Jack Henry reports 11 percent revenue increase

SBJ Staff

Posted online February 3, 2010 | 8:05 am

Monett-based Jack Henry & Associates Inc. (Nasdaq: JKHY) reported increases in revenue, gross profit and net income in the quarter that ended Dec. 31, the company reported after markets closed on Tuesday.

The banking software company generated total revenue of $210.9 million in the quarter, the second quarter of its 2010 fiscal year, which began July 1. That revenue total was up 11 percent from the same quarter a year earlier.

Gross profit for the quarter was $89.1 million, up 15 percent from the year before, and net income was $30 million or 35 cents per diluted share, up 7 percent.

Operating expenses were up 17 percent for the quarter from the same quarter a year earlier, due to cost increases related to the acquisition of Goldleaf Financial Solutions Inc. and PEMCO Technology Services Inc. during the quarter.

"We are generally pleased with the overall performance in the quarter," CEO Jack Prim said in the earnings release. "We continued to see positive impacts resulting from our cost control initiatives, with a 14 percent improvement in operating income compared to the prior year, even with the inclusion of the one-time expenses related to the acquisitions."

Shares of Jack Henry closed Tuesday at $22.76, compared to a 52-week range of $14.29–$24.75. Shares were up 2.5 percent to $23.33 as of 8:45 a.m.[[In-content Ad]]