010 and 2009
 Operating Revenue
  Cost of Services Provided
  Product Development Expenses
  Sales and Marketing Expenses
  General and Administrative Expenses
   17




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##### Table of Contents



Amortization and Depreciation Expenses
  Other Non-Operating Income
  Income Taxes
  Dividends, Liquidity and Capital Resources
     18




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##### Table of Contents



Operating Activities
   Investing Activities
   Financing Activities
   19




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##### Table of Contents



Commercial Bank Financing Facility
   Convertible Debt
   Off-Balance Sheet Arrangements
   20




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##### Table of Contents



Contractual Obligations and Commercial Commitments
  Payment Due by PeriodLess Than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 years(in thousands)Revolving line of credit
    
    $
    15,600
    
    
    $
    
    
    
    $
    15,600
    
    
    $
    
    
    
    $
    Convertible debt (1)
    
    $
    25,000
    
    
    $
    
    
    
    $
    25,000
    
    
    $
    
    
    
    $
    Long-term debt
    
    $
    7,656
    
    
    $
    4,375
    
    
    $
    3,281
    
    
    $
    
    
    
    $
    Operating leases
    
    $
    9,397
    
    
    $
    3,127
    
    
    $
    4,239
    
    
    $
    2,004
    
    
    $
    27Capital leases
    
    $
    768
    
    
    $
    462
    
    
    $
    255
    
    
    $
    51
    
    
    $
    Total
    
    $
    58,421
    
    
    $
    7,964
    
    
    $
    48,375
    
    
    $
    2,055
    
    
    $
    27
 (1)
    
    In August 2009 the Company issued three convertible promissory notes raising a total
of $25.0 million. The notes are payable in full at their maturity date in August 2011. In
accordance with the terms of the notes upon a conversion election by the holder the Company must
satisfy the related principal balance in cash and may satisfy the conversion spread (that being the
excess of the conversion value over the related original principal component) in either cash or
stock at option of the Company. Therefore since these notes are effectively callable, the Company
has classified them as a current liability in the accompanying Condensed Consolidated Balance
Sheet. Recent Accounting Pronouncements
  Application of Critical Accounting Policies
  Revenue Recognition
   21




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Allowance for Doubtful Accounts Receivable
  Valuation of Goodwill
    22




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Income Taxes
   
 Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    23




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Item 4: CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures:
 Internal Control over Financial Reporting:
 
 Part II  OTHER INFORMATION
 
 Item 1: LEGAL PROCEEDINGS
  
 Item 1A: RISK FACTORS
   24




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Item 2A: REPURCHASES OF EQUITY SECURITIES
  Maximum Number (orTotal Number of Shares
    
    
    
    
    
    
    Approximate Dollar Value) ofPurchased as Part of
    
    
    
    
    
    
    Shares that May Yet BePublicly-Announced
    
    
    Average Price Paid
    
    
    Purchased Under the Plans orPeriod
    
    Plans or Programs
    
    
    Per Share (1)
    
    
    Programs (2)As of December 31, 2009
    
    
    273,537
    
    
    $
    6.66
    
    
    $
    13,059,000January 1, 2010 to March 31, 2010
    
    
    69,070
    
    
    $
    14.50
    
    
    $
    12,057,000April 1, 2010 to April 30, 2010
    
    
    
    
    
    $
    
    
    
    $
    12,057,000May 1, 2010 to May 31, 2010
    
    
    138,100
    
    
    $
    14.49
    
    
    $
    10,055,000June 1, 2010 to June 30, 2010
    
    
    134,400
    
    
    $
    14.85
    
    
    $
    8,059,000Total
    
    
    615,107
    
    
    
    
    
    
    $
    8,059,000
 (1)
    
    Average price paid per share for shares purchased as part of our publicly-announced
plan (includes brokerage commissions).(2)
    
    Effective June 1, 2010 the Companys Board of Directors unanimously approved an
increase in the size of the Companys authorized share repurchase plan from $5.0 million to
$15.0 million. 
 Item 2B: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 Item 3: DEFAULTS UPON SENIOR SECURITIES
  
 Item 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 Item 6: EXHIBITS
   25




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Ebix, Inc.Date: August 9, 2010
    By:
    /s/ Robin RainaRobin RainaChief Executive Officer(Principal Executive Officer)Date: August 9, 2010
    By:
    /s/ Robert F. KerrisRobert F. KerrisChief Financial Officer(Principal Financial and Accounting Officer)  26




