Jack Henry & Associates Inc. (Nasdaq: JKHY) recorded a 14 percent increase in net income, largely due to support and service revenue, according to its 2010 fiscal results released Aug. 17. The company's fiscal year ended June 30.
The Monett-based information technology company reported a net income of $117.9 million, compared to its fiscal 2009 net income of $103.1 million. Support and service revenue was $720.5 million, or 86 percent of total revenue, according to a news release.
CEO Jack Prim pointed to the company's acquisitions during the fiscal year: Elizabeth, Ky.-based iPay Technologies LLC, Seattle-based Pemco Technologies and Norcross, Ga.-based Goldleaf Financial Solutions Inc., according to Springfield Business Journal coverage.
The acquisitions affected the year-end support and service revenue by adding $75.2 million to the company's revenue line, the release said.
"The integration of these companies could hardly have gone better, and is substantially complete, including the most recent acquisition of iPay less than 90 days ago," CEO Jack Prim said in the release. "These acquisitions contributed significantly to our electronic payments revenues, which had total revenue of over $200 million in the fiscal year, and to our recurring revenue, which is now 78 percent of the total revenue."
In the same release, Jack Henry announced 7.3 percent growth in net income in the fourth quarter.
Net income for the quarter was $30 million, compared to its fourth-quarter fiscal 2009 results of $27.8 million. Price per diluted share during the quarter was 35 cents, compared to 33 cents per diluted share in the same quarter in fiscal 2009, according to the release.
Fourth-quarter revenue was also largely affected by support and service revenue, which was $198.3 million, or 87 percent of total revenue. EFT Support, which includes ATM and debit card processing, showed the largest change at $26.2 million in revenue, the release said.
"The net results of the quarter and the year were very much in-line with our expectations both organically and including our projections for the three acquisitions during the year," Chief Financial Officer Kevin Williams said in the release. "Considering that license revenue was down 29 percent for the fourth quarter and 11 percent for the entire fiscal year, our managers and associates did a stellar job of controlling costs, which is evidenced by the operating margins we produced."
Shares of Jack Henry stock were at $24.74 as of the morning of Aug. 18, compared to a 52-week range of $21.01-$26.50.[[In-content Ad]]
