10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

R	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2011

OR

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 0-15946

Ebix, Inc.

(Exact name of registrant as specified in its charter)

DELAWARE	77-0021975
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
5 CONCOURSE PARKWAY, SUITE 3200
ATLANTA, GEORGIA	30328
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 678-281-2020

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes R No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o N/A R

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

Large accelerated filer o Accelerated filer R Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No R

As of August 9, 2011, the number of shares of common stock outstanding was 37,428,224.

EXPLANATORY NOTE

The sole purpose of this amendment to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, originally filed with the Securities and Exchange Commission on August 9, 2011, is to furnish Exhibit 101 to that Form 10-Q, which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part I, Item 1 of the Form 10-Q. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.

No other changes have been made to the Form 10-Q and the Form 10-Q has not been updated to reflect events occurring subsequent to the original filing date.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EBIX, INC.

BY: /s/ Robert Kerris

Robert Kerris

Chief Financial Officer

Date: August 26 , 2011

EXHIBIT INDEX

Exhibits
2.1	Stock Purchase Agreement dated February 23, 2004 by and among the Company and the shareholders of LifeLink Corporation (incorporated herein 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 herein 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.
2.12	Agreement and Plan of Merger, dated August 29, 2010, by and among Ebix Inc., A.D.A.M., Inc., and Eden Acquisition Sub, Inc. (incorporated here by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K dated August 31, 2010) and incorporated herein by reference.
10.44	Seventh Amendment to Credit Agreement, dated as of April 20, 2011, by and among Ebix, Inc., as borrower, certain subsidiaries of Ebix, Inc., as guarantors, the lenders party thereto from time to time, Bank of America, N.A., as administrative agent (incorporated here by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 21, 2011) 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.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.

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Condensed Consolidated Balance Sheets (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 23,627	$ 23,397
Short-term investments	1,780	6,300
Trade accounts receivable, less allowances of $1,766 and $1,126, respectively	32,829	26,028
Deferred tax asset, net	3,174	0
Other current assets	5,305	5,057
Total current assets	66,715	60,782
Property and equipment, net	9,171	7,806
Goodwill	245,749	180,602
Intangibles, net	40,187	22,574
Indefinite-lived intangibles	31,278	30,552
Deferred tax asset, net	7,110	0
Other assets	1,084	984
Total assets	401,294	303,300
Current liabilities:
Accounts payable and accrued liabilities	13,076	15,344
Accrued payroll and related benefits	4,907	4,536
Short term debt	6,664	5,000
Convertible debt, net of discount of $0 and $56, respectively	0	4,944
Current portion of long term debt and capital lease obligations	186	426
Deferred revenue	14,780	8,610
Current deferred rent	235	207
Put option liability	1,462	0
Other current liabilities	184	18
Total current liabilities	41,494	39,085
Revolving line of credit	8,750	25,000
Long term debt and capital lease obligations, less current portion	11,860	205
Other liabilities	3,654	2,991
Deferred tax liability, net	0	3,534
Put option liability	0	537
Deferred revenue	139	126
Long term deferred rent	1,080	554
Total liabilities	66,977	72,032
Commitments and Contingencies, Note 6
Stockholders’ equity:
Preferred stock, $0.10 par value, 500,000 shares authorized, no shares issued and outstanding at June 30, 2011 and December 31, 2010	0	0
Common stock, $0.10 par value, 60,000,000 shares authorized, 38,525,004 issued and 38,484,495 outstanding at June 30, 2011 and 36,057,791 issued and 36,017,282 outstanding at December 31, 2010	3,843	3,602
Additional paid-in capital	213,635	153,221
Treasury stock (40,509 shares as of June 30, 2011 and December 31, 2010)	(76)	(76)
Retained earnings	105,154	67,642
Accumulated other comprehensive income	11,761	6,879
Total stockholders’ equity	334,317	231,268
Total liabilities and stockholders’ equity	$ 401,294	$ 303,300

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Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data	Jun. 30, 2011	Dec. 31, 2010
Current Assets:
Allowance for doubtful accounts	$ 1,766	$ 1,126
Current Liabilities:
Unamortize Discount, convertible debt	$ 0	$ 56
Stockholders' Equity:
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	38,525,004	36,057,791
Common stock, shares outstanding	38,484,495	36,017,282
Treasury stock, shares	40,509	40,509

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Document and Entity Information	6 Months Ended
	Jun. 30, 2011	Aug. 09, 2011
Document Information
Entity Registrant Name	EBIX INC
Entity Central Index Key	0000814549
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		37,428,224

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Lease Commitments—The Company leases office space under non-cancelable operating leases with expiration dates ranging through 2018, with various renewal options. Capital leases range from three to five years and are primarily for computer equipment. There were multiple assets under various individual capital leases at June 30, 2011 and 2010. Rental expense for office facilities and certain equipment subject to operating leases for the six months ended June 30, 2011 and 2010 was $2.2 million and $2.0 million, respectively. Sublease income was $0 and $72 thousand, respectively for the six months ended June 30, 2011 and 2010.

