Jack Henry starts fiscal year with 16% earnings bump

Monett-based Jack Henry & Associates Inc. (Nasdaq: JKHY) started its fiscal year with first-quarter net income of $42.5 million, a 16 percent increase compared to earnings of $36.5 million for the same quarter of fiscal 2012.

Earnings per diluted share for the quarter ending Sept. 30 were 49 cents, a 7-cent uptick, according to a news release.

Jack Henry, which provides technology solutions and payment processing services for the financial service industry, reported first-quarter revenues of $271 million, a 9 percent increase, and a gross profit of $115.9 million, an 11 percent bump.

"We experienced a very good start to our fiscal 2013 with record revenue, gross profit and operating income compared to any quarter in our history," Jack Henry President Tony Wormington said in the release. "Our support and services revenue was once again the primary driver of our revenue growth, which represented 90 percent of total revenue in the quarter."

Support and services revenue rose 11 percent to $244.6 million. Within that line, electronic payment services had the largest growth during the quarter - 15 percent to $12.3 million.

"As the number of bank failures has continued to decline, we face fewer headwinds on our revenue growth," Jack Henry CEO Jack Prim added in the release.

Jack Henry constructs integrated computer systems and processes ATM and debit card transactions for bank and credit unions, with more than 11,900 customers nationwide. As of Sept. 30, the company's assets were $1.6 billion.

The company's shares were trading at $40.45 as of 8:58 a.m., compared to a 52-week range of $30.27 to $40.71.