Jack Henry quarterly profit drops 7%

Jack Henry & Associates saw a 7 percent decline in quarterly net income resulting from a drop in clients' discretionary spending.

The Monett-based financial technology provider reported results for its fiscal third quarter, ended March 31, on Tuesday after market close.

Net income was $24.8 million, or 30 cents per share, down 7 percent from $26.6 million, also 30 cents per share, a year ago.

Revenue was $180.4 million, down 4 percent from $187.5 million a year ago. Gross profit was $70.2 million, down 9 percent from $77 million a year ago.

"We continued to see significant headwinds during the quarter on discretionary spending related to hardware and license fees," CEO Jack Prim said in the earnings release, noting that the company has cut costs in a number of areas, including travel, contract labor and marketing. "While the near-term economic outlook remains cloudy, we will continue to manage the business in what we believe to be the best long-term interests of stockholders, customers and employees."

Shares (Nasdaq: JKHY) closed Tuesday at $17.62 and were trading down at $17.50 as of 10:45 this morning. The 52-week range is $14.29 to $26.58.[[In-content Ad]]