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Jack Henry posts 11% gain in profits

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Monett-based Jack Henry & Associates Inc. (Nasdaq: JKHY) boosted its third-quarter net income by 11 percent to $36.7 million, up from profits of $33.1 million in the same quarter of its previous fiscal year.

During the quarter ended March 31, the company posted revenues of $256.3 million and gross profits of $103.4 million, and the banking software firm reported a backlog of $397 million, according to the release.

“We continue to see an improved spending environment, favorably influenced by improving financial institution balance sheets and fee income that has been less negatively impacted than was expected a year ago," Jack Henry CEO Jack Prim said in the release. "In addition to the solid financial performance in the quarter, our biennial employee engagement survey showed solid gains across the board, which we believe bodes well for our customers and our shareholders.”

The company reported earnings per diluted share of 42 cents during the third quarter, a 4-cent increase compared to the three months ended March 31, 2011, according to the release.

Jack Henry constructs integrated computer systems and processes ATM and debit card transactions for bank and credit unions, with more than 11,900 customers nationwide.  

Other third-quarter financial notes:
  • Cash and cash equivalents increased to $89.8 million, compared to $54.4 million at the end of the same quarter of the previous fiscal year.
  • Cost of sales increased 6 percent to $152.9 million.
  • The company's support and services line of revenue, which represents 88 percent of total revenue, grew 8 percent to $226.5 million.
At the end of the third quarter, the company's assets were $1.4 billion.

Jack Henry stock was trading at $33.71 as of 8:32 a.m., compared to its 52-week range of $24.41 to $35.37.[[In-content Ad]]

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