Jack Henry third-quarter net income rises 21 percent

The financial data-processing and integrated technology provider reported revenue of $145.5 million for the quarter ended March 31, an 8 percent increase from $134.4 million during the same quarter last year.

Gross profit for the quarter was $63.7 million, up 11 percent from $57.3 million last year, and net income rose 21 percent to $23.5 million, or 25 cents per share.

For the first nine months of fiscal year 2006, company revenue increased 9 percent to $429.9 million, compared to $394.4 million last year. Gross profit increased 14 percent to $185.7 million, and net income was $64.5 million, or 69 cents per share, representing a 20 percent increase compared to the same period last year.

Jack Henry also declared a quarterly cash dividend of 5.5 cents per share. The dividend on common stock is payable May 31 to shareholders of record May 15.

“Our services business continues to show strong growth, with particularly strong volume growth in all of our electronic transactions businesses,” CEO Jack Prim said in a news release. “Our bank segment also experienced the largest software license fee quarter in the history of the company.”

Shares of company stock (Nasdaq: JKHY) closed May 16 at $19.45, compared to a 52-week range of $16.56 to $23.77.

The company also announced changes to its management team.

Mark Forbis was appointed to the newly created position of vice president and chief technology officer. According to a separate news release, the position was created as the result of the increasing complexity of technology and its growing importance to Jack Henry’s clients.

Forbis began his career in 1982 as a data center operator, and he joined Jack Henry in 1988. Prior to his promotion, Forbis served as the general manager of technology services. He continues to work from Jack Henry’s headquarters in Monett.

Tom Walsh has resigned as general manager of marketing and industry research with Jack Henry, citing the desire to devote more time to personal issues. His resignation is effective June 30.

Walsh joined Jack Henry in 1998; he will remain with the company to manage strategic and tactical planning projects during an abbreviated work schedule and will help facilitate a smooth transition for his successor, Debbie Wood.

Wood, the new general manager of marketing and industry research, joined Jack Henry in 1995. She has served in several progressive sales and sales management positions, most recently as national sales manager for Jack Henry’s retail delivery solutions. She will assume her new responsibilities July 1 and will continue to work from Jack Henry’s office in Charlotte, N.C.

The company also has added the general manager of finance position, and Renee Swearingen has been named to the post. Swearingen, a certified public accountant, joined Jack Henry in 1996 and has served as the company’s corporate controller since 2001. She continues to work at the company’s Monett office.

Marguerite Butterworth, vice president and general manager of hardware and vendor relations, will retire from Jack Henry June 30. She joined the company in 1983. Following her retirement, and to further the company’s goal to redefine its business processes and maximize existing resources, Jack Henry’s hardware and vendor relations department will merge with the sales support department.

“Each of these associates – those leaving us as well as those that are assuming expanded responsibilities – has made tangible contributions to Jack Henry’s growth and progress,” Prim said.

Jack Henry & Associates is a provider of integrated computer systems and processor of transactions for banks and credit unions. The company serves more than 8,600 customers nationwide.