Contingencies—Between July 14, 2011 and July 29, 2011, nine securities class action complaints were filed against the Company and certain of its officers in the Southern District of New York, and one class action complaint was filed against the Company and certain of its officers in the Northern District of Georgia. These complaints have yet to be consolidated. The complaints allege that between May 6, 2009 and June 30, 2011 the Company issued a series of materially false and misleading statements regarding its business and financial results, and the adequacy of its internal controls in earnings reports, SEC filings, press releases, and other public statements, which allegedly caused the Company's stock to trade at artificially inflated prices. The plaintiffs seek an unspecified amount of damages. The Company believes that the complaints are not justified, that it has meritorious defenses to each of the plaintiffs' claims, and it intends to vigorously defend itself against these actions. As of June 30, 2011 no liability in the Company's financial statements has been recognized with respect to these class action complaints, as presently a loss is not probable nor able to be reasonably estimated.

The Company is not involved in any other significant legal action or claim that, in the opinion of management, could have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.

Self Insurance—For most of the Company’s U.S. employees the Company is currently self-insured for its health insurance program and has a stop loss policy that limits the individual liability to $100 thousand per person and the aggregate liability to 125% of the expected claims based upon the number of participants and historical claims. As of June 30, 2011, the amount accrued on the Company’s Condensed Consolidated Balance Sheet for the self-insured component of the Company’s employee health insurance was $269 thousand. The maximum potential estimated cumulative liability for the annual contract period, which ends in September 2011, is $2.5 million.

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Earnings per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per Share

To calculate diluted earnings per share, interest expense related to convertible debt excluding imputed interest, was added back to net income as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
	(In thousands, except per share data)
Net income	$	22,348	$	14,010	$	37,512	$	26,394
Convertible debt interest (excludes imputed interest)	—		—		—		10
Net income for diluted earnings per share purposes	$	22,348	$	14,010	$	37,512	$	26,404
Diluted shares outstanding	42,344		39,275		41,882		39,305
Diluted earnings per common share	$	0.53	$	0.36	$	0.90	$	0.67

Diluted shares outstanding were determined as follows for the three and six months ending June 30, 2011 and 2010, respectively:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2011	2010	2011	2010
	(In thousands)
Basic Weighted Average Shares Outstanding	39,159	34,958	38,658	34,852
Incremental Shares	3,185	4,317	3,224	4,453
Diluted Shares Outstanding	42,344	39,275	41,882	39,305

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Derivative Instruments

6 Months Ended

Jun. 30, 2010

Derivative Instruments [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments

The Company uses derivative instruments that are not designated as hedges under FASB accounting guidance related to the accounting for derivative instruments and hedging activity, to hedge the fluctuations in foreign exchange rates for recognized balance sheet items such as intercompany receivables. As of June 30, 2011, the Company has in place twenty-four annual foreign currency hedge contracts maturing between September 2011 and March 2012 with a notional value totaling $23.7 million. The intended purpose of these hedging instruments is to offset the income statement impact of recorded foreign exchange transaction gains and losses resulting from U.S. dollar denominated intercompany invoices issued by our Indian subsidiary whose functional currency is the Indian rupee. The change in the fair value of these derivatives was recorded in foreign currency exchange gains in the Condensed Consolidated Statements of Income and was $111 thousand and $46 thousand for six months ended June 30, 2011 and 2010, respectively. These gains are in addition to the consolidated foreign exchange gains equivalent to $2.8 million and $290 thousand recorded during the six months ended June 30, 2011 and 2010, respectively, incurred by our subsidiaries for settlement of transactions denominated in other than their functional currency. As of June 30, 2011, the aggregate fair value of these derivative instruments, which are included in other current assets, in the Condensed Consolidated Balance Sheet was $1.1 million. The Company has classified its foreign currency hedges, for which the fair value is remeasured on a recurring basis at each reporting date, as a Level 2 instrument (i.e. wherein fair value is determined and based on observable inputs other than quoted market prices), which we believe is the most appropriate level within the fair value hierarchy based on the inputs used to determine its the fair value at the measurement date.

