Jack Henry profit edges down 4%

Monett-based Jack Henry & Associates says less discretionary spending on computer hardware and software is the reason for a 4 percent decline in net income last quarter.

The financial technology provider issued results Tuesday for its fiscal 2009 second quarter, which ended Dec. 31.

Net income was $28 million, down 4 percent from $29.2 million in the same quarter a year earlier. Earnings per share, however, climbed 1 cent to 33 cents.

Total revenue was down 1 percent to $190.2 million, compared to $191.9 million a year ago. Income from continuing operations fell 5 percent to $28 million, and gross profit was down 9 percent to $77.4 million.

Operating expenses, meanwhile, dropped 8 percent for the quarter, with cuts to contracting and consulting costs, travel-related expenses and meeting costs.

"We continued to see a cautious outlook by our customers during the quarter regarding discretionary software and hardware expenditures and expect these types of spending items to remain a challenge until we return to some form of economic stability," CEO Jack Prim said in a news release. "During these challenging times, we continue to maintain a strong focus on cost control which is reflected in our operating expense reduction in the quarter."

Construction began late last year on Jack Henry's new Springfield campus near the U.S. Highway 65/Battlefield Road interchange. The project is slated for completion in spring or early summer of 2010.

Jack Henry shares (Nasdaq: JKHY) closed Wednesday at $16.55, compared to a 52-week range of $14.76 to $27.48.[[In-content Ad]]