Jack Henry continues quarterly profit climb

Monett-based technology firm Jack Henry & Associates Inc. (Nasdaq: JKHY) posted both revenue and gross profit increases for the company's third quarter of fiscal 2014.

For the quarter ended March 31, the company generated total revenue of $300.9 million, up nearly 7 percent compared to $281.5 million in the same quarter a year ago, and gross profit increased 8.6 percent to $124.5 million from $114.6 million, according to a news release.  

Net income also is slightly up to $46.8 million, or 55 cents per diluted share, compared to $46 million, or 53 cents per diluted share, in the same quarter a year ago.

"We delivered solid results on several fronts in the quarter including continued strong organic revenue growth with gross and operating margins," CEO Jack Prim said in the release. " We continued to have good sales performances across all brands as evidenced by the increased backlog compared to a year ago."

Third-quarter financial notes: 

• License revenue decreased to $15.3 million and gross margin on license revenue was 92 percent.
• Cost of sales increased 6 percent to $176.4 million.
• Operating expenses increased 9 percent, primarily due to increased headcount and related salaries. 
• Research and development expenses increased 9 percent to $17.5 million.
• General and administrative costs increased 14 percent to $13.6 million.
• Gross profit for the first nine months of fiscal 2014 increased 9 percent to $386.1 million, compared to $352.8 million last year.

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. As of Dec. 31, the company's assets were $1.6 billion.

JKHY shares were trading at $55.21 as of 11:03 a.m., compared to a 52-week range of $37.90 to $60.34.