In connection with the acquisition of E-Z Data effective October 1, 2009, Ebix issued a put option to the each of E-Z Data’s two stockholders. The put option, which expires in November 2011, is exercisable during the thirty-day period immediately following the two-year anniversary date of the business acquisition, which if exercised would enable them to sell the underlying 1.49 million shares of Ebix common stock they received as part of the purchase consideration, back to the Company at a price of $15.11 per share, which represents a 10% discount off of the per-share value established on the effective date of the closing of Ebix’s acquisition of E-Z Data. In accordance with the relevant authoritative accounting literature a portion of the total purchase consideration was allocated to this put liability based on its initial fair value, which was determined to be $6.6 million using a Black-Scholes model. The inputs used in the valuation of the put option include term, stock price volatility, current stock price, exercise price, and the risk free rate of return. At June 30, 2011 the fair value of the put option liability was remeasured and was determined to have increased $925 thousand during the six month period then ended and with the amount reflected as a loss and is included other non-operating income (losses) in the accompanying Condensed Consolidated Statement of Income. As of June 30, 2011, the aggregate fair value of this derivative instrument, which is included as in current liabilities in the Condensed Consolidated Balance Sheet, was $1.5 million. The Company has classified the put option, for which the fair value is re-measured on a recurring basis at each reporting date as a Level 2 instrument (i.e. wherein fair is partially determined and based on observable inputs other than quoted market prices), which we believe is the most appropriate level within the fair value hierarchy based on the inputs used to determine its the fair value at the measurement date.

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Geographic Information

6 Months Ended

Jun. 30, 2011

Geographic Information [Abstract]

Segment Reporting Disclosure [Text Block]

Geographic Information

The Company operates with one reportable segment whose results are regularly reviewed by the Company's chief operating decision maker as to performance and allocation of resources. The following enterprise wide information is provided. The following revenue information relates to the Company's geographic locations (all amounts in thousands):

Six Months Ended June 30, 2011

	The Americas		Asia-Pacific		Total
Revenue	$	64,050	$	18,267	$	82,317

Six Months Ended June 30, 2010

	The Americas		Asia-Pacific		Total
Revenue	$	47,813	$	15,997	$	63,810

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Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

Effective Tax Rate— The Company’s effective tax rate for 2011 reflects the significant tax benefits from having a higher mix of a portion of our operations in foreign jurisdictions where earnings are taxed at rates lower than U.S. statutory rates and where certain components of the Company's income are exempt from taxation. The Company’s interim period income tax provisions are based on an estimate of the effective income tax rate expected to be applicable to the related annual period, after eliminating discrete items unique to the respective interim period being reported. The Company’s effective income tax rate, excluding the effect of discrete items, for the three months ended June 30, 2011 rate was 8.83% as compared to 4.24% for the same period in 2010. The effective rate increased primarily due to increased taxable income from jurisdictions with higher tax rates.

The Company recognized a net tax benefit of $1.3 million for the six months ended June 30, 2011. The Company's interim period tax provision, exclusive of discrete items, for this six month period was an expense of $3.3 million which is reflective of the 8.83% effective tax rate. The discrete items recognized during the six months ending June 30, 2011 pertained to the Company's release of the remaining valuation allowances it had held against deferred tax assets associated with tax net operating losses carry forwards obtained from earlier business acquisitions. These valuation allowances had been previously retained due to uncertainty as to the recoverability of the deferred tax asset in regards to sufficient levels of future expected taxable income, and due to uncertainties as to their utilization posed by the requirements of IRC Section 382. The valuation allowances were released based on analysis of the levels of taxable income being generated by these business units and an analysis of the relevant income tax regulations. As a result of the release of the valuation allowances the Company recognized a tax benefit of $4.6 million (net of charges associated with the offsetting of windfall gains realized from the tax deductions pertaining to exercised stock options and vested restricted stock grants).

At June 30, 2011, the Company had remaining available domestic net operating loss (“NOL”) carry-forwards of approximately $60.1 million which are available to offset future federal and certain state income taxes. Approximately $40.0 million of these NOL carry-forwards were obtained as a result of the recent acquisition of ADAM in February 2011. The Company expects to fully utilize these NOLs before they begin to expire in 2019.

Accounting for Uncertainty in Income Taxes—The Company has applied the FASB’s accounting guidance on accounting for uncertain income tax positions. As of June 30, 2011 the Company’s Condensed Consolidated Balance Sheet includes a liability of $2.98 million for unrecognized tax benefits which is included in other long-term liabilities. During the three months ended June 30, 2011 there were no changes to this liability. A reconciliation of the beginning and ending amount of the Company’s liability reserves for unrecognized tax benefits is as follows:

	(in thousands)
Balance at January 1, 2011	$	2,980
Additions for tax positions related to current year	$	—
Additions for tax positions of prior years	$	—
Reductions for tax position of prior years	$	—
Balance at June 30, 2011	$	2,980

The Company recognizes interest accrued and penalties related to unrecognized tax benefits as part of income tax expense. As of June 30, 2011 approximately $602 thousand of estimated interest and penalties is included in other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet.

Based on its current knowledge and the probability assessment of potential outcomes, the Company believes that recorded tax reserves, as determined in accordance with the requisite income tax guidance, are adequate.

