Ebix, Inc. Q4 2008 Earnings Call Transcript

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2009-03-17 13:12:24.0

Tags: Call Transcript, Earnings, Question, Ebix Inc., Vincent Capozi, Insurance, Free Trade, Operational Accounting, Mortgages, Personal Finance, Financial Planning, Business Operations, Corporate Insurance, Finance, Capital Structures, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions) Your first question comes from Harry Long [ph]. Harry, your line is open.

Harry Long

Hi, Mr. Raina, fantastic numbers. What a great quarter.

Robin Raina

Thank you, Harry, how are you?

Harry Long

Doing great. It was great meeting with you down in Atlanta. I have a couple of quick questions about your partners. Most of them seem to have pretty self explanatory, but I have a question about two, one of them was Morning Star and the other one was Communication Intelligence Corporation. Could you talk little bit about that?

Robin Raina

I couldn't. I would prefer to not talk about any individual customers on this call, more so because of confidentiality reasons with each of these customers.

Harry Long

Okay, well we (inaudible) use them on your website as partners, but okay, if you are uncomfortable, I won't push it. That is all I had.

Robin Raina

Thank you.

Operator

Our next question comes from Vincent Capozi [ph]. Vincent, your line is now open.

Vincent Capozi

Hi, I would like to ask a few questions. First of all, your comprehensive income is quite a bit down from where it was. Can you explain what that is all about?

Robin Raina

I am not understanding that question. Where is it down?

Robert Kerris

I can answer the question.

Vincent Capozi

Okay.

Robert Kerris

Hi, this is Robert Kerris, CFO. What you are looking at, the only component of the recovery of the income is the $2 million in foreign currency translation adjustment and that reflects the deteriorations on the currency that we operate in.

Vincent Capozi

Is it better for you to have a strong dollar or a weak dollar?

Robin Raina

Weak dollar.

Vincent Capozi

Weak dollar, okay. Also, with the insurance companies having so much problems, especially life and annuity companies, I know that they still have to do business, but they have these sub-prime mortgages or they had investments, toxic assets whatever. Do you find that that is hurting you in any way?

Robin Raina

Well, Vinny, you see the proof line in the pudding. You can look at the Q4 numbers and see it. At the end of the day, I made a comment about something that if the exchange rates had remained the same, our revenue would've been $2 million higher. So really, the exchange rate brought the revenue down in terms of – it could have been a lot higher. Having said that, there are areas in which there is an impact. Meaning, if you look at the back end systems market, where an insurance company is supposed to make a life-changing decision, let us say changing a backend system, those decisions are now being delayed. They are not making those kinds of decisions. However, on the Exchange side of the business, we are not seeing any differences. We are continuing to see, meaning it depends on the business you are in.

 

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