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##### Table of Contents



EXHIBIT INDEX
 Exhibits2.1
    
    
    Stock Purchase Agreement dated February 23, 2004 by and among the Company and the shareholders of
LifeLink Corporation (incorporated by reference to Exhibit 2.1 to the Companys Current Report of
Form 8-K dated February 23, 2004 (the February 2004 8-K)) and incorporated herein by reference.2.2
    
    
    Secured Promissory Note, dated February 23, 2004, issued by the Company (incorporated by reference
to Exhibit 2.2 of the February 2004 8-K) and incorporated herein by reference.2.3
    
    
    Purchase Agreement, dated June 28, 2004, by and between Heart Consulting Pty Ltd. And Ebix
Australia Pty Ltd. (incorporated by reference to Exhibit 2.1 to the Companys Current Report of
Form 8-K dated July 14, 2004 (the July 14, 2004 8-K)) and incorporated herein by reference.2.4
    
    
    Agreement, dated July 1, 2004, by and between Heart Consulting Pty Ltd. and Ebix, Inc.
(incorporated by reference to Exhibit 2.2 to the Companys Current Report of Form 8-K dated July
14, 2004 (the July 14, 2004 8-K)) and incorporated herein by reference.2.5
    
    
    Agreement Plan of Merger by and among Ebix, Finetre and Steven F. Piaker, as shareholders
Representative dated September 22, 2006 (incorporated by reference to Exhibit 2.1 to the Companys
Current Report on 8-K/A dated October 2, 2006) and incorporated herein by reference.2.6
    
    
    Asset Purchase Agreement dated May 9, 2006, by and among Ebix, Inc., Infinity Systems Consulting,
Inc. and the Shareholders of Infinity Systems Consulting, Inc. (incorporated here by reference to
Exhibit 2.1 to the Companys Current Report on Form 8-K/A dated May 9, 2006) and incorporated
herein by reference.2.7
    
    
    Agreement and Plan of Merger dated October 31, 2007 by and among Ebix, Inc., Jenquest, Inc. IDS
Acquisition Sub. and Robert M. Ward as Shareholder Representative (incorporated here by reference
to Exhibit 2.1 to the Companys Current Report on Form 8-K/A dated November 7, 2007) and
incorporated herein by reference.2.8
    
    
    Stock Purchase Agreement by and among Ebix, Inc., Acclamation Systems, Inc., and Joseph Ott
(incorporated here by reference to Exhibit 2.1 to the Companys Current Report on Form 8-K dated
August 5, 2008) and incorporated herein by reference.2.9
    
    
    Stock Purchase Agreement by and amongst Ebix, Inc., ConfirmNet Corporation, Ebix Software India
Private Limited, ConfirmNet Acquisition Sub, Inc., and Craig Irving, as Shareholders
Representative (incorporated here by reference to Exhibit 2.1 to the Companys Current Report on
Form 8-K dated November 12, 2008) and incorporated herein by reference.2.10
    
    
    Agreement and Plan of Merger, dated September 30, 2009, by and amongst Ebix, E-Z Data, and Dale
Okuno and Dilip Sontakey, as Sellers (incorporated here by reference to Exhibit 2.1 to the
Companys Current Report on Form 8-K dated October 6, 2009) and incorporated herein by reference.2.11
    
    
    IP Asset Purchase Agreement, dated September 30, 2009, by and amongst Ebix Singapore PTE LTD.,
Ebix, Inc., E-Z Data, and Dale Okuno and Dilip Sontakey, as Shareholders dated September 30, 2009
(incorporated here by reference to Exhibit 2.2 to the Companys Current Report on Form 8-K dated
October 6, 2009) and incorporated herein by reference.3.1
    
    
    Certificate of Incorporation, as amended, of Ebix, Inc. (filed as Exhibit 3.1 to the Companys
Annual Report on Form 10-K for the fiscal year ended December 31, 2009) and incorporated herein by
reference.3.2
    
    
    Bylaws of the Company (filed as Exhibit 3.2 to the Companys Annual Report on Form 10-K for the
fiscal year ended December 31, 2000) and incorporated herein by reference.31.1
    *
    
    Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) (Section 302 of the
Sarbanes-Oxley Act of 2002).31.2
    *
    
    Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) (Section 302 of the
Sarbanes-Oxley Act of 2002).32.1
    *
    
    Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    *
    
    Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Filed herewith  27