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Condensed Consolidated Statements of Cash Flow (Unaudited) (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income	$ 37,512	$ 26,394
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,868	2,880
Share-based Compensation	1,143	905
Provision for doubtful accounts	337	203
Provision for deferred taxes	(2,827)	(369)
Debt discount amortization on convertible debt	21	211
Unrealized foreign exchange gain on forward contracts	(238)	(49)
Foreign currency transaction gain (loss)	(1,769)	(530)
(Gain) loss on put option	925	(1,499)
Reduction of acquisition earnout accruals	(1,868)	0
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(3,693)	(1,795)
Other assets	825	387
Accounts payable and accrued expenses	(3,482)	(1,926)
Accrued payroll and related benefits	(850)	(709)
Deferred revenue	(781)	(303)
Deferred rent	(120)	(31)
Other current liabilities	867	33
Net cash provided by operating activities	29,870	23,802
Cash flows from investing activities:
Investment, net of cash acquired	(184)	(2,975)
Purchases of marketable securities, net	(3,080)	(5,701)
Maturities of marketable securities, net	7,600	0
Capital expenditures	(1,335)	(899)
Net cash used in investing activities	6,149	(16,592)
Cash flows from financing activities:
Repayments on revolving line of credit, (net of proceeds)	(16,250)	(7,500)
Proceeds from term loan	16,250	10,000
Principal payments of term loan obligation	(3,074)	(2,344)
Repurchases of common stock	(26,198)	(4,999)
Settlement on conversion of convertible debt	(6,761)	0
Proceeds from the exercise of stock options	14	178
Payments of capital lease obligations	(186)	(552)
Net cash provided by/(used in) financing activities	(36,205)	(5,217)
Effect of foreign exchange rates on cash	416	(329)
Net change in cash and cash equivalents	230	1,664
Cash and cash equivalents at the beginning of the period	23,397	19,227
Cash and cash equivalents at the end of the period	23,627	20,891
Supplemental disclosures of cash flow information:
Interest paid	361	276
Income taxes paid	1,505	1,275
ADAM
Cash flows from investing activities:
Acquisition of Businesses, net of cash acquired	3,529	0
MCN
Cash flows from investing activities:
Investment, net of cash acquired	(381)	(2,931)
Trades Monitor [Member]
Cash flows from investing activities:
Acquisition of Businesses, net of cash acquired	0	(2,749)
Connective Technologies
Cash flows from investing activities:
Acquisition of Businesses, net of cash acquired	$ 0	$ (1,337)

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Business Combinations

6 Months Ended

Jun. 30, 2011

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Business Combinations

Consideration paid by the Company for the businesses it purchases is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. Recognized goodwill pertains to the value of the expected synergies to be derived from combining the operations of the businesses we acquire including the value of the acquired workforce. During the six months ended June 30, 2011, Ebix completed the acquisition of ADAM, Inc. ("ADAM") as more fully described below.

On February 7, 2011 Ebix closed the merger of Atlanta, Georgia based ADAM with a wholly owned subsidiary of Ebix. Under the terms of the merger agreement, all of the ADAM shareholders received, at a fixed exchange ratio, 0.3122 shares of Ebix common stock for every share of ADAM common stock. Ebix issued approximately 3.65 million shares of Ebix common stock with a fair value of $87.5 million pursuant to the merger. This issuance of shares increased the Company's diluted common share count to approximately 42.07 million shares as of acquisition date. In addition Ebix paid approximately $944 thousand in cash for unexercised ADAM stock options. ADAM is a leading provider of health information and benefits technology solutions in the United States. $10.6 million of Adam's operating revenues recognized since February 7, 2011 are included in the Company's revenues reported on its condensed consolidated statement of income for the six months ended June 30, 2011. Due to the fact that many of ADAM specific functions were immediately integrated into Ebix's operations it is neither practical nor feasible to separately track and disclose specific earnings from this business combination after the acquisition date. The revenue derived from ADAM's portfolio of products and services is included in the Company's Exchange division. The Company initially accounted for this acquisition by recording $15.4 million of intangible assets pertaining to customer relationships, $2.1 million of intangible assets pertaining to acquired technology, and $2.0 million of intangible assets pertaining to acquired trademarks and the excess purchase price of $59.3 million to goodwill. During the 2nd quarter the Company completed its purchase accounting for the ADAM acquisition for certain tax related matters, resulting in a $6.3 million increase to deferred tax assets and a corresponding reduction to goodwill.

Furthermore and unrelated to the ADAM acquisition, during the 2nd quarter of 2011 the Company recorded a $3.0 million reduction to previously recorded contingency based earn-out accruals pertaining to business acquisitions made during 2010. The Company reduced these estimated accruals after analyzing the ongoing performance of these businesses since they were acquired and considering both information available at the date of the business acquisitions, which accounted for $1.1 million of the reduction, and information currently available, which accounted for $1.9 million of the reduction.

The unaudited pro forma financial information below, which specifically pertains to the ADAM acquisition, is provided for informational purposes only and does not project the Company's expected results of operations for any future period. No effect has been given in this pro forma information for future synergistic benefits that may be realized as a result of combining the two companies or costs that may be incurred in integrating their operations. The pro forma financial information below includes six months of pro forma results for ADAM as if it had been acquired on January 1, 2010, whereas the Company's reported financial statements for the six months ended June 30, 2011 only includes the actual financial results of ADAM since the effective date of its acquisition on February 7, 2011 and the Company's historical reported financial statements for the six months ended June 30, 2010 include no financial results of ADAM .

