Jack Henry grows net income 17 percent

Jack Henry & Associates Inc. posted a 17 percent increase in net income for fiscal 2010's first quarter, which ended Sept. 30.

The Monett-based financial technology provider generated net income of $26.3 million for the quarter, or 31 cents per diluted share, compared to $22.5 million, or 26 cents per share in the first quarter of fiscal 2009.

Most of the increase in net income can be attributed to sales costs, which were down 2 percent. Total revenue for the quarter was $182.3 million, virtually unchanged from the $183.1 million posted a year earlier, but gross profit increased 2.6 percent to $74.4 million.

Support and service revenue was up 3 percent to $155.9 million in the quarter; those revenues made up 86 percent of total company revenue for the quarter. License revenue, meanwhile, declined 14 percent to $11.4 million and now makes up only 6 percent of total revenue.

"Our support and services revenue continues to generate growth and offset the lack of discretionary complementary product license fees and hardware sales caused by the current economic environment," Jack Henry President Tony Wormington said in the company's earnings release. "However, the weak license sales also have negatively impacted one-time implementation fees and delayed some work orders."

Operating income increased 18 percent for the quarter to $42 million.

Shares of Jack Henry and Associates (Nasdaq: JKHY) closed Wednesday at $23.11, compared to a 52-week range of $14.29 to $24.75. Shares were up to $23.81 as of 10:45 a.m.

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