Jack Henry profits rise 5% in 2Q

Jack Henry & Associates Inc. (Nasdaq: JKHY) posted profits of $40.5 million in its second quarter ending Dec. 31, a 5 percent increase compared to $38.5 million in the same quarter of 2011.

The Monett-based company, which provides technology solutions and payment processing services for the financial services industry, recorded second-quarter earnings per diluted share of 47 cents, a 3-cent uptick, according to a news release.

Operating expenses during the quarter included $13.7 million related to the impact of Hurricane Sandy flooding at Jack Henry's Lyndhurst, N.J., item processing center. Overall, operating expenses totaled $62.8 million, a 35 percent increase compared to $46.6 million in second-quarter 2011.

"We continue to have a very good fiscal 2013 with both the quarter and first six months providing record revenue and gross profit compared to any respective periods in our history. We also would have had record operating income for the quarter if not for the expenses related to Lyndhurst," Jack Henry President Tony Wormington said in the release.

Second-quarter financial notes:

• Jack Henry's backlog increased 19 percent to $452.2 million.
• Revenue rose 9 percent to $278.7 million from $255.9 million in the same quarter of 2011.
• Cost of sales increased 5 percent to $156.6 million from $148.4 million.

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 $43.13 as of 9:11 a.m., compared to a 52-week range of $32.17 to $43.25.