	Six Months Ending June 30, 2011				Six Months Ended June 30, 2010
	As Reported		Pro Forma		As Reported		Pro Forma
	(unaudited)				(unaudited)
	(In thousands)
Revenue	$	82,317	$	84,889	$	63,810	$	77,260
Net Income	$	37,512	$	38,787	$	26,394	$	28,008
Basic EPS	$	0.97	$	0.98	$	0.76	$	0.73
Diluted EPS	$	0.90	$	0.91	$	0.67	$	0.65

The pro forma figures for both periods presented above have been adjusted to remove one-time nonrecurring expenses directly associated with the acquisition of ADAM (specifically a $1.39 million investment banking fee and $400 thousand employee severance costs). These combined expenses of $1.79M were included in the as reported amounts for the six months ending June 30, 2011. All pro forma figures above reflect the removal of interest expense related to ADAM's operations, as ADAM's debt was fully repaid as a condition precedent to the closing of the acquisition; this resulted in a reduction in the pro forma expenses of $189 thousand in 2010 and $38 thousand in 2011. Additional expense related to amortization of acquired intangible assets has been included in the pro forma's for both years; this has resulted in additional expense of $778 thousand in 2010 and $150 thousand in 2011.

As a result of the 2011 acquisition of ADAM, certain qualified costs were capitalized as part of goodwill. These costs were $75 thousand for legal fees related to registering Ebix stock tendered as purchase consideration, and $665 thousand of officer severance costs associated with the terms of pre-existing employment contracts.

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Debt with Commercial Bank

6 Months Ended

Jun. 30, 2011

Debt with Commercial Bank [Abstract]

Debt Disclosure [Text Block]

Debt with Commercial Bank

On April 20, 2011 the Company entered into a seventh amendment to a credit agreement (the “Seventh Amendment”) with Bank of America, N.A. ("BOA"), as administrative agent, which materially amended the initial credit agreement dated February 12, 2010.  The Seventh Amendment increased the existing revolving credit facility from $25 million to $35 million with its term ending on April 20, 2014, and the $10 million secured term loan was increased to $20 million and now amortizes over a three year period with quarterly principal and interest payments that commenced on June 30, 2011 and a final payment of all remaining outstanding principal and accrued interest due on April 20, 2014. The entire credit facility has a variable interest rate currently set at LIBOR plus 1.50%.The revolving credit facility is used by the Company to fund working capital requirements primarily in support of current operations, organic growth, and accretive business acquisitions. The underlying financing agreement contains financial covenants regarding the Company's annualized EBITDA, fixed charge coverage ratio, and leverage ratio, as well as certain restrictive covenants pertaining to such matters as the incurrence of new debt, the aggregate amount of repurchases of the Company's equity shares, and the consummation of new business acquisitions. The Company currently is in compliance with all such financial and restrictive covenants, and there have been no violations thereof or in the event of noncompliance, appropriate waivers having been obtained.

At June 30, 2011, the outstanding balance on the revolving line of credit was $8.75 million and the facility carried an interest rate of 1.73%. This balance is included in the long-term liabilities section of the Condensed Consolidated Balance Sheets. During the six month period ending June 30, 2011 the average and maximum outstanding balance on the revolving line of credit was $23.3 million and $34.3 million, respectively.

At June 30, 2011, the outstanding balance on the term loan was $18.33 million of which $6.67 million is due within the next twelve months. This term loan also carried an interest rate of 1.73%. During the six months ended June 30, 2011 payments in the aggregate amount of $2.92 million were made against the term loan. The current and long-term portions of the term loan are included in the respective current and long-term sections of the Condensed Consolidated Balance Sheets.

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Convertible Debt

6 Months Ended

Jun. 30, 2011

Convertible Debt [Abstract]

Convertible Debt [Text Block]

Convertible Debt

On August 25, 2009, the Company entered into a Convertible Note Purchase Agreement with the Rennes Foundation in an original amount of $5.0 million, which amount is convertible into shares of common stock at a conversion price of $16.66 per share (the "Note"). The Note had a 0.0% stated interest rate and no warrants were issued. The Note was payable in full at its maturity date of August 25, 2011. The Company applied imputed interest on these convertible notes using an interest rate of 1.75% and discounted their carrying value accordingly. During the six months ending June 30, 2011 the Company recognized $21 thousand of interest expense on the Note. With respect to this convertible note, and in accordance with the terms of the notes, as understood between the Company and the holder, upon a conversion election by the holder the Company had to satisfy the related original principal balance in cash and could have satisfied 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. On April 18, 2011, the Rennes Foundation elected to fully convert the Note. The Company settled this conversion election by paying $5.00 million in cash with respect to the principal component, and paying $1.76 million in cash with respect to the conversion spread.

