Jack Henry starts fiscal year with 21% net income jump

Monett-based Jack Henry & Associates Inc. (Nasdaq: JKHY) started its fiscal 2011 with a 20.9 percent net income increase.

The data processing software company released its first-quarter results Nov. 2 and reported net income of $31.8 million for the three months ended Sept. 30, compared to $26.3 million a year ago.

Price per diluted share was 37 cents in the quarter, a 6-cent increase from the 31-cent price per share figure in fiscal 2010.

"We are pleased with the results in the quarter with solid total and organic revenue growth, which resulted in record revenue, operating and net income for the quarter," CEO Jack Prim said in the release. "We expect to see gradual improvement in financial institution spending as the economy continues to slowly improve."

Total revenue for the quarter was $234.8 million, a 28.8 percent increase from first-quarter 2010 revenues of $182.3 million.

Additional first-quarter highlights:

• During the first quarter, the company paid back approximately $130 million in borrowings.
• Dividends of $8.1 million were paid during the quarter.
• First-quarter operating expenses were $44.3 million, compared to $32.5 million in the previous year.

Jack Henry & Associates constructs integrated computer systems and processes ATM and debit card transactions for bank and credit unions, with 11,200 customers nationwide.

Jack Henry shares were trading at $28.45 as of 8:45 a.m., compared to a 52-week range of $21.01 to $28.57.