Jack Henry reports bottom-line increase on higher sales

Jack Henry & Associates Inc. (Nasdaq: JKHY) posted net income of $50.7 million for its third quarter ended March 31, a 19 percent increase compared to $42.6 million a year earlier.

The Monett-based banking software firm reported diluted share earnings of 63 cents for the quarter, representing a 13-cent bump, according to a news release.

Revenue totaled $309.7 million in the third quarter, a 6 percent boost compared to $291.4 million in the same period of 2014. While sales costs rose 2 percent to $177.9 million, gross profit landed at $131.8 million, a 12 percent increase.

As of March 31, Jack Henry’s assets were $1.6 billion and its customer count was roughly 11,300, according to the release.

JKHY shares were trading at $62.86 as of 8:58 a.m., compared to a 52-week range of $51.86 to $70.25.

Restatement of revenue
The Jack Henry board’s audit committee, with help from independent public account firm Deloitte & Touche LLP, on May 6 concluded previously issued financial statements for the years ended June 30, 2012-14, as well as the quarter ended Sept. 30, 2014, incorrectly stated revenue and direct related expenses for multiple contracts, according to the release.

The company will adjust the figures, resulting in a decrease in revenue and net income cumulatively over the period, as well as a drop in retained earnings and deferred tax liabilities, and an increase in prepaid direct costs and long-term deferred revenue.

"We are pleased to conclude this very technical accounting review," said Jack Prim, Jack Henry’s chairman and CEO, in the release. "Throughout the review, our management and associates have remained focused on our business and have maintained our high level of service for our customers.”

After closing at $67.09 yesterday, Jack Henry’s stock fell over $4 in trading this morning.[[In-content Ad]]