Regarding the above discussed convertible promissory note, the Company applied the FASB’s accounting guidance related to the accounting for convertible debt instruments that may be partially or wholly settled in cash upon conversion. This guidance required us to account separately for the liability and equity components of these types of convertible debt instruments in a manner that reflects the Company’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. This guidance further required a bifurcation of the debt and equity components, re-classification of the then derived equity component, and then accretion of the resulting discount on the debt as part of interest expense recognized in the income statement. The application of this accounting guidance resulted in the Company recording $4.83 million as the original carrying amount of the debt component, and $170 thousand as debt discount and the carrying amount for the equity component. The bifurcation of this convertible debt instrument was based on the calculated fair value of similar debt instruments at August 2009 that did not have a conversion feature and associated equity component. The annual interest rate determined for such similar debt instruments in August 2009 was 1.75%. The resulting discount has been amortized to interest expense over the two year term of the convertible notes. We recognized non-cash interest expense of $21 thousand for the six months ended June 30, 2011 related to the amortization of the discount on the liability component. Because the principal amount of the convertible notes must be settled in cash upon conversion, the convertible note only impacted diluted earnings per share when the average price of our common stock exceeded the conversion price, and then only to the extent of the incremental shares associated with the conversion spread. For all periods in which the Note was outstanding we included the effect of the additional shares that may be issued from conversion in our diluted net income per share calculation using the treasury stock method in periods in which the conversion prices are less than the average price of our common stock.

As of June 30, 2011 and presently the Company has no remaining convertible debt obligations.

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Condensed Consolidated Statements of Stockholders' Equity and Comprehensive Income (Unaudited) (USD $) In Thousands, except Share data	Total	Comprehensive Income Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning Balance, Value at Dec. 31, 2010	$ 231,268		$ 3,602	$ (76)	$ 153,221	$ 67,642	$ 6,879
Beginning Balance, Issued Shares at Dec. 31, 2010	36,057,791		36,057,791
Beginning Balance, Treasury Shares at Dec. 31, 2010				40,509
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,512	37,512				37,512
Cumulative translation adjustment	4,882	4,882					4,882
Comprehensive income		42,394
Repurchase and retirement of common stock, Shares			(1,308,873)
Repurchase and retirement of common stock, Value	(26,198)		(131)		(26,067)
Vesting of restricted stock, Shares			103,663
Vesting of restricted stock, Value			5		(5)
Stock Issued During Period, Value, Conversion of Convertible Securities	(1,850)				(1,850)
Exercise of stock options, Shares			21,509
Stock Issued During Period, Value, Stock Options Exercised			2
Exercise of stock options, Value	14				12
Deferred compensation and amortization related to options and restricted stock	1,143				1,143
Share subscribed for business acquisition, Shares			3,650,914
Share subscribed for business acquisition, Value	87,476		365		87,111
Tax benefit related to share-based compensation	70				70
Ending Balance, Value at Jun. 30, 2011	$ 334,317		$ 3,843	$ (76)	$ 213,635	$ 105,154	$ 11,761
Ending Balance, Issued Shares at Jun. 30, 2011	38,525,004		38,525,004
Ending Balance, Treasury Shares at Jun. 30, 2011				40,509

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Description of Business and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Description of Business and Summary of Significant Accounting Policies [Abstract]

Business Description and Accounting Policies [Text Block]

Description of Business and Summary of Significant Accounting Policies

Description of Business—Ebix, Inc. and subsidiaries (“Ebix” or the “Company”) provides a variety of on-demand software products and e-commerce services for the insurance and financial industries ranging from carrier systems, agency systems and exchanges to custom software development for carriers, brokers, and agents involved in insurance and financial services. The Company has its worldwide headquarters in Atlanta, Georgia with its international operations being managed from its Singapore offices, and also operates in several foreign countries including Australia, Brazil, New Zealand, UK, China, Japan, Canada, and India. International revenue accounted for 28.5% and 26.9% of the Company’s total revenue for the six months ended June 30, 2011 and 2010, respectively.

The Company’s revenues are derived from four product/service groups. Presented in the table below is the breakout of our revenue streams for each of those product/service groups for the three and six months ended June 30, 2011 and 2010.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(dollar amounts in thousands)	2011		2010		2011	2010
Carrier Systems	$	1,468	$	2,155	2,992	4,490
Exchanges	32,222		22,749		63,287	45,620
BPO	3,753		3,985		7,372	7,478
Broker Systems	4,824		3,318		8,666	6,222
Totals	$	42,267	$	32,207	82,317	63,810

Summary of Significant Accounting Policies

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements and these notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in accordance with U.S. generally accepted accounting principles with the effect of inter-company balances and transactions eliminated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management these unaudited condensed consolidated financial statements contain adjustments (consisting only of normal recurring items) necessary to fairly present the consolidated financial position of the Company and its consolidated results of operations and cash flows. Operating results for the six months ended June 30, 2011 and 2010 are not necessarily indicative of the results that may be expected for the fiscal year. The condensed consolidated December 31, 2010 balance sheet included in this interim period filing has been derived from the audited financial statements at that date but does not included all of the information and related notes required by GAAP for complete financial statements. These interim financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Fair Value of Financial Instruments—The Company believes the carrying amount of cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, accrued payroll and related benefits, line of credit, long-term debt obligations, put option liability, and capital lease obligations is a reasonable estimate of their fair value due to the short remaining maturity of these items and/or their fluctuating interest rates.

