Jack Henry reports 7% rise in earnings

Monett-based Jack Henry & Associates Inc. (Nasdaq: JKHY) reported second-quarter net income of $38.53 million, a 7 percent increased compared to earnings of $36.05 million in the same quarter of its previous fiscal year.

For the three months ended Dec. 31, the company posted earnings per diluted share of 44 cents, a 2-cent increase, according to a news release.

"This quarter represents continued solid execution on all fronts," company CEO Jack Prim said in the release. "We grew revenue, lowered operating expenses and improved customer satisfaction metrics.  

"Although we still see some residual impacts from failed banks in previous periods, we are encouraged by the continued gradual improvement in the economic environment and improved spending trends in our customer base."

Revenue grew 5 percent to $255.9 million in the quarter, compared to $242.6 million in the second quarter of fiscal 2011. Operating expenses, at $46.6 million, were 3 percent lower than expenses of $47.8 million in the previous quarter.

In the release, Jack Henry President Tony Wormington pointed to the company's support and services line of revenue, which increased to $225.6 million.

"Within this line, we continue to see strong growth in our payments business, with 9 percent growth for the quarter compared to the same quarter a year ago, and 10 percent growth year-to-date," he said in the release. "Overall, our support and services revenue grew 6 percent for the quarter compared to a year ago."

Jack Henry & Associates constructs integrated computer systems and processes ATM and debit card transactions for bank and credit unions, with more than 11,300 customers nationwide.  

At the end of the second quarter, the company's assets were $1.5 billion.  

Jack Henry stock was trading at $34.97 as of 10:30 a.m., compared to its 52-week range of $24.41 to $35.37.[[In-content Ad]]