Jack Henry second-quarter net income up 24%

Monett-based Jack Henry & Associates Inc. reported strong results with revenues rising 10 percent, and continued improvement in gross and operating margins that contributed to a 24 percent increase in net income for the second quarter of fiscal 2004 compared to the second quarter of fiscal 2003.

Jack Henry & Associates provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions.

According to a news release, net income totaled $14.5 million, or 16 cents per diluted share, and revenues increased 10 percent to $112.7 million in its second quarter of fiscal 2004, ended Dec. 31. A year ago, second quarter net income was $11.7 million, or 13 cents per diluted share, on revenues of $102.6 million.

For the first half of fiscal 2004, net income increased 24 percent to $28.4 million, or 31 cents per diluted share, compared to $23 million, or 26 cents per diluted share in the first six months of fiscal 2003. Revenues increased 13 percent to $221.7 million in the first half of fiscal 2004 compared to $196.5 million in the same period of fiscal 2003.

"Our predictions of a gradual recovery of new core sales are proving accurate and our outsourcing, ATM and debit-card processing and sales of complementary products and services continue to drive revenue growth," said Michael E. Henry, chairman and CEO, in a news release.

License fees decreased 10 percent to $12.4 million, or 11 percent of second-quarter revenues, compared to $13.8 million, or 13 percent of second quarter revenues a year ago. Growth of in-house support fees, outsourcing, and ATM/debit switch transaction fees contributed to the 19 percent increase in support and service revenue to $76.7 million, or 68 percent of second quarter revenues, compared to $64.3 million, or 63 percent of last year's second quarter revenues.

Hardware sales fell 4 percent to $23.6 million in the quarter from $24.5 million in the prior year quarter. Year-to-date, license revenues were off 2 percent at $25.4 million, support and service revenues were up 20 percent to $149.2 million and hardware revenues increased 1 percent to $47.1 million compared to the first half of fiscal 2003.