Revenue Recognition—The Company derives its revenues primarily from subscription and transaction fees pertaining to services delivered over our exchanges or from our ASP platforms, fees for business process outsourcing services, and fees for software development projects including associated fees for consulting, implementation, training, and project management provided to customers with installed systems. Sales and value-added taxes are not included in revenues, but rather are recorded as a liability until the taxes assessed are remitted to the respective taxing authorities.

In accordance with Financial Accounting Standard Board (“FASB”) and Securities and Exchange Commission ("SEC") accounting guidance on revenue recognition, the Company considers revenue earned and realizable when: (a) persuasive evidence of the sales arrangement exists, provided that the arrangement fee is fixed or determinable, (b) delivery or performance has occurred, (c) customer acceptance has been received, if contractually required, and (d) collectability of the arrangement fee is probable. The Company uses signed contractual agreements as persuasive evidence of a sales arrangement. We apply the provisions of the relevant generally accepted accounting principles related to all transactions involving the license of software where the software deliverables are considered more than inconsequential to the other elements in the arrangement. For contracts that contain multiple deliverables, we analyze the revenue arrangements in accordance with such guidance, which provides criteria governing how to determine whether goods or services that are delivered separately in a bundled sales arrangement should be considered as separate units of accounting for the purpose of revenue recognition.

Software development arrangements involving significant customization, modification or production are accounted for in accordance with the appropriate technical accounting guidance issued by FASB using the percentage-of-completion method. The Company recognizes revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and applies the percentage to the total arrangement fee.

Accounts Receivable and the Allowance for Doubtful Accounts Receivable—Reported accounts receivable include $26.2 million of trade receivables stated at invoice billed amounts net of the estimated allowance for doubtful accounts receivable, and $6.6 million of unbilled receivables. Approximately $7.2 million of deferred revenue is included in accounts receivable at June 30, 2011. Bad debt expense incurred during the three and six month periods ended June 30, 2011 was approximately $326 thousand and $337 thousand, respectively and $203 thousand for the three and six month periods ended June 30, 2010. Accounts receivable are written off against the allowance account when the Company has exhausted all reasonable collection efforts.

Goodwill and Other Indefinite-Lived Intangible Assets—Goodwill represents the cost in excess of the fair value of the net assets of acquired businesses. Indefinite-lived intangible assets represent the fair value of acquired contractual customer relationships for which future cash flows are expected to continue indefinitely. In accordance with the relevant FASB accounting guidance, goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level on an annual basis or on an interim basis if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying value. Potential impairment indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, and the sale or disposition of a significant portion of the business. We perform our annual impairment tests on September 30 each year. The testing involves comparing the reporting unit and intangible asset carrying values to their respective fair values; we determine fair value by applying the discounted cash flow method using the present value of future estimated net cash flows. These projections of cash flows are based on our views of growth rates, anticipated future economic conditions and the appropriate discount rates relative to risk and estimates of residual values. We believe that our estimates are consistent with assumptions that marketplace participants would use in their estimates of fair value. The use of different estimates or assumptions for our projected discounted cash flows (e.g., growth rates, future economic conditions, discount rates and estimates of terminal values) when determining the fair value of our reporting units could result in different values and may result in a impairment charges. Our 2010 impairment test indicated that there was no impairment of our reporting unit goodwill and indefinite-lived intangible asset balances.

Changes in the carrying amount of goodwill for the six months ended June 30, 2011 are as follows:

	(In thousands)
Beginning Balance (December 31, 2010)	$	180,602
Additions, net (see Note 3)	58,376
Foreign currency translation adjustments	6,771
Ending Balance (June 30, 2011)	$	245,749

Finite-lived Intangible Assets—Purchased intangible assets represent the estimated acquisition date fair value of customer relationships, developed technology, trademarks and non-compete agreements acquired in connection with the synergistic combination of the businesses we acquire in the U.S. and foreign countries in which operate. We amortize these intangible assets on a straight-line basis over their estimated useful lives, as follows:

Category	Life (yrs)
Customer relationships	4–20
Developed technology	3–10
Trademarks	3–15
Non-compete agreements	5
Database	10

The carrying value of finite-lived and indefinite-lived intangible assets at June 30, 2011 and December 31, 2010 are as follows:

