Jack Henry reports 4% net income decline

Jack Henry & Associates Inc. on Tuesday reported a 4 percent decline in quarterly profit, despite an increase in overall revenue.

Net income for the Monett-based company's fiscal first quarter was $22.5 million, down 4 percent from $23.5 million a year ago, according to a news release. Per-share earnings were unchanged at 26 cents.

Revenue, meanwhile, was up 5 percent at $183.1 million, and gross profit was up 4 percent to $72.5 million. A 10 percent climb in support and services revenue bolstered the company's finances, but one-time implementation revenue was down 5 percent due mostly to the "decreased convert merger activity of our customers acquiring other banks in the current market," President Tony Wormington said in the release. The company also had an increase in expenses such as health insurance, as the quarter had a higher-than-usual number of employee claims.

"While revenue was slightly below our expectations for the quarter, considering the current challenges presented by the economy and the related uncertainty in the marketplace, we are fairly pleased with our overall performance," CEO Jack Prim said in the release.

Jack Henry's backlog grew 12 percent to $266.2 million. That figure includes $65.1 million in-house and $201.1 million in outsourcing.

Shares (Nasdaq: JKHY) closed Tuesday at $19.09 and were trading down at $18.24 as of 11:15 this morning. The 52-week range is $14.76 to $28.81.[[In-content Ad]]