	June 30, 2011			December 31, 2010
	(In thousands)
Finite-lived intangible assets:
Customer relationships	$	39,678		$	24,001
Developed technology	11,761			9,343
Trademarks	2,251			218
Non-compete agreements	418			418
Backlog	140			140
Database	217			213
Total intangibles	54,465			34,333
Accumulated amortization	(14,278		)	(11,759		)
Finite-lived intangibles, net	$	40,187		$	22,574
Indefinite-lived intangibles:
Customer/territorial relationships	$	31,278		$	30,552

Amortization expense recognized in connection with acquired intangible assets were $1.2 million and $2.4 million for the three and six ended June 30, 2011 and $865 thousand and $1.7 million for the three and six ended June 30, 2010, respectively.

Income Taxes—Deferred income taxes are recorded to reflect the estimated future tax effects of differences between the financial statement and tax basis of assets, liabilities, operating losses, and tax credit carry forwards using the tax rates expected to be in effect when the temporary differences reverse. Valuation allowances, if any, are recorded to reduce deferred tax assets to the amount management considers more likely than not to be realized. Such valuation allowances are recorded for the portion of the deferred tax assets that are not expected to be realized based on the levels of historical taxable income and projections for future taxable income over the periods in which the temporary differences will be deductible.

The Company also applies FASB accounting guidance on accounting for uncertainty in income taxes positions. This guidance clarifies the accounting for uncertainty in income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. In this regard we recognize the tax benefit from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Recent Relevant Accounting Pronouncements—The following is a brief discussion of recently released accounting pronouncements that are pertinent to the Company's business:

In December 2010, the Emerging Issues Task Force of FASB reached consensus regarding the disclosure of pro forma information for business combinations. This new guidance addressed the diversity in practice concerning the interpretation of the pro forma revenue and earnings disclosure requirements for business combinations. The guidance specifies that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination had occurred as of the beginning of the comparable prior annual reporting period only. The amendments also expand the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments affect any public entity that enters into business combinations that are material on an individual or aggregate basis. The new guidance is applicable to business combinations for which the acquisition date is on or after the first annual reporting period beginning on or after December 15, 2010. The Company adopted this new guidance during 2011 and applied it to the disclosures regarding our recent acquisition of ADAM, completed in February 2011.

In September 2009, FASB issued amended revenue recognition guidance related to revenue arrangements with multiple deliverables. This new pronouncement: (a) provides application guidance on whether multiple deliverables exist in an arrangement with a customer, and if so, how the arrangement consideration should be separated and allocated; (b) requires an entity to allocate revenue using estimated selling prices of deliverables if vendor-specific objective evidence (“VSOE”) or third party evidence (“TPE”) of selling prices is not available; and, (c) eliminates the use of the “residual method” to allocate revenue. This guidance is to be applied on a prospective basis for revenue arrangements entered into in fiscal years beginning on or after June 15, 2010, with earlier application permitted. Alternatively, an entity can elect to adopt new guidance on a retrospective basis. The Company has adopted this new guidance in 2011 and its adoption did not have a material impact on the Company's consolidated results of operation.

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Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events Thru May 9 2011 [Abstract]

Subsequent Events [Text Block]

Subsequent Events

Repurchases of Common Stock

Since June 30, 2011 and through August 8, 2011 the Company has purchased an additional 1,059,000 shares of its outstanding common stock for aggregate consideration in the amount of $20.1 million and at an average rate of $19.00 per share. All share repurchases were done in accordance with Rule 10b-18 of the Securities Act of 1934 as to the timing, pricing, and volume of such transactions, and were completed using available cash resources and cash generated from the Company's operating activities.

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Condensed Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Operating revenue	$ 42,267	$ 32,207	$ 82,317	$ 63,810
Operating expenses:
Cost of services provided	8,914	7,427	16,221	14,490
Product development	4,802	3,571	9,421	6,934
Sales and marketing	3,261	1,748	6,113	3,074
General and administrative	4,694	5,005	12,455	10,665
Amortization and depreciation	1,991	1,448	3,868	2,880
Total operating expenses	23,662	19,199	48,078	38,043
Operating income	18,605	13,008	34,239	25,767
Interest income	129	127	329	215
Interest expense	(159)	(246)	(374)	(514)
Other non-operating income	(464)	1,444	(818)	1,761
Foreign currency exchange gain	1,397	233	2,865	336
Income before income taxes	19,508	14,566	36,241	27,565
Income tax expense	2,840	(556)	1,271	(1,171)
Net income	$ 22,348	$ 14,010	$ 37,512	$ 26,394
Basic earnings per common share	$ 0.57	$ 0.40	$ 0.97	$ 0.76
Diluted earnings per common share	$ 0.53	$ 0.36	$ 0.90	$ 0.67
Basic weighted average shares outstanding	39,159	34,958	38,658	34,853
Diluted weighted average shares outstanding	42,344	39,275